Comments made in direct testimony by Virginia Electric and Power Company President Edward H. Baine to the North Carolina Utilities Commission gave more details on the company’s proposed rate increase for its North Carolina customers.

Baine’s testimony in the spring is part of a more than 500-page document filed with the NCUC and includes comments by other company executives.

The NCUC will hold a public hearing on the matter September 28 at 7 p.m. at the Halifax County Courthouse on Ferrell Lane.

“The Company's Application and pre-filed testimony request and support an incremental base non-fuel revenue requirement of approximately $37 million,” Baine said. “As Company Witness William J. Caffall describes, the Company projects that the net effect of the combined adjustments to the Company's non-fuel base rates on December 1, 2026, will be an overall rate increase for a typical residential customer of approximately 12.76%, including the effect of the proposed interim Rider CVOW and proposed Rider NPTC, compared to rates currently in effect, from $134.34 to $151.48, to 15.15¢/kWh."

He said, "The Company's request for a base rate adjustment in this proceeding is not made lightly. We understand the economic pressures on our customers and the need to maintain rates that are cost-effective and provide demonstrable value to customers as shown by our operational performance and service quality."

Baine testified that many elements of the cost of service creating rate pressure are beyond the company's control, and all are necessary to serve. “Nonetheless, the Company consistently and proactively looks for ways to ensure that rates remain as stable and reasonable as possible."

Since the 2024 rate case was filed, Baine said, “The Company has made significant investments in generation, transmission, and distribution to continue to ensure safe, adequate, and reliable service for the benefit of its North Carolina customers. The Company has also been affected, like most consumers, by persistent inflationary trends in the cost of goods and labor, as well as increases in employee-related costs, including pension expense."

For the period 2026 to 2030, Dominion is planning overall capital investments on behalf of customers of approximately $54.8 billion. “This amount includes investments to enable an all-of-the-above approach to ensure resource adequacy and reliable, increasingly clean energy supplies as well as to meet maintenance capital requirements,” he said.

Baine explained that the 10.50% return on equity Dominion is requesting will allow it “to attract capital on reasonable terms and thus minimize the cost of capital for customers and ensure our ability to continue to improve our systems for our customers' benefit."

While one witness's analysis supported a higher ROE, Baine said the company’s requested 10.50% ROE is a conservative estimate that balances its consideration of customer rate impacts with responsiveness to market signals essential for attracting capital.

The company’s president contends that after the proposed base rate increase, its average rates will remain competitive with those for investor-owned utilities in the South Atlantic region, which as of December 2025, the most recent information available, were 14.24¢/kWh for residential rates. “The Company's proposed rates compare even more favorably with national average rates of 15.73 ¢/kWh for residential rates."

Between 2015 and 2025, Dominion’s typical residential rate increased at a compound annual growth rate of approximately 1.92%, which is approximately 40% lower than the general rate of inflation over the same period, which was 3.11%.

At the close of his testimony, Baine told the commission, "We are focused on meeting our obligation to deliver safe, reliable, affordable, and increasingly clean energy to our North Carolina customers, every day. I believe the Application and testimony supporting it demonstrate that we continue to do so, and that in doing so we continue to provide significant value for those customers."