Dominion Energy (D 0.39%) announced today that it is applying for a fuel rate increase as a result of higher costs and increasing demand.
The first such request in two years, the regulatory request works out to $2.36 extra on top of an average customer's $108.39 monthly bill.
Fuel rates account for around 25% of total customer costs and, unlike an overall rate request, doesn't reflect any additional profit on Dominion's part. Instead, this fuel rate request is meant to offset increased expenses resulting from higher fuel prices, a return to normal electricity demand, and above-average nuclear refueling outages for 2013.
The move comes a week after the utility reported earnings, hitting sales predictions, but failing to match earnings expectations.
According to Dominion, the proposed rate increase would keep its Virginia customers' rates below national and regional averages. If approved, rates would rise in July.
