Background Information
Every two years, we are required by law to submit a proposal for a new base rate to the SCC for review. On May 29, 2026, we requested our lowest base rate increase in Virginia in nearly 30 years, with savings generated through securitization under the APCo Rate Reduction Act to help reduce the impact on customer bills. Refinancing those costs this way enabled us to reduce the impact of rate changes by almost half.
Benefits for You
Base rate increases allow us to continue modernizing our electric grid and support investments to provide reliable power service across our region. The increase in base rates supports Virginia's future energy needs and provides us with resources to restore power quickly after major storms, as well as be proactive about removing vegetation near power lines before it becomes a threat to your reliability. It also means we can continue investing in diverse and reliable alternative energy sources.
Customer Protection
After applying $8.38 in monthly securitization savings, a residential customer using 1,000 kWh per month would see an increase of about $9.10 in their monthly bill, if approved as filed. Adjusting base rates follows a strict process whereby our application is reviewed by regulators at the SCC. The SCC evaluates all financial data and the testimony of other intervening parties to make sure rates are fair and reasonable, while supporting our responsibility to provide you and your neighbors with safe and reliable power.
Frequently Asked Questions
What is the base rate and why is it important?
The base rate is the amount of money a utility is allowed to charge to recover investments and operating expenses and earn a reasonable profit. We are required by law to submit a formal proposal with the SCC every two years. The SCC then initiates a formal process to consider the proposal and makes the final determination on rates. Our request filed on May 29, 2026, was driven mainly by necessary investments in tree trimming and other reliability improvements, major storm recovery expenses, inflation, material and labor costs and new state-mandated programs.
What is the new rate going to be?
We have proposed an approximate $61.4 million increase to the base rate. This increase is to account for higher costs of materials and labor related to operation and maintenance. The SCC will review our application and determine the final rate that customers will pay. If approved as filed, the proposal would increase the monthly bill for a residential customer using 1,000 kilowatt-hours (kWh) by approximately $9.10.
Will my bill go up? How will it affect my bill?
If approved as filed, and after applying $8.38 in monthly securitization savings, a residential customer using 1,000 kWh per month would see an increase of about $9.10 on their monthly bill.
When will the new rate change occur?
No changes will occur until March 2027 and after the SCC has completed its review process.
Is APCo requesting new rates just to turn a larger profit?
No. Our requested change is to adjust for increases in operational costs and recover certain infrastructure investments. We have earned slightly more than 3% return on investment since 2022, which is lower than the legally allowed rate of return of 9.75%. This year's proposed request is an approximate 3% increase across all customer classes and helps keep earnings in line with returns on investment for the last two years.
Are data centers responsible for the increase in the base rate?
No. New data center customers are responsible for paying for the infrastructure needed to supply them with the necessary power. Just like other customers, they pay for their own unique electricity usage and are subject to the same fluctuations in energy market dynamics. We have protections in place to limit the risk that any project costs are passed along to other customers.