Analysis links Virginia electricity rate hikes to fossil fuels

The Environmental Defense Fund (EDF), via analysis from EQ Research using Dominion Energy and Appalachian Power filings, highlights that volatile fossil fuel prices and rising grid infrastructure spending are the main drivers of surging residential electricity bills in Virginia, while renewable energy offers more stable, lower-cost alternatives.

• Analysis of SCC filings (2019–Apr 2025) finds Dominion residential rates up 20.5% and ApCo up 45.4%, with fuel, transmission, and distribution rate riders—especially natural gas fuel costs (up 62.5% at ApCo) and large increases in grid infrastructure spending—responsible for most bill increases, and notes that data center-driven demand has prompted an SCC order requiring large users to pay at least 85% of contracted distribution/transmission and 60% of generation demand to shield other customers.
• The article explains that Virginia’s monopoly utility model and guaranteed ROE encourage expensive fossil plant and infrastructure projects, while policies such as the Virginia Clean Economy Act and RGGI shift investment toward solar plus storage and other renewables; ApCo’s October announcement of a 24% bill reduction tied to increased renewable usage and a lower fuel factor is cited as evidence that reducing gas dependence and adding clean energy lowers customer bills.