From the State Corporation Commission: The SCC has issued orders in five cases involving rate reviews and changes requested by Dominion Virginia Power. All of the rate adjustments will be placed into effect on April 1, 2015. The combined impact will decrease the average monthly bill of a typical residential customer using 1,000 kilowatt hours of electricity by $6.47, from $115.95 to $109.48. In Case Number PUE-2015-00022, the SCC established a lower fuel rate for Dominion Virginia Power on an interim basis. The new fuel rate is 2.406 cents per kilowatt-hour (¢/kWh), which represents a decrease of 0.612 ¢/kWh from the current fuel factor of 3.018 ¢/kWh. For the average residential customer, the fuel rate decrease means the monthly bill for 1,000 kilowatt-hours of electricity will decrease $6.12.
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The fuel rate is the portion of the electric bill that pays for the cost of fuel used to generate electricity and reflects the wholesale purchase and sales of power. Dominion Virginia Power is statutorily entitled to recover its prudently incurred fuel costs. This is a dollar-for-dollar recovery, and the company can make no profit on the recovery of fuel expenses. The fuel rate is reviewed annually by the SCC and re-set, as necessary, to reflect actual fuel expenses for the previous year and projected fuel expenses for the coming year.