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Virginia Rate Cases

Electric Bill Increase in Virginia: Four Cases Explained

Three separate Virginia proceedings are moving toward the same mid-January deadline, and one Maryland decision is already in bills. Here is what each one actually says about your rates.

By the Go Solar DMV news desk · Oct 22, 2026 · 5 min read

Electric Bill Increase in Virginia: Four Cases Explained

Key facts

Is there an electric bill increase coming in Virginia?

If you searched "electric bill increase virginia," you are looking at more than one case. Three Virginia proceedings are running at the same time: the proposed Dominion Energy takeover by NextEra, a biennial review of Appalachian Power's rates, and a base-rate request from Old Dominion Power in five Southwest Virginia counties1910. None of them has changed a rate as of today. Two of the three carry a mid-January decision deadline at the State Corporation Commission, and any resulting rate changes in the Appalachian Power case could not take effect before March 119.

A fourth case, Pepco's in Maryland, is already decided and already in bills for Montgomery and Prince George's county customers14. The short version for Virginia: one request has shrunk considerably, one is still large but limited to about 28,000 customers, and the biggest case is about who owns the utility rather than a specific rate on your next statement9101.

Virginia electricity rate increase and the Dominion-NextEra merger

NextEra Energy's proposed $67 billion takeover of Dominion Energy is before the Virginia SCC, and state staff have recommended that regulators deny the merger application1. That recommendation is not the final word. The commissioners will vote, and they have a mid-January deadline1.

Expert testimony filed on behalf of Gov. Abigail Spanberger and Chief Energy Officer Josephus Allmond calls for freezing residential base-rate increases for three rate-review cycles, or six years, and for monthly customer credits of $29 for four years3. The companies' revised proposal offers a $10 monthly credit for residential customers using 1,000 kilowatt-hours of electricity, extended to four years from two34. Spanberger also asked for increasing the debt share of Dominion's capital structure from 48% to 60% to lower its rate of return, protection against customer disconnections, and an increase in clean energy investments3. The companies said they plan to boost a customer bill assistance program by $100 million through 2038, shield customers from costs associated with the AI boom, create 1,000 new jobs in the state and build more clean energy and battery storage4.

Read the word "freeze" carefully. Base rates account for only part of a customer's electric bill, meaning a freeze would not prevent other charges from increasing3. Spanberger described it as "actually a rate-hike freeze" and said it would apply to rate hikes rather than preventing rates from falling; under her proposal, the SCC could review rates if they would otherwise decrease during the six-year period35.

SCC staff attached their own conditions, including an independent decision-making board, a bankruptcy-remote entity, and preserving current utility employee levels for 10 years7. Opposition is not confined to Richmond: PJM's independent market monitor, Monitoring Analytics, asked the Federal Energy Regulatory Commission to reject the merger in a protest, arguing it would give NextEra an unprecedented concentration of economic and political power2.

Appalachian Power rates: the ask got much smaller

Appalachian Power serves about 540,000 customers in western Virginia, of which about 466,000 are residential8. Under a proposed compromise pending before state regulators, APCo's residential customers would see no increase in their electric rates for a year beginning March 1, and an increase of 92 cents on the average monthly bill the year after that9.

That is a sharp contrast with the company's May request, which would have increased the average 1,000-kilowatt-hour residential monthly bill by $9.10, or about $109 per year, beginning March 19. The SCC will have the final say on whether to approve the proposal9. SCC Judge Samuel Towell ordered interested parties to submit written briefs by Nov. 24; by state law the commission must issue its final order by Jan. 15, and any rate changes could not take effect before March 19. The commission continues to accept written comments via its website or by mail8.

The pattern is worth noting if you are budgeting. APCo's last rate case was decided in November 2024, when the SCC approved an increase that raised the average monthly residential bill by about $1.39, after the company sought about $108. The company is required by Virginia law to submit its rates for review every two years, so another review follows this one8.

What is the 23% electricity cost increase in Southwest Virginia?

The 23% headline belongs to a much smaller utility. Old Dominion Power, a subsidiary of Kentucky Utilities, provides electric service to more than 28,000 Virginia customers in Dickenson, Lee, Russell, Scott and Wise counties10.

The company is asking regulators for permission to earn $19 million more in revenue, a 22.4% increase, by raising its base rates, which pay for operations and maintenance and are separate from the cost of fuel10. Under the proposal, a residential customer using a benchmark 1,000 kilowatt-hours per month would see a monthly bill increase of $36.66, from $156.46 to $193.1210. Earlier reporting on the same filing used a higher benchmark: raising the monthly bill of a typical residential customer using 1,198 kilowatt-hours per month from $185.07 to $228.39, a 23% increase11. Same case, different benchmark customer. The request covers base rate, fuel factor and fixed monthly fee10.

The company has invested or plans to invest $2.26 billion in its operations from Aug. 1, 2025, through July 31, 2027, according to its application, and is seeking a return on equity of 10.95%1012. Its last Virginia rate increase took effect Feb. 1, 2025, increasing the average residential bill by $17.6311. Virginia regulators are scheduled next month to hear the case and are accepting public comments through Nov. 510.

Maryland: Pepco's increase is already in bills

Across the river, the decision is done. On Aug. 28, 2026, the Maryland Public Service Commission authorized a revenue increase of approximately $50.9 million for Pepco, less than half the increase the company requested14. The authorized amount works out to a residential bill impact of $3.94 per month, or 2.25% in Montgomery County and 2.23% in Prince George's County14.

The decision reflects an adjusted rate base of $2.994 billion and an approved overall rate of return of 7.22% based on a 9.40% return on equity, reduced from Pepco's current 9.50% and below the 10.5% requested14. The new rates went into effect that day, and the commission initiated a Phase II proceeding to consider removal of certain costs from rates14. Earlier in the year, the commission denied much of a separate Pepco request tied to the final year of its multi-year rate plan15. Maryland homeowners comparing these numbers against a solar quote can start with the Maryland solar incentives page.

What you can do before the January deadlines

If you are an Old Dominion Power customer, comments are open through Nov. 5. They go through the SCC website or by mail to the Clerk of the State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, VA 23218-2118, and should refer to case PUR-2026-000511012. Appalachian Power customers can still submit written comments to the commission while the case is open, with briefs from parties due Nov. 24 and a final order due by Jan. 1589.

For planning purposes, assume nothing is settled until the SCC issues its orders. Two Virginia cases carry a Jan. 15 deadline, and the merger commissioners vote on the same mid-January schedule19. If part of your interest in rate cases is whether to produce some of your own power, the Virginia solar incentives page covers what applies in the commonwealth, and you can get qualified to see what your own roof and usage support before any of these orders land.

Questions people ask

Are Virginia electricity rates going up in 2027?

It depends on your utility and on pending decisions. The Appalachian Power compromise would hold residential rates flat for a year beginning March 1 and then add 92 cents to the average monthly bill, if the SCC approves it9. Old Dominion Power's request in five Southwest Virginia counties is still pending before regulators10. The SCC must issue its final order in the Appalachian Power case by Jan. 159.

How much is the Appalachian Power rate increase?

Under the proposed compromise, residential customers would see no increase for a year beginning March 1 and an increase of 92 cents on the average monthly bill the year after9. The company's May request would have raised the average 1,000-kilowatt-hour residential monthly bill by $9.10, or about $109 per year9.

Would the proposed Dominion rate freeze stop my bill from rising?

Not entirely. The testimony filed on behalf of Gov. Spanberger would freeze residential base-rate increases for six years, but base rates account for only part of a customer's electric bill, so a freeze would not prevent other charges from increasing3. Spanberger described it as a rate-hike freeze that would still allow the SCC to review rates if they would otherwise decrease35.

How do I comment on a Virginia electricity rate increase?

Comments go through the State Corporation Commission website or by mail to the Clerk of the State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, VA 23218-211812. For the Old Dominion Power case, reference case PUR-2026-00051 and submit by Nov. 51012. The commission also continues to accept written comments in the Appalachian Power case8.

Why does the Old Dominion Power increase show as both 22.4% and 23%?

Different benchmark customers. The filing seeks $19 million more in revenue, a 22.4% increase in base rates, which works out to $36.66 more per month at 1,000 kilowatt-hours10. Earlier reporting on the same filing used a 1,198-kilowatt-hour customer, going from $185.07 to $228.39, a 23% increase11.

Sources

  1. Spanberger demands rate-hike freeze in Dominion Energy merger - nbcwashington.com
  2. Virginia SCC staff recommend rejection of $67B Dominion-NextEra merger - Virginia Business - virginiabusiness.com
  3. Dominion-NextEra merger hits turbulence, faces opposition from Va. leaders, SCC staff • Virginia Mercury - virginiamercury.com
  4. Virginia wants six-year rate freeze in NextEra-Dominion deal - thestar.com.my
  5. Spanberger: Dominion-NextEra merger ‘not nearly good enough’ for Virginia - virginiascope.com
  6. Virginia governor seeks 6-year rate freeze if Dominion-NextEra merger is approved - utilitydive.com
  7. Virginia Governor Demands Six-Year Rate Freeze Before Backing NextEra-Dominion Deal - briefs.co
  8. Regulators prepare to hear Appalachian Power's case for raising rates - Cardinal News - cardinalnews.org
  9. APCo compromise would freeze residential rates for a year - Cardinal News - cardinalnews.org
  10. Proposed electric rate increase of 23% for parts of Southwest Virginia heads to commonwealth regulators - Cardinal News - cardinalnews.org
  11. Cardinal Commerce Notes: Old Dominion Power proposes rate hike, 2 Roanoke businesses expand, Food & Farm Trail debut, public meeting about rail - Cardinal News - cardinalnews.org
  12. Cardinal Commerce Notes: Here’s how to share your thoughts on Old Dominion Power’s rate hike request - Cardinal News - cardinalnews.org
  13. Old Dominion Power Proposes 23% Rate Hike: What It Means for Virginia Residents (2026) - leedsmasters.org
  14. Maryland Public Service Commission Denies Over Half of Pepco's Rate Increase Request - Maryland Public Service Commission - psc.maryland.gov
  15. Assisted by OPC’s advocacy, PSC rejects much of Pepco’s added rate hike on top of 2023 increase - content.govdelivery.com
  16. Virginia governor says will not support NextEra-Dominion merger without six-year rate freeze - seekingalpha.com
  17. Va. governor calls for 6-year electricity rate freeze amid proposed merger - wavy.com
  18. Gov. Abigail Spanberger urges State Corporation Commission to block utility merger without rate protections - thehill.com
  19. Appalachian Power's proposed rate increase threatens Southwest Virginia's economy - Cardinal News - cardinalnews.org
  20. U.S. energy secretary announces electric grid upgrades across parts of APCo's service area - Cardinal News - cardinalnews.org

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