Dominion Energy 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.
The article Dominion Requests Rate Increase to Cover Higher Costs originally appeared on Fool.com.Motley Fool contributor Justin Loiseau has no position in any stocks mentioned, but he does use electricity. You can follow him on Twitter, @TMFJLo, and on Motley Fool CAPS, @TMFJLo. The Motley Fool recommends Dominion Resources. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.