ENVIRIONMENTAL CENTS: More Dominion Rate Increases Coming?
Time for solar?
By Bruce Saller
COLUMNIST
Another electricity rate increase has been proposed by Dominion Energy.
This is in addition to the 9% base rate increase approved last November.
On top of the base rate, Dominion charges a fuel factor rate that covers the cost of fuel and purchased electricity. An estimated rate is applied to our bills from every July through June, and the difference from actual cost is adjusted in the following year.
The actual costs in the current period are substantially higher than the estimated rate, and Dominion is entitled to a rate increase of $21.79 per month for the average customer. As an option, Dominion is proposing to issue bonds to cover the shortage, so the increase would be $7.97 plus $1.80 (interest) totaling $9.77/month.
The following year’s rate could even be higher, as the regional purchased electricity auction results for next year were 22% higher than this year.
One way to reduce your electricity bill is to install solar panels. If you own your residence and are interested in purchasing or renting rooftop solar panels, you should sign up at Solarize Virginia for a free assessment and no-obligation quote from a vetted solar installer.
The federal tax credit for purchasing solar systems has been eliminated, but the installer can still claim the 30% credit for leased systems. You should compare the cost of both options to see which is best for you.
The State Corporation Commission recently made some changes to the Net Metering rules which govern the costs and reimbursements for residential solar. There is now a $1 per month Dominion charge for new solar system installations. The main reimbursement rules did not change:
The “Net Metering Period” (Period) is the twelve-month period following the connection of your system to Dominion.
For each month within the Period:
If you export more energy than you import, the excess export amount is rolled to the next month.
If you import more energy than you export (including any rollover), you are billed for the difference.
If you have remaining export credits after the last bill in the Period, they are rolled into the next Period up to the total number of Kilo-Watt Hours (KWH) you were billed for in the current Period. For example, if you finished the Period with a credit of 400 KWH, and were billed for 300 KWH, 300 credits would be rolled into the next period. If you had been billed for 500 KWH, 400 credits would be rolled.
Any excess credits are paid for at Dominion’s average cost if you have entered into a purchase power agreement with Dominion.
So, it is important to buy a system that matches your energy use.
A bill allowing plug-in solar systems has been signed into law. I’ll cover that in my next article.
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