Dominion Virginia Made Way Above Fair Profit

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RICHMOND, Va. (AP) – State Corporation Commission staff testified that Dominion Energy earned more than $ 1.1 billion above fair profit from customers in Virginia over a four-year period, but customers are not likely to see as much in refunds.

The testimony was filed as part of an ongoing review of public service books, the Richmond Times-Dispatch reported on Monday. But due to several state laws favorable to the utility and its shareholders, clients won’t see a similar comeback as a result of Dominion’s triennial commission review.

Commission staff found that Dominion made a profit of 13.6% from 2017 to 2020, which generated revenues of $ 1.143 billion above the fair return on equity of 9.2% established by law. , according to testimony filed Friday by Patrick W. Carr, deputy director of the commission’s utility accounting and finance division.

Under current law, clients are expected to receive a refund of $ 312 million, according to CSC staff. For such reimbursement to take place, the three judges of the commission would have to make certain decisions and side with the recommendation of the staff. In a pitch, Dominion Energy said the company has not earned a surplus and the commission is expected to increase its future profit margin from 9.2% to 10.8%.

Dominion is Virginia’s largest electric utility, serving approximately 2.6 million residential customers, and in return for a monopoly to provide electricity, the company accepts a fair return under the regulations of the SCC. If the company earns too little, the CCS could increase the rates paid by customers. If it earns too much, the CCS can order refunds and rate cuts which, however, are limited due to legislation supported by the Dominion by members of the General Assembly which has limited the powers of the commission.

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