Time to put the brakes on Dominion’s fuel cost securitizations
Download Briefing Note
Key Findings
The Virginia State Corporation Commission (SCC) has approved a securitization plan allowing Dominion Energy to collect unrecovered fuel costs from the previous year over seven years instead of the conventional 12 months.
The plan approved by the SCC will allow Dominion to securitize $922.1 million in fuel costs that the utility did not recover through its regular billing process from June 2025 to July 2026.
For the second time since 2023, the SCC is allowing Dominion to securitize large under-recovery deferral balances caused by volatile natural gas prices.
A more rapid buildout of renewable energy resources, dispatchable battery storage, energy efficiency, and demand side management (DSM) measures could reduce the need for such huge securitizations.
For the second time in three years, the Virginia State Corporation Commission (SCC) has approved a
securitization plan allowing Dominion Energy to collect unrecovered fuel costs from the previous year.
These costs are largely gas-related and will be charged to consumers over seven years instead of the
conventional 12 months. IEEFA believes these pay-over-time measures are bad public policy that obscure the true cost of fossil-fuel power generation, particularly gas-fired plants.
Related Content
