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Virginia Electricity Rate Increase: What's Changing in 2026

One Virginia electricity rate increase is already final and showing up on bills. A second is still being argued in front of the State Corporation Commission. Here is what each one does to a residential bill.

By the Go Solar DMV news desk · Nov 11, 2026 · 4 min read

Virginia Electricity Rate Increase: What's Changing in 2026

Key facts

Is there an electricity rate increase in Virginia right now?

Yes, and it helps to separate two different cases. The Dominion Energy Virginia electricity rate increase is decided: the State Corporation Commission issued its final order on November 25, 2025, and the new rates take effect for service rendered on and after January 1, 2026, and January 1, 20278. The Appalachian Power rate increase, which covers southwest Virginia, is a separate case that the SCC had not ruled on as of the most recent reporting available3.

A third item sits behind both of them. NextEra and Dominion have filed for approval of a merger, and that review is still open13. None of the three is a one-line answer, so below is what each actually changes on a bill.

Dominion electricity rates: the increase that's already approved

Dominion asked for base-rate increases of $822 million in 2026 and $345 million for 2027. The Commission rejected those figures and instead found support for $565.7 million in 2026 and $209.9 million in 2027, and approved a return on equity of 9.8 percent rather than the requested 10.4 percent6.

In bill terms, the average residential monthly bill rises by $11.24 in 2026 and by another $2.36 in 20277. For scale, Virginia households pay about $140 per month based on average consumption of 1,000 kilowatt-hours9.

Base rates are not the only moving part. The SCC also approved a CERC Rider to recover the $1.47 billion anticipated cost of the Chesterfield Energy Reliability Center10. Riders are a separate line item from base rates, so when you compare bills year over year, you are looking at more than one change at a time.

Appalachian Power rate increase: what is still pending

Appalachian Power made two separate requests to the Virginia SCC on May 30, which together could increase customers' bills by an average of 23.9 percent1. That 23.9 percent figure is what the company filed, not what regulators have approved. The base-rate portion asks for an annual increase of roughly $61.4 million, which APCo attributes to rising operating costs, major storm recovery, inflation, material and labor costs, and new state-mandated programs, with part of the request tied to a higher authorized return on equity2. Clean Virginia said the company is seeking to raise that authorized ROE from 9.75 percent to 10.5 percent3.

Other parties have pushed back hard. One of the Attorney General's witnesses recommends APCo receive an increase of only $1.4 million and an authorized ROE of 9.325 percent2. SCC staff recommended against APCo's request to raise the residential basic service charge, the fixed monthly fee, from $7.96 to $9 per month5.

There is also a settlement in play. Appalachian Power has sought SCC approval of a compromise under which residential rates would not increase for one year and would rise the next, described as no rate increase in 2027 and a slight increase in 2028 if the Commission approves the stipulation4. If you live in APCo territory, that is the number to watch, not the 23.9 percent headline.

History is worth keeping in mind here. 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, well short of the roughly $10 the company had sought5. Filed requests and final orders in Virginia are often very different documents.

Why Virginia electricity costs are increasing

The utilities' own filings point at operating costs, storm recovery, inflation, and material and labor costs2. New generation shows up too: the Chesterfield Energy Reliability Center alone carries an anticipated cost of $1.47 billion being recovered through a rider10.

Large load growth is now explicit in Virginia's rate structure. The SCC created a new GS-5 rate class for customers demanding 25 megawatts or more, effective beginning January 1, 2027, with those customers required to pay for at least 85 percent of contracted distribution and transmission demand and 60 percent of generation demand6. That threshold is data-center scale and does not touch a typical home or small business11, but it signals how much of the current cost debate is about who pays for new capacity.

Will the Dominion–NextEra merger change electric rates in Virginia?

It is not settled. On May 18, NextEra announced a $66.8 billion deal to merge with Dominion, which would create a company worth $420 billion12. On July 15, 2026, the companies filed applications with the Virginia SCC, the North Carolina Utilities Commission, the South Carolina Public Service Commission, FERC and the NRC13. The companies have offered $2.25 billion in bill credits for Dominion customers in Virginia, North Carolina and South Carolina, spread over two years13.

Not everyone is persuaded. Lawmakers have warned the merger could push energy bills higher1819, and Virginia's governor has called for a six-year electricity rate freeze in connection with the deal12. Until the SCC rules, nothing about the merger is on your bill one way or the other.

What a rate increase means if you are weighing solar

Start with your own numbers rather than the headlines. If your household looks like the Virginia average of roughly 1,000 kilowatt-hours and about $140 per month9, the approved Dominion increase of $11.24 in 2026 and $2.36 in 2027 is the change you can expect to see from base rates7, on top of separately approved riders such as the CERC Rider10.

A solar array offsets the kilowatt-hours you buy, so it works against the usage-based portion of a bill rather than fixed charges like the residential basic service charge that APCo asked to raise from $7.96 to $95. Pull twelve months of statements, note your kWh and your total, and size any system against that record.

Before you compare quotes, it is worth reading up on Virginia solar incentives and getting a straight read on your roof's sun exposure with a Roof Score. Those two things, plus your actual usage, determine far more about your result than any rate forecast does.

Questions people ask

How much is the Virginia electricity rate increase in 2026?

For Dominion residential customers, the average monthly bill rises by $11.24 in 2026 and by another $2.36 in 20277. Those rates apply to service rendered on and after January 1, 2026, and January 1, 20278.

Is Appalachian Power raising rates 23 percent?

That is the as-filed figure. APCo's two May 30 requests could increase bills by an average of 23.9 percent1, but the SCC had not issued a final ruling as of the most recent reporting3. The company has since sought approval of a compromise with no rate increase in 2027 and a slight increase in 20284.

Why is my electric bill increasing in Virginia?

Utilities cite rising operating costs, major storm recovery, inflation, and material and labor costs, along with new state-mandated programs2. New generation is recovered separately through riders, such as the one approved for the $1.47 billion Chesterfield Energy Reliability Center10.

Do data centers pay a different electricity rate in Virginia?

Yes. The SCC created a GS-5 rate class for customers demanding 25 megawatts or more, effective January 1, 2027, requiring them to pay for at least 85 percent of contracted distribution and transmission demand and 60 percent of generation demand6. It does not apply to homes or typical small businesses11.

Will the NextEra merger lower my bill?

The companies have proposed $2.25 billion in bill credits for Dominion customers in Virginia, North Carolina and South Carolina over two years13, while lawmakers have warned the deal could raise bills1819. The applications were filed July 15, 2026 and remain under review13. If you want to see where you stand before any of it is decided, you can get qualified using your own usage.

Sources

  1. APCo requests rate increase - thefranklinnewspost.com
  2. Virginia Energy Regulatory Updates (August 2026) - ReisingerGooch - reisingergooch.com
  3. Appalachian Power seeks to cover $61M with rate increase - Virginia - The Black Chronicle - blackchronicle.com
  4. 5 things to know about Appalachian Power's proposed rate increase - roanoke.com
  5. Regulators prepare to hear Appalachian Power's case for raising rates - Cardinal News - cardinalnews.org
  6. Virginia SCC - SCC Issues Order on DEV Biennial Review 2025 - scc.virginia.gov
  7. Regulators approve Dominion Energy rate increase - Cardinal News - cardinalnews.org
  8. COMMONWEALTH OF VIRGINIA STATE CORPORATION COMMISSION - scc.virginia.gov
  9. Electricity bills will soon go up in Virginia - whro.org
  10. SCC approves Chesterfield gas plant and Dominion rate hike, creates new rate class for data centers • Virginia Mercury - virginiamercury.com
  11. Virginia’s New Data Center Electricity Rate Class - AAF - americanactionforum.org
  12. Virginia governor calls for 6-year electricity rate freeze amid potential Dominion-NextEra merger - wusa9.com
  13. Merger - dominionenergy.com
  14. Appalachian Power proposes rate increase - wsls.com
  15. Appalachian Power seeking rate increase at commission meeting Tuesday - wsls.com
  16. 'I think it's insane:' ABC13 investigates why your power bill has spiked in recent years - wset.com
  17. Virginia Energy Regulatory Update (November 2020) - ReisingerGooch - reisingergooch.com
  18. Lawmakers warn $67B Dominion-NextEra merger could spike energy bills - wtvr.com
  19. NextEra-Dominion merger could jack up electricity prices, lawmakers warn - finance.yahoo.com
  20. September 29, 2026 Chairman Laura Swett Federal Energy Regulatory Commission - warren.senate.gov

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