{"id":25510,"date":"2025-12-16T16:53:29","date_gmt":"2025-12-16T21:53:29","guid":{"rendered":"https:\/\/blogs.edf.org\/climate411\/?p=25510"},"modified":"2025-12-18T13:30:16","modified_gmt":"2025-12-18T18:30:16","slug":"whats-driving-virginias-high-power-bills","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/climate411\/2025\/12\/16\/whats-driving-virginias-high-power-bills\/","title":{"rendered":"Analysis: Costly gas and infrastructure are driving Virginia\u2019s soaring power bills"},"content":{"rendered":"

Virginians are facing rising costs on multiple fronts, and electric bills are no exception. Virginia\u2019s electric bills are increasing at a pace faster than general inflation and, according to the U.S. Energy Information Administration (EIA), bills have increased <\/span>nearly 30%<\/span><\/a> since 2021. It\u2019s easy to understand the growing frustration, as some Virginians are forced to choose between paying for doctor\u2019s visits and prescription drugs \u2013 or even food \u2013 over their electric bill.\u00a0<\/span><\/p>\n

Drawing on Dominion Energy\u2019s and Appalachian Power\u2019s own filings at the State Corporation Commission (the agency that oversees utility investments and regulates ratemaking in Virginia), a <\/span>new analysis<\/span><\/a> from EQ Research underscores that <\/span>volatile fossil fuel prices and skyrocketing utility investment in power system infrastructure are the primary drivers behind surging electricity costs for Virginia households.<\/b><\/p>\n

While not explicitly addressed in this report, we\u2019d be remiss, as we consider cost drivers, not to highlight that data centers represent a significant element of the need for new power system infrastructure. As the Joint Legislative and Review Commission (JLARC) data center <\/span>report<\/span><\/a> pointed out, this booming industry brings economic benefits to the state, but comes with cost impacts to Virginia\u2019s electric customers. Just recently, the SCC issued an <\/span>order<\/span><\/a> aimed at corralling transmission and distribution system costs brought on by data center energy demand. By requiring data centers and other large users to pay a minimum of 85% of contracted distribution and transmission demand, and 60% of generation demand, among other requirements, the SCC order seeks to protect Virginia ratepayers from those costs.<\/span><\/p>\n

While the SCC\u2019s order is notable, the consequences to customers in a more fossil-fuel focused future are clear: <\/span>the more utilities seek to invest in gas power plants and associated infrastructure, the more Virginia households will remain financially tethered to a price-volatile and increasingly expensive energy system. <\/b>Meanwhile renewable energy, particularly solar paired with battery storage, is the most affordable, most rapidly-scalable energy resource available to meet Virginia\u2019s energy needs while keeping electricity prices in check.\u00a0<\/span><\/p>\n

What the Numbers Say<\/b><\/h3>\n

The data, taken from Dominion and ApCo\u2019s own filings with the State Corporation Commission, paints a clear picture of what\u2019s driving up Virginians\u2019 electric bills.<\/span><\/p>\n

Analysis of utility filings between January 1, 2019, and April 1, 2025, shows:<\/b><\/p>\n