Dominion Energy in 2025: Updates, Rates, and What’s Changing
Dominion Energy in 2025: Updates, Rates, and What’s Changing
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| Energy shift with smart tech and renewables in 2025 |
When you open your electricity bill in 2025, chances are you’ve already felt the changes—higher costs, more renewable talk, and a lot more technical updates from your utility provider. For residents across Virginia and the broader areas served by Dominion Energy, 2025 isn’t just another year. It’s a turning point in how energy is delivered, how much you pay, and what the future might look like.
Whether you're a homeowner, renter, or small business owner, it's important to understand what's shifting beneath the surface. Dominion isn’t just raising rates—they’re investing in a future that, for many, still feels out of reach. Here's what you need to know.
A Massive Shift Toward Renewable Energy
Dominion Energy is pushing ahead with some of the most ambitious renewable projects in the country. Leading the charge is the Coastal Virginia Offshore Wind (CVOW) project—set to become the largest offshore wind farm in the United States when completed.
Situated about 27 miles off the coast of Virginia Beach, the project is designed to deliver clean energy to over 660,000 homes. That’s not just a number—it’s families, children, neighborhoods, and businesses that will rely on wind rather than fossil fuels to keep their lights on.
This isn’t just good for the environment—it’s also mandated by law. Under the Virginia Clean Economy Act, Dominion must gradually move away from fossil fuels and transition to 100% carbon-free electricity by 2045. The CVOW is one of the cornerstones of that plan, symbolizing not just innovation, but a deep promise to future generations.
> “We’re committed to a clean energy future. This isn’t just about today’s grid—it’s about the world our kids will inherit,” Dominion stated in a recent shareholder letter.
Rate Increases: What’s Really Happening?
If you’ve noticed your power bill rising, you’re not imagining things. In July 2025, Dominion received approval to increase the fuel rate for residential customers by approximately $10.92 per month. On top of that, Dominion has also proposed base rate hikes set to begin in 2026—about $8.51 per month, with another $2 added in 2027.
In plain language? Your monthly electricity bill could climb from around $140/month to over $161/month by early 2027. That’s nearly a 15% increase, and for some families, especially those living paycheck to paycheck, that can mean tough choices.
Dominion argues these increases are necessary to maintain system reliability, invest in clean energy, and keep up with inflation and infrastructure costs. And to be fair, they’re not entirely wrong.
Why the Sudden Price Hikes?
Several key factors are driving up your electric bill:
Fuel prices have gone up, and Dominion passes those costs directly to customers.
Aging infrastructure needs upgrades to handle increased demand—especially with the rise of data centers and electric vehicles.
Labor, materials, and supply chain costs are all higher in 2025 than in previous years.
Dominion is required by the PJM grid operator to invest in capacity charges, which ensure there's always enough electricity available—even during extreme weather or demand spikes.
These costs add up quickly, and while Dominion is trying to manage them through long-term investments, the burden right now falls squarely on customers.
The Human Impact
It’s one thing to talk about numbers and megawatts. It’s another thing entirely to talk about real people.
Meet Janet, a retired schoolteacher in Richmond. She lives on a fixed income and has already cut back on her grocery spending to afford rising utilities. “I support clean energy,” she says, “but it’s getting hard. I don’t want to have to choose between food and the power bill.”
Janet’s story isn’t unique. Many low and middle-income families are feeling the squeeze. The good news is that Dominion offers bill assistance programs, budget billing, and energy-saving tools. But awareness is low, and not everyone knows help is available.
What's Dominion Doing with the Money?
The company insists that these rate hikes are about investing in the future, not lining corporate pockets. Dominion’s 2025 Biennial Review filing reveals major spending on:
Grid modernization and smart meter installations
Renewable energy development (solar and wind)
New substations and transmission lines
Cybersecurity enhancements
Replacing aging fossil fuel facilities with cleaner alternatives
Additionally, Dominion is seeking to extend operations at the V.C. Summer nuclear plant through 2062, in line with federal efforts to support nuclear power as a low-carbon energy source (Reuters, July 2025).
All of this paints a picture of a utility that’s trying to evolve—while balancing expectations from regulators, shareholders, and customers alike.
The Regulatory Tug of War
Of course, not everyone is on board. Dominion’s 2025 rate review includes a request for a 10.09% return on equity—a profitability level that consumer advocates argue is excessive. Several organizations, including the Virginia Poverty Law Center and environmental watchdogs, have filed objections with the State Corporation Commission (SCC).
Their main points?
The proposed rates will disproportionately affect low-income households.
Dominion’s long-range energy plan includes building new gas plants through 2039, which contradicts the state’s clean energy laws.
The utility is not moving fast enough to shut down coal and oil-burning facilities, leaving a carbon footprint that some believe is avoidable.
A decision from the SCC is expected by the end of 2025, and the outcome could set the tone for energy pricing and policy across the region for years to come.
What's Next for Customers?
As Dominion evolves, here’s what customers can expect in the coming months:
1. More renewable options: New community solar programs and green energy plans are expected to roll out in late 2025 and early 2026.
2. Updated billing systems: Dominion is modernizing its billing system for transparency, energy usage tracking, and mobile management.
3. Energy efficiency rebates: Customers can get rebates for home insulation, smart thermostats, and ENERGY STAR appliances.
4. Better outage tracking: Smart grid upgrades mean faster outage response and better reliability reporting.
If you’re not already enrolled in Dominion’s EnergyShare program or Budget Billing, now might be the time. These programs can help spread costs over time or offer financial support if you’re struggling.
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