(The Center Square) – A typical Dominion Energy residential customer is already paying about $8 more per month for fuel, and another roughly $13 could be added depending on how Virginia regulators decide the utility should recover deferred fuel costs.

The State Corporation Commission spent two days considering Dominion’s fuel costs and how the company should recover money it has already spent but has not yet collected from customers.

Dominion is asking the commission to approve a fuel factor of 3.7648 cents per kilowatt-hour for the July 2026 through June 2027 fuel year. That rate is already being charged on an interim basis.

The larger question is how Dominion should recover its deferred fuel costs.

Recovering the money through the traditional fuel factor could add roughly another $13 per month to a typical residential bill.

Dominion has also asked to recover the costs through securitization, which would spread payments over several years and reduce the immediate impact on monthly bills.

A 10-year option would add about $1.75 per month to a typical residential bill. A seven-year option would add about $2.25. SCC staff recommended the seven-year option if the commission approves securitization, and Dominion said it would not oppose it.

Much of Wednesday’s testimony and closing arguments focused on what is driving higher fuel and purchased-power costs.

Company witness Scott Gaskill said electricity prices in the PJM regional market have become more volatile and difficult to forecast as supply and demand have tightened.

SCC staff said it has seen a concerning trend of Dominion purchasing more electricity when its own generation falls short, combined with rising market prices and significant load growth in the company’s service territory.

Staff recommended Dominion further examine what is driving those costs and consider different ways of allocating fuel expenses that could reduce the effect of high-load customers.

The Office of the Attorney General’s Consumer Counsel said evidence in the case suggested data center load growth is a primary driver of increased exposure to market prices and purchased-power costs, and supported staff’s recommended analyses.

Virginia’s electricity demand has grown sharply in recent years. The U.S. Energy Information Administration reported that summer peak load in PJM’s Dominion zone reached 23,905 megawatts in 2025, 23% higher than in 2019.

Dominion has said its own generation provides protection from volatile PJM prices because electricity produced by its resources reduces how much power it must buy from the regional market.

The utility is also seeking approval for its proposed $67 billion combination with NextEra Energy in a separate SCC case. The companies have said the combination would increase their ability to invest in generation, transmission and the electric grid as demand grows.

Gov. Abigail Spanberger has moved to intervene in the merger review, raising questions about what the deal could mean for Virginia customers and the Commonwealth’s energy future.

This post was originally published on The Center Square.