Virginia regulators have approved Dominion Energy’s fuel cost securitization for the second time since 2023, according to the state’s State Corporation Commission. The decision allows the utility to recover certain fuel costs through securitized bonds, a mechanism that spreads the financial burden across multiple years.
However, the approval comes with a trade-off for ratepayers: the securitization adds interest costs, which are passed on to customers. This means that while the utility gains near-term cash flow relief, customers will pay more over the long run than they would under a direct recovery method.
The commission’s action mirrors its 2023 decision, marking a recurring approach to managing fuel cost volatility in Virginia. No further details on the total amount securitized or the specific interest rates were provided in the source.