Dominion Energy 2025 Rate Case and Fuel Docket
Synapse provided expert support for Sierra Club in Dominion Energy’s 2025 rate case and fuel docket before the Virginia State Corporation Commission (SCC). In the rate case application, Dominion requested cost recovery of future fixed and variable operations and maintenance (O&M) costs, as well as sustaining capital and environmental expenditures totaling $470.8 million for its coal fleet across the 2026 and 2027 rate years. In the fuel docket application, Dominion requested to revise its current fuel factor to recover past fuel costs, including $263 million in coal expenses from the historical period of March 1, 2024 – February 28, 2025.
For the rate case, Synapse evaluated the economic performance of Dominion’s coal plants at Mt. Storm, Clover, and Virginia City Hybrid Energy Center (VCHEC). We found that all plants have incurred net revenue losses in at least two of the last five years. Looking forward, we found that Mt. Storm will incur net revenue losses over the next decade, VCHEC will be marginal, and Clover will be economic. These results are driven by the high projected capacity price. Dominion is projecting high near-term utilization of the fleet, followed by a low utilization (below 10 percent) beyond 2030.
For the fuel docket, Synapse evaluated the unit commitment practices of the fleet during the fuel factor historical period. We found that Dominion self-committed its coal fleet some of the time each plant was available. As a result of these unit commitment practices, Clover and Mt. Storm incurred variable net losses. We also found specific events where Dominion imprudently utilized a must-run commitment status at coal units. Finally, we reviewed Dominion’s coal contracts and found that it made imprudent contracting decisions based on price, timing, and quantity of coal locked in.
We recommended that the Commission disallow from inclusion in rate base O&M and capital expenditures associated with Mt. Storm and VCHEC, and require pre-approval of future investments at its coal plants in excess of $1 million. We also recommended that the Commission disallow from inclusion in the fuel factor the avoidable losses associated with specific uneconomic events at its coal plants, as well as excess costs associated with the most costly coal contracts. Finally, we recommended that Dominion be required to file documentation of its reasons for must-run commitments and its profit and loss workbook with its initial filing in future fuel factor proceedings.