Virginia utility to return $400M, trim rates

Virginia's largest electric utility to lower rates, return $400 million to customers

• On 7:38 pm EST, Thursday November 5, 2009

RICHMOND, Va. (AP) -- Virginia's largest electric utility has agreed to settle a pending rate case that will return nearly $400 million to customers and drive down monthly electric bills.

The settlement announced Thursday would reduce by $5, to $103.83, the typical monthly residential bill from Dominion Virginia Power, subject to regulatory approval. The company sought a rate increase that would have raised the monthly bill to $116.27.

The settlement provides that Dominion return to ratepayers at least $268 million from 2008 earnings and $129 million in fuel revenues.

Customers would also receive a refund of about $21 million per month that customers have paid under an interim rate increase.