Old Dominion Power seeks 23% rate hike in Southwest Virginia
Old Dominion Power is asking regulators for $19 million more a year, which would raise a typical home bill about 23%; SCC staff recommend about $11.9 million.
Old Dominion Power, the Virginia arm of Kentucky Utilities, is asking the State Corporation Commission to raise its base rates by $19 million a year, a 22.4% increase. The utility serves more than 28,000 Virginia customers in Dickenson, Lee, Russell, Scott and Wise counties. It filed the request in April.
For a residential customer using 1,000 kilowatt-hours a month, the bill would rise from $156.46 to $193.12, an increase of $36.66, or about 23%. At the company's 2027 forecast of 1,198 kilowatt-hours a month, the bill would go from $185.07 to $228.39. A separate fuel factor request would add $2.73 to a 1,000 kWh bill, and the company wants to raise the fixed monthly basic service charge from $12 to $15.
The company says the money would fund ongoing facility investments while meeting environmental rules, with $2.26 billion in planned investment from Aug. 1, 2025, through July 31, 2027. It is seeking a 10.95% return on equity, up from 9.95%. Its last base rate increase was approved in January 2025.
SCC staff recommended a smaller increase of about $11.9 million a year, which would add $23.07, about 15%, to the benchmark bill. Staff proposed a 9.8% return on equity and keeping the basic service charge at $12. S&P Global reported an average authorized return of 9.84% for electric utility rate cases decided in the first half of 2026.
The case, PUR-2026-00051, goes to a public hearing at 10 a.m. Nov. 12. Public comments and requests to speak are due Nov. 5. The SCC can approve all, part or none of the base rate and fuel proposals; the company asked for new rates to take effect on or after Feb. 1.
For more than 28,000 customers in five coalfield counties, the ruling will set electric bills for years. The gap between the company's request and the staff recommendation is about $7 million a year.
What's next
- Nov. 5 Deadline for public comments and to sign up to speak (case PUR-2026-00051)
- Nov. 12 SCC public hearing begins, 10 a.m.
- Feb. 1 Earliest date requested for new rates