Dominion Energy has announced that rate hikes linked to clean energy mandates are expected to significantly increase electricity bills ahead of Virginia’s 2025 gubernatorial election.
According to Dominion Energy’s pending rate increase applications to the Virginia State Corporation Commission, there is growing scrutiny over the implementation of the 2020 Virginia Clean Economy Act (VCEA). The Thomas Jefferson Institute indicates that the VCEA mandates—particularly offshore wind and solar development and renewable energy credits—are primary drivers behind these higher utility costs. As the Northern Virginia gubernatorial election approaches, critics warn these “green” investments may strain household budgets and fuel political contention.
Stephen D. Haner, senior fellow at the Thomas Jefferson Institute, projects that the typical monthly bill for 1,000 kWh will rise from about $116 before the VCEA to nearly $170 by 2027—an almost 50% increase. These figures are based on pending applications from Dominion Energy that factor in clean energy compliance costs attributed to wind, solar, and Renewable Energy Credit (REC) charges. Haner explains that these costs are passed through to both residential and industrial customers, potentially weakening Virginia’s economic competitiveness.
The VCEA requires Dominion to invest heavily in offshore wind projects, including a $10.7 billion Coastal Offshore Wind initiative, which is nearly half-completed and already costing more than $6 billion. These investments are expensive and, as noted in project reviews, inflate ratepayer bills significantly when the State Corporation Commission approves the cost recovery. Critics also highlight that Dominion no longer itemizes wind, solar, and REC fees transparently, complicating consumer understanding of bill increases.
Dominion Energy is a publicly traded utility headquartered in Richmond, Virginia, providing electricity and natural gas to over 7 million customers in 15 states. As Virginia’s primary energy provider, Dominion is central to implementing the 2020 Virginia Clean Economy Act and its associated investments in renewables, including large-scale offshore wind and solar projects. The company is also a major political donor in the state, having contributed more than $2 million to gubernatorial and legislative campaigns in 2025.
