Dominion Files Electric Rate Settlement With Regulators
NEW YORK -(Dow Jones)- Dominion Resources Inc. (D) has filed a proposed
electric-rate case settlement with state regulators, and would return $268
million of 2008 earnings to customers through the end of 2010 under the
agreement.
The company, which is the parent of utility Dominion Virginia Power, would
also credit $129 million of transmission rights and fuel expenses to customers.
The company's authorized return on equity would be set at 11.9%.
Dominion Virginia Power had asked state regulators for a $250 million rate
increase, but state Attorney General Bill Mims argued that the utility should
return funds to customers for over-earning in 2008. Under the settlement with
the attorney general's office and other parties, the utility's base rate will
remain unchanged.
The utility would recover the costs of ongoing construction projects through
separate rate adjustments approved by state regulators.
If the settlement is approved, the typical residential customer using 1,000
kilowatt-hours of electricity a month would save $80, including a $24 one-time
credit and $56 in monthly bill adjustments through December 2010.
Dominion affirmed its 2010 operating earnings outlook of $3.20 to $3.40 a
share and its 2009 operating earnings guidance of $3.20 to $3.30 a share. The
company said the settlement, if approved, would have a negative impact of $267
million to fourth-quarter and full-year 2009 earnings that wouldn't be included
in operating earnings.
-By Christine Buurma, Dow Jones Newswires; 212-416-2143;
christine.buurma@dowjones.com
(END) Dow Jones Newswires
11-05-091823ET
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