VPLC Stands Up for Low-Income Virginians in Dominion’s Rate Case

This week, Virginia Poverty Law Center (VPLC) appeared before the State Corporation Commission (SCC) to ensure the voices of low-income Virginians are heard in Dominion Energy’s latest rate case. For nearly five decades, VPLC has fought to protect families from unfair practices that threaten their financial stability and access to essential services like electricity.

In this case, we are urging the Commission to protect vulnerable households from unaffordable rate increases, disconnections, and unfair debt collection practices—while ensuring that large corporate energy users, such as data centers, shoulder their fair share of costs.

Below is VPLC’s full opening statement, delivered to the Commission.

Opening statement of VPLC
VPLC has worked for 47 years to break down systemic barriers that keep people in poverty. 45 years ago, a new staff attorney at VPLC James Dimitri (and later an SCC commissioner) appeared before the Commision to represent low-income Virginians so that those residential energy consumers are not left behind or out as energy policy and options advance. And it’s not just rates but the policies of how families are “granted” service, how their service is taken away and how they are treated when they struggle to pay their bills. We feel we are well-qualified to bring these issues to the Commissioners because of our work and community with Virginian’s low-income families. Over 10% of Virginias are living at or below the poverty line. It has been estimated that nearly 40% of Virginians are struggling from paycheck to paycheck, barely making end meet. We heard from many of those people during the public comment period. We urge this body to use its power to protect low-income Virginia families from unaffordable rate increases and disconnections.

Data Centers
We strongly agree with former SCC Commissioner Mark Christie who said recently in an interview: “The retired woman living on Social Security, she should not have cost shifted onto her from the data centers”. Data Centers are driving the need to generate huge amounts of power, and they should pay the cost—not residential customers.

Rate increases and request to increase Dominion’s Rate of Return

• VPLC agrees with the position taken by the Office of the Attorney General of Virginia.
• We urge the Commission to reject Dominion’s request for an increase to its rate of return on common equity (“ROE”). Dominion’s request for a significant increase to its ROE is not consistent with the concept of gradualism in ROE changes, particularly at a time of economic uncertainty on many fronts including:
  •  Low-Income Home Energy Assistance Program (LIHEAP).
    • Currently, LIHEAP is only serving a quarter of the Virginia households that are eligible
    • the total funding remains level, for now, but given that the federal LIHEAP staff was fired a few months ago, there is reason to question future funding
  • Cuts to SNAP and Medicaid.
    •  Federal legislation passed this summer which will lead to cuts in SNAP and Medicaid benefits which, of course, affects the ability of many low to moderate income consumers to pay for rate increase.
    •  A 2024 VA Dept of Social Services report on the LIHEAP program and other assistance programs, it was found that many households were already forgoing payment for necessary medications and food in order to avoid disconnection of power.

Past due bills—repayment options

• We realize that Dominion, like any service provider, relies on customers paying their bills. But, unlike most service providers, they are a monopoly (with a guaranteed profit) providing a service that customers cannot live without.
  
• Customers want to pay their bills and reasonable and flexible payment plans are a win-win for both Dominion and its customers.
  
• Dominion should offer more flexible and longer-term repayment options. These options should be known and available to customers and described in the Company’s terms of service. We urge the Commission to review this policy for fairness and to require Dominion to allow additional repayment options for its customers.
  
• Dominion should allow for online or self-attestation tools in the customer service platform for customers to submit what they can afford to pay to decrease customers agreeing to unaffordable and limited terms for payment plans offered by the company. In order for customers to be set up for success, payment plans must address the needs of the customer.
  
• From discussions with some customers, we have learned that it is difficult for customers to get payment plans that fit their budgets and the ability to do something when they know they will get behind, but are not yet behind.

Disconnections

• Data compiled by researchers at Indiana University reveals that disconnections by Dominion tripled from 2023 to 2024 to over 300,000.
  
• The consequences of disconnection can be dire:
  
  • Frozen pipes in the winter
    
  • Heat stroke in the summer
    
  • Reconnection fees
    
• It is important for customers to understand all of the options open to them and to know the disconnection timeline.

Disconnections

• Data compiled by researchers at Indiana University reveals that disconnections by Dominion tripled from 2023 to 2024 to over 300,000.
  
• The consequences of disconnection can be dire:
  
  • Frozen pipes in the winter
    
  • Heat stroke in the summer
    
  • Reconnection fees
    
• It is important for customers to understand all of the options open to them and to know the disconnection timeline.
  

Old debt

• Old unpaid utility debt, sometimes years old… and sometimes due to an abusive partner or roommate… it follows families for years and prevents them from getting reconnected.
  
• Dominion, in effect, gets a fresh start financially with each rate case and has the ability to write off bad debt.
  
• Virginia law has a statute of limitations limit on creditors collecting debt because we recognize at some point that we must allow families to move on with their lives. This Commission should limit the time period when prior missed payments can impact credit or risk of disconnection or reconnection.
  

Measures to prevent hundreds of thousands of disconnections

• The Company should pause disconnections or have greater flexibility in payment plan options for those customers eligible and who applied for LIHEAP or EnergyShare but for whom no funding remains available.
  
• There should be a proactive effort by the company to test different affordability options as pilot programs to see what works best for the Company’s customers struggling to keep up with payments. Such options should include:
  
  • Testing a tiered rate within the residential customer class
    
  • Testing a 6% energy burden cap for customers who fall under the PIPP and low-income categories
    
  • A pilot to test a statute of limitations or a fresh start program on utility debt for the same category of customers eligible but for whom assistance is underfunded
    
• The Company should be required to meet regularly with consumer stakeholders, including assistance-providing organizations and agencies, to ensure that terms and conditions meet consumer-protection best practices and best utilize the funds and options toward more sustainable and affordable bills.
  
• We appreciate the Commission’s Final Order (page 18) from last year’s APCO rate case in which the Commission ordered APCO to work with VPLC and other stakeholders willing to engage in this process to:
  
  • “Develop a plan aimed at reducing residential service disconnections and to present such in its next base rate review.
    
  • The Company’s efforts in this regard should also include consideration of expanded energy assistance options, as well as identifying ways to better inform customers of available energy assistance options.
    
  • This further includes exploring additional ways to inform potentially eligible customers of the Percentage of Income Payment Program.
    
  • Finally, the Company should develop and implement a pilot program, in consultation with VPLC, to increase the Company’s maximum payment plan window from 12 to 18 months (along with any additional options for payment flexibility) for a subset of customers and report to the Commission on the effect, if any, on the Company’s bad debt expense.”
    
• A similar Order is also appropriate in this case.