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July 1, 2026, to June 30, 2028, VEPGA Contract Overview
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requirement was unavoidable for this contract term. The large increases are attributed to
Dominion’s cost to provide service, both in base rates and in fuel. The VEPGA Negotiation
Team was also successful in utilizing strategic revenue deferrals to further mitigate rate
shock over the contract term and achieved several favorable updates to the terms and
conditions.
Based on Dominion’s initial revenue requirement proposal, the VEPGA Negotiation Team
notified members in February 2026 that members could see a rate increase of up to a 32%.
Moreover, between February and June of 2026, the costs that Dominion sought to recover
starting on July 1, 2026 increased even more, as discussed below. But, as a result of the
VEPGA Negotiation Team’s efforts, on average, members will see an approximately 25%
increase as of July 1, 2026. An at least 12% additional increase will also occur on July 1,
2027.
Revenue Requirement
Below is a summary of overall revenue requirement increases in the categories of costs:
• Base Rates:
o Initially, Dominion proposed an annual $65.4 million increase to VEPGA base
rates, starting on July 1, 2026 (a $130.8 million increase over the two-year
contract period) to provide safe and reliable service. Moreover, during
contract negotiations, Dominion updated its cost calculations and requested
an additional $12 million in purchased capacity costs (effectively increasing
the base rate component of their increase to $142.8 million over the two-
year contract period).
o For comparison, during the 2019 contract negotiations, Dominion’s initial
offer was a $9.25 million annual increase ($27.75 million increase over a
three-year contract period).
o The VEPGA Negotiating Team was able to secure a 2-year contract term with
a $42 million base rate increase plus an additional $12 million base rate
increase in Year 2 associated with purchased capacity costs. Thus, over the
two-year contract period, VEPGA’s base rates will increase by $96 million.
This agreement results in base rates that are $46 million lower than what
Dominion proposed, over the two-year contract period. Jump to an indexed page (10 of 10)