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VEPGA: 2026–2028 electricity contract overview memorandum

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July 1, 2026, to June 30, 2028, VEPGA Contract Overview 4 • Rate Comparison: VEPGA's core objective is to obtain the lowest electricity supply service from Dominion through the contract negotiation process. Pursuant to the existing contract, VEPGA requested Dominion provide a comparison of the revenue requirement for all of VEPGA's accounts as if they were billed on SCC jurisdictional customers rates at a given time. Although a useful negotiation tool, such a comparison offers only a snapshot in time. Jurisdictional base rates are adjusted on a different schedule than VEPGA rates, with certain costs recovered over longer or shorter periods of time. As a result, a comparison of VEPGA rates to jurisdictional rates over the term of VEPGA’s two-year contract term is difficult. For example: o VEPGA adjusted its base rates on July 1, 2025; o Jurisdictional base rates increased significantly on January 1, 2026 and are set to increase again on January 1, 2027; o New VEPGA base rates went into effect July 1, 2026, with an increase on July 1, 2027, with such rates remaining in effect until June 30, 2028. o Next year, Dominion will file a base rate petition to adjust its rates again, with changes to become effective January 1, 2028. It is currently unknown what Dominion will propose in the 2027 base rate case, much less what the State Corporation Commission will approve. • The VEPGA Negotiation Team will provide additional information for members explaining how jurisdictional rates compare to VEPGA rates. Non-Revenue, Terms and Conditions Items- The VEPGA Negotiation Team secured several important improvements in the VEPGA contract for its members. A full list of non- revenue items are listed in the Chart of Contract Issues section, with specific highlights noted below: • Extended the deadline for when a payment is considered “late” from “Net 30” days to “Net 60” days. • The new “Net Energy Metering 2.0” provisions will not apply to VEPGA customers during the entire contract period (7/1/2026-6/30/2028). • Dominion and VEPGA have agreed to participate in a collaborative meeting, to be facilitated by a neutral third party at Dominion’s expense, to “discuss and review the current outdoor lighting offerings, gaps where VEPGA members are encountering limitations with current offerings and pragmatic opportunities to better align outdoor lighting offerings with VEPGA members needs.”
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