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July 1, 2026, to June 30, 2028, VEPGA Contract Overview
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• On February 5, 2026, the VEPGA Negotiation Team met with the Dominion team to
hear its proposal. Based on this information, the VEPGA Negotiation Team notified
VEPGA members of the potential 32% rate increase.
• During the months of February and March, VEPGA’s consultants and reviewed the
workpapers provided by Dominion. In a SCC case, this process takes a large team
of Commission experts four to five months, but the VEPGA negotiation team was
able to complete its review in a much shorter amount of time.
• The VEPGA Negotiation Team consulted with the VEPGA Board as part of the Annual
Meeting held on April 14. At that meeting, the VEPGA Board authorized the
Negotiation Team to make a counteroffer.
• The VEPGA Negotiation Team provided a counteroffer on non-revenue items in late
April and a counteroffer on revenue requirement issues on May 5.
• On May 13, the VEPGA Negotiation Team and Dominion met again for another full
day of negotiations. During this meeting, the parties reached an agreement in
principle on both revenue requirement and non-revenue requirement issues.
• In late May, Dominion provided the VEPGA Negotiation Team with a draft of the
revised rates. The parties exchanged drafts and workpapers throughout the month
of June to ensure the contract reflected the mutual intent of the parties.
• On June 18, the VEPGA Chair sent an e-mail to the members explaining that VEPGA
will have an overall increase of 24.9%, but that this figure will vary by rate schedule.
• On June 30, the VEPGA Negotiating Team and Dominion agreed to implement the
new rates on an interim basis effective July 1, 2026, with final execution of the
contract to following.
• On July 15, the parties executed the new contract.
Energy Market Summary
As referenced in the Revenue Requirement section, the following information includes the
general energy market trends and drivers for the cost of energy higher for VEPGA and entire
energy sector:
Natural Gas Prices:
• Dominion’s fuel costs closely track natural gas market prices. In January 2025,
virtually all forecasts predicted that natural gas prices would remain relatively
constant during 2025 with a slight increase during 2026. However, natural gas Jump to an indexed page (10 of 10)