Dominion Energy on Friday proposed raising residential customer bills in South Carolina by about 12.7% to help pay for system upgrades and meet growing demand for electricity.
Dominion is also asking regulators for a higher rate of return on equity.
The state Public Service Commission is expected to make a decision by July 2, with the changes taking effect the first billing cycle of that month.
Regulators allowed the utility a 9.94% ROE in 2024. Dominion’s proposed rates and changes could allow the company to earn 10.5%.
The average ROE authorized for electric utilities in rate cases decided in the first nine months of 2025 was 9.66%, according to S&P Global Market Intelligence. The average for 2024 was 9.74%, it said.
The utility said a rate of 10.5% “represents a more appropriate return based on current financial markets, the risks inherent in its business, regulatory lag and uncertainties related to future electric demand.”
South Carolina “continues to be one of the nation’s fastest growing” when it comes to energy demand, Dominion said in its filing with the Public Service Commission.
The utility’s electric demand is projected to grow at an annual rate of 1.2% over the next 20 years, resulting in a 25% increase by 2044, it said.
Dominion said it requested a revenue increase of approximately $322 million to support $1.4 billion invested in the electric grid. It requested an actual capital structure of 53.52% equity and 46.48% debt.
Dominion said the proposed revenue increase “includes our response to the widespread devastation of Hurricane Helene in 2024, which triggered the largest restoration and rebuild effort in the company’s history,” Dominion said on its web site.
If approved, the bill of an average residential customer who uses 1,000 kWh a month would grow about $20 to $177, Dominion said. Commercial and industrial customers would see increases of approximately 5.9% and 14.9%, respectively.
Last month, the commission approved a $51.2 million increase in electric rates for Duke Energy, which was almost 70% of the company's original request of $73.7 million, according to S&P.
Dominion attributed its rising costs to a growing customer base, tariffs, inflation and increased regulatory obligations related to grid security, reliability and environmental compliance.
The utility also said it recently invested about $772 million in its transmission and distribution infrastructure.
Dominion anticipates electricity demand will continue to increase due to manufacturing and other economic development projects, it said. Those include a new multi-billion dollar electric vehicle manufacturing plant being constructed outside of Columbia.
The utility also said it would require “large amounts of new capital” as a result of rising electrification, coal plant retirements and new generation.
The South Carolina Department of Consumer Affairs has petitioned to intervene in the proceeding. The advocate told regulators it “works to avoid excessive, inadequate, and unwarranted rate increases; however, a position has not yet been fully developed on this matter.”
