South Carolina – South Carolina households served by Dominion Energy may soon see their electric bills climb, but the increase now on the table is smaller than what the utility first requested earlier this year.
A settlement reached Friday between Dominion Energy, utility watchdogs and environmental groups would raise residential electric rates by 7.6% if approved by the South Carolina Public Service Commission. The company had originally sought a 12.7% increase in January.
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For a typical residential customer using 1,000 kilowatt-hours a month, the proposal would move the average monthly bill from about $157 to about $169. That equals an estimated $12 increase, compared with the roughly $20 jump Dominion initially proposed. The figure does not include possible fuel-related costs that may be added to customer bills separately.
The new rates would begin in July if state regulators approve the agreement. Dominion is expected to present the settlement to the South Carolina Public Service Commission on Tuesday, though there is no set deadline for a final decision.
As part of the deal, Dominion will use $3 million from stockholders to soften the first year of the increase for residential customers. Details on exactly how bills would be affected between July 2026 and July 2027 were not immediately available.
The settlement also directs $1 million per year for three years into programs aimed at helping customers who are struggling financially. That money would support bill assistance and home energy-efficiency improvements.
“In the face of so much uncertainty and expected cost increases, now is the time to use all the tools available to ensure families are protected from rising costs,” Jake Duncan, Vote Solar’s senior Southeast regulatory director, said in a statement.
“This settlement helps offset the worst of the proposed rate increase by providing direct relief to residential customers, funding for low-income weatherization, and protecting customers’ ability to invest in solar.”
If approved, Dominion would collect about $207 million more each year from its roughly 820,000 customers across the Lowcountry and Midlands. That is $115 million less than the company’s original request.
Dominion officials have said the additional revenue is needed after major investments in the state’s electric system. Since March 2024, the company says it has spent $1.4 billion in South Carolina, including $500 million on local distribution lines, $270 million on transmission lines, $515 million on power plants and Lake Murray hydropower, and $120 million on Hurricane Helene recovery.
The agreement would also allow Dominion and its shareholders to earn up to 9.9% on certain investments funded through stock sales, down from the 10.5% return the company first sought.
The debate comes as electricity prices remain under pressure nationwide. The U.S. Energy Information Administration has reported that power costs rose faster than inflation in 2025 and are expected to keep rising this year, though South Carolina has not seen increases as sharp as some states in the West and Northeast.
The detailed report can be found on South Carolina Daily Gazette.
