By Steve Haner
The surprise explosion in the capacity auction prices within the PJM electricity collective is expected to cost Dominion Energy Virginia $145 million next year.ย The company just proposed to the State Corporation Commission that it eventually collect some or all of that directly from its customers, but not until its rates are reviewed again in 2027.ย

The ratepayer impact of the massive increase in future capacity charges within Dominionโs service territory was unclear immediately after the auction results were announced in July. It was fair to assume some impact once the new capacity pricing hit come July 2025.ย Each auction sets the capacity contract prices for a 12-month period, and another auction will be held for the period beginning July 2026.
In a filing with the SCC last week, Dominion revealed its estimate that it will spend $145 million more for capacity contracts within PJM than it had planned to. That is just for 12 months, July 2025-June 2026. It requested permission to treat that as a โregulatory assetโ which it can collect later rather than a normal cost of service which it would just absorb within its base rate price.













