News Summary
Virginia Natural Gas seeks a permanent rate increase of approximately $8 per month for residential customers, contingent on regulatory approval. This proposal, reduced from an initial request, aims to fund pipeline upgrades and infrastructure improvements to ensure safety, reliability, and support growing energy demands. Critics highlight potential financial burdens on low-income households, emphasizing the need for supportive measures. The Virginia SCC is reviewing stakeholder briefs, with a decision expected later this year. The proposal also includes plans for a new compressor site in Chesapeake, contributing to future cost considerations for consumers.
Virginia Beach – Virginia Natural Gas (VNG) is seeking a permanent rate hike that could raise average monthly bills for residential users by over $8 if approved by state regulators. This increase comes following an interim rate change implemented in January to help the company manage operations amid rising demand and necessary investments.
Initially, VNG proposed over $60 million in additional revenue, which would have resulted in an average bill increase of $11. However, a recent stipulation has reduced the request to $40 million, now anticipating an average bill increase of $8. The Virginia State Corporation Commission (SCC) is currently considering this proposal, with a decision expected later this year.
Consumer advocates are raising concerns about the impact of this proposed rate hike. Reports indicate significant increases for some households; for instance, one resident in Williamsburg saw their bill rise dramatically from $29 to $202 following the change. Critics of the average increase figure argue that it is misleading, as household sizes and energy needs vary widely, meaning some may experience more substantial financial burdens than others.
VNG’s $16 million investment in pipeline upgrades is part of their Steps to Advance Virginia’s Energy initiative, which aims to meet growing energy demands. A spokesperson for the company has stated that the rate increase is necessary for essential investments meant to enhance operations, safety, reliability, and resilience of the gas system.
Opponents of the rate hike, represented by the Southern Environmental Law Center (SELC), argue that the increase disproportionately affects low-income households. Advocacy groups suggest that VNG should have explored options such as payment plans or weatherization funds to alleviate the financial strain on struggling customers prior to proposing a rate hike.
In addition to the proposed rate increase, VNG is also planning to establish a new compressor site in Chesapeake to improve gas delivery to other areas, which may lead to additional costs for ratepayers. VNG has also emphasized its commitment to providing cleaner generation gas, which the company claims is helping attract new customers and contributing to the need for increased revenue to maintain service levels.
The SCC is currently reviewing legal briefs from all stakeholders involved in the case and is set to make a determination regarding the proposed rate increase later this year. The situation is compounded by a separate rate increase request from Hope Gas in West Virginia, which is also under review and could generate approximately $79.6 million in additional annual revenue, impacting a broad spectrum of customers across multiple counties.
This proposed permanent rate increase reflects ongoing discussions surrounding energy costs and responsibilities of utility providers to balance operations with customer affordability. As regulators deliberate on this issue, both consumers and energy companies will be looking for solutions that address the financial needs of families while ensuring infrastructure and operational reliability.
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Additional Resources
- WYDaily
- Wikipedia: Natural Gas
- 12 On Your Side
- Google Search: Virginia Natural Gas rate hike
- WSLS
- Google Scholar: Rate Hike Impact on Low Income Households
- WV News
- Encyclopedia Britannica: Energy Costs
- WBOY
- Google News: West Virginia gas rate hike 2025
Author: STAFF HERE VIRGINIA BEACH WRITER
VIRGINIA BEACH STAFF WRITER The VIRGINIA BEACH STAFF WRITER represents the seasoned team at HEREVirginiaBeach.com, your trusted source for actionable local news and information in Virginia Beach, Virginia Beach City, and beyond, delivering "news you can use" with comprehensive coverage of product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news impacting the region—supported by years of expert reporting and strong community input, including local press releases and business updates, while offering top reporting on high-profile events like the Virginia Beach Neptune Festival, East Coast Surfing Championship, and military homecoming celebrations, alongside key organizations such as the Virginia Aquarium, Virginia Beach Convention Center, and Oceana Naval Air Station, plus leading businesses in tourism and defense like Busch Gardens and Northrop Grumman, and as part of the broader HERE network including HEREWilliamsburg.com, providing credible, in-depth insights into Virginia's vibrant landscape. HERE Virginia Beach HERE Williamsburg
