RICHMOND, VA — Virginia residents are paying more for electricity this summer as Dominion Energy raises rates while pursuing a proposed merger with NextEra Energy, a deal that could reshape the state’s energy future amid explosive growth in artificial intelligence and data centers.
Beginning July 1, a typical Dominion residential customer using 1,000 kilowatt-hours of electricity each month saw bills increase by about $8 because of higher fuel costs. Combined with an earlier approved base-rate increase of $8.51 per month, average monthly bills are expected to rise by nearly $19, or about 14%, in 2026.
Dominion says the increases are needed to support billions of dollars in investments in new transmission lines, substations and power generation as electricity demand reaches record levels. Northern Virginia, home to the world’s largest concentration of data centers, is expected to require even more power as artificial intelligence expands.
For some residents, the impact is already being felt.
For 40 years, Windy Knoll Farm has been a fixture of the local landscape, known for its Highland cattle, scenic views and community events. Owners Helen and Don Taylor say Dominion’s proposed 230-kilovolt transmission line would divide the farm, requiring towers more than 100 feet tall and a cleared corridor about 100 feet wide. They say the project would destroy mature trees, disrupt the environment their cattle depend on and likely end public events that have made the farm a local destination.
“Windy Knoll Farm has been our family’s passion for four decades,” Helen Taylor said. “We want to protect not only our farm, but the rural heritage that makes this community special.” The Taylors are urging Dominion to study an underground route along Route 28 and are encouraging residents to attend upcoming public meetings.
The transmission project comes as Dominion seeks regulatory approval to merge with Florida-based NextEra Energy in a transaction that would create the world’s largest regulated electric utility. The companies say the merger would strengthen their ability to finance major infrastructure projects while providing approximately $2.25 billion in shareholder-funded bill credits, with nearly 80% designated for Virginia customers.
Consumer advocates question whether the proposed $2.25 billion in shareholder-funded bill credits will truly offset long-term rate increases, particularly if residential customers end up subsidizing infrastructure built primarily for technology companies.
Pending state and federal approval of the Dominion–NextEra merger and related transmission projects, regulators must balance the urgent need for expanded capacity with the protection of consumer affordability, agricultural interests, and the state’s rural character.
