May 1 Rate Adjustments

On May 1, residential members will see an increase in monthly bills, on average, of about $11 per 1,000 kWh for charges related to energy supply, driven largely by unplanned events affecting SVEC’s wholesale energy provider.

These charges are pass-through costs from the provider, Old Dominion Electric Cooperative — in other words, SVEC members pay what SVEC pays for energy generation and transmission.

The increase coincides with SVEC’s previously announced, smaller rate adjustment to distribution costs for an expected total increase of about $17 for the average residential member per 1,000 kWh of consumption.

At the ODEC level, the increase is from several factors, including weather and state policy changes. It is intended to stabilize power cost recovery going forward. In January and February 2026, extreme winter weather and prolonged cold temperatures increased natural gas prices and caused significant power market volatility, driving wholesale power prices even higher, ODEC says.

When temperatures stay low for long stretches of time, heating systems run longer; heat pumps rely on backup electric heat, and ultimately more electricity is used. Higher prices, coupled with increased electricity usage during periods of extreme winter weather, have resulted in the necessity for an increase to cover power costs, ODEC says.

This ODEC-level increase also incorporates projected compliance costs associated with Virginia’s anticipated reentry into the Regional Greenhouse Gas Initiative, a state policy that requires power generators to purchase carbon allowances. These additional costs are required under state law and are passed through at cost, without markup.

ODEC only charges SVEC for the actual cost of producing or purchasing energy, with no profit for shareholders or other entities. ODEC’s rates are also regulated by the Federal Energy Regulatory Commission, which requires ODEC to regularly review its rates to ensure they are recovering their costs — no more, and no less.

It’s the same process for SVEC and the application of distribution rates, which are approved by the State Corporation Commission.