The negotiation team for the Virginia Energy Purchasing Governmental Association (VEPGA) has agreed in principle to a contract from July 1, 2026, to June 30, 2028, with Dominion Energy for the purchase of electricity on behalf of its local governments (counties, cities, towns, school divisions and service authorities). VEPGA is a joint powers association created in 2002 pursuant to authority provided in the Virginia Code and negotiates multi-year electricity contracts with Dominion Energy. As reported to VEPGA members on June 16.
VEPGA will have a 24.9% overall increase in the upcoming contract year, effective July 1, 2026. Impacts by rate schedule are detailed in this spreadsheet as increases vary by rate class to align with the cost of service. It is important to note that the overall impact on a particular member will vary depending on their individual rate schedules. Members can also expect at least another 12% increase effective July 1, 2027. The minimum 12% increase in 2027 is likely optimistic and only considers costs known during the negotiation process. This increase assumes no further increases in fuel costs or riders, such as RGGI, and does not consider any other potential impacts at this time. The multi-year, stepped increase was a strategy to reduce rate shock in the first year of the new contract and align with the VEPGA board’s direction to the negotiation team.
Lastly, the VEPGA negotiation team also made progress with non-revenue contract items. VEPGA will be issuing a memo about the contract updates to VEPGA members in July.
If you have any questions or need additional information, please contact VEPGA Secretary/Treasurer Sandy Harrington at sharrington@vml.org.
To learn more about VEPGA go to www.vepga.org and listen to episode 25 (Purchasing Electricity for Local Governments from Dominion Energy) of the VACo Energy Landscape of Virginia podcast.
VACo Contact: Joe Lerch, AICP