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Commonwealth's Counties

New contract with Dominion Energy to purchase electricity will save counties money

The Virginia Energy Purchasing Governmental Association (VEPGA), a joint powers association of more than 170 local government entities (including 37 counties), has signed a new contract to purchase electricity from Dominion Energy for the period August 1, 2019 through June 30, 2022.  While an Agreement in Principle was reached earlier this year, the final contract language was executed in late October and is in effect as of August 1, 2019.

Unlike residential and commercial customers, electricity rates for government entities are not regulated by the State Corporation Commission (SCC). VEPGA, created in 2002 pursuant to authority provided in the Virginia Code, negotiates multi-year electricity contracts with Dominion Energy on behalf of its members. Analysis by VEPGA consultants estimates savings to VEPGA members (in the aggregate) of millions of dollars each year.

According to VEPGA, the new agreement … achieves approximately $32.55 million in savings over the contract term, as compared to Dominion’s original offer.  It also provides for up to $10 million in credits beginning in 2022, contingent on Dominion’s spending over the contract term on “Grid Transformation” activities authorized by 2018 state legislation and approved by the Virginia State Corporation Commission.

This overview of the contract is posted on the VEPGA website. The contract documents are posted on the VEPGA website at

VEPGA and Dominion Energy will hold regional meetings later this year to provide members additional details on the contract. VACo will provide information on the meeting dates and locations when they become available

VACo Contact: Joe Lerch, AICP

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