Brace yourselves, Virginia! Your natural gas bill could be going up by an average of $8 monthly, and some fear the impact on low-income homes will be far greater. Is this a necessary evil for infrastructure, or a financial burden too heavy to bear? Find out what’s at stake for your household finances.
Virginia Natural Gas (VNG) has put forth a proposal that could significantly impact **Virginia residents**, particularly **low-income households**, as it seeks to make an interim rate hike permanent, potentially raising average **utility bills** by over $8 monthly. This contentious **rate hike** comes as the State Corporation Commission (SCC) deliberates on the company’s financial needs versus the financial burden on its customer base, sparking intense debate among various stakeholders.
The interim rate was initially implemented in January 2025, with VNG citing the need to sustain operations amidst increasing demand and other essential investments. The company now argues that making this rate increase permanent is crucial for maintaining its infrastructure and ensuring reliable service as its business continues to grow, emphasizing the complexities of modern **energy policy** and infrastructure development.
VNG’s original submission to the State Corporation Commission requested additional revenue exceeding $60 million, which would have translated to an average of an $11 increase on residential gas users’ bills. However, a recent stipulation proposed to reduce this amount to $40 million, bringing the average monthly increase down to $8, a figure the SCC is now tasked with approving or rejecting.
Since the interim rate took effect, **consumer advocacy** groups have begun to document substantial bill increases for specific households, challenging the utility’s use of average figures. These advocates contend that averages often mask the true, disproportionate financial strain experienced by vulnerable customers, prompting a closer look at the data.
Elizabeth Putfark, an associate attorney with the Southern Environmental Law Center, highlighted a dramatic example: “One resident in Williamsburg said their bill went from $29 to $202 one month after the rate change went into effect.” She further argued that such averages are “a poor metric to show what people are experiencing,” given varying home sizes, appliance usage, and monthly temperature fluctuations that can drastically alter individual utility bills.
Morgan Chase, a spokesman for VNG, defended the proposed increase, stating, “VNG’s requested rate increase is driven by the substantial investments needed to improve the operations, safety, reliability and resiliency of its system to meet growing energy demand.” These investments include the $16 million Steps to Advance Virginia’s Energy initiative, underscoring the company’s commitment to a modern and secure natural gas infrastructure.
The Southern Environmental Law Center, representing Appalachian Voices, Virginia Majority, and Virginia Organizing, counters that VNG has failed to adequately assess the impact of this rate hike on low-income households, arguing they will bear the brunt of the burden. They advocate for VNG to implement payment plans or invest in weatherization funds to mitigate these costs, emphasizing the “just and reasonable ratemaking obligation” to balance customer and shareholder interests within energy policy decisions.
VNG, which services many of Virginia’s coastal counties, has also been actively promoting its “new generation gas” as a cleaner energy source, attracting new customers and further driving the need for increased revenue to sustain expanded service. The utility’s infrastructure is also expanding with projects like a proposed compressor station in Chesapeake, designed to supply more gas to corporate and residential users further afield, reflecting an ongoing growth strategy.
As the State Corporation Commission weighs these arguments, the decision will not only shape the financial future of Virginia Natural Gas but also significantly influence the household budgets and economic stability of countless Virginia residents, especially those in low-income households, who face the prospect of higher utility bills amid rising living costs.
