Virginia Electricity Rates
Virginia’s average residential electricity rate of 16.43¢/kWh is about 9% below the national average. That makes it one of the more affordable states for electricity in the Mid-Atlantic region. As a regulated market, Virginia residents cannot choose their electricity provider. Your utility is determined by your address.
Dominion Energy Virginia serves about two-thirds of the state, while Appalachian Power covers the western region. Despite the regulated structure, Virginia’s growing renewable energy investments and diverse fuel mix continue to shape the Commonwealth’s energy landscape.
Key Takeaways
Virginia Avg Rate
U.S. National Average
Virginia’s Regulated Electricity Market
Unlike neighboring Washington D.C. and Maryland, which let consumers shop for competitive supply rates, Virginia operates a regulated electricity market. Your electric utility is determined by your physical address. Both the generation and delivery of electricity are bundled into a single rate set by the utility and approved by the Virginia State Corporation Commission (SCC).
Virginia briefly experimented with retail choice in the early 2000s under the Virginia Electric Utility Restructuring Act (1999), but the program never gained meaningful traction. In 2007, the General Assembly effectively re-regulated the market, and today consumers do not have the option to choose a competitive electricity supplier.
Virginia Expands C&I Retail Choice
Virginia’s limited choice framework was expanded in 2026. Governor Spanberger signed HB 921 (identical to SB 818) into law on April 13, 2026, effective July 1, 2026. The law allows any nonresidential customer of Dominion Energy or Appalachian Power with annual peak demand over 5 MW to purchase electricity from a licensed retail supplier.
Previously, eligible customers also could not exceed 1% of the utility’s peak load. That restriction has been eliminated. The law also reduces the return-to-utility notice period from 5 years to 18 months and sets a 12-month minimum stay for returning customers. Residential customers and nonresidential customers with peak demand at or below 150 kW remain ineligible for retail choice.
Dominion Energy Virginia
Virginia’s largest utility covers Richmond, Virginia Beach, Norfolk, Arlington, and Northern Virginia. Dominion operates the Surry and North Anna nuclear stations. It is also investing heavily in offshore wind with the Coastal Virginia Offshore Wind project, the largest in the U.S.
Appalachian Power (AEP)
A subsidiary of American Electric Power, Appalachian Power serves Roanoke, Lynchburg, Blacksburg, and the Shenandoah Valley. Rates are generally higher than Dominion’s due to the region’s mountainous terrain and distribution costs.
Electric Cooperatives in Virginia
Beyond the two major investor-owned utilities, Virginia is served by 13 electric cooperatives that cover rural and suburban areas across the Commonwealth. Cooperatives like Northern Virginia Electric Cooperative (NOVEC), Rappahannock Electric Cooperative, and Shenandoah Valley Electric Cooperative serve over 500,000 additional customers. Co-op rates vary but are often comparable to Dominion’s.
Virginia’s Energy Profile
Virginia’s electricity comes from a diverse mix of sources. The state has been shifting away from coal and toward natural gas, nuclear, and renewables in recent years.
Virginia’s two nuclear plants, North Anna (Louisa County) and Surry (Surry County), provide reliable baseload power. They are a key reason the state maintains rates below the national average. The Virginia Clean Economy Act (2020) mandates 100% carbon-free electricity by 2045 for Dominion and 2050 for Appalachian Power, driving significant investment in solar and offshore wind.
Coastal Virginia Offshore Wind
Dominion Energy’s Coastal Virginia Offshore Wind (CVOW) project, located 27 miles off Virginia Beach, will be the largest offshore wind farm in the United States with a capacity of 2.6 GW—enough to power 660,000 homes. The project is expected to be fully operational by 2026–2027 and represents a $9.8 billion investment in Virginia’s clean energy future.
Virginia Business Electricity Rates
Virginia’s commercial electricity rate of 11.28¢/kWh is well below the national average. That makes the Commonwealth an attractive location for data centers, manufacturing, and corporate headquarters. Northern Virginia alone hosts the largest concentration of data centers in the world.
Data Centers
Northern Virginia’s “Data Center Alley” in Loudoun County hosts over 300 data centers for Amazon, Microsoft, Google, and others. Data centers account for over 25% of Dominion’s total load in Northern Virginia. Special large-power tariffs apply.
Manufacturing
Virginia’s manufacturing sector spans shipbuilding (Newport News), food processing, and advanced manufacturing. Industrial rates are significantly lower than residential, averaging around 8¢/kWh.
Government & Military
Virginia hosts the Pentagon, numerous military bases (Norfolk Naval Station, Fort Liberty, Quantico), and federal agencies. These installations are among the state’s largest electricity consumers and often have dedicated utility agreements.
How to Lower Your Virginia Electricity Bill
While you can’t switch providers in Virginia’s regulated market, there are still meaningful ways to reduce your electricity costs:
Time-of-Use Plans
Both Dominion and Appalachian Power offer optional time-of-use rate schedules. By shifting energy-intensive tasks (laundry, dishwashing, EV charging) to off-peak hours, you can reduce your effective rate by 20–30%.
Community Solar
Virginia’s Shared Solar program allows customers to subscribe to a local solar farm and receive bill credits. No rooftop panels required—you simply subscribe to a portion of a community solar project in your utility territory.
Energy Efficiency Programs
Dominion’s EnergyShare and Appalachian Power’s Take Charge programs offer rebates on smart thermostats, insulation, HVAC upgrades, and LED lighting. Many improvements pay for themselves within 2–3 years.
Nearby Deregulated Markets: Washington D.C. & Maryland
While Virginia residents cannot shop for electricity, those in neighboring Washington D.C. and Maryland can choose from competitive electricity suppliers. D.C. customers served by Pepco and Maryland customers served by BGE, Pepco, and Delmarva Power can compare rates and potentially save 15–30% on their supply charges.
If you live near the Virginia border and work in D.C. or Maryland—or manage properties in multiple jurisdictions—understanding both regulated and deregulated options can help you optimize energy costs across locations.
Virginia City Electricity Rates
Explore electricity rates, utility info, and average bills for cities across Virginia.
Frequently Asked Questions About Virginia Electricity
What is the average electricity rate in Virginia?
Virginia’s average residential electricity rate is 16.43¢/kWh as of June 2026—approximately 9% below the national average of 18.05¢/kWh. Commercial rates average 11.28¢/kWh.
Is Virginia a deregulated electricity state?
No, for most customers. Virginia is primarily a regulated electricity market—your utility is determined by your address. Virginia briefly opened retail choice in the early 2000s but re-regulated in 2007. However, in 2026, Governor Spanberger signed HB 921, which expands limited retail choice for large nonresidential customers (over 5 MW peak demand) of Dominion Energy and Appalachian Power, effective July 1, 2026. Residential and small commercial customers remain ineligible. Neighboring Washington D.C. and Maryland are fully deregulated.
Who are the major electric utilities in Virginia?
Dominion Energy Virginia serves ~2.7 million customers across central and eastern Virginia (including Richmond, Virginia Beach, and Northern Virginia). Appalachian Power (AEP) serves ~530,000 customers in western Virginia (Roanoke, Lynchburg, Blacksburg). Several electric cooperatives serve rural areas.
Can Virginia residents shop for electricity like in neighboring D.C.?
No. Unlike Washington D.C. and Maryland, Virginia does not allow retail electricity choice. However, Virginians can participate in community solar programs, enroll in time-of-use plans, and take advantage of utility energy efficiency rebates to lower their bills.
Why are Virginia electricity rates lower than the national average?
Virginia benefits from a diverse energy mix including nuclear (North Anna and Surry plants), abundant natural gas, and growing renewable capacity. The state’s moderate Mid-Atlantic climate also helps moderate peak demand compared to extreme-weather states in New England or the South.
What is the Virginia Clean Economy Act?
The Virginia Clean Economy Act (VCEA), signed in 2020, mandates that Dominion Energy achieve 100% carbon-free electricity by 2045 and Appalachian Power by 2050. The law requires 16,100 MW of solar and onshore wind, 5,200 MW of offshore wind, and 3,100 MW of energy storage by 2035.
How do I report a power outage in Virginia?
Dominion Energy: 866-366-4357 or dominionenergy.com. Appalachian Power: 800-956-4237 or appalachianpower.com. Both utilities offer outage maps and mobile apps for real-time updates.