By Jonathan Wilson
Dominion Virginia Power says it still needs to raise rates, despite a state report that says the company earned $523 million more than necessary last year.
Virginia's largest power company has to a State Corporation Commission staff filing, which also recommended rate cuts for consumers.
The commission reviewed Dominion's earnings as part of its request for the first base rate increase in 17 years. Those rates cover Dominion's operating costs and comprise about two-thirds of customers' bills.
Dominion says an unfairly low rate of return was used when recommending the rate cut.
The SCC recommended a rate of return of 10.2 percent. Last year Dominion earned a 19 percent return. Dominions says the rate should fall between 11.8 percent and 13.6 percent.