Advocacy Alert: Dominion Energy Rate Hikes for Small Businesses

Dominion is advertising a 6% overall rate increase for the commercial class. However, for a typical small business, the actual impact could be much higher. Because of how the rates are structured, "low-energy" users (like a small retail shop or a professional office) are hit the hardest.

1. The "Hidden" 18% Jump (Fixed Costs)

One significant change is the Basic Facilities Charge. This is the amount you pay just for having the meter on, even if you keep the lights off all month.

• Current: $22.00 / month

• Proposed: $26.00 / month

• The Impact: This is an 18% increase in your "entry fee" to have power. For a small business with thin margins, these fixed costs add up because they cannot be "saved" away through energy efficiency.

2. The "Double Whammy" on Demand

Small businesses often have "spiky" energy use (e.g., turning on industrial ovens, several AC units at once, or heavy machinery).

• Peak Demand Charges are rising by 11%.

• Even if you reduce your total energy use (kWh), one 15-minute window of high activity could trigger a much higher bill than before.

3. The "Big Guy" Subsidy Risk

There is a massive tug-of-war happening behind the scenes. Dominion is proposing a large increase for Industrial customers (factories, data centers).

• The Danger: If those large corporations successfully lobby to lower their portion of the increase, regulators often "re-allocate" that missing money onto the customers with less lobbying power: Small Businesses.

• Small businesses shouldn't have to subsidize the energy costs of multi-billion dollar industrial users.

4. The "Variable" Fuel Factor

On top of this "Base Rate" increase, there is a separate Fuel Rate (to cover the cost of natural gas).

• This is a "pass-through" cost, meaning Dominion doesn't profit from it, but you still have to pay it.

• With natural gas prices volatile, this is a "ticking time bomb" that could make your actual bill increase much higher than the 6% Dominion is quoting.

Now is the time to Speak Up 

South Carolina Public Service Commission has scheduled public hearings to gather customer testimony. There will be one held on March 31, 2026 at 6 p.m. in Charleston County Council Chambers:

Lonnie Hamilton III, Public Services Building 
4045 Bridge View Drive, 2nd Floor North Charleston, SC 29405

Pre-registration to testify is encouraged. Please pre-register by Friday, March 20 in one of the following ways: 

- E-mailing communications@psc.sc.gov
- Completing the following survey: http://app.smartsheet.com/b/form/019b94d1aaf27143a6b2c0ba32c7cffd
- Calling 803-896-4120

The Commission will call the names of those persons who pre-register to testify first in the order in which they preregistered and will then call the names of the other persons who did not pre-register to testify and who signed up upon arrival at the hearing.

If you're able to show up and share your voice as a small business owner, just know that you don't need to be an engineer or energy expert. You should simply focus your remarks on three tangible points:

1. "Fixed Costs Kill Growth": An 18% increase in the fixed charge is a regressive tax on the smallest shops. Unlike large factories, we can't just "scale up" to absorb these costs.

2. "The Transparency Gap": Dominion’s "6% average" is misleading for small commercial users who don't have the same usage patterns as massive industrial complexes.

3. "Small Business is the Buffer": We are already dealing with inflation in labor and supplies. We cannot be the "fallback" funding source if industrial giants negotiate their way out of their fair share.

Here's a sample 2-min script to get your wheels turning:

"Good evening, Commissioners. My name is [Name], and I own [Business Name], located in [City/Town]. We’ve been serving this community for [Number] years. I’m here tonight because the proposed rate increases, and the structure of them, pose a direct threat to the viability of small businesses like mine.

Dominion is highlighting a 6% average increase, but for a small storefront, that number is a math trick. By raising the Basic Facilities Charge from $22 to $26, you are imposing an 18% increase on us before we even flip a light switch.

Large corporations can spread these fixed costs across massive operations. For a small business, these are 'dead-end costs.' I can’t 'energy-save' my way out of a fixed fee. It’s a flat tax on the smallest players in our economy.

Additionally, the 11% jump in peak demand charges penalizes small businesses for simply operating. If I turn on my equipment to serve a rush of customers, I am hit with a massive surcharge. We don't have energy managers or battery arrays to 'smooth out' our load like industrial users do. We just have bills that keep getting harder to pay.

I am also deeply concerned that if the large industrial users, who have the resources to hire teams of lawyers, successfully fight their increases, that burden will be shifted onto small businesses. We are the backbone of this state’s economy, but we don't have a lobbyist in every room. We are asking the Commission to ensure that small businesses aren't used as a 'safety net' to subsidize the energy needs of data centers and heavy industry.

We are already facing record inflation in labor, rent, and supplies. We simply cannot absorb a double-digit hike in fixed utility costs. I ask the Commission to reject the 18% increase to the Basic Facilities Charge and to protect small commercial users from bearing the brunt of industrial re-allocations. Thank you for your time."

Tips:

• Bring a Bill: If you can, bring a copy of their most recent bill and insert. Pointing to the "Basic Facilities Charge" line item makes it real for the Commissioners.

• The "Employee" Metric: Mention how many people you employ helps. "That the fixed fee increase is just money I can't put toward a holiday bonus or a new piece of equipment."