How is Virginia's restructuring working? While the movement may have some problems elsewhere, the Commonwealth's restructuring program has produced one of the better deals in the nation for customers. During a transition period - extending through 2010 - Dominion's base rates are capped and essentially frozen at approximately 1993 levels. Base rates cover all utility costs and expenses except fuel. A study by the respected consulting firm of Chmura Economics & Analytics calculated that the rate caps are producing annual savings of $61 to $74 for the typical residential customer.

Acting on their recommendations, the Assembly has fine-tuned the Act several times to accommodate changing conditions. Most notably, the legislators voted two years ago to extend capped base rates through 2010. The same bill froze Dominion's fuel rate through June, 2007. Our customers will save hundreds of millions of dollars from the fuel-rate freeze, and none of these savings will be lost when the State Corporation Commission resets the fuel factor, effective July 1, 2007. Next year's reset will be based solely on future fuel costs; Dominion cannot recoup expenses not recovered during the freeze.

Last month the Assembly approved an amendment to a comprehensive energy bill for Virginia that allows the SCC to phase in the 2007 fuel-rate increase over several years. The amendment, submitted by Governor Tim Kaine, will shield customers from abrupt price changes in fuel costs. It also authorizes annual fuel-rate recalculations through 2010. Any over-collections - highly possible in today's volatile energy markets - will be returned to customers through the yearly adjustment.