Virginia, which once allowed all customers to shop for their electricity provider, closed nearly the entire market to choice in 2007, at the behest of the state's largest utility, Dominion Power. Nearly all customers are now left without a choice.
Only customers above 5 megawatts (MW) can shop for an alternative energy provider. Smaller customers shopping before the ban on competition was put in place can continue to shop; however, if they return to the utility, they will lose their right to shop in the future.
Virginia reformed its natural gas industry to offer all customers a chance to shop for lower natural gas rates. Customers can choose a different company to supply them with their gas supply. Customers choosing an alternate gas supplier will still have their gas supply delivered by the local utility, but customers will be buying their gas supply from a new company.
A customer's natural gas bill has been separated into two parts:
- Regulated distribution of gas, which is still only provided by the utility, and
- Supply of the gas commodity, which is open to competition.
Customers can choose to receive their gas supply from their utility, or an alternate gas provider.
If customers do not shop for an alternate gas supplier, they receive default sales service from their utility. Under default sales service, customers pay a supply charge called the Purchased Gas Charge which can vary as often as monthly. Customers can avoid wild monthly swings in the gas supply charge by contracting with an alternative gas supplier.
No matter who you choose to buy energy from, your local utility will continue to deliver your gas and respond to service interruptions and outages. You will still pay your utility for these services. Depending on your area, you can choose to receive a single bill from your utility listing your utility delivery charges and supplier commodity charges, or separate bills from the utility and alternate energy provider.