Who Owns Virginia Natural Gas?

Virginia Natural Gas operates within Southern Company's sustainability framework, which targets net-zero direct greenhouse gas emissions from operations by 2050. VNG's specific initiatives focus on infrastructure modernization, renewable natural gas procurement, and methane emissions reduction.

SAVE Program: VNG's Steps to Advance Virginia's Energy (SAVE) program, launched in 2012, has replaced 100% of the system's low-pressure pipelines. The program has upgraded more than 575 miles of aging infrastructure with modern materials, achieving a 35% reduction in greenhouse gas emissions from the distribution system while improving safety and reliability.

Renewable Natural Gas: In June 2025, VNG completed RNG purchase agreements estimated to avoid 18,978 metric tons of CO2e emissions annually. RNG is produced from methane captured at landfills, agricultural waste sites, and wastewater treatment facilities before it enters the atmosphere. VNG also partnered with the Hampton Roads Sanitation District to develop an RNG facility that converts biogas from wastewater treatment into pipeline-quality gas.

Cross-Compression Technology: VNG uses cross-compression technology to capture natural gas removed during pipeline maintenance or inspection and return it to the system rather than venting it. This practice reduces methane emissions during routine operations.

Net-Zero Goal: VNG supports Southern Company's enterprise-wide commitment to achieve net-zero direct greenhouse gas emissions from operations by 2050. The company's investments in RNG, infrastructure modernization, and emissions reduction technology align with this target.

Environmental Justice Concerns: VNG's sustainability investments have drawn criticism from consumer advocates who argue that the costs of environmental initiatives are passed to ratepayers through rate increases that disproportionately affect low-income households. The Southern Environmental Law Center has called on the Virginia SCC to require VNG to implement protections for vulnerable customers before approving rate hikes tied to environmental programs.

Virginia Natural Gas has not received extensive formal industry awards, but several of its programs have been acknowledged by utility industry organizations and environmental groups.

SAVE Program: The SAVE program has been cited as a model for infrastructure modernization within the natural gas utility sector. Replacing 100% of low-pressure pipelines and achieving a 35% emissions reduction has drawn attention from industry publications and peer utilities.

RNG Partnerships: VNG's 2025 renewable natural gas agreements and its partnership with the Hampton Roads Sanitation District have been noted as innovative approaches to clean energy procurement in the utility sector.

Southern Company Winter Storm Response: In January 2025, Winter Storm Enzo brought record-breaking snowfall and near-record energy demand across Southern Company's footprint. VNG's parent company received national recognition for restoring service to more than 115,000 customers and meeting record natural gas demand during the storm. VNG contributed to this effort within its Virginia service territory.

Virginia Natural Gas has not experienced major product recalls or safety incidents on the scale seen at some other utilities. However, the company has faced significant controversies related to rate increases, environmental justice, and marketing practices.

2025 Rate Hike and Environmental Justice: In December 2025, the Virginia SCC approved VNG's third rate increase in six years. The SCC approved a $40 million revenue requirement, lower than the $60 million VNG originally requested. The Southern Environmental Law Center, representing Appalachian Voices, New Virginia Majority, and Virginia Organizing, opposed the increase. SELC argued that the rate hike disproportionately harms low-income ratepayers and that the SCC failed to require VNG to implement protections for vulnerable communities. One Williamsburg resident reported their monthly bill jumping from $29 to $202 after interim rates took effect in January 2025. The SCC approved a lower increase than requested and ordered refunds plus interest for overcollected interim rates, but declined to mandate environmental justice protections.

Marketing Practices Under Scrutiny: VNG has actively marketed natural gas service to new customers in its service territory, promoting it as a cleaner alternative to electricity and propane. Consumer advocates and the SELC called on the SCC to investigate whether VNG's marketing practices are driving system growth that then justifies further rate increases. The company has defended its growth as responding to organic demand from housing development and commercial expansion in the Hampton Roads region.

Chesapeake Compressor Station Proposal: VNG proposed a new compressor station in Chesapeake, Virginia, to increase gas delivery capacity to customers farther from the pipeline source. The project was championed by a paper manufacturer seeking reliable service. Local residents and environmental groups have raised concerns about the environmental and health impacts of expanded natural gas infrastructure.

Current Status: VNG continues to operate as the regulated natural gas provider for southeastern Virginia. The December 2025 rate order is in effect, and the company's SAVE program and RNG initiatives are ongoing. The environmental justice concerns raised by SELC and partner organizations remain unresolved, and advocates have indicated they will continue pushing for consumer protections in future regulatory proceedings.