Category Archives: Regulation

As Dominion and APCO $oar, NOVEC Drops Rates

Posted on January 10, 2024 by | 80 comments

Northern Virginia Electric Cooperative’s territory within the greater Northern Virginia region.

By Steve Haner

The major “rural” electric cooperative serving very urban Northern Virginia is drastically lowering its rates as of this month, because the cost it is paying for bulk power purchases has dropped. The contrast with what is happening with Virginia’s two major investor-owned electric companies may be telling Virginia something if anybody wants to listen.

NOVEC, or Northern Virginia Electric Cooperative, will be charging its residential users just under $114 for each 1,000 kilowatt hours of usage, down more than $26. The commercial and industrial users among its 175,000 customers are seeing comparable reductions. Continue reading →

80 Comments

Posted in Business and Economy, Energy, General Assembly, Regulation, Utilities

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Rent Control Bill Introduced in Virginia

Posted on January 8, 2024 by | 7 comments

by Hans Bader

A just-introduced Virginia bill, HB 192, would limit rent increases to “one percent over the Consumer Price Index” in places where the rental vacancy rate is “less than 10 percent,” if the “Consumer Price Index … is greater than five percent.” Virginia has a rental vacancy rate of about 4%, well below 10%, so effectively, this would be a statewide rent control law.

The bill does not allow larger rent increases even to pay for things like major capital improvements.

The bill, introduced by Democratic Del. Marty Martinez, is called the “Landlord and Tenant Fairness Act.”  It contains this rent-control provision:

C. If the rental vacancy rate for a locality is less than 10 percent during the previous calendar year and the Consumer Price Index as reported by the Bureau of Labor Statistics of the U.S. Department of Labor is greater than five percent, any rent increase imposed by a landlord shall be no greater than one percent over the Consumer Price Index.

Continue reading →

7 Comments

Posted in Business and Economy, General Assembly, Housing, Regulation

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Hey Virginia: Hands Off Those Cake Pops

Posted on January 5, 2024 by | 8 comments

Photo courtesy of Kelly Phillips

by Kerry Dougherty

There’s a reason Gov. Glenn Youngkin’s approval rating in the latest Mason-Dixon Poll perches at a lofty 58 percent in this once-blue state, despite Republicans losing control of the legislature in November’s election.

Youngkin gets it.

On X, he wrote:

“We’re going to fix this, Virginia will always be the best place to live, work, and bake cake pops!”

Like everyone else who heard about Kelly Phillips’ cake pop conflict, the governor immediately saw this for what it was: one more example of government overreach, punishing an enterprising Richmond woman with a small business for no good reason or public benefit.

According to The Virginia Mercury, cake pops are Ms. Phillips’ side hustle. Her day job is as a manager in a financial planning firm. But what began simply as irresistible treats she made for birthday parties and baby showers grew into a little cottage business.

Phillips now sells her gorgeously decorated confections mostly at craft fairs. If Richmond regulators have their way, she’ll have to stop.

Virginia’s stringent food safety regulations, designed to protect folks from unsanitary practices, make exceptions for small craft bakeries. But ridiculous regs, such as the one that allows these homemade goodies to be sold at farmer’s markets but not craft fairs make absolutely no sense.

“What is the difference between a farmers market and a craft show?” Phillips asked The Mercury.

Gee, I don’t know. A roof? Continue reading →

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Posted in Business and Economy, Central planning, Entrepreneurialism, Regulation

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SCC Examiner Says No to Dominion Gas Plans

Posted on December 10, 2023 by | 46 comments

By Steve Haner

A hearing examiner at the Virginia State Corporation Commission has recommended rejection of Dominion Virginia Energy’s plan to maintain and add to its fleet of fossil fuel generators. It failed to overcome the presumption in state law that all such plants must go away, she wrote.

In her extensive report following the months-long regulatory battle, Ann Berkebile notes that the Commission itself (still hobbled with only one full member and a retired commissioner sitting in) may reach a different conclusion. And the pending case, Dominion’s Integrated Resource Plan (IRP), does not actually involve final decisions on what power plants to add or delete from its assets in coming years.

But Dominion was looking for a blessing from the Commission on its proposal to maintain most of its natural gas plants and even add one, a 1,000 megawatt facility it wants to place in Chesterfield County. The 2020 Virginia Clean Economy Act has set a schedule for their retirement, with all fossil fuel generation expected to be gone in about 20 years. Dominion’s announcement last May that it was seeking to keep and add to its natural gas plants was immediately denounced by environmental advocates.

The 2020 legislation included a provision to allow the SCC to approve an additional fossil fuel plant if a utility demonstrates “that it has already met the energy savings goals identified in § 56-596.2 and that the identified need cannot be met more affordably through the deployment or utilization of demand-side resources or energy storage resources and that it has considered and weighed alternative options, including third-party market alternatives, in its selection process.” Continue reading →

46 Comments

Posted in Business and Economy, Energy, Environment, Regulation, Utilities

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Virginia’s Final (Maybe) RGGI Tax Grab: $97M

Posted on December 9, 2023 by | 23 comments

Virginia’s final (maybe) sale of allowances for power plant carbon emissions produced a record $97.4 million. The price for each permit to emit one ton of carbon dioxide, which is passed to customers, has about doubled in four years.

by Steve Haner

Virginia has participated in its final (for a while anyway) Regional Greenhouse Gas Initiative auction and the proceeds on the carbon tax set a new record, with Virginia collecting more than $97 million in one swoop. The total carbon tax take for the state is just under $828 million in three years.

The clearing price on December 6 reached $14.88 per ton. It would have been higher but the demand for allowances was so high the RGGI organization released some of its “cost containment reserve” or CCR allowances to tamp down the price increase. The news release on the auction is here. A chart showing Virginia’s proceeds over the three years is attached.

Why the record price? Here’s a solid suggestion: Power producers fear another major winter stressing their systems and know full well that wind and solar are unpredictable and unreliable. They are stocking up on allowances to keep our lights on with fossil fuels.

Just four years ago when the Thomas Jefferson Institute of Public Policy produced this explainer on what RGGI was, the “carbon price” was $5.27 a ton and the prediction was Virginia would collect $150 million a year from electricity producers and eventually their customers. “There is no guarantee the price won’t rise,” we noted, and indeed a steadily rising price for carbon emissions is entirely the point of RGGI.

Pushed by Governor Glenn Youngkin (R) the Air Pollution Control Board voted earlier this year to rescind the state regulation that forces Virginia’s larger electric power plants to purchase allowances from RGGI for every ton of coal, natural gas or oil they burn. So far, efforts to reverse that decision in the courts have failed. Continue reading →

23 Comments

Posted in Energy, Environment, General Assembly, Regulation, Taxes, Utilities

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Norfolk Hipsters & Lefties Try to Block a Military-Themed Brewery

Posted on December 6, 2023 by | 28 comments

by Kerry Dougherty

Now is the time. If you believe that cities ought to be open for business, regardless of the viewpoints of the business owners, if you support the military and don’t consider flag-waving a provocative act, you might want to let Norfolk’s City Council hear from you.

On December 12th it is scheduled to vote on the application of Armed Forces Brewery to open its doors on the same premises that housed O’Connor Brewing in the so-called Railroad District of Norfolk.

The business was lured to Virginia by Gov. Glenn Yougnkin who helped the founders secure tax incentives to open their craft brewery in Norfolk rather than in Florida. The owners have pledged that 70% of their employees will be veterans.

Normally, that would be seen as good news in this military town. Continue reading →

28 Comments

Posted in Consumer protection, Culture wars, Economic development, LGBQT, Politics, Regulation

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Stuck in the Secretary’s Office

Posted on December 5, 2023 by | 52 comments

Andrew Wheeler, Director, Office of Regulatory Management

by Dick Hall-Sizemore

The Youngkin administration is sitting on regulations needed to implement important legislation enacted by the General Assembly in 2020. The delay constitutes a violation of that law.

In its 2020 Special Session, the General Assembly expanded the grounds for decertifying law-enforcement and jail officers. The background of this legislation was described in detail on this blog in a previous article, so there is no need to repeat that information here.

The legislation required the Department of Criminal Justice Services (DCJS), under the direction of the Criminal Justice Services Board (CJSB), to adopt statewide professional standards of conduct for law-enforcement and jail officers. The timeline set out in the legislation would have required the standards of conduct to go into effect by mid-December 2021, two years ago. DCJS missed the deadline. The CJSB approved the regulations on June 16, 2022. The Attorney General certified the regulations on Aug. 2, 2022. The Department of Planning and Budget completed its review of the economic impact of the regulations on Aug. 22, 2022. The regulations have been under review in the Secretary of Public Safety and Homeland Security’s office since then—470 days, more than a year and a quarter. Continue reading →

52 Comments

Posted in Efficiency in government, Law enforcement, Police reform, Regulation

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Virginia Beach Nixes Kitty Hawk Wind Cables

Posted on December 1, 2023 by | 17 comments

Site map for the first phase and cable connection route for the proposed Kitty Hawk Wind project.

by Steve Haner

The political leaders of the City of Virginia Beach have informed an offshore wind developer that they oppose its plan to bring power cables ashore at Sandbridge Beach. No formal vote was taken on the application, however, according to media reports.

The story appeared in The Virginian-Pilot and on local television station WAVY around Thanksgiving. When Bacon’s Rebellion last visited this matter, Virginia Beach City Council had conducted a May public hearing at which most speakers strongly opposed the power cable location. Continue reading →

17 Comments

Posted in Business and Economy, Energy, Environment, Land use & development, Regulation, Utilities

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Excess Profits Squeezed Out From Dominion Rates

Posted on November 17, 2023 by | 37 comments

By Steve Haner

The long struggle to prevent Dominion Energy Virginia from earning excess profits in its base rates year after year appears to be over and consumers finally won.  That is the main takeaway as the first general review of its base rates since the 2023 regulatory re-write is moving toward a quick settlement.

The complicated changes in the regulatory structure included wins and losses for consumers, but the impact on this first rate case review is proving to be net positive for the 2.6 million customer accounts.  Most of the various parties who have been dissecting the company’s accounts and forward projections are now willing to end the case with a settlement. Continue reading →

37 Comments

Posted in Business and Economy, Energy, General Assembly, Regulation, Utilities

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Dominion Wind May Be Sued, Hikes Customer Bills

Posted on November 15, 2023 by | 17 comments

The first eight monopile bases for Dominion Energy’s CVOW project arrive on the Portsmouth waterfront. But a planned German-owned wind turbine blade factory nearby ist kaput.

by Steve Haner

Two national activist groups on energy and environmental issues, both with connections to Virginia, have taken the first legal steps to challenge the recent federal approvals for Virginia’s planned offshore wind complex.  Most of what follows is directly from their announcement dated November 14.

The Heartland Institute and the Committee for a Constructive Tomorrow (CFACT) are filing with the Bureau of Ocean Energy Management (BOEM) and the National Marine Fisheries Service (NMFS) a 60 Day Notice of Intent to Sue letter for a violation of the Endangered Species Act. The violation is contained in a defective “biological opinion,” which authorizes the construction of Dominion Energy Virginia’s Virginia Offshore Wind Project (VOW). Continue reading →

17 Comments

Posted in Energy, Environment, General Assembly, Regulation, Utilities

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SCC Approves Paying Extra for Fuel As “Relief”

Posted on November 3, 2023 by | 26 comments

by Steve Haner

The Virginia State Corporation Commission has approved Dominion Energy Virginia’s request to stretch out the back payments on $1.3 billion in old fuel bills from previous years over more than seven years. While the ultimate dollar cost to customers is millions higher because of interest charges, even the SCC news release touted the move as “rate relief.” Continue reading →

26 Comments

Posted in Business and Economy, General Assembly, Regulation, Utilities

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NY Ratepayers Better Protected Than Virginia’s

Posted on October 16, 2023 by | 8 comments

Illustration of planned Equinor offshore wind installation off the coast of New York State. Equinor was one of the developers asking for a price increase, which was rejected.

By Steve Haner

The New York State Public Service Commission (PSC) last week told several offshore wind developers it would not approve changes in their state contracts, putting several planned ocean turbine projects into jeopardy.  The story is important for its contrast to how Virginia faces the same future. Continue reading →

8 Comments

Posted in Consumer protection, Energy, Environment, Regulation, Utilities

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Miyares Seeks Dismissal of Suit to Save RGGI

Posted on September 28, 2023 by | 70 comments

The states currently in the Regional Greenhouse Gas Initiative tax compact.

By Steve Haner

Attorney General Jason Miyares (R) is defending the Virginia Air Pollution Control Board’s decision to exit a multi-state carbon cap and tax compact as within the regulatory agency’s authority. He has also claimed to the circuit court hearing an appeal of that decision that the plaintiffs were not affected by the action directly and thus have no standing to sue.

The four plaintiffs, all associations, filed a 138-page petition in the Circuit Court of Fairfax County in late August. Miyares’ office used just ten pages total for two responses dated September 13. Continue reading →

70 Comments

Posted in Energy, Environment, Regulation, Taxes

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Principles for Virginia’s Energy Future

Posted on September 28, 2023 by | 58 comments

NOAA data for Virginia, 1900-2020, showing no rising pattern in the number of days with an average high above 95 degrees F.

By Steve Haner

First published this morning by the Thomas Jefferson Institute for Public Policy.

Energy is our economy. Energy is the basis of wealth and a comfortable life. As Virginia chooses a new set of legislators to wrestle with the old and new energy issues facing the Commonwealth, here is a review of some of the key points the Thomas Jefferson Institute for Public Policy has been stressing and writing about over recent years.

Candidates in either party would do well to adopt them. Continue reading →

58 Comments

Posted in Elections, Energy, Environment, Regulation, Utilities

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Did Assembly Trim Dominion Bills $7-$14? No.

Posted on September 11, 2023 by | 12 comments

The SCC’s breakdown of Dominion’s energy price for a home using 1,000 kwh.  Click for clear view.

by Steve Haner

When the Virginia General Assembly passed a complicated electricity regulation change a few months ago, the Richmond Times-Dispatch parroted as fact this Dominion Energy Virginia claim in a front-page paragraph:

The compromise on electric bills — in legislation that passed nearly unanimously — would bring an immediate $6 to $7 cut in a benchmark 1,000 kilowatt-hour monthly bill, which now stands at $137.

Continue reading →

12 Comments

Posted in Business and Economy, Energy, General Assembly, Regulation, Utilities

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