Category Archives: Commentary

Updates: Money, Power and Politics (Oh, My)

The following are updates on earlier Bacon’s Rebellion stories of mine.

Clean Virginia Files First Report

Clean Virginia Fund, the political action committee that is trying to buy legislators’ loyalty away from regulated utilities, has filed its first report with the State Board of Elections.  Charlottesville financier and hedge fund magnate Michael D. Bills is the only donor, putting in $50,000.  Two senators and nine delegates, all Democrats, accepted a total of $32,500.  Dominion Energy and Appalachian Power donated a combined $175,000 during the same period so if this is really a bidding war, Clean Virginia has some catching up to do.

Hunton Andrews Kurth, the Richmond law and lobbying firm, is off to a slow start, giving only $23,000 on this report.  The firm drew notice for saying it would not support legislators who refused donations from its utility client.  Its largest check was to the Democratic Commonwealth Victory Fund, which supports both House and Senate candidates in that party.  (Dominion Energy gave to that, too.)

Somehow I don’t think any of the legislators who are refusing corporate or utility dollars will refuse help from that party committee. The check was probably to attend the Democrat’s annual event at the Homestead, where I’m sure all had a nice chin wag over the bar or on the golf course.

Dominion Energy Doubles Down on T1 Rider Taxes

Responding to an adverse recommendation from a State Corporation Commission hearing examiner, Dominion Energy has filed comments asking the full commission to ignore her opinion and make the customers pay too much.

Its first and most important argument is that the commission doesn’t have the authority to exercise discretion over the future transmission charges under rate adjustment clause T1.  It points to language in the 2007 statute that created this RAC and the whole system of RACs.  In the case of transmission costs under T1 the language says that any bill from regional transmission entity PJM is presumed to be reasonable and prudent.

This isn’t about the taxes, it’s about that language.  That “reasonable and prudent” presumption is even more frequent in the statute now, thanks to the 2018 legislation.  This is once again proof that Dominion inserts that phrase (and it writes these bills, no legislator does) to override the judgement of the SCC.  Those of us who worked on that 2007 statute never contemplated that Dominion would take advantage of that presumption to self-calculate its charge based on false information – in this case an erroneous tax rate.

If the SCC stands with its hearing examiner, expect the utility to take the battle back to the Virginia Supreme Court or back to its friendly legislators.  Once again, as it has been for more than a decade, the only real issue is will the legislature listen to the SCC or let the utility make it own laws and rules.

The AG Giveth, the AG Taketh Away

Attorney General Mark Herring has notably been a bit less predictable than many previous AG’s on the question of who his client is, if the state law or regulatory position he would normally defend was highly unpopular with various interest groups.

He earned praise in many circles recently for deciding to have his staff defend certain abortion-related regulations, but now has decided to not let his staff join in the appeal of a recent decision on legislative districts and the Voting Rights Act.  The Republican legislators seeking a delay on drawing a new map pending that appeal will need to fund their own legal efforts.

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Saul Trumpinsky – Donald Trump and Saul Alinsky

Yes Virginia, there is a United States. Most posts published on this blog are dedicated to Virginia-specific issues. This post is an exception. It is an attempt to understand the unexpected popularity of Donald Trump. While all states are impacted by the federal government and national politics, Virginia is perhaps the most affected state. The proximity of Northern Virginia to the nation’s capital as well as the military influence over Hampton Roads’ economy make the federal government particularly important to Virginia. So it behooves us to understand the president and how the heck he got elected.

Saul who? Saul Alinsky was a Chicago-born community organizer and writer. He was best known for his book Rules for Radicals published in 1971. Even before his famous (or infamous) book Alinsky was on the political radar. In 1966 William F. Buckley wrote an article in his “On the Right” column calling Alinsky an iconoclast and “close to being an organizational genius.” However, as would be the case with many critics on the left and right, Buckley ultimately found Alinsky’s approach ineffective. Famously, Hillary Clinton’s undergraduate thesis was a 92-page critique of Mr. Alinsky and his methods. Back in 1969, 22-year-old Clinton was sympathetic to Alinsky’s concerns but ultimately found his approach ineffective. Even Hoover’s FBI kept a close eye on Alinsky during the late 1960s. But the 1960s came and went and Saul Alinsky’s Rules for Radicals was written and discussed, and then faded from view. There were momentary flare-ups around Hillary Clinton becoming First Lady and Barack Obama becoming president. However, Alinsky was largely relegated to those creaky crevices of the cultural cranium as a curious cartoon-like character. Or … was he?

Donald Trump and the resurrection of Saul Alinsky. As far back as early 2016 the right wing-media outlet Newsmax began to see parallels between Donald Trump’s approach as a candidate and Alinsky’s Rules for Radicals. After being elected some of President Trump’s conservative critics continued to associate Trump’s actions with the Alinsky brand. Could it be? Could this odd collection of #neverTrumpers have unraveled the secret to Donald Trump’s inexplicable election success? Is he simply following Saul Alinsky’s Rules for Radicals? Repeated searches of Trumpian philosophy found no fond commentary by The Donald for The Saul. However, there are many points of commonality between Trump and Alinsky.

A baker’s dozen.  Alinsky outlines 13 specific rules in his book. Donald Trump is following 12 of them. To wit (along with the Trump translation or Trumplation):

  1. “Power is not only what you have but what the enemy thinks you have.” (Trumplation: constant exaggeration.)
  2. “Never go outside the expertise of your people.” (Trumplation: Make America Great Again. A simple, understandable motto.)
  3. “Whenever possible go outside the expertise of the enemy.” (Trumplation: Canada’s 243% tariff on U.S. dairy products … who knew?)
  4. “Make the enemy live up to its own book of rules.” (Trumplation: Slam Hillary Clinton for taking millions for giving speeches to banks.)
  5. “Ridicule is man’s most potent weapon.” (Trumplation: Crooked Hillary, Corrupt Kaine.)
  6. “A good tactic is one your people enjoy.” (Trumplation: campaign speeches that look like revival meetings, “deplorables” as a badge of honor.”)
  7. “A tactic that drags on too long becomes a drag.” Trumplation: (Whatever happened to the NFL kneeling “controversy”?)
  8. “Keep the pressure on.” (Trumplation: From North Korea to the EU to London to Helsinki backed by an unending chorus of tweets.)
  9. “The threat is usually more terrifying than the thing itself.”  (Trumplation: Nominate me or I’ll go third party.)
  10. “The major premise for tactics is the development of operations that will maintain a constant pressure upon the opposition.”  (Trumplation: One Donald Trump tweeting, many Democrats attempting to rebut.)
  11. “If you push a negative hard and deep enough it will break through into its counterside” (Trumplation: Forget my business deals, look at Crooked Hillary, Crooked Hillary, Crooked Hillary …)
  12. “The price of a successful attack is a constructive alternative.”  (Trumplation: The only rule he seems to have missed although GDP growth through corporate tax cuts might be an example.)
  13. “Pick the target, freeze it, personalize it, and polarize it.”  (Trumplation: target individuals not institutions – Carmen Yulin Cruz, Stephen Colbert, Megyn Kelly.)

Advise to President Trump. Read Hillary’s thesis. She did get an “A”. Alinsky’s tactics work well at first but fail to create a lasting unity among their adherents. They generate notoriety at a rapid rate but the momentum doesn’t last. Charles “the Hammer” Martel may have defeated the Moors at Tours but it was his grandson King Charles (aka Charlemagne or “Charles the Great”) who forged an empire. Hammers are forgotten while greatness is not. Hammer time is over. What’s next Mr. President? You’ve taken the rules for radicals as far as they will go. It’s time to start writing “lessons for leaders.”

— Don Rippert

Eat My (Coal) Dust!

Possum Point coal ash ponds

In a possible early-warning sign of what may be in store for Virginia electricity consumers, North Carolina regulators have decided that Duke Energy could charge their Tarheel rate payers the first $778 million chunk of an estimated $5 billion in coal-ash cleanup costs. The sum does not include $100 million in two mismanagement penalties for practices that “resulted in cost increases greater than those necessary to adequately maintain and operate its facilities,” reports the Associated Press.

Dominion Energy Virginia will likely incur coal-ash disposals costs in the $1 billion to $4 billion range, although no firm figure will be available until the state issues solid-waste permits for a disposal plan. Dominion says that de-watering the coal ash, consolidating the material in a single pit at each power plant, and covering it with a synthetic liner will protect the public at a fraction of the cost of the alternative, favored by activist groups, of hauling the ash to landfills with greater environmental protections.

North Carolina’s Attorney General said he would go to court to stop Duke from passing along its disposal costs to rate payers. “This case will ultimately be decided by the North Carolina Supreme Court,” he said.

The coal-ash disputes in North Carolina could prefigure in part what happens in Virginia. State regulators must approve disposal plans for millions of tons of coal ash that accumulated legally over the decades at Dominion’s Bremo, Possum Point, Chesterfield, and Chesapeake power plants. Presumably, Dominion will file with the State Corporation Commission (SCC) to pass along as much of that cost as possible to ratepayers.

What makes Dominion’s situation different from Duke’s is that Dominion’s base electric rates were frozen between 2015 and 2018, and Dominion has already written off a portion of disposal costs incurred during that period. Also, under terms of recently enacted grid-modernization legislation, Dominion now will plow surplus earnings into renewable-energy, energy-efficiency and grid-upgrade projects. The public has not yet been informed how multi-billion charges for coal ash-disposal costs would be treated from an accounting viewpoint, what impact they would have on Dominion profits, or how the costs would ripple through to grid modernization.

I cannot foresee any circumstances in which the SCC would dun Dominion for mismanagement penalties. The company has complied with state and federal laws and regulations as well as judicial rulings throughout the process.