Category Archives: Energy

SCC Rejects Most of Dominion Grid Proposal

The State Corporation Commission Thursday rejected in large part the highly-touted Dominion Energy Virginia proposal to rebuild its transmission grid, approving only the elements improving cyber and physical security.  Those were the least expensive and least controversial pieces of its application.

The 2018 legislation that stated major grid investments were in the public interest also re-stated the Commission’s charge to review them for prudence and reasonableness.

It did (here’s the order) and found this:

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Dominion Withdraws Renewable Tariff Effort

In the wake of the State Corporation Commission’s recent approval of a renewable energy tariff for residential customers of Appalachian Power Company, Dominion Energy Virginia has given up the application for its own more expensive proposal for a similar service to its residential and smaller business customers.

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The Compressor Station: Another Fact-Poor Debate

THis map shows the location of ACP’s proposed air compressor station in relation to houses in the Union Hill community. Source: Southern Environmental Law Center.

The State Air Pollution Control Board voted 4 to 0 last night to approve a controversial natural gas compressor station in Buckingham County that is crucial for the operation of the Atlantic Coast Pipeline.

Pipeline foes had argued that emissions from the compressor station would create a health hazard for nearby residents, a majority of whom, depending upon what mapping criteria are used, are African-American. This disproportionate impact upon a minority community, many contended, amounts to environmental racism.

But Dominion Energy and state regulators countered that the compressor station will be the cleanest in Virginia, emitting 50% to 80% less air pollution than any other gas compressor station in Virginia. “The bottom line here is the Buckingham Compression Station will be the most stringently regulated compressor station in the country and the public’s health will be protected,” said Michael Dowd, director of the Department of Environmental Quality’s Air Division, as reported by the Richmond Times-Dispatch.

As happens so often in such debates, there was no meaningful discussion of the level of risk associated with the project. Regardless of how tightly regulated the station is, how much pollution will it emit? And what health hazards are associated with that level of pollution — are they real or imagined? Numbers may exist deep in the bowels of the DEQ, but they have not surfaced in the public debate. Continue reading

At Last, a Green Tariff for APCo Customers

Western Virginians paying APCo’s renewable energy tariff will receive electricity from, among other sources, the Beech Ridge wind farm in West Virginia.

The State Corporation Commission has approved a proposal allowing Appalachian Power Company (APCo) customers to purchase electricity generated 100% from renewable energy. An average residential customer using 1,000 kilowatt hours of electricity would pay a premium of $4.25 a month.

The Commission had rejected two previous APCo proposals for a 100% renewable energy tariff. In an order issued Monday, however, the Commission found that under the latest iteration of the plan (1) the participating customer is receiving 100% renewable energy, (2) the tariff includes safeguards that do not offload costs to customers who do not participate, and (3) the rate is reasonable for the purposes of the renewable energy product being supplied. Continue reading

Virginia Should Take Regional Approach to Building Offshore Wind Supply Chain

Where the action is in East Coast offshore wind. Source: BVG Associates. (Click for more legible image.)

To build an offshore wind supply chain with thousands of construction, manufacturing and maintenance jobs, Virginia should collaborate with Maryland, North Carolina, and South Carolina, concludes a report issued last week by BVG Associates for the state’s Department of Mines, Minerals and Energy.

Offshore wind development is advancing rapidly in the Northeastern states, and if Virginia wants to maximize the benefits of the emerging offshore wind industry, it needs to move quickly. “Virginia has great potential and many unique advantages to attract this investment, but it must act now if it is to be a leader in OSW,” states the study, The Virginia Advantage: The Roadmap for the Offshore Wind Supply Chain in Virginia. Continue reading

Bacon Bits: Rider U Screws U Know Who

Now that the State Corporation Commission has finally approved Dominion Energy Virginia’s Rider U, mandated by the General Assembly to force us all to pay for underground lines serving just a few customers, let me explain how perfectly this scheme put the company ahead of its customers.  (For case details, the Richmond Times-Dispatch has this good story, picking up some themes from an earlier Bacon’s Rebellion post.)

Set aside discussions of the “Strategic Underground Program” because the merits do not matter for this illustration.  Start with the information that Rider U is a stand-alone line item on your bill, a financial silo on Dominion’s books, with a guarantee that the utility will recover in full the cost of construction with a profit margin over time.  No risk to the shareholders.

Any benefit to the customers, and there will be some certainly, shows up as reduced maintenance and repair costs and fewer interruptions.  Those maintenance and repair costs are covered by the main portion of your bill, the base rates, outside the Rider U silo.   Say it’s a one-to-one ratio, and the $70 million spent putting lines underground saves $70 million over five years in repair costs.  The fewer interruptions also add base rate revenue outside the silo.

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Russians, Natural Gas and the Green Agenda

In a detailed post in The Republican Standard, Shaun Kenney explores the connections between Russians, the anti-natural gas movement nationally and in Virginia, groups he refers to colorfully as the “Red Orchestra” and “Green Antifa,” the anti-Dominion Clean Virginia organization, the Virginia Public Access Project, and The Virginia Mercury. I’m not willing to connect all the dots that he connects. Indeed, there are some dots that I would not connect.  But he digs into subjects that need digging — and that Virginia’s mainstream media have studiously ignored. Continue reading

Accelerated Phase-out of Coal, Nuclear Could Overwhelm Virginia Electric Grid

Red markers indicate location of electric grid overload in extreme-case Summer 2022 coal and nuclear retirement scenario. Source: North American Reliability Council

If Virginia and other states in the PJM wholesale electricity market want to shut down their coal and nuclear plants, they had better start upgrading their electric transmission grids or face the risk of extensive overload and failure in extreme weather events. That’s one of the conclusions that can be drawn from a North American Electric Reliability Corporation (NERC) study published yesterday that explores the impact of coal and nuclear power plant retirements on electric grid reliability. Continue reading

Clean Virginia: A Powerful Swing That Misses

The full list of elements covered by Clean Virginia’s so-called “Dominion Tax”.  Click to see a larger copy.

Clean Virginia’s recent report accusing Virginia’s two investor-owned electric utilities of annually “taxing” their customers $254 or $89 respectively has a strong basis in fact, and beautifully packages the information, but ultimately is flawed and unfair.

Which is a shame, because the basic premise is correct.  The utility regulation process in Virginia has been badly subverted, the regulators disabled, enriching utility shareholders at the cost of shareholders.   Reading the entire report tells the story of how every well, and I endorse (and recognize) many of their recommendations.   But be very wary of that “tax” figure.

Read the Washington Post’s account and others uncritically and you will assume that you, average residential customer, could be paying $20 a month less to Dominion Virginia Energy or $7 less to Appalachian Power Company.  Those figures might be used in political conversation (such as by somebody’s opponent in a primary) or regularly cited by Dominion opponents in legislative debate.

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Fools Rush In: Coal Ash Scene Setter

Coal ash pond at Bremo Power Station. Photo credit: CBS 19

“I hate to give out directions without knowing what the cost is going to be.  There’s far too much of that in government.” 

That was Senator Frank Wagner of Virginia Beach expressing his deep reservations about various proposals to deal with the 27 million cubic yards of coal ash that Dominion Energy Virginia has collected over decades near its major power plants.  Wagner, who chairs the Senate Commerce and Labor Committee, was part of a joint subcommittee of that committee and its House counterpart that heard testimony  Monday but took no actions.

Legislation is coming.  Coal ash disposal in 2019 might turn into a replay of grid transformation in 2018, an omnibus electric utility regulation bill that takes on epic and expensive proportions as it moves through the legislative process.  It will also be a textbook example of what happens when legislators jump in to make billion-dollar decisions that could be made a better way.

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Let’s Keep All the Big Boys Honest

Clean Virginia, the anti-Dominion group dedicated to “fighting monopoly utility corruption,” released a study Monday asserting that Virginians pay excess rates of $254 a year on average due to poor state oversight. That study was duly picked up by the Washington Post, which duly repeated its findings (along with Dominion’s rebuttal).

As far as I’m concerned, as a regulated monopoly, Dominion deserves the public scrutiny it gets. Dominion Energy is a publicly traded company, and its fiduciary responsibility is to maximize profits for shareholders. Its interests are not the same as those of ratepayers or the general public. But Dominion doesn’t exist in a vacuum. The company does business within the context of a larger political system — a political system in which the environmental movement constitutes an increasingly powerful force. Continue reading

Green Virtue, Certified By The Hour

Is it enough to be green and virtuous on a month by month basis, or must one be green and virtuous every hour of every day?

That is a facetious version of a real question facing the State Corporation Commission as it considers the most recent effort by Dominion Energy Virginia to create a 100-percent renewable energy tariff for its residential and smaller commercial customers. A hearing examiner who has looked at the year-old case recommended last week that monthly virtue will be enough.

This is a case that pits consumer choice against a utility’s monopoly, and a small window for choice may close if this new voluntary tariff is approved. 

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Dominion Energy: No More Mister Nice Guy

Dominion Energy executives are furious about the way environmental groups have portrayed State Corporation Commission’s recent rejection of the utility’s Integrated Resource Plan as a blow to the Atlantic Coast Pipeline. Dominion describes recent comments by spokespersons for the Southern Environmental Law Center (SELC) and the Sierra Club-Virginia Chapter as deliberate “deception” and “lies.”

While they often express frustration with environmentalist foes in off-the-record conversations, Dominion government- and public-relations executives stick to carefully scripted remarks in public statements and steer clear of personal attacks. But after numerous false statements by pipeline foes over the past few weeks, said Thomas Wohlfarth, senior vice president of regulatory affairs, the gloves are off. Continue reading

IRP Rejection Part of a Pattern of Trouble

The State Corporation Commission’s decision Friday to reject the Dominion Energy Virginia integrated resource plan is just the latest sign the energy package sold by the utility to a compliant General Assembly in early 2018 still has an uncertain future.

Two headline elements of the legislation – the promised massive renewable projects and a rebuild of the grid — are in limbo as the 2019 General Assembly looms.  Another headline element, the ability of the utility to use excess profits it is holding to pay for both and thus eliminate risk of rate cuts or refunds, won’t even be tested in front of the SCC until at the earliest 2021, when the utility might (might) undergo its next rate review. Continue reading

“Incomplete!” SCC Sends Back Dominion IRP

SCC Offices on Richmond’s Main Street

The State Corporation Commission today rejected the 2018 integrated resource plan (IRP) filed by Dominion Energy Virginia, stamping it “incomplete” and asking the utility for additional information in a supplemental submission.

The IRP is only a planning document, and the one for 2017 was just approved by the Commission a few months ago.  But in response to the 2017 plan and the massive revision to utility laws by the 2018 General Assembly, several specific directives were imposed for this next plan, which is supposed to have a longer shelf life.  The SCC asserts Dominion failed to comply with some of those directives.

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