By Steve Haner

To avoid the financial penalties included in the Virginia Clean Economy Act, Dominion Energy Virginia has sometimes sold solar energy at a loss to earn the related renewable energy credit. It has been paying the regional PJM wholesale energy market to accept the electrons, rather than PJM paying it for the power.ย
This practice of selling solar power even when the market value is negative is revealed in testimony on file at the State Corporation Commission, part of Dominionโs pending application to add additional solar and battery energy assets and to increase the monthly charge for them imposed on consumers. Dominion files an application for new assets annually to meet the renewable mandates in the VCEA.
As previously explored, the key element of the Virginia Clean Economy Act (VCEA) is its requirement that a covered utility must meet certain renewable energy production targets, a renewable portfolio standard. If it does not do so with its own assets, it must either purchase outside renewable energy credits or pay a fine. The RPS target percentage of its annual electricity sales goes up year after year (26% now, 41% in 2030.)
The sales of solar at a negative price was revealed in testimony filed by the environmental activist group Appalachian Voices, which has hired a former SCC expert now in the private sector. Gregory Abbottโs recommendation to the SCC is that Dominionโs stockholders, not its customers, cover the financial losses incurred.ย
I recommend that the Commission put Dominion on notice that, going forward, if the Company dispatches its solar units at negative hourly LMP energy prices that exceed the proxy value of RECs โฆ or, alternatively, the deficiency payment, then the excess costs above the REC proxy value or deficiency payment will be recovered from shareholders instead of customers.
The goal of this recommendation is not to punish shareholders but rather to properly incent Dominion to establish operational protocols and to develop the technical capabilities to overcome the operational constraints that are allowing this to happen.
















