By Steve Haner

The enforcement mechanism for the Virginia Clean Economy Act is a cash fine imposed on the electric utility if it fails to utilize the mandated percentage of wind, solar or battery power.ย The statute calls it a โdeficiency paymentโ and has set the penalty at $45 per megawatt-hour.ย
The first of such penalty payments may be imminent.ย In debate Monday on a bill to eliminate the penalty, the statement was made that Dominion Energy Virginia has warned it may have to pay $450 million in a fine at the end of 2025.ย The report came from Glenn Davis, director of the Virginia Department of Energy, who said Dominion may fall short by 10 million megawatt hours.
Under the language of the 2020 statute, the utility is allowed to just pass the cost along directly to its ratepayers. And just like its cousin, the Regional Greenhouse Gas Initiative Carbon tax, the cash collected by the state is directed to be spent on various specific projects such as energy efficiency programs and job training in historically disadvantaged areas. ย ย
The discussion took place in front of the Senate Commerce and Labor Committee, which of course promptly killed the bill on a party-line vote.ย Thatโs the thing about the Assemblyโs odd-year short session โ it starts like a rocket and important bills are heard from the first day.ย
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