by Steve Haner

Dominion Energy is likely to miss its Virginia Clean Economy Act targets, and in a decade, the financial penalties of that law will begin to pile up on the companyโs ratepayers, a State Corporation Commission (SCC) staff assessment has concluded.ย
โโฆdespite building 17.5 gigawatts (โGWโ) of solar and 3.4 GW of wind, the Company will not procure sufficient renewable energy credits (โRECsโ) to meet the RPS (renewable portfolio standard) requirement starting in 2036. Customers will be paying significant deficiency payments starting in 2036, through the end of the modeling horizon. The total deficiency penalty ratepayers will be responsible for is approximately $5.32 billionโฆโ wrote one staff analyst in publicly filed testimony.
He added elsewhere: โUltimately, the Companyโs ratepayers have no control over whether the Company meets its RPS obligation or not. However, it is the ratepayers, and not the Company, that are penalized through the assessment of deficiency payments when the Company fails to meet the RPS requirementโ.
The staff was commenting to the judges and senior staff of the regulatory commission on Dominionโs most recent application for new solar and battery assets that will help it meet the lawโs goals. The law orders them to steadily reduce reliance on coal and natural gas generation and eventually eliminate them.ย A hearing on the application will start February 17.
This round, Dominion has applied for approval to own or lease about 1.3 gigawatts (nameplate value) of solar assets and 620 megawatt-hours of battery storage. The SCC staff recommends rejecting 17 of the 21 individual projects due to high cost, including the two battery projects. The reasoning mirrors that used by the full commission last year in rejecting similar proposals from the Appalachian Power Company.ย













