Tag Archives: Stephen D. Haner

Four Major Progressive Goals Still Advancing

By Steve Haner

The aggressive progressive agenda working its way through the 2024 Virginia General Assembly has lost some steam at the halfway point, but at least four of the major Democratic goals discussed earlier are still advancing.   

The two bills which will have the greatest impact on the Virginia economy are the proposed minimum wage increase and a new state-managed employee benefit for workers taking time off under the Family and Medical Leave Act. The two other bills the Democratic majorities in both the Virginia Senate and House of Delegates have now approved are a major expansion of procurement preferences for minority vendors and allowing class actions in civil litigation.   Continue reading

If Assembly Wants SMR Bill, Then Fix It

By Steve Haner

This is progress. Only twenty members of the Virginia Senate voted Tuesday to ignore a key tenet of utility ratemaking and put utility stockholders and profits ahead of consumer protection. Usually when the utilities persuade the General Assembly to do that to Virginia consumers, they get a bigger vote margin than 20-16.*

Senate Bill 454 allows Virginia’s two monopoly electricity providers to spend undetermined millions of dollars on planning and developing small modular nuclear reactor projects and get it all paid by consumers, with a profit margin. But there is no guarantee any such plants will ever be built, and no other power plants built in Virginia have gotten this kind of up-front financial guarantee before the State Corporation Commission ruled them in the public interest. Continue reading

Will Dominion Fool Us Again with SMR Cost Bill?

Artist rendering of a NuScale small modular reactor plant, proposed but now not being built in Idaho.

By Steve Haner

Fool me once, shame on you.  Fool me twice, shame on me.  A utility-backed bill to stick electricity ratepayers with the high-risk costs of developing small (modular) nuclear reactors, approved by a Senate committee Friday, is a “fool me twice” example.  Shame on the General Assembly if it falls for it. Continue reading

Only Tax Increases Still Pending at Assembly

Gov. Glenn Youngkin

By Steve Haner

Governor Glenn Youngkin’s package of proposed tax changes is now stalled in both the Virginia Senate and the House of Delegates. A House subcommittee spiked it Feb. 5 and then dashed other bills imposing major tax increases on higher income Virginians. A full Senate committee refused his bill on Feb. 6.

Of course, anything is possible until the General Assembly adjourns in March, but it seems only two major tax increase proposals are still viable in the 2024 Assembly.  

The first would allow all Virginia cities and counties to add an additional 1% to the sales and use tax within their borders for school spending, if a local referendum approves it. Current law has allowed that in eight counties and one city but this bill would expand that to the entire state. It is advancing in both chambers. 

The second, not usually discussed as a tax hike, is the proposal for a new state trust fund to provide weekly payments to employees taking family or medical leave from work. The bill calls for a payroll tax to fund the benefits but does not specify a tax rate or indicate just how much of an employee’s wage would be taxed. The Virginia Employment Commission based its fiscal estimates on a tax of just under 1%.  

Bills creating this new state-paid family and medical leave benefit program are now in the budget committees of both chambers, and they have until February 18 to reveal their budget amendments. This program could easily become a $1-2 billion annual entitlement. The underlying federal Family and Medical Leave Act (FMLA) provides no income replacement, just up to 12 weeks of job protection for covered absences. Continue reading

Stratford Hall Tax Exempt Status Preserved

Stratford Hall in Westmoreland County

The real and personal property tax exemptions for the historic colonial plantation Stratford Hall, the ancestral home of the Lees of Virginia, have been spared by the Virginia Senate. It once again amended a bill stripping tax exemptions from other organizations with connections to the Southern Confederacy, removing the popular tourist attraction that was home to two signers of the Declaration of Independence.

Senate Bill 817 then went on to pass 23-16, with two Republicans joining the 21 Democrats in favor. The sponsor, Senator Angelia Williams Graves (D-Norfolk), did not explain in her brief floor presentation why she relented on imposing local property taxes on that one facility but not the others. There was no debate on the bill, pro or con, before the vote for passage this afternoon. Continue reading

Rare SCC Deadlock Sinks Dominion’s Energy Plan

By Steve Haner

The year long debate over Dominion Energy Virginia’s proposed integrated resource plan, which threw climate catastrophe activists into a frenzy because it added a new natural gas plant, is ending with no decision.  Two State Corporation Commission judges split on whether to approve it, basically a win for the anti-fossil fuel forces.

In December, a hearing officer assigned to study the case had ruled that Dominion’s plan should be rejected because it included the expansion of gas generation, when the anti-natural gas forces in the General Assembly had passed laws against that 2020 and 2021.  Those laws did include provisions for maintaining or adding fossil fuel generation on the basis of a threat to reliability, but only under limited circumstances. Continue reading

Mea Culpa, Bills Targeting UDC Should Fail

Is the historical homestead of the Lees of Virginia, Stratford Hall, being stripped of its tax exemptions just because of its connection to one Lee in particular?

By Steve  Haner

Racial animus and revenge are always bad policies. It is now very clear those are the motivations for the bills advancing to strip tax exemptions from legitimate historical and charitable institutions, simply because of connections to the Southern Confederacy. They should die.

The beeping sound you hear is me backing up my truck to prepare for a 180- degree turn. My initial reaction to House Bill 568 was to not really care, but that was based on a cursory reading of the fiscal impact statement. I also forgot the lessons of 40 years of watching the sausage factory and failed to read the bill to the end. Continue reading

NJ Greenmailed Into Massive Wind Energy Costs

By Steve Haner

New Jersey just agreed to two ocean wind projects with astronomical guaranteed power prices. The price demanded and received by independent competitive suppliers shows there is at least some upside to the utility-owned, captive ratepayer-financed model behind Dominion Energy Virginia’s massive offshore wind facility.

In late 2023 the news was full of reports that independent wind developers were pulling out of various projects along the East Coast because the projects were no longer economically viable. Those who thought the future of the industry was in jeopardy were wrong. Continue reading

The Aggressive Progressive Democratic Agenda

From tiny acorns grow the mighty oaks of government.

By Steve Haner

The Democrats now running Virginia’s General Assembly are not just more progressive, but far more ambitious than their predecessors. To fully understand how ambitious you must compile the entire list of progressive bills advancing in the 2024 session and consider their total impact on the cost of living and cost of doing business in the commonwealth. Individual news stories miss the big picture.  

The push to radically regulate Virginia’s energy future discussed earlier is being mimicked with equally aggressive legislation throughout the rest of our economy. None of the ideas below are new, and most are already in law in places like California, New York or other more liberal states. What has changed is that when proposed in the past, they usually were rejected in Virginia on a bipartisan basis. Democrats now march in lockstep.  

The Assembly is still in its first phase and adjournment is set for early March. Which of the following will pass remains to be seen, and in many cases, amendments are already appearing. Most may also face gubernatorial veto or amendment, but that just underscores that Virginia is only one election of one official away from total transformation.   

In the case of the bills to increase the minimum wage (here and here), Democrats are simply building upon what they did during their last period of control. But if they succeed in setting future wage increases to automatically grow with inflation, the impact just builds and builds. Classes of employees reasonably exempted from the law currently, such as farm workers, may now be covered, as well.   

Likewise, the previous Democratic majority also took the first steps toward collective bargaining for limited groups of local employees, but only after elected local officials gave a green light to negotiate a contract. This year’s bill expands the right to bargain to almost all local and now most state employees, with no vote needed by a school board or city council. It was revealed that the most recent version does conveniently exempt employees of the General Assembly, however. Continue reading

Great Judges Can’t Fix Bad Energy Laws

Former SCC Commissioner Mark Christie communicated his enthusiasm for Kelsey Bagot’s election with this photo on X.

By Steve Haner

The General Assembly has now filled the two open seats at the State Corporation Commission (SCC), ending two years of gridlock.  Unfortunately, the same legislators, on both sides of the aisle, are still working overtime to dictate and micromanage the state’s energy policy, reducing the discretion and authority of the independent, non-partisan regulators. 

Samuel T. Towell, elected to the SCC last week, fits the expected mold for such positions.  His legal career has been inside and outside the Virginia government, with his term as the civil litigation deputy under Attorney General Mark Herring (D) as the highlight of his resume.  In that role he supervised the consumer counsel functions under Herring, participating in SCC matters.  Since then, he has been working for Smithfield Foods.  

Breaking the mold is Kelsey Bagot, only a decade out of Harvard Law and with no real Virginia-specific experience.  She spent much of her career so far at the Federal Energy Regulatory Commission (FERC), working part of that time for former SCC Chairman Mark Christie.  Christie’s expressed enthusiasm for her qualifications makes her about as close to a bipartisan choice as was possible.   

They join current Commissioner Jehmal Hudson, also a veteran of FERC, who has been serving by himself for more than a year.  Towell and Hudson, less than 20 years out of law school, and the younger Bagot form a trio that could be in office together for decades.  That had to be on the minds of the legislators (all Democrats) who made these choices.   

Fully qualified and engaged judges are still bound to follow the law.  Virginia’s headlong rush into an economically foolish war on fossil fuels is being directed by the bills flowing from the General Assembly, not by rogue judges.  If the last two sessions controlled by Democrats, 2020 and 2021, were a two-alarm EV battery fire, the 2024 session could be the equivalent of the Maui apocalypse.    Continue reading

Two Excellent Nominees Emerge for SCC

Kelsey A. Bagot, now nominated for the Virginia State Corporation Commission.

By Steve Haner

The new Democratic majority in the Virginia General Assembly is moving rapidly to fill the two State Corporation Commission vacancies with excellent, qualified choices. One is well known in Virginia and the second is new to our hallowed Capitol, but with a decade of energy law experience on the federal level.

Former Virginia Deputy Attorney General Samuel T. Towell has degrees from Massachusetts Institute of Technology (engineering) and the University of Virginia (law).  Kelsey A. Bagot just got her Harvard Law degree a decade ago, but she had the opportunity at the Federal Energy Regulatory Commission to work for former SCC Chairman Mark Christie.

Former Deputy Attorney General Sam Towell, also nominated today.

Both appeared this afternoon before a brief, perfunctory really, joint meeting of the relevant House and Senate committees. Within a couple of minutes, with only one question asked, both were unanimously certified as qualified. Which they are.

It will be up to the full House and Senate to formally elect them at some point in the next few days. The two seats they will fill have been vacant for a long time and they will start with desks piled high. Members of the SCC are actually judges, subject to Virginia judicial canons. The pending state budget sets the salaries as of next July 1 at $214,000 for the chair and $212,000 for the other two members. Continue reading

Index Minimum Wage? Do the Tax Code, Too.

By Steve Haner

One bill that certainly is heading for Governor Glenn Youngkin’s desk is the increase in the state’s minimum wage to $15 an hour as of two years from now. Both versions, House Bill 1 and Senate Bill 1, raise it to $13.50 for next year, with the $15 level kicking in a year later. Both bills are now out of their first committees.

It was a campaign promise. The Democrats in both chambers coordinated to make it their first bill of the year on both sides. Smart marketing. Soon the Republican governor must decide whether it becomes his first veto, with Republican legislators then having to vote to sustain it or not. Continue reading

Will Democrats Revisit Virginia Net Zero Laws?

Senator David Marsden, D-Fairfax, sees “serious problems” in Virginia’s net zero laws.

By Steve Haner

For the third year in a row, Democrats in the Virginia Senate have shot down an effort to divorce Virginia’s auto dealers from California’s impending mandates on electric vehicle sales. But before the predetermined vote went down, the new chair of the committee made a surprise announcement that he and his colleagues are open to revisiting Virginia’s legal rush to end fossil fuels.

Senator David Marsden, D-Fairfax, said he and Senator Creigh Deeds, D-Charlottesville, have discussed using the period between the 2024 and 2025 General Assembly sessions to convene a conference on the 2020 Virginia Clean Economy Act (VCEA) and the many other statues they passed to suppress coal, oil and natural gas use.  Republicans later shared his musings on X.

What serious problems, Mr. Chairman? Tell us more.

Marsden is the new chair of the Senate Agriculture, Conservation and Natural Resources Committee and Deeds now chairs the Commerce and Labor Committee. The Virginia Mercury noted Marsden’s comments at the tail end of its report on the meeting, but it was the only actual news to break out that afternoon. The Richmond Times-Dispatch failed to mention Marsden’s announcement but had a nice photo of a half-empty Tesla charging lot in California.

Truth would have been better served by a photo of the stranded EV’s waiting for crowded, failing chargers in frigid climes this week. There is a reason consumers have not been rushing to buy EV’s at the expected rates.  Despite the happy talk from mandate proponents, the targets are pie-in-the-sky. The only winner in this whole process is Tesla, getting rich selling carbon credits under the cap-and-trade element of the California regime. Continue reading

Thank Coal, Gas for Your Warm House Today

PJM generation mix as of 8 a.m. this morning. Coal, natural gas and nuclear are meeting the vast majority of the demand.

By Steve Haner

Good morning, Virginia.  Your lights and heat are on, and you can thank coal and natural gas. Here are the 8 a.m. charts from PJM’s website, which you can check periodically today as the winter weather closes in. Those fuels were providing more than 66% of our electricity, with nuclear providing almost another third. Go to the website for the interactive version. The 9 a.m. chart is little changed.

The data are for the entire PJM region, not just Virginia.

Billions of dollars into the renewable energy transition, various renewable sources were providing less than 6 megawatts throughout the entire system, not even 5% of demand. Solar should increase a bit as the day proceeds, but the projection (on the same website) is that wind will dip toward the middle of the day.

The breakdown of generation from renewable sources, mainly hydro. The solar output should improve but in much of the region winter storm clouds will continue to limit it, and snow may pile up on solar panels.

Remember, this is a holiday and the peak demand projected for the workday tomorrow is higher. But the sun may be back to help at least a bit.

We could be Alberta, Canada. Here is what they are going through. Or Texas. Read those links and know, that is the future the General Assembly and the wind and solar industrial complex that owns it have planned for us.

As Dominion and APCO $oar, NOVEC Drops Rates

Northern Virginia Electric Cooperative’s territory within the greater Northern Virginia region.

By Steve Haner

The major “rural” electric cooperative serving very urban Northern Virginia is drastically lowering its rates as of this month, because the cost it is paying for bulk power purchases has dropped. The contrast with what is happening with Virginia’s two major investor-owned electric companies may be telling Virginia something if anybody wants to listen.

NOVEC, or Northern Virginia Electric Cooperative, will be charging its residential users just under $114 for each 1,000 kilowatt hours of usage, down more than $26. The commercial and industrial users among its 175,000 customers are seeing comparable reductions. Continue reading