Author Archives: Steve Haner

As Dominion and APCO $oar, NOVEC Drops Rates

Posted on January 10, 2024 | 80 comments

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 →

80 Comments

Posted in Business and Economy, Energy, General Assembly, Regulations and Government Oversight, Utilities

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God Made Nikki Haley, Too

Posted on January 9, 2024 | 141 comments

By Steve Haner

On or before March 5, I will cast a vote for former Governor and Ambassador Nikki Haley for the GOP nomination for president. She edges out Governor and former Congressman Ron DeSantis with me mainly on questions of temperament and foreign policy. I am not an isolationist.

There are six names on that Virginia ballot for the Republicans, and three for the Democrats. There is no reason at this point to believe, or even hope, that the outcome will be something other than victories here for Donald Trump and Joe Biden. If that is the matchup in November, the betting at this point would have to be Virginia’s electoral votes go blue again. Continue reading →

141 Comments

Posted in Elections, Politics

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How Not To Do Tax Reform. Again.

Posted on January 8, 2024 | 34 comments

By Steve Haner

According to the Richmond Times-Dispatch, Governor Glenn Youngkin’s administration had its first formal discussion with Virginia’s local governments about eliminating their car tax collections two days after he announced it publicly.

The General Assembly convenes Wednesday and if there is a plan to replace the $2.8 billion in local government revenue raised by that tax source, it has not surfaced. Voters truly detest the local levy, mainly because it is one of the few taxes everybody pays by check or with a credit card, but at this point it is safe to assume the idea is dead in the water. Continue reading →

34 Comments

Posted in Business and Economy, General Assembly, Taxes

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Metro is at the Precipice. Declare Bankruptcy.

Posted on December 14, 2023 | 58 comments

Recent ridership figures for Metro. Source: WMATA Click for larger view.

By Derrick Max

Tuesday, the Washington Metropolitan Area Transit Authority (WMATA) warned that without substantially greater subsidies from DC, Maryland, and Virginia, they would be facing a $750 million annual shortfall that would require draconian cuts in services, including closing 10 stations, cutting 67 bus lines, and laying off 2,000 employees.  They would also freeze salaries, raise fares and parking fees, reduce bus and train frequency, and close all stations at 10 p.m.

The threat of such cuts was meant to be a bargaining chip for more funding rather than a true plan to save WMATA, as any such cuts would just accelerate, not slow, the demise of WMATA.  It is time for Governor Youngkin and the two other regional funders, all of whom are facing reduced federal aid in their own budgets, to seriously consider forcing WMATA into bankruptcy.  And if WMATA’s unique structure as a bi-state compact agency makes it ineligible for Chapter 9 bankruptcy — a complete restructuring and rethinking of WMATA along a similar line as Chapter 9 bankruptcy are in order.

The truth is that bankruptcy is not a new idea.  In 2016, WMATA hired one of the nation’s top bankruptcy lawyers, Kevyn D. Orr, to advise the agency on fixing its troubled finances.  At the time, WMATA had a $1.8 billion operating deficit (a loss of over 200 percent of operating revenue) with $917 million in long-term debt (not counting pension and other benefit liabilities).  The hope was that Mr. Orr’s expertise would help WMATA restructure its debt without resorting to bankruptcy, take a tougher line on labor negotiations, and wrest more money from the three Washington-area funding jurisdictions.  Sadly, whatever reforms were implemented have had little, if any, impact on WMATA’s financial situation today. Continue reading →

58 Comments

Posted in Transportation

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SCC Examiner Says No to Dominion Gas Plans

Posted on December 10, 2023 | 46 comments

By Steve Haner

A hearing examiner at the Virginia State Corporation Commission has recommended rejection of Dominion Virginia Energy’s plan to maintain and add to its fleet of fossil fuel generators. It failed to overcome the presumption in state law that all such plants must go away, she wrote.

In her extensive report following the months-long regulatory battle, Ann Berkebile notes that the Commission itself (still hobbled with only one full member and a retired commissioner sitting in) may reach a different conclusion. And the pending case, Dominion’s Integrated Resource Plan (IRP), does not actually involve final decisions on what power plants to add or delete from its assets in coming years.

But Dominion was looking for a blessing from the Commission on its proposal to maintain most of its natural gas plants and even add one, a 1,000 megawatt facility it wants to place in Chesterfield County. The 2020 Virginia Clean Economy Act has set a schedule for their retirement, with all fossil fuel generation expected to be gone in about 20 years. Dominion’s announcement last May that it was seeking to keep and add to its natural gas plants was immediately denounced by environmental advocates.

The 2020 legislation included a provision to allow the SCC to approve an additional fossil fuel plant if a utility demonstrates “that it has already met the energy savings goals identified in § 56-596.2 and that the identified need cannot be met more affordably through the deployment or utilization of demand-side resources or energy storage resources and that it has considered and weighed alternative options, including third-party market alternatives, in its selection process.” Continue reading →

46 Comments

Posted in Business and Economy, Energy, Environment, Regulations and Government Oversight, Utilities

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Virginia’s Final (Maybe) RGGI Tax Grab: $97M

Posted on December 9, 2023 | 23 comments

Virginia’s final (maybe) sale of allowances for power plant carbon emissions produced a record $97.4 million. The price for each permit to emit one ton of carbon dioxide, which is passed to customers, has about doubled in four years.

by Steve Haner

Virginia has participated in its final (for a while anyway) Regional Greenhouse Gas Initiative auction and the proceeds on the carbon tax set a new record, with Virginia collecting more than $97 million in one swoop. The total carbon tax take for the state is just under $828 million in three years.

The clearing price on December 6 reached $14.88 per ton. It would have been higher but the demand for allowances was so high the RGGI organization released some of its “cost containment reserve” or CCR allowances to tamp down the price increase. The news release on the auction is here. A chart showing Virginia’s proceeds over the three years is attached.

Why the record price? Here’s a solid suggestion: Power producers fear another major winter stressing their systems and know full well that wind and solar are unpredictable and unreliable. They are stocking up on allowances to keep our lights on with fossil fuels.

Just four years ago when the Thomas Jefferson Institute of Public Policy produced this explainer on what RGGI was, the “carbon price” was $5.27 a ton and the prediction was Virginia would collect $150 million a year from electricity producers and eventually their customers. “There is no guarantee the price won’t rise,” we noted, and indeed a steadily rising price for carbon emissions is entirely the point of RGGI.

Pushed by Governor Glenn Youngkin (R) the Air Pollution Control Board voted earlier this year to rescind the state regulation that forces Virginia’s larger electric power plants to purchase allowances from RGGI for every ton of coal, natural gas or oil they burn. So far, efforts to reverse that decision in the courts have failed. Continue reading →

23 Comments

Posted in Energy, Environment, General Assembly, Regulations and Government Oversight, Taxes, Utilities

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Virginia Beach Nixes Kitty Hawk Wind Cables

Posted on December 1, 2023 | 17 comments

Site map for the first phase and cable connection route for the proposed Kitty Hawk Wind project.

by Steve Haner

The political leaders of the City of Virginia Beach have informed an offshore wind developer that they oppose its plan to bring power cables ashore at Sandbridge Beach. No formal vote was taken on the application, however, according to media reports.

The story appeared in The Virginian-Pilot and on local television station WAVY around Thanksgiving. When Bacon’s Rebellion last visited this matter, Virginia Beach City Council had conducted a May public hearing at which most speakers strongly opposed the power cable location. Continue reading →

17 Comments

Posted in Business and Economy, Energy, Environment, Land use & Development, Regulations and Government Oversight, Utilities

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Poor Test Results No Problem If You Ignore Them

Posted on November 18, 2023 | 18 comments

By Nancy Almasi

There is no doubt that the COVID-19 pandemic and subsequent lockdowns had a real and persistent impact on our children’s education. Learning loss continues to be the subject of daily news reports, with SAT and ACT test scores at an all-time low. Overall, math and reading scores on standardized tests are at their lowest level in decades and the college admissions process was thrown into a tailspin when lockdown regulations made taking the traditional SAT and ACT tests difficult. Continue reading →

18 Comments

Posted in Education (higher ed), Education (K-12)

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Excess Profits Squeezed Out From Dominion Rates

Posted on November 17, 2023 | 37 comments

By Steve Haner

The long struggle to prevent Dominion Energy Virginia from earning excess profits in its base rates year after year appears to be over and consumers finally won.  That is the main takeaway as the first general review of its base rates since the 2023 regulatory re-write is moving toward a quick settlement.

The complicated changes in the regulatory structure included wins and losses for consumers, but the impact on this first rate case review is proving to be net positive for the 2.6 million customer accounts.  Most of the various parties who have been dissecting the company’s accounts and forward projections are now willing to end the case with a settlement. Continue reading →

37 Comments

Posted in Business and Economy, Energy, General Assembly, Regulations and Government Oversight, Utilities

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Dominion Wind May Be Sued, Hikes Customer Bills

Posted on November 15, 2023 | 17 comments

The first eight monopile bases for Dominion Energy’s CVOW project arrive on the Portsmouth waterfront. But a planned German-owned wind turbine blade factory nearby ist kaput.

by Steve Haner

Two national activist groups on energy and environmental issues, both with connections to Virginia, have taken the first legal steps to challenge the recent federal approvals for Virginia’s planned offshore wind complex.  Most of what follows is directly from their announcement dated November 14.

The Heartland Institute and the Committee for a Constructive Tomorrow (CFACT) are filing with the Bureau of Ocean Energy Management (BOEM) and the National Marine Fisheries Service (NMFS) a 60 Day Notice of Intent to Sue letter for a violation of the Endangered Species Act. The violation is contained in a defective “biological opinion,” which authorizes the construction of Dominion Energy Virginia’s Virginia Offshore Wind Project (VOW). Continue reading →

17 Comments

Posted in Energy, Environment, General Assembly, Regulations and Government Oversight, Utilities

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Dominion, Clean VA Spend $23M Buying Influence

Posted on November 5, 2023 | 25 comments

By Steve Haner

Dominion Energy Virginia has increased its donations to Virginia state politicians six-fold in just four years. The other major donors in the energy regulation arena, Clean Virginia Fund and its founder, have done much the same. They are donating five times more in the 2023 election cycle than they did in the similar 2019 cycle.

The two political behemoths have donated about $23 million between them, compared to about $4 million four years ago. The totals really won’t be known until the final reports are due after Tuesday’s election.

Virginia’s election laws are so porous, the real spending won’t be clear even then. Here in the last weekend another round of mailings in favor of various candidates has appeared from an advocacy group called Power for Tomorrow. It sent similar mailings out just before the June primary.

Reporting at that time noted that Dominion had provided funding for Power for Tomorrow, which basically is praising candidates who had voted for Dominion’s 2023 regulatory bill. There is every reason to believe it is acting at Dominion’s behest, and no question these mailers are intended to promote the candidates.

No data on who received them or what they cost, for either the primary or general election mailers, can be found at Virginia Public Access Project. The text does not actually say to vote for the candidate in focus, which may be the claimed loophole.

The mailer that appeared in Henrico County mailboxes praising Senator Siobahn Dunnavant used exactly the same talking points that Dominion has used through the year to describe that bill, which had its good and bad points. The mailer appeared just one day after the State Corporation Commission implemented part of that bill, allowing Dominion to convert two years of unpaid fuel bills into a bond, and then make its ratepayers pay off the bond over 7 years. Continue reading →

25 Comments

Posted in Elections, General Assembly, Money in politics, Political Influence

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SCC Approves Paying Extra for Fuel As “Relief”

Posted on November 3, 2023 | 26 comments

by Steve Haner

The Virginia State Corporation Commission has approved Dominion Energy Virginia’s request to stretch out the back payments on $1.3 billion in old fuel bills from previous years over more than seven years. While the ultimate dollar cost to customers is millions higher because of interest charges, even the SCC news release touted the move as “rate relief.” Continue reading →

26 Comments

Posted in Business and Economy, General Assembly, Regulations and Government Oversight, Utilities

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Court Blocks Pennsylvania from Joining RGGI

Posted on November 1, 2023 | 7 comments

The states currently in the Regional Greenhouse Gas Initiative tax compact. Pennsylvania will remain conspicuously absent, and Virginia departs in two months.

by Steve Haner

A state court in Pennsylvania has ruled that the regulatory decision to enroll that state in the Regional Greenhouse Gas Initiative (RGGI) exceeded the authority of state regulators. It ruled RGGI is a tax that could only be lawfully imposed by the legislature.

It was the Republican majority in one of the state’s legislative chambers that brought the legal challenge, so unless or until the political balance changes in that state, a vote to join the interstate carbon dioxide capping program is unlikely.

Adding Pennsylvania would have been a major expansion of the 11-state RGGI compact. Its many fossil fuel power plants would need to buy $400 million or more worth of CO2 allowance credits per year, a third or more than Virginia’s power plants are being taxed.

It is also one of the larger states in the PJM Interconnect regional power marketplace (it is the P) where the power plants do not pay into RGGI, lowering the relative cost of its power when it flows into other PJM states. Virginia electric customers are often using electrons from elsewhere in PJM.

That the money the utilities must pay for operating their fossil fuel plants is a tax is something most RGGI proponents, including those in Virginia, vehemently deny. That was one of the key disputes in the challenge in Pennsylvania, where joining RGGI was a regulatory step initiated by its then-Governor Tom Wolf (D). Continue reading →

7 Comments

Posted in Energy, Environment, General Assembly, Taxes, Utilities

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Dominion’s Wind Project Wins Federal Approval

Posted on October 31, 2023 | 29 comments

Norfolk Virginian-Pilot photo of the first eight monopiles for Dominion’s offshore wind project, celebrated at a ceremony last Thursday upon their delivery.

The Biden Administration’s Bureau of Ocean Energy Management (BOEM) has issued final approval for the construction of Dominion Energy Virginia’s Coastal Virginia Offshore Wind project. Here is the release. A few more steps remain and should be completed by late January, according to BOEM.

The announcement, fully expected since all previous U.S. projects have been similarly approved, followed by a few days the arrival of the first set of gigantic monopiles, the first eight of the 176 structures Dominion will build about 27 miles or more off Virginia Beach.

The only coverage of their arrival was provided by The Virginian-Pilot. Governor Glenn Youngkin (R) attended and has praised the project all along. The paper provided only an indirect quote from his remarks:

The project is also at the heart of Virginia’s all-of-the-above approach to energy production, which aims to make energy cheap and plentiful by employing fossil fuels, nuclear and growing green energy, said Gov. Glenn Youngkin, who attended the event.

Continue reading →

29 Comments

Posted in Energy, Environment, Utilities

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Voters Will Decide Virginia’s Future Direction

Posted on October 25, 2023 | 58 comments

by Derrick Max

In two weeks, the people of Virginia will decide on two competing visions for the future of Virginia. Will they elect a General Assembly favoring Governor Glenn Youngkin’s more freedom-oriented policy vision, or will they elect a General Assembly returning the Commonwealth to the statist policy vision of former governors Terry McAuliffe and Ralph Northam?

While much of the current debate in the Commonwealth has focused almost solely on abortion, the number of issues “on the ballot” in this election is much broader and ought to be more closely considered by voters. If readers want a deeper dive into these issues, links to the Thomas Jefferson Institute’s work in these areas are included.

Surpluses are on the ballot in Virginia.

Earlier this year, faced with an historic $5.1 billion surplus, Governor Youngkin and Democrats in the Virginia Senate reached a deal to cut $1.05 billion in taxes and allocate $3.7 billion in new, one-time spending. This $3 in new spending for every $1 in tax cuts is backward.

Budget officials in Virginia just reported that in the first quarter of this fiscal year, surpluses are continuing to be amassed in Richmond. Coupled with the official projections for spending and revenue for the next few years, the next General Assembly will almost certainly be faced with large cash surpluses. Continue reading →

58 Comments

Posted in Education (K-12), Elections, Energy, Government Finance, Taxes

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