Category Archives: Business and Economy

SCC Examiner Says No to Dominion Gas Plans

Posted on December 10, 2023 by | 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 →

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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 by | 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 →

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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 by | 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 →

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

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Excess Profits Squeezed Out From Dominion Rates

Posted on November 17, 2023 by | 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 →

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

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Virginia Must Investigate and Control the Relationships of Its State Institutions of Higher Learning With the Government of China

Posted on November 16, 2023 by | 38 comments

by James C. Sherlock

The title of this article seems at first glance axiomatic.

After all, the power “to conduct … all intercourse with other and foreign states” is granted in the state constitution to the Governor.

Yet that power has been assumed by some Virginia state institutions of higher education (IHEs) with the apparent approval of their state-appointed Counsels.

They need better lawyers.

Courtesy U.S. – China Economic and Security Review Commission

The story of Communist Chinese influence in America’s IHEs is the story of left-wing faculty. The same ones that march in Hamas rallies.

They divide the world into oppressed and oppressors, with no room for individuals. They offer a narrative, not discussions.

Somehow, in their admiration for Chinese Marxism, they have missed the fact that the Chinese government is one of the most oppressive regimes on earth.  Straight out of Animal Farm.

It does not bother them that Xi Jinping and his government wish America harm. Or that America is on the brink of war with that country over Taiwan.

The campus radical leftists, and many of the schools they dominate, have their own threat assessments and foreign policies that do not align with those of the United States. Continue reading →

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Posted in Culture wars, Defense and National Security, Democracy and Western Civilization, Education (higher ed), Marxism, Regulations and Government Oversight

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Dominion Wind May Be Sued, Hikes Customer Bills

Posted on November 15, 2023 by | 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 →

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

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William and Mary and the Chinese Communist Party – Dangerous Allies – Part 3

Posted on November 14, 2023 by | 6 comments

by James C. Sherlock

Chinese fighter and U.S. jet over South China Sea.  Courtesy CNN and YouTube.

William and Mary’s superb AidData program makes major contributions to America’s understanding of the Peoples Republic of China (PRC). The school is justly proud of it.

AidData published in December of 2021 a study Corridors of Power – How Beijing uses economic, social and network ties to exert influence along the Silk Road.

Chapter 3 is “Social ties: How does Beijing leverage education, culture, and
exchange to amplify its foreign influence strategy?”

I recommend it to the President and the Board of the College.

I promised in this Part to look at:

  • the William and Mary/Chinese Foreign Ministry Chinese Students and Scholars Association (CSSA);
  • Chinese student recruiting and admissions;
  • the courses they take, and their internships and the applicability of their skills to the People’s Revolutionary Army and Navy;
  • what happens when those “students and scholars” return home; and
  • the money.

We’ll do that, and we’ll look at the Foreign Agents Registration Act (FARA) to see if it possibly applies. Continue reading →

6 Comments

Posted in Defense and National Security, Education (higher ed), Governance, Marxism, Regulations and Government Oversight, Threat Assessment

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Never Again

Posted on November 6, 2023 by | 149 comments

Chinese-funded Code Pink’s co-founder Medea Benjamin at antisemitic rally in D.C. Nov. 4th. Courtesy Asra Nomani

by James C. Sherlock

At 78, I have been all over the world often and for long periods of time. I felt myself reasonably immune to cultural surprises.

But I had never seen anything like this.

It was the Maghrib prayer time about 5 p.m. on Saturday. On the southeast corner of 12th and Pennsylvania Ave. in D.C., a devout Muslim man was in the sujood prayer position on the sidewalk, forehead touching the ground.

That was not the surprise.

But a girl we took to be the praying man’s daughter was waiting a few feet away next to her mother and three young siblings. She looked to be, at the most, four years old.

There had been thousands like her at the festival on that beautiful afternoon. Families with toddlers and baby carriages were everywhere at the edges of the demonstrations. Watching. Learning.

Full of adrenaline from the hate that had been spewed out on a huge screen broadcasting anti-Israel rally speakers in the middle of shut-down Pennsylvania Avenue, that beautiful little girl was jumping up and down, tiny fists clenched, shouting in her small voice “Gaza,” “Gaza,” “Gaza.”

Three thousand years of hatred of Jews was being passed down to another generation.

It is never going to stop. Continue reading →

149 Comments

Posted in Children and Families, Culture wars, Defense and National Security, Democracy and Western Civilization, Gun rights, Immigration, Threat Assessment

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SCC Approves Paying Extra for Fuel As “Relief”

Posted on November 3, 2023 by | 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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“Good old TikTok: Chinese spy engine and purveyor of virulent antisemitic lies.” Sen. Josh Hawley

Posted on November 2, 2023 by | 32 comments

San Francisco High School students enflamed by false report from the NYT (which later offered “nuance”) broadcast worldwide on TikTok #freepalestine that Israel bombed that hospital in Gaza.

by James C. Sherlock

Taylor Lorenz, the estimable young Tech and Online Culture columnist for The Washington Post, has been the author of some of the most important reports on the Hamas-Israel war.

Today, she published with Drew Harwell, a Post reporter covering artificial intelligence and the algorithms changing our lives, “Israel-Gaza war sparks debate over TikTok’s role in setting public opinion.”

A pro-Palestinian hashtag, #freepalestine, had … 770 million views over the last 30 days in the United States, TikTok data show.

To longtime TikTok critics like Sen. Marco Rubio (R-Fla.), that assertion offered further proof that the app, owned by the China-based tech firm ByteDance, is a secretive propaganda engine built to manipulate American teens for Chinese geopolitical goals — in this case, Rubio said, to “downplay … Hamas terrorism.”

The same Post article, attempting balance, reports both the Sen. Hawley quote in the title of this piece and that:

TikTok creators and social media experts say the reality (of reporting on the war) is more nuanced (than critics have asserted).

“Nuanced.” What would we do without “TikTok creators and social media experts”? Continue reading →

32 Comments

Posted in Children and Families, Defense and National Security, Democracy and Western Civilization, Education (higher ed), Education (K-12), Governance, Marxism, Media

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Court Blocks Pennsylvania from Joining RGGI

Posted on November 1, 2023 by | 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 →

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

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Dominion’s Wind Project Wins Federal Approval

Posted on October 31, 2023 by | 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 →

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Posted in Energy, Environment, Utilities

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Will the Left Repudiate this Evil?

Posted on October 31, 2023 by | 15 comments

(This column was published earlier today by The Thomas Jefferson Institute for Public Policy)

by Chris Braunlich

“You dance with the one who brung ya” goes one of the oldest sayings in politics.

It means that when elected officials get into public office, they vote with those who helped put them there.

The deadly Hamas attack on Israel, an event slaughtering 1,400 Israelis that Hamas political bureau member Ghazi Hamad called “our message to the world,” has exposed divisions up and down the Biden liberal-left coalition – and sent a warning signal about those who power that coalition.

Polling data demonstrate the split among Democrats, fueled largely by the young and the left.   It has already caused President Biden to shift his tone, and a recent Reuters report noted that “Biden, 80, has evolved in the face of a challenging 2024 reelection bid, (and) threats by some would-be supporters to withhold their votes over his lack of backing for Palestinians .…”

Four hundred congressional staffers have signed a letter to their bosses opposing the Administration’s current approach. Two-hundred each among the former volunteers of presidential candidates Bernie Sanders and Elizabeth Warren have done the same. Groups supporting Biden are disbanding. Continue reading →

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Posted in Defense and National Security, Democracy and Western Civilization, Uncategorized

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Resorts Like Airports

Posted on October 29, 2023 by | 1 comment

by Jon Baliles

There has been a lot of boasting from the casino advocates about their partnership with Kentucky-based Churchill Downs, Inc. (CDI). The rebranded Richmond Grand casino developer Urban One is a radio and TV conglomerate that has said they are partnering with CDI because of their huge capitalization and experience with casinos. But let’s take a look at Churchill Downs’ casino portfolio, because it’s not what the casino advocates have been claiming.

CDI is obviously world-famous for the running of the Kentucky Derby horse race, and they have expanded their portfolio to include more and more gaming facilities in recent years. CDI bought out Peninsula Pacific Entertainment (PPE) in a $2.75 billion deal in 2022, and PPE had been Urban One’s original partner in the first, failed casino referendum. The deal included the Colonial Downs Racetrack in New Kent, as well as six Rosie’s Gaming Emporium historical horse racing facilities across Virginia plus two smaller casinos, one in Iowa and one in New York. But among the eleven casinos in the CDI portfolio, none are anywhere near the scale what they promise for Richmond. And none of those eleven casinos resemble anything grand — except for the indisputable fact that the house always wins, even if the resort looks more like an airport.

The Richmond Grand advocates claim their casino will have a 250-room hotel, an entertainment/concert venue with 3,000 seats, a TV and film production soundstage, and 15 restaurants and “dining options.” But if you look at their other casinos, they are all small casinos in small markets and are not even close to the “resort” they claim to be bringing to Richmond. Continue reading →

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Posted in Business and Economy, Economic development, Elections, Gambling

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How Pass Through Tax Rules Raid the U.S. Treasury

Posted on October 24, 2023 by | 23 comments

American Institute of CPA’s map of states with a pass through entity tax rule as of this past July.  Many of those that haven’t have no state income tax anyway.  Click for larger view.

By Steve Haner

When the General Assembly was briefed on the state’s financial status last week, the $412 million in unexpected revenue growth was dismissed as potentially misleading because of some new quirk in Virginia tax law called the Pass Through Entity Tax or PTET.  PTET keeps coming up in these discussions.

Approval of the Pass Through Entity Tax in 2022, with some tweaks to the rules in 2023, has indeed scrambled the state’s financial forecasting. Virginia is one of 36 states now offering this tax strategy.  The Senate Finance and Appropriations Committee got a briefing on it October 17.  Before the boring nuts and bolts, here are the headlines.

First, PTET is popularly seen as a way to undermine the 2017 Tax Cuts and Jobs Act’s limitation on the deductibility of state and local taxes (SALT).  If you seek itemized deductions on a federal tax return, the limit for state and local taxes paid is $10,000.  Now that Virginia and so many other states have adopted PTET, the big loser is the federal government.  PTET adds to the federal deficit. Continue reading →

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Posted in Business and Economy, General Assembly, Government Finance, Taxes

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