Category Archives: Energy

Wind Project Sued Over Claimed Threat to Whales

NOAA Right Whale status graphic, updated this month to report 123 recent deaths and injuries.

By Steve Haner

A coalition of public interest groups has now filed its expected lawsuit seeking to halt construction of Dominion Energy Virginia’s offshore wind facility off Virginia Beach. Its key complaint is the federal permits were issued without a full and fair evaluation of the potential impact of the turbines on the shrinking North Atlantic Right Whale population.

The Heartland Institute, based in Illinois, the Committee for a Constructive Tomorrow, with offices in Washington, D.C. and the National Legal and Policy Center of Falls Church, along with two individuals, are the listed plaintiffs.  The Bureau of Ocean Energy Management (BOEM) and National Marine Fisheries Service (NMFS) and federal office holders are among the named defendants, along with Dominion.

The 61-page complaint to a District of Columbia federal court seeks relief under the Endangered Species Act. It claims the law requires the federal government to study the combined impact of all the planned East Coast wind projects, from New England waters down to North Carolina’s outer banks.  Instead, the federal permitting authorities to date have looked at individual projects without regard to cumulative effects when issuing wildlife impact opinions and permits.

From the article on the CFACT website: Continue reading

Can the Governor Veto RGGI?

by Dick Hall-Sizemore

One of Gov. Glenn Youngkin’s top priorities has been to extricate the Commonwealth from participation in the Regional Greenhouse Gas Initiative (RGGI). One of the top priorities of the Democrat-controlled General Assembly has been ensuring that the Commonwealth participates in RGGI.

For those readers unfamiliar with the purposes of RGGI and how it functions, along with the pros and cons of membership, those topics have been covered extensively in this blog. See here, here, and here.  This article will focus on the constitutional struggle between the governor and the legislature.

Brief legislature history

In 2020, the General Assembly authorized the director of the Dept. of Environmental Quality (DEQ) to establish a market-based energy allowances trading program and the Governor to include the Commonwealth in RGGI. The Air Pollution Control Board (“the Board”) and the Governor exercised their authority to act, and Virginia became a RGGI participant on Jan.1, 2021.

When he took office in 2022, among the first executive orders issued by Gov. Younkin was one directing the DEQ director and the Board to begin taking steps to end Virginia’s participation in RGGI. The Board adopted the final repeal of the RGGI regulations in July 2023, to be effective at the end of the year. Environmental groups sued and those suits are still pending in court.

The next stage of this saga came as the new Democratic majority in the 2024 General Assembly adopted language in the budget bill prohibiting the use of state funds to “impede” the state from rejoining the RGGI and directing all relevant agencies to take steps to immediately rejoin the RGGI and continue participation. Although some Democrat legislators and environmentalists believe the language is vulnerable to a gubernatorial veto, court precedents and recent actions would augur a more favorable outlook on their account. Continue reading

Whoops!

by James A. Bacon

A recurring debate in Virginia’s push toward a net-zero electric grid has been whether demand for electricity in the Old Dominion will grow or shrink. Citing expansion of demand from data centers and electric vehicles, Dominion Energy has contended for years that demand for electricity would continue increasing at a steady rate. Environmentalists scoffed, saying that conservation measures would enable Virginians to meet aggressive goals to phase out fossil fuel plants and rely heavily upon solar and wind.

I highlighted this debate back in 2018 in this article. Dominion forecast a 1.4% annual increase in peak demand over the next 15 years.

“Actual electricity demand growth over the next several years will not come close to Dominion’s inflated 1.3% growth” as forecast in its 2017 IRP, wrote William Shobe, director of the Center for Economic Policy Studies at the University of Virginia. “Something like 0.5% to 0.7% is much more likely. And this is with data center demand.”

“It’s time for Dominion to change its model and assumptions to reflect reality—there is less load growth than predicted, and what load is coming to the Commonwealth comes from companies demanding renewable energy options,” said Will Cleveland with the Southern Environmental Law Center.

So, what’s the story nearly six years later? Here’s the headline from today’s Washington Post: “AI and the boom in clean-tech manufacturing are pushing America’s power grid to the brink. Utilities can’t keep up.” Continue reading

EPA Told CVOW Wake Has Air Quality Impacts

One of two dead whales washed onto Virginia Beach so far this month, just onshore from the CVOW project. WAVY reports on it.

By David Wojick

In formal comments, the Committee for a Constructive Tomorrow (CFACT) has asked the U.S. Environmental Protection Agency to assess the adverse impact of the giant Virginia offshore wind project on air and water quality. The issue is far-reaching because all big offshore wind facilities could have these adverse effects. Continue reading

Governor May Get Two Different Nuclear Bills

Small modular reactor illustrated

By Steve Haner

A Virginia Senate committee voted Monday to approve a House of Delegates bill designed to finance a small modular nuclear reactor in Southwest Virginia, contradicting its own earlier vote for a much broader bill that had statewide application.

Two different bills on the same topic might now pass the Virginia Senate.  If the House does the same thing with the Senate bill, now alive in front of its Labor and Commerce Committee, Governor Glenn Youngkin (R) could have two very different bills to choose from. Continue reading

Floyd Judge Ponders Order to Return RGGI Tax

The states in the Regional Greenhouse Gas Initiative tax compact before Virginia withdrew.

By Steve Haner

A circuit court judge in Floyd County may soon order Virginia to rejoin the Regional Greenhouse Gas Initiative and to reimpose the related carbon tax on Virginia’s electricity consumers.

Judge Kenneth “Mike” Fleenor Jr. ruled earlier this month that a suit seeking reinstatement of RGGI could continue and held a hearing on February 5 on the question of “immediate relief.”  The plaintiff, a group of energy efficiency and insulation contractors using the RGGI tax dollars for their programs, has claimed it will suffer immediate and irreparable harm unless Virginia returns to collecting a carbon tax on coal and natural gas used by utilities. 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

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

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

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