Category Archives: Energy

Great Judges Can’t Fix Bad Energy Laws

Posted on January 29, 2024 by | 23 comments

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 →

23 Comments

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

Tagged

Will Democrats Revisit Virginia Net Zero Laws?

Posted on January 18, 2024 by | 63 comments

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 →

63 Comments

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

Tagged ,

Thank Coal, Gas for Your Warm House Today

Posted on January 15, 2024 by | 45 comments

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.

45 Comments

Posted in Business and Economy, Energy, Environment

Tagged

As Dominion and APCO $oar, NOVEC Drops Rates

Posted on January 10, 2024 by | 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, Regulation, Utilities

Tagged

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 →

46 Comments

Posted in Business and Economy, Energy, Environment, Regulation, Utilities

Tagged , ,

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 →

23 Comments

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

Tagged , ,

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 →

17 Comments

Posted in Business and Economy, Energy, Environment, Land use & development, Regulation, Utilities

Tagged

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 →

37 Comments

Posted in Business and Economy, Energy, General Assembly, Regulation, Utilities

Tagged ,

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 →

17 Comments

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

Tagged , , ,

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 →

7 Comments

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

Tagged ,

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 →

29 Comments

Posted in Energy, Environment, Utilities

Tagged , ,

The Californication of Virginia

Posted on October 30, 2023 by | 143 comments

by Kerry Dougherty

Does anyone really think fewer gas mowers will make a difference?

More importantly, is it the role of government to tell citizens what they must use to trim their fescue?

Of course it isn’t.

Why should we in Virginia care? Because we’re just one car back on California’s crazy train.

During the disastrous Ralph Northam era, when both chambers of the General Assembly were controlled by Virginia’s far-left Democrats, the Old Dominion linked its automotive climate policies to California’s.

Unless sanity is restored in the November elections and the Senate flips to the GOP, gas-powered cars will no longer be sold in Virginia after 2035. Continue reading →

143 Comments

Posted in Elections, Energy, Environment, Freedom, General Assembly, Politics

Tagged

Electric Vehicles May Be Worse for the Environment than Gasoline-Powered Ones

Posted on October 30, 2023 by | 39 comments

by Hans Bader

Electric vehicles require enormous damage to the environment just to produce their batteries — 250 tons of mining is required for a single battery, according to Real Clear Energy. Switching to electric cars would require a radical expansion of mining across the world, and the minerals for the car batteries will be refined mainly using the coal-powered electric grid of China, the world’s biggest emitter of greenhouse gases.

Yet states are starting to mandate electric vehicles. Nine states, including California, have now decided to ban gasoline-powered cars by 2035, requiring that all cars sold be electric instead. In 2021, Virginia’s Democratic-controlled legislature passed a law adopting California standards for Virginia vehicles, so Virginia also will ban gasoline-powered cars in 2035, unless that law is repealed, as Republicans seek to do (the Republican-controlled Virginia House of Delegates voted to repeal the ban on gas-powered cars in 2023, but the Democratic-controlled Virginia state Senate kept the ban in place). Continue reading →

39 Comments

Posted in Elections, Energy, Environment, General Assembly, Virginia Law

Tagged

Voters Will Decide Virginia’s Future Direction

Posted on October 25, 2023 by | 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 Budgets, Education (K-12), Elections, Energy, Taxes

Tagged ,

The High Stakes in Virginia’s Very Close Nov. 7 Election

Posted on October 21, 2023 by | 33 comments

from Liberty Unyielding

Virginia is holding a very close election. The last day to vote is on Tuesday, November 7. If you live in Virginia, you can also vote early, at specified locations, on Monday through Friday, from September 22 to November 3, or on Saturday, October 28 or November 4.

Voters are almost evenly split between Republicans and Democrats. A recent Washington Post poll shows that 47% of likely voters prefer the Democrats, while 45% of likely voters prefer the Republicans.

Republicans and Democrats are tied on the generic ballot, according to recent polls for Cygnal and Yahoo News.

A Founder’s Insight poll shows 45% of Virginia voters plan to vote for the Democrats, and 44% plan to vote for Republicans. A poll by Coefficient shows 41% Virginians plan to vote for the Democrats, while 40% plan to vote for the Republicans.

Control of Virginia’s legislature could be decided by a single vote, like yours if you live in Virginia. In 2017, the pivotal legislative race in Virginia was decided by a coin toss to break a tie, after two candidates got the same number of votes in Virginia’s 94th district. The Republican candidate won that coin toss. His win in that race gave Republicans control of the House of Delegates by a narrow 51-to-49 margin.

The election results may determine whether Virginia cuts taxes or instead raises government spending at a rapid clip. Virginia has a Republican governor, Glenn Youngkin, but the legislature is split between a Democratic-controlled state Senate and a Republican-controlled House of Delegates. The Democratic-controlled Senate has blocked most of the governor’s proposed tax cuts, but it did grudgingly agree to repeal most of the state sales tax on groceries, reducing it from 2.5% to 1%.  Governor Youngkin and Republicans would like to fully eliminatethe grocery tax, while Democrats want to keep the tax so they can spend more taxpayer money. Continue reading →

33 Comments

Posted in Elections, Energy, General Assembly, Politics, Taxes

Tagged