Category Archives: Regulation

SCC Can Set CVOW Wind Performance Standard

by Steve Haner

First published this morning by the Thomas Jefferson Institute for Public Policy.

Despite Dominion Energy Virginia’s complaints that the Virginia State Corporation Commission has exceeded its authority, a legal analysis provided by the Thomas Jefferson Institute for Public Policy finds that the SCC’s proposed performance standard for an offshore wind project is proper. Continue reading

Consequences of the Zero Carbon Fantasy

By Steve Haner

First published this morning by the Thomas Jefferson Institute for Public Policy.

Virginians may finally be waking up to the consequences of the headlong rush to adopt utopian energy policies under our previous governor. The issues are getting more attention than ever before, and now people need to realize that all the issues are really just one issue.

  • A California regulatory board’s decision to ban new gasoline vehicle sales by 2035 is finally being widely reported as binding on Virginia. This has angered many but was actually old news. Under a 2021 Virginia law, our Air Pollution Control Board had already imposed the future sales restrictions, and it was some new amendments that sparked the news coverage. Various political leaders have now promised to stop it but a bill to reverse it died in the 2022 General Assembly when Democrats rallied to save the mandate.
  • Our dominant electric utility has finally acknowledged that its planned $10 billion offshore wind facility is a gigantic financial risk and is now refusing to build it unless the State Corporation Commission (SCC) places 100 percent of the construction and performance risk on its customers. Dominion Energy Virginia knows many things about this proposal it has not told us.
  • Governor Glenn Youngkin (R) is trying to remove Virginia from an interstate compact that mandates a carbon tax on electricity, imposed under former Governor Ralph Northam (D). Advocates for the tax are pushing back and will fight, delay and likely sue to preserve the tax, which costs Virginians $300 million per year at current levels and will continue to rise. Without explanation, the Governor did not keep his initial promise to promulgate an emergency regulation that could remove it quickly, so the tax lingers.
  • Governor Youngkin has opened the process for developing a revised statewide energy plan document, a political process to produce what in the past has been merely a political document. The public comment portal has already become an ideological fistfight. Northam’s 2018 plan had no engineering or economic detail.  It simply praised the legislative efforts to erase fossil fuels which had been adopted to that point and outlined the next steps his administration would take (couched as recommendations.)

Continue reading

When Politicians Run Power Companies

Elements of Dominion Energy Virginia’s residential cost, effective July 1 and pending increases. Source: SCC Click for larger view.

by Steve Haner

Residential customers of Dominion Energy Virginia will soon be paying 55% more for electricity than they were when the Virginia General Assembly took over micromanaging utility regulation in 2007. The Western Virginia customers of Appalachian Power will have seen their electric bills rise by 92%.  Underlying inflation for the period has been about 43%.

If that customer uses a steady 1,000 kilowatt hours per month, buying that from Dominion costs $600 more per year than it did in 2007 and buying it from Appalachian costs $736 more. Continue reading

Schools of Education and DOE Regulations–A Closer Look

by Dick Hall-Sizemore

I have long been skeptical of Virginia’s teacher licensure requirements in general and of education courses at colleges and universities, in particular.

In this vein, I was eagerly anticipating Jim Sherlock’s series of articles on this blog about teacher licensure and those schools of education. I agree with one of his main premises:  to the extent that schools of education faculty are involved in the drafting of teacher licensure requirements, particularly what should be in a bachelor’s degree in education, those requirements will be heavily tilted toward courses in schools of education, rather than in the field of concentration.

The articles have been disappointing.  For example, the most recent one promises to show “how the rules for licensure of teachers and other school staff have changed and impacted teacher education.”

The article fails to live up to its promise.  It is chock full of assertions and recriminations aimed at Democrats that are backed up by little evidence.  In fact, one of his major pieces of evidence refutes his assertions. Continue reading

The Death of Common Sense and the Child-Care Shortage

by James A. Bacon

Simone Martinez began searching for child care four months into her pregnancy. When her baby Zelaina was born, she still hadn’t found a provider, Cardinal News tells us. “I was debating quitting my job even though we really can’t afford it,” she said.

Hundreds of families are on waiting lists in Southwest and Southside Virginia, says Cardinal News. Indeed, child care shortages are a statewide problem — and they are causing major headaches for parents.

Forty-seven percent of Virginia residents live in child care “deserts,” defined by the Center for American Progress as areas having insufficient options. Even when child care is available, it can be so expensive — equivalent to private school tuition — that it makes sense for many parents, usually mothers, to drop out of the workforce and stay home. In 2021, 44,000 Virginians made career sacrifices because of child care issues, according to the liberal-left think tank.

In the minds of many, every social problem calls for a government “solution,” which means Mo Money from taxpayers, and day care is no exception. The Cardinal article quotes multiple people calling for bigger government subsidies. “If we don’t have continued investment and subsidies from the state and federal government,” says one provider, “the child care industry will collapse.”

No one, and that includes Cardinal News, thinks to inquire why day care is so scarce and so expensive in the first place. The usual suspects quoted in the media never ask if excessive government regulation might play a role. Continue reading

Secret Wind Case Documents Are Key to Appeal

Snippet from UVA video showing how winds can destroy a large wind turbine.

by Steve Haner

Now comes applicant Dominion Energy Virginia, petitioning the Virginia State Corporation Commission to reverse its recent decision to impose actual financial risk on the company and its stockholders. If a hurricane blows down its planned offshore wind farm in a few years, the related costs should be imposed 100% on its captive ratepayers, Dominion demands.

Imagine that: expecting a monopoly with a guaranteed right to earn in excess of 10% profit on a $10 billion project forced to face actual risk. What is the world coming to? Continue reading

Wall Street Journal: Wind Approved “Under Duress”

by Steve Haner

With an editorial published yesterday, The Wall Street Journal has now given its readers more insight into the risks inherent in Dominion Energy Virginia’s coming wind project than any Virginia newspaper or broadcast outlet has. It is not the kind of national spotlight Virginia should crave. Continue reading

Pixilated Public Policy

by Jim McCarthy

The citizenry relies upon its government agencies to deliver cogent services and determinations consistent with the welfare of the commonwealth. It’s not always an easy task and, sometimes, the outcomes of those representative institutions are, well, confusing, or pixilated.

On August 3, 2022, the State Corporation Commission (SCC) issued a Final Order denying the Virginia Credit Union (VACU) authority to expand its field-of-membership (FOM) to include members of the Medical Society of Virginia (MSV). The denial followed an initial approval three years earlier by the SCC’s Bureau of Financial Institutions. That action was challenged for formal agency review by a group of seven independent community banks represented by the Virginia Bankers Association (VBA).

The petition for review was a proxy battle in a larger national political effort to curtail the growth of credit unions. The national campaign alleged that credit unions were “overreaching” in expanding into new FOM areas, leveraging their income-tax-free status as not-for-profits to conduct business in geographical areas the community banks believed to be unique to their charters and purposes under state and federal laws. Continue reading

Wind: SCC Rejects Deal Signed By Its Staff

Click for larger view. Source: Dominion

by Steve Haner

First published this morning by the Thomas Jefferson Institute for Public Policy.

Rejecting an agreement that its own staff reached with Dominion Energy Virginia, the State Corporation Commission has imposed at least some level of financial risk on the utility’s shareholders should its $10 billion offshore wind project fail to match the company’s promised performance.

Lest you think that means the ratepayers can relax, the long final order issued August 5 once again highlights all the things that could go wrong with the Coastal Virginia Offshore Wind (CVOW) project, scheduled to be fully operational by 2027. The regulators also wash their hands of any responsibility and record for posterity that the Virginia General Assembly made them approve this. Continue reading

Delayed Fuel Costs May Include Interest Now

by Steve Haner

Dominion Energy Virginia wants its customers, not its shareholders, to pay an interest penalty for the privilege of taking three years to pay off the recent explosion in its fuel costs. The company is paying  about $1 billion more for fuel than it planned when the fuel portion of bills was set a year ago. Continue reading

Wojick on Whales III: The Noisy Driving of Piles

Tethys, wife of Oceanus and mother of the river gods.

by David Wojick

The Virginia wind-versus-whales story has taken a turn for the worse. Worse for the severely endangered Right Whales that is. My research has found what may be some really bad news.

Meet Tethys. Not the real Tethys, the mythical Greek Titan of the sea, but the U.S. Department of Energy’s center for reporting research on the environmental impact of energy technology on sea life, including whales. This is the science side of DOE (where I used to work), not the Ocean Energy development side. Continue reading

Solar Development Continues to Erode VA Farmland

by Barbara Hollingsworth

First published by the Thomas Jefferson Institute for Public Policy.

Virginia lost about 2,000 acres of productive farmland per week in 2021, according to data released in February by the U.S. Department of Agriculture. There are many reasons why farmers sell off their land, including development pressures, lack of interest by younger members of farming families, and the difficulties of turning a profit in the face of ever-changing market and weather conditions.

But there is now a new threat to Virginia’s agricultural base, which has a $70 billion economic impact on the commonwealth annually, according to the Virginia Farm Bureau. Continue reading

Bill to Bury Fauquier Powerline Comes to You

Various proposed power line routes from Warrenton’s Blackwell Road substation. Dominion illustration. Click to expand.

by Steve Haner

One of the key skills in politics is to make your constituents happy with money provided from those far, far away. It is happening again as Fauquier County’s leaders want the General Assembly to force all Dominion Energy Virginia’s ratepayers to pay to bury a 230-kv power line out of sight from their voters.  Continue reading

Five Reasons to Reject Offshore Wind

Snippet from UVA video showing how winds can destroy a large wind turbine.  Click for larger view.

by Steve Haner

Researchers at the University of Virginia are part of an ongoing effort to redesign wind turbines to be both more efficient and better protected from storm-scale winds, as described in this video you can find on a university website.

What is the problem to be addressed? Says one of the engineers:

As you get these larger wind turbines, your blades end up becoming more flexible and if you’re upwind then when the wind comes in and hits those blades, they can curve backwards and then it can hit that tower and destroy the entire turbine.

 You can see an example of that happening on the video. It is not just theory. Continue reading

Regulations and the Costs of Doing Business in Virginia

Courtesy of Mercatus Center George Mason University

by James C. Sherlock

About the only category I found interesting in the “Top States for Business” rankings by CNBC, other than the progressive metrics that are featured in many of the categories, is “Cost of Doing Business.”

Virginia’s worst score among the six categories of metrics is that one. The methodology used for costs of doing business is defined, but vaguely:

As inflation ravages company balance sheets, we measure the strength of each state’s business tax climate. We also measure wage and utility costs, as well as the cost of office and industrial space. And we consider incentives and tax breaks that states offer to reduce business costs, with special emphasis on incentives targeted toward development in disadvantaged communities.

So, in this category, CNBC is grading government-imposed taxes and incentives as well as market-driven costs.

On the government side, the rating favors lower taxes and higher incentives. The “special emphasis” item may skew the results, but we do not know how much.

Lower taxes are conservative priorities. Government incentives which skew market forces and reward both politically trendy operations and big donors are not. Continue reading