Category Archives: Regulation

SCC Examiner Says No to Dominion Gas Plans

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

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

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

Norfolk Hipsters & Lefties Try to Block a Military-Themed Brewery

by Kerry Dougherty

Now is the time. If you believe that cities ought to be open for business, regardless of the viewpoints of the business owners, if you support the military and don’t consider flag-waving a provocative act, you might want to let Norfolk’s City Council hear from you.

On December 12th it is scheduled to vote on the application of Armed Forces Brewery to open its doors on the same premises that housed O’Connor Brewing in the so-called Railroad District of Norfolk.

The business was lured to Virginia by Gov. Glenn Yougnkin who helped the founders secure tax incentives to open their craft brewery in Norfolk rather than in Florida. The owners have pledged that 70% of their employees will be veterans.

Normally, that would be seen as good news in this military town. Continue reading

Stuck in the Secretary’s Office

Andrew Wheeler, Director, Office of Regulatory Management

by Dick Hall-Sizemore

The Youngkin administration is sitting on regulations needed to implement important legislation enacted by the General Assembly in 2020. The delay constitutes a violation of that law.

In its 2020 Special Session, the General Assembly expanded the grounds for decertifying law-enforcement and jail officers. The background of this legislation was described in detail on this blog in a previous article, so there is no need to repeat that information here.

The legislation required the Department of Criminal Justice Services (DCJS), under the direction of the Criminal Justice Services Board (CJSB), to adopt statewide professional standards of conduct for law-enforcement and jail officers. The timeline set out in the legislation would have required the standards of conduct to go into effect by mid-December 2021, two years ago. DCJS missed the deadline. The CJSB approved the regulations on June 16, 2022. The Attorney General certified the regulations on Aug. 2, 2022. The Department of Planning and Budget completed its review of the economic impact of the regulations on Aug. 22, 2022. The regulations have been under review in the Secretary of Public Safety and Homeland Security’s office since then—470 days, more than a year and a quarter. Continue reading

Virginia Beach Nixes Kitty Hawk Wind Cables

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

Excess Profits Squeezed Out From Dominion Rates

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

Dominion Wind May Be Sued, Hikes Customer Bills

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

SCC Approves Paying Extra for Fuel As “Relief”

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

NY Ratepayers Better Protected Than Virginia’s

Illustration of planned Equinor offshore wind installation off the coast of New York State. Equinor was one of the developers asking for a price increase, which was rejected.

By Steve Haner

The New York State Public Service Commission (PSC) last week told several offshore wind developers it would not approve changes in their state contracts, putting several planned ocean turbine projects into jeopardy.  The story is important for its contrast to how Virginia faces the same future. Continue reading

Miyares Seeks Dismissal of Suit to Save RGGI

The states currently in the Regional Greenhouse Gas Initiative tax compact.

By Steve Haner

Attorney General Jason Miyares (R) is defending the Virginia Air Pollution Control Board’s decision to exit a multi-state carbon cap and tax compact as within the regulatory agency’s authority. He has also claimed to the circuit court hearing an appeal of that decision that the plaintiffs were not affected by the action directly and thus have no standing to sue.

The four plaintiffs, all associations, filed a 138-page petition in the Circuit Court of Fairfax County in late August. Miyares’ office used just ten pages total for two responses dated September 13. Continue reading

Principles for Virginia’s Energy Future

NOAA data for Virginia, 1900-2020, showing no rising pattern in the number of days with an average high above 95 degrees F.

By Steve Haner

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

Energy is our economy. Energy is the basis of wealth and a comfortable life. As Virginia chooses a new set of legislators to wrestle with the old and new energy issues facing the Commonwealth, here is a review of some of the key points the Thomas Jefferson Institute for Public Policy has been stressing and writing about over recent years.

Candidates in either party would do well to adopt them. Continue reading

Did Assembly Trim Dominion Bills $7-$14? No.

The SCC’s breakdown of Dominion’s energy price for a home using 1,000 kwh.  Click for clear view.

by Steve Haner

When the Virginia General Assembly passed a complicated electricity regulation change a few months ago, the Richmond Times-Dispatch parroted as fact this Dominion Energy Virginia claim in a front-page paragraph:

The compromise on electric bills — in legislation that passed nearly unanimously — would bring an immediate $6 to $7 cut in a benchmark 1,000 kilowatt-hour monthly bill, which now stands at $137.

Continue reading

Legislature Moves To Fill Power Vacuum It Created

State Sen. Scott Surovell, D-Fairfax, new Chairman of the Commission on Electric Utility Regulation (Image: Virginia Star)

By Steve Haner

State Senator Scott Surovell, D-Mount Vernon, showed today that he had something which the State Corporation Commission now lacks – a quorum.  Surovell and the other legislators will gather in Richmond tomorrow to address the state budget but are expected once again to fail to fill the two vacancies on that vital regulatory body.

Surovell, however, was chosen this afternoon to chair the newly reconstituted Commission on Electric Utility Regulation (CEUR), a legislative oversight panel that has not met since December 2017 despite several tumultuous years of change in Virginia’s energy sector. The meeting lasted just a few minutes beyond one hour and never discussed the huge problem the legislators have created by refusing to elect new SCC regulators. Continue reading

TJI To SCC: Keep Dominion Gas Plants

The following has been submitted to the State Corporation Commission via the public comment portal it has established for Dominion Energy Virginia’s pending 2023 Integrated Resource Plan.  It was drafted by Thomas Jefferson Institute for Public Policy Senior Fellow Stephen D. Haner.

Dominion Energy Virginia is acting reasonably and prudently by planning to maintain most of its natural gas generation and perhaps some of its coal generation for the foreseeable future, despite narrow votes in the Virginia General Assembly in favor of eliminating their use.

That is the only aspect of the pending Integrated Resource Plan review (PUR-2023-00066) on which the Thomas Jefferson Institute for Public Policy is offering an opinion.  However, the opinion is strongly reinforced by data put on the case record by the State Corporation Commission’s own professional staff and cited below. Continue reading

The Virginia State Budget and the Rising Costs of Registered Nurses

by James C. Sherlock

I was asked yesterday by a reader about the relationship between nursing homes, rising registered nurse salaries and the new Virginia budget agreement.

Good questions. Virginia’s workforce includes nearly 70,000 registered nurses.

The state pays its workers, but it also pays its Medicaid share for private sector nurses. Pay for private sector workers is based upon market conditions. The market wage for registered nurses nationwide increased dramatically during COVID.

Perhaps the only good thing to come out of that mess was that registered nurses, of whom Virginia has 11% fewer than demand calculated by the federal Health Resources and Services Administration, got very large pay and bonus raises, and the new wage points appear to have stuck.

If the laws of economics work here, that will over time increase the number of nurses if we can educate and train them in the required numbers.

The latest figures from the Bureau of Labor Statistics for all states show that the median wage for an RN in Virginia was $79,700 a year. In Northern Virginia portion of the D.C. metro area, the median was $92,800.  The underlying data are a couple of years old.

Wages and bonuses can vary a lot among Virginia hospitals, nursing homes, home health agencies, nursing school staff and government employees, and are higher or lower depending on specialty. The private sector offers $10,000 to  $20,000 signing bonuses paid out after the first year.

Employers of course must pay payroll taxes and other expenses related to employees, and thus their costs will generally exceed $100,000 per RN.

Virginia RNs are still underpaid compared to national figures. The mean annual wage for America’s 3 million registered nurses in May was $89,010 compared to Virginia’s $79,900.

The federal Centers for Medicare/Medicaid Services, aware of some of the questionable business models of bad actors in the nursing home industry, published last week a proposed rule to both increase the minimum number of RNs in nursing facilities and to require all nursing facilities to reveal every year how much of the Medicare and Medicaid payouts go to salaries and related expenses.

So, Medicare and Medicaid costs will go up yet again. Continue reading