Source: “Electricity Sales Forecast for Virginia: 2020-2050”
Boom times ahead for electricity. Electricity demand in Virginia will grow 30%, give or take, over the next 15 years as more energy-consuming data centers are built and more Virginians drive electric vehicles, writes Bill Shobe, a University of Virginia professor who supports the transition to a net-zero-carbon electric grid, in a new report. Electricity use could grow by more than 78% by 2050, the state’s deadline for achieving net zero. The increase will occur despite gains in energy efficiency that have flattened electricity demand growth in recent years.
Where will all that power come from?
Relicensing the nukes. Dominion Energy’s four nuclear units at the Surry and North Anna power stations produce about one-third of the utility’s electricity. The units, originally designed to last 40 years, are licensed to operate another 20 years. Dominion is seeking regulatory approval to extend the licenses yet another 20 years. The Nuclear Regulatory Commission staff has recommended granting that approval for the two Surry units. But some environmentalists are opposed. Continue reading →
Virginia has collected its first wave of carbon taxes from the state’s electricity generators, costs which will eventually show up on future bills. The $43.6 million take just about doubles the revenue estimates used when participation in the Regional Greenhouse Gas Initiative was being approved by the Virginia General Assembly last year. Surprise! Continue reading →
Thousands have Virginians have fallen behind on their electric bill payments as they struggle through the COVID-19 epidemic. The General Assembly wants to help. So, in the budget compromise reached by the House of Delegates and the state Senate, Dominion Energy will be directed to forgive customers’ unpaid balances that were more than 30 days in arrears as of Dec. 31, 2020.
Who will pay for this? Not the Commonwealth of Virginia. The state may be awash in $2.4 billion in federal COVID relief funds plus $410 million in tax revenue over forecasts this year, but, no, legislators want to spend every dime.
And not Dominion Energy. The budget bill reaffirms the utility’s right to use the bill-forgiveness costs to offset earnings from 2017 to 2020 in the State Corporation Commission’s next review of its profits, reports The Virginia Mercury.
You, dear ratepayer, will pay the cost (unless you’re one of those who have fallen behind in your payments). With apologies to Jerry Reed, the politicians get the gold mine, and Virginia’s middle class gets the shaft. Continue reading →
Dominion Energy Virginia’s effort to force its ratepayers to finance a fleet of electric school buses has finally crashed, defeated by the House of Delegates for a third time in the final roll call of the 2021 General Assembly Saturday night. Continue reading →
Yesterday I highlighted a study by University of Virginia professor Bill Shobe purporting to show how Virginia can achieve a “zero carbon” economy by 2050. A key element for eliminating greenhouse gas emissions was re-licensing Virginia’s four nuclear power units — two at the North Anna power station and two at the Surry station — to provide reliable base-line capacity to offset the effects of intermittent power production from solar panels and wind turbines.
We cannot take it for granted, however, that Dominion Energy will win renewal of those licenses. The licenses for North Anna Units 1 and 2 expire in 2038 and 2040, at which time they will be 60 years old. Dominion would like to continue operating them for an additional 20 years. Foes of nuclear power hope to derail the renewal of the licenses for North Anna, which, located above a geologic fault line, shut down temporarily after a 2011 earthquake measuring 5.8 on the Richter scale.
Beyond Nuclear, the Sierra Club and the Alliance for a Progressive Virginia are seeking a formal hearing before an Atomic Safety and Licensing Board panel, according to The Central Virginian. The environmental groups say that because a new nuclear reactor at North Anna would have to meet a higher standard for withstanding an earthquake, an upgrade might be warranted for the two existingunits also.Continue reading →
The General Assembly session deadlines require final decisions on various revenue bills before the final budget bill is adopted, in theory keeping the two issues separate. What is good tax policy should not be driven by the need or greed of the appropriators. Continue reading →
School bus? Storage battery? No, utility profit center.
by Steve Haner
When the Senate bill that allowed Dominion Energy Virginia to buy a fleet of electric school buses with ratepayer dollars was up for discussion last week, three environmentalist lobbyists spoke against it. They focused on the excessive cost and questioned whether it was a reasonable way to develop useful battery storage.
The counterattack was immediate and fierce and came from a Hampton Roads Democratic delegate. “I can’t believe environmentalists are testifying that electric school buses are bad for the environment!” he shouted into his computer’s microphone. He ignored what they actually said and attacked on a false front, seeking to force them back into their accustomed swim lane. Continue reading →
Lower-income Virginians who are customers of the two largest electricity providers may begin to receive subsidies on their residential bills in March 2022 under legislation moving forward in the General Assembly. The money for the subsidies will come from their fellow customers. Continue reading →
EV School bus? Storage battery? No, utility profit center.
by Steve Haner
First published this morning by Thomas Jefferson Institute for Public Policy.
The ultimate goal of the Transportation and Climate Initiative with its tax and rationing scheme is to eliminate fossil fuels for transportation and get us into electric vehicles. That is something advocates have admitted and critics have pointed out. While Virginia TCI participation is on hold in this statewide election year, the 2021 General Assembly is following other pathways to the utopian EV future.
The House of Delegates has sent the Virginia Senate a bill to create a state financial incentive of $2,500 for purchase of a new or used electric vehicle. An additional $2,000 rebate is offered to a low- and middle-income buyer of a new car and $500 if that buyer choses a used EV.
The House has also passed legislation empowering the state’s Air Pollution Control Board to adopt state regulations on vehicle fleet fuel economy and to model California’s existing program forcing manufacturers to offer more zero- and low-emission vehicle sales in the state. This bill sets no goals but puts an accelerated process in motion, bypassing the full regulatory review, with a goal of regulating the 2025 model year vehicles offered in the state. Continue reading →
A near year-long review of Dominion Energy Virginia’s plans to meet service obligations while abandoning fossil-fueled energy has ended with a pile of data, a list of unanswered questions, no real decision and plenty of reason to fear future electricity cost increases.
The review of Dominion’s Integrated Resource Plan (IRP) started March 9, 2020, and the State Corporation Commission issued a final order February 1: “The Commission, however, cannot conclude … that Dominion’s 2020 IRP, as filed, is reasonable and in the public interest for purposes of a planning document.” Continue reading →
Five interrelated bills that will strengthen the State Corporation Commission’s oversight during Dominion Energy Virginia’s next rate case advanced out of the House of Delegates Friday, with the two strongest receiving either 12 or 10 Republican aye votes.
All received at least some Republican votes, and four of the five had Democrats voting in opposition. After I made a pitch (elsewhere) for Republicans to do this, a report on the outcome is in order. A major Dominion rate case begins in April and may be reaching a conclusion around Election Day, and by then the impact of all the restraints put on the SCC in past years may be painfully clear to millions of Dominion customers. Continue reading →
Six bills which reverse 15 years of Dominion Energy Virginia legislative dominance advanced out of a House of Delegates subcommittee today, setting up the strongest challenge to the utility’s profits and power in decades.
Most in one form or another restore authority to the State Corporation Commission to use its own discretion in reviewing the company’s earnings, profits, and accounting decisions in a rate case due to begin in April. It will be the first such review since 2015 and will cover four years of company operations, 2017 through 2020. Continue reading →
Click for clear view. Dominion Energy Virginia donations to legislators on the House Labor and Commerce Committee, compiled by Energy and Policy Institute from VPAP reports.
by Steve Haner
The first major showdown over last-ditch efforts to change the rules on the coming Dominion Energy Virginia rate case occurs Monday in a subcommittee where six delegates received a total of $80,000 from the utility in 2020, and four received $67,500 from its self-appointed watchdog Clean Virginia.
The chair of the subcommittee, Del. Richard “Rip” Sullivan of Arlington, received $15,000 from Clean Virginia, but the chair of the full Labor and Commerce Committee, Del. Jeion Ward of Newport News, might sit in the meeting, as is within her authority. Dominion contributed $50,000 to her campaign in 2020. Both are Democrats. (If Ward is there, the total Dominion donations in the room will reach $130,000.) Continue reading →
Virginia’s major energy-intensive industries will not get a requested path to avoid some of the coming cost shock from the 2020 Virginia Clean Economy Act (VCEA). The bill that sought them a lifeline was tied to an anvil and sunk in a House of Delegates subcommittee today.
It didn’t even help when the Virginia Manufacturing Association’s president mentioned that California is seeing the same problem for its manufacturers and is working on similar relief. Virginia companies were admonished that “they don’t want to pay their fair share,” a phrase used by opponents more than once. A Dominion Energy lobbyist said that about her best customers. Continue reading →
General Electric (GE) has filed suit seeking major monetary damages from Siemens Energy in a Virginia federal court, alleging “willful and malicious misappropriation of GE trade secrets” as they competed to be suppliers to Dominion Energy Virginia. Dominion is not a named defendant, but an employee (reportedly now gone) is accused of sharing GE’s data with Siemens.
A copy of the petition is here, posted by Powermag.com in one of the many trade publication stories about the dispute. Here is one from Reuters and another from Barron’s, which has a paywall. General Electric is represented by the Richmond law firm Spotts Fain, P.C. Continue reading →
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