Tag Archives: Dominion

Dominion’s Wind Project Wins Federal Approval

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

Why are the Poor Still Paying for Dominion Wind?

by Steve Haner

Virginia’s new electricity bill subsidy program for customers of Dominion Energy Virginia has cleared its final hurdle at the State Corporation Commission and will begin enrolling participants in time for this coming winter. It is largely following the schedule previously outlined.

In a final order issued October 13, the Commission set the rate adjustment clause amount that will be added to Dominion customer bills at 73 cents per 1,000 kilowatt hours. For most residential customers it will add between 50 cents and a dollar per month to their bills. 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

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

Politicians Back Interest-Heavy Fuel Debt Payoff

Better yet, how about ten years from now? With a decade of interest added on, of course.

By Steve Haner

Several Virginia legislators have encouraged the State Corporation Commission to allow Dominion Energy Virginia to convert a $1.3 billion unpaid fuel debt into a ten-year revenue stream for the utility, adding up to $370 million in additional costs onto its customers.

The SCC will open a hearing Tuesday on the utility’s pending application to convert the unpaid fuel costs for the past three years into a bond. A public comment period on the application just ended, and four legislators and the Virginia Chamber of Commerce filed letters supporting Dominion’s request. The 2023 General Assembly created the bonding option during session as part of an omnibus regulatory change.

The issue is simple. Dominion failed to foresee the explosion in fuel costs caused by the Russian invasion of Ukraine and the generalized wave of inflation. A year ago the SCC approved a plan to cover the first batch of those unpredicted costs that accrued through June 2022, with a three-year payoff schedule.

But the second year of unexpected fuel expenses added almost $700 million more to the unpaid balance by June 2023. Years two and three of the original payment schedule and the new additional costs combine to the total of about $1.275 billion, not including interest. And the interest is what this is all about, with the trade-off being smaller installment payments but a decade of interest charges. Continue reading

Dominion Plan to Maintain Gas Attacked at SCC

Percentage of Virginians reporting difficulty in paying for electricity, including those setting their thermostats to uncomfortable levels. From expert testimony filed by the University of Michigan’s Justin Schott, based on census data. Click for larger view.

By Steve Haner

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

The front line in the war against fossil fuels in Virginia has now shifted back to the State Corporation Commission, and as usual only one side has fielded an army and brought heavy weapons to the battlefield.  Those who might defend the continued use of coal and natural gas are missing in action.   Continue reading

NJ Democrats Tacking Away from Wind Power

by Steve Haner

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

Virginia is one of only two states that hold their major legislative elections this odd-numbered year, with the other being New Jersey. In New Jersey, the state’s offshore wind aspirations have become a major political issue, with even Democrats now starting to question the wisdom of the plan.

The Democrats control new Jersey, so it is noteworthy that both leading Democratic legislators, the Speaker of the House and President of the Senate, signed a joint statement expressing concern about “unanswered questions” as the state’s Board of Public Utilities goes full speed ahead on its wind projects. The turnabout is even more dramatic because the same legislators just weeks ago voted to give the private wind developers of the first project a more profitable deal at ratepayer expense. The company was one of those complaining its project was not financially feasible under the original terms.

New Jersey has become a major hotspot for political opposition to offshore wind, in part because the planned projects are often closer to shore and will be more visible from beach homes and tourist areas than the project off Virginia Beach. There is also more focus in that media market on the unexplained spike in whale deaths, now reportedly up to 60 since December of last year.

The same questions of cost and tourism impact remain unanswered in Virginia, but so far there is no sign many candidates are seeking to enter the legislature with promises to reverse course on our $10 billion project, if that is possible at this point. Dominion Energy Virginia intends to build a second wave of turbines, however, and the next few General Assembly sessions will have every opportunity to change the rules for that tranche. Continue reading

Dominion “Bill Relief” Disappears September 1

By Steve Haner

Homeowners willing to cut back power usage when Dominion Energy Virginia asks them could earn rebates of up to $28 a year. So reports the Richmond Times-Dispatch, citing yet another final order from the State Corporation Commission.

The Richmond paper is always bringing us such great news about the folks at the giant utility looking out for us. The headline in the print edition today is even more positive: “New Rebate Program Could Lower Power Bills.”

Who is actually going to provide the $28 in hard cash? Yep, Bacon’s Rebellion readers get it on the first try. Dominion will raise the rebate money given to the few by raising its cost of electricity to everybody. Even the people getting rebates will pay the surcharge. But your bill just goes up a bit — so little you won’t notice the increase starting on September 1.

You also won’t notice it because the increase in the energy efficiency program’s rate adjustment clause (a separate charge also known as a RAC or rider), is just one of several such increases, all hitting September 1.

The higher bill totals will be creeping into your email and snail mail inboxes along with all the campaign brochures about how the 2023 General Assembly provided “bill relief.” That is gone in a puff of smoke. Come September 1 Dominion customers also start paying for, or start paying more for: Continue reading

Why Dominion Stays Calm in Wind Industry Storm

By Steve Haner

First published by Thomas Jefferson Institute for Public Policy.  There is some overlap with a post from last week by another author,  but with a slightly different focus.  

With growing  turmoil in the offshore wind industry finally being reported, it would be nice to turn the clock back a year and revisit the State Corporation Commission’s failed 2022 effort to impose a real performance standard on Dominion Energy Virginia’s $10 billion, 176-turbine project.  No such luck, Virginia. Continue reading

Dominion Hides Huge Offshore Wind Cost-Risk

by David Wojik

The offshore wind industry is suffering a runaway cost crisis, but Dominion Energy says the cost of its monster project will not go up. Apparently, there is not even a risk of it going up. This preposterous claim is worth exploring.

On the crisis side, I recently wrote about it in general terms. See my https://www.cfact.org/2023/07/26/offshore-wind-has-a-cost-crisis/.

The financial magazine Barron’s has done some work on this crisis situation. Here is a telling quote from a recent article:

But behind the scenes, the news about wind power is more sobering. Financially, the industry is teetering, with a parade of companies planning to renegotiate or pull out of contracts, jeopardizing plans for projects that were expected to provide electricity for millions of homes. Inflation is erasing profits, causing some of the largest energy firms in the world to back away. “Returns on offshore wind are becoming more and more challenged,” Shell CEO Wael Sawan told Barron’s last month, just days after a Shell joint venture said it would pull out of a power contract in Massachusetts. Shell won’t build renewable projects that can’t earn initial returns of 6% to 8%, he said. Continue reading

One Hand Applauds for Dominion “Bill Relief”

by Steve Haner

Dominion Energy Virginia’s customers still owe it $1.26 billion for fuel they have already used, as of the end of June.  The utility is going to give us either seven or ten years to pay off that debt, but at a total cost of over $1.54 billion if we take seven years or almost $1.7 billion if we take the full decade.

The difference, of course, is interest, a return on investment (profit) for the lender, almost $300 million on the seven year plan or $400 million on the ten year plan.  And that initial $1.26 billion already includes some interest.  It was clear from the beginning that extending this debt out like a credit card balance would produce a profit for the lender. Continue reading

Electricity Bill Caps for Poor Start in November

by Steve Haner

Beginning next winter, low- income customers of Dominion Energy Virginia or Appalachian Power Company will be eligible to have their monthly bills capped under a new state financial assistance program.

The income cut off to qualify for Virginia’s new Percentage of Income Payment Plan (PIPP) assisting low income households with their electric bills is the same as the threshold for the long-standing Low Income Home Energy Assistance Program (LIHEAP). So LIHEAP beneficiaries will likely be the first enrolled in the new program later in 2023. Continue reading

Clean Virginia Win is Bad News for Gas Consumers

By Steve Haner

Renewable energy donor Clean Virginia Fund was the biggest winner in Tuesday’s Democratic primaries, going head to head against Dominion Energy Virginia in several nomination contests and often winning.  Senior incumbent Democrats with strong Green New Deal voting records went down to defeat, because good wasn’t good enough. Continue reading

RGGI Reg Repealed, But RGGI Tax Returns to Bills

The states currently in the Regional Greenhouse Gas Initiative tax compact.  Put an X through Virginia as of January 2024? Pennsylvania remains covered with a question mark.

by Steve Haner

Virginia’s Air Pollution Control Board voted Wednesday to remove Virginia from the Regional Greenhouse Gas Initiative, keeping Republican Governor Glenn Youngkin’s promise to eliminate the related carbon tax that has been imposed on electricity ratepayers under RGGI since January 2021.

The bad news is the tax itself won’t disappear until at the earliest September 2024.  Collection from customers has been delayed.  A separate bill surcharge to collect the tax, imposed and then removed by Dominion Energy Virginia, is likely to be imposed again as of September 1 of this year.  A State Corporation Commission hearing examiner has recommended approval of Dominion’s petition to collect another $350 million or so from its customers.

The surcharge is still being calculated, as there remains some dispute over what the full costs are.  The warmer than normal winter reduced electricity demand and required fewer RGGI credits.  The surcharge should settle somewhere above $4 per 1,000 kilowatt hours of usage.  In effect, as the hearing examiner notes, Dominion is seeking to collect 17 months of RGGI allowance costs in just 12 months. Continue reading

VPM Reporter Digs Into Power For Tomorrow

Ben Paviour at Virginia Public Media has fleshed out additional substantial details on the political activities of Power for Tomorrow, a utility advocacy group with major funding from Dominion Energy Virginia.

Questions asked and issues hinted at by this report on Bacon’s Rebellion now have more clarity.

Yes, Paviour found quite a few Virginia incumbent legislators are being supported by the group, not just Senators George Barker (D) and Siobahn Dunnavant (R).  Other beneficiaries include Senator Joe Morrissey (D), Senator Scott Surovell (D), Delegate Delores McQuinn (D), Delegate Buddy Fowler (R) and Delegate Emily Brewer (D).  Most but not all are involved in party nomination contests.

Yes, there is a strong correlation with the people receiving support from Power for Tomorrow not receiving support from Clean Virginia, with the exception of Surovell.  He has received help from both.  Along with the mailings mentioned before, Power For Tomorrow is also spending on digital advertising (as Clean Virginia also does.)

Paviour also found the group is active in South Carolina, another Dominion Energy state, attacking a proposal that South Carolina utilities be forced to join a regional transmission organization.  He turned up the 2021 IRS 990 report for “Power 4 Tomorrow,” but of course that is now out of date.  The IRS reports for these groups lag badly.

The key issue that somebody needs to keep watching is how all of this is reported – or not – in campaign finance disclosures.  No question now, these are political expenses intended to influence an election.  Period. Power for Tomorrow still only shows up as having a registered lobbyist on the Virginia Public Access Project database, with no mention of any campaign donations.  That is the point where this may be stretching Virginia law and should irritate voters who care about transparency.

— SDH