Tag Archives: Dominion

by Steve Haner

Advocates made their case Monday for a proposed settlement that offers Virginia consumers some protection from construction cost overruns on Dominion Energy Virginia’s proposed offshore wind project. Not everybody said it was superior to an earlier proposal that protected consumers from future operational failures, but all saw it as unlikely to kill the project.

The earlier approach, placing the risk of operational failure over 30 years on the utility, was going to kill the project, the utility claimed. The utility stood by that threat in the hearing in front of the Virginia State Corporation Commission. But the company is willing to risk its shareholders’ money on its ability to complete the project on time and on budget, its attorney told the Commission.

There was no indication during the hearing when a decision would come. The two judges could leave their original order unchanged or issue a new one based on the proposed agreement between Dominion, Attorney General Jason Miyares (R), two environmental groups and Walmart, one of Dominion’s largest commercial customers.

Other parties, including representatives for major industry and the SCC staff, didn’t sign the stipulation. Nor did they oppose it, and Commissioner Judith Jagdmann polled them one by one.

Two conclusions are evident from the hearing. First, all the parties to the new approach took Dominion’s threat to kill the project at face value and that is what backed them down, including Miyares. He had Deputy Attorney General Steven Popps appear at the hearing, not just consumer section chief Meade Browder, to emphasize his (Miyares’) desire to save the project in a closing statement. Continue reading →

Dominion’s proposed wind project off Virginia Beach.. Scale is correct and a second tranche is planned.

by Steve Haner

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

The big risk with Dominion Energy Virginia’s planned offshore wind extravaganza has always been that either the wind out in the Atlantic blows too little or it blows too much. Too little and the ratepayers are paying an inordinate amount for intermittent electricity; too much (a major hurricane say) and the turbines could be damaged or destroyed.

Because the monopoly utility will own the project, not a third party energy developer, all that risk lands on its ratepayers. The State Corporation Commission sought to protect Virginia ratepayers from the risk. That was the point of its imposition of a performance standard on the project tied to its overall energy output.

That is the risk Dominion’s leadership refused to accept, threatening to kill the $9.8 billion project entirely. It was not an idle threat.

Now Virginia Attorney General Jason Miyares (R) has a new proposal which protects Dominion and its shareholders from that risk after all, putting it back squarely on the utility’s 2.5 million customers. Instead, the person charged by law as the protector of Virginia consumers is focused on the risk of construction cost overruns. Continue reading →

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 →

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 →