The RGGI states, with New Jersey, which rejoined in June.
by Steve Haner
With an eye on November 5, Virginia’s Republican legislators are expressing their concern for Virginia’s electricity customers and warning that their Democratic competitors will support a new energy carbon tax if they gain the majority. The carbon tax is a key element of the Regional Greenhouse Gas Initiative (RGGI).
In media releases and, of course, Tweets, the simple message is “Higher Taxes on Energy. Democrats Say Yes. Republicans Say No.” The key evidence provided is State Corporation Commission staff testimony (here), first made generally available on Bacon’s Rebellion, and a recent summary on the issue I wrote for the Thomas Jefferson Institute for Public Policy (here). We took a stand against joining RGGI.
That RGGI white paper has been in process all summer, and it was pure coincidence that it surfaced just as many Democrats were showing their concern for consumers by opposing a higher profit margin for Dominion Energy Virginia. Continue reading
Dominion Energy Virginia bill breakdown, for 1,000 kWh of residential service. Base rates were recently reduced by the federal tax cuts, and fuel fluctuates, but rate adjustment clauses (RACs) proliferate and grow, with more to come. Source: SCC
by Steve Haner
There is no sign, nine weeks out from the big General Assembly election, that the arcane and obscure field of electricity regulation is going to change any votes or win any elections in Virginia in 2019. There is plenty to debate if anybody wanted to in two recent reports now public at the SCC and linked below.
The State Corporation Commission just issued yet another report that Dominion Energy Virginia is reaping massive excess profits, more than half a billion dollars in 2017 and 2018 combined. There is very little chance that the company’s 2.45 million customer accounts (about two thirds of Virginia customers) will see any refunds or price reductions as a result. Prediction number one: The company keeps it all come the 2021 review and base rates do not change. Continue reading
Virginia’s participation in the Regional Greenhouse Gas Initiative (RGGI) is now fully authorized under a new state regulation, and the deadline to appeal that regulation has now passed with no appeal filed. The text of the regulation is here.
Language inserted by General Assembly Republicans into the current state budget merely puts RGGI membership and its related carbon tax on hold. It did not overturn the regulation, which went into effect June 26. The outcome of the November election will likely determine whether that roadblock remains in place beyond next summer, when the current budget provisions expire. Continue reading
Dominion Energy Virginia is taking advantage of its annual, and usually boring, fuel cost review to move the cost of any future carbon tax or emissions allowances out of its fixed base rates and into its variable fuel charge. If the State Corporation Commission agrees it could either lower or raise your bill someday but place your bets on the latter.
The case (here) has also drawn testimony that Dominion has so much natural gas capacity under contract in existing pipelines that it is selling the excess capacity to others – about 25 percent of it, in the case of the Transco pipeline. It needs no more capacity, according to a witness hired by environmental groups.
UPDATE: Through a Twitter response I’m told that Dominion has notified other parties it will withdraw the request to place any future CO2 costs into the fuel charge, and the document I missed has been flagged. So the “is” in the lede paragraph is now a “was.” I’ll leave the story up because it remains something to watch. Continue reading
The Hon. Robert Inglis
There is a hotbed of carbon tax advocacy at George Mason University, led by a former GOP congressman sent packing by South Carolina voters because he’s ready to tax them into loving solar and wind. Continue reading
While it would have been a popular step with his political base, and one he was expected to take, Governor Ralph Northam may have been smart to pass on seeking to veto state budget language preventing Virginia membership in the Regional Greenhouse Gas Initiative. Continue reading
The State Corporation Commission staff has “shown its work” on an earlier estimate of electricity rate increases resulting from Virginia’s participation in the Regional Greenhouse Gas Initiative, despite a Democratic legislator’s complaint in Sunday’s Washington Post it was not being transparent.
“Even if you agree with the SCC, its analyses should be public information designed to inform the public debate. The SCC, however, has chosen a less transparent route, disadvantaging the public and the legislature from having all the necessary information to determine energy policy in the commonwealth,” Delegate David Toscano of Charlottesville wrote. Continue reading