Tag Archives: Stephen D. Haner

What Surplus? Virginia Doesn’t Allow Surpluses!

Secretary of Finance Stephen Cumming’s slide showing most of the final surge of unexpected revenue before June 30 came from payments from business owners and investors. Click for larger view.

by Steve Haner

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

Does last week’s glowing report on Virginia’s state tax collections presage additional tax relief for struggling families? The first question is, was the news really glowing? Continue reading

Wind: SCC Rejects Deal Signed By Its Staff

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

Delayed Fuel Costs May Include Interest Now

by Steve Haner

Dominion Energy Virginia wants its customers, not its shareholders, to pay an interest penalty for the privilege of taking three years to pay off the recent explosion in its fuel costs. The company is paying  about $1 billion more for fuel than it planned when the fuel portion of bills was set a year ago. Continue reading

Salvation for the Mountain Valley Pipeline?

MVP route map. Click for larger view. Source: MVP

by Steve Haner

And now, from our “I’ll believe it when I see it” department, comes the expectation that passage of President Joe Biden’s new corporate tax hike and green energy incentives package will be followed by a smooth path to completion for the Mountain Valley Pipeline (MVP) for natural gas.

The topic is everywhere today because Senator Joe Manchin, D-W.Va., included it as a deal point on a summary of what he sees as agreed outcomes from his decision to support the package. But the massive bill does not (and could not) include blanket approval of the pipeline among its provisions. Continue reading

Bill to Bury Fauquier Powerline Comes to You

Various proposed power line routes from Warrenton’s Blackwell Road substation. Dominion illustration. Click to expand.

by Steve Haner

One of the key skills in politics is to make your constituents happy with money provided from those far, far away. It is happening again as Fauquier County’s leaders want the General Assembly to force all Dominion Energy Virginia’s ratepayers to pay to bury a 230-kv power line out of sight from their voters.  Continue reading

How’s Your Climate Emergency Going? Hanging In?

by Steve Haner

How is your climate emergency going so far? We seem to be hanging in well at my house.

The media hype around this fairly typical July hot spell has been off the charts, but my favorite headline of the season appeared in the Richmond Times-Dispatch (home of at least one climate jeremiad per day) weeks ago: “Extreme weather hits every U.S. region and won’t let up.” Such an honest example of the game being played demands recognition. Continue reading

Five Reasons to Reject Offshore Wind

Snippet from UVA video showing how winds can destroy a large wind turbine.  Click for larger view.

by Steve Haner

Researchers at the University of Virginia are part of an ongoing effort to redesign wind turbines to be both more efficient and better protected from storm-scale winds, as described in this video you can find on a university website.

What is the problem to be addressed? Says one of the engineers:

As you get these larger wind turbines, your blades end up becoming more flexible and if you’re upwind then when the wind comes in and hits those blades, they can curve backwards and then it can hit that tower and destroy the entire turbine.

 You can see an example of that happening on the video. It is not just theory. Continue reading

Can Dominion Be Made To Stand Behind Promises?

Perhaps the biggest weather risk to the performance of Dominion’s planned offshore wind project. In all the briefs about mitigating risk, the word hurricane appears once.

by Steve Haner

First published this morning by the Thomas Jefferson Institute for Public Policy. Second of two articles.

In promoting its proposed Coastal Virginia Offshore Wind (CVOW) project, Dominion Energy Virginia has made many specific projections about its costs and performance. The State Corporation Commission is now being advised to convert one or more of them into binding promises, with financial consequences for the utility and its shareholders if the 176 turbines fail to meet expectations.

As noted in previous discussions, including part one yesterday, Dominion’s 2.6 million Virginia customers are fully exposed to any additional costs created if the construction schedule falters, if material costs explode, tax credits disappear, or if the amount of energy provided over the next 25-30 years fails to meet targets. As also previously reported, no other similar project on the U.S. East Coast is structured to put full risk on customers. Continue reading

Offshore Wind Risks Stressed in SCC Briefs

The footprint for Dominion’s Coastal Virginia Offshore Wind project, 27 miles off Virginia Beach.

by Steve Haner

First published this morning by the Thomas Jefferson Institute for Public Policy. First of two articles, with the second coming tomorrow.  

Virginia’s State Corporation Commission has now received a series of legal briefs offering opinions on what steps, under the law, it can take to protect Dominion Energy Virginia consumers from the massive risks facing its proposed offshore wind facility. Those risks range from cost overruns to poor energy output to failure.

All the parties asked responded that the SCC did have some authority to act and somewhat shift the risk. The utility had a more limited view. But the legal question is truly secondary, and the real question is whether two judges will take actions to protect consumers when their elected representatives openly and knowingly left them so exposed. Continue reading

This Year the VRS “Diet COLA” Will Really Hurt

by Steve Haner

The most recent year-over-year inflation measure approached 9%, with many key food or energy items growing in cost even faster. The official inflation estimate just used to increase the state’s gasoline taxes as of July 1 was 7%. So what inflation factor will be used to adjust state and local employee pensions this summer? Those will go up less than 4%.  Continue reading

Youngkin Now All-In on Offshore Wind

Gov. Glenn Youngkin

by Steve Haner

Governor Glenn Youngkin’s media spokesperson has told the Associated Press that not only is he committed to the current Dominion Energy Virginia offshore wind project, now under State Corporation Commission review, he is also willing to consider additional turbines off Virginia’s coast.

The Republican had campaigned a year ago expressing concerns for the consumer price impact of the mandatory renewable energy conversions in the Virginia Clean Economy Act of 2020.  The offshore wind proposal, currently slated to cost $10 billion for just the first tranche, is the largest driver of that expected consumer cost increase.  Continue reading

Dropping? Nope, Gas Tax Now Rises July 1

by Steve Haner

Virginia’s gasoline and diesel taxes will rise 7% on July 1, about three more cents per gallon when all the elements of the tax are combined.  This is the inflation-driven cost of living adjustment which Governor Glenn Youngkin (R) and most legislative Republicans tried to short circuit, but which was preserved by a vote in the Virginia Senate last week.

The new gasoline tax will be 28 cents retail, 8.2 cents wholesale plus another 0.6 cents per gallon to fund a program for removing old underground tanks safely.  That’s a combined tax of 36.8 cents per gallon. The taxes on diesel will be 28.9 cents retail, 8.3 cents wholesale plus the same tank fee, a total of 37.8 cents per gallon.  Continue reading

California Proposing More EV Rules for Virginia

Now the powerful regulator of Virginia’s vehicles sales and emissions, thanks to the General Assembly.

by Steve Haner

Virginia’s auto industry overlords in California have a new set of proposed mandates for both electric and internal combustion vehicles which, once adopted, will automatically apply here in the Commonwealth.  They do not advance the date for banning the sale of new gasoline and diesel vehicles earlier than 2035 but do increase the incremental targets for percentage of EV sales in earlier years. Continue reading

Update: Richmond Could Still Close Gas Works

Pending Termination

by Steve Haner

The Senate of Virginia, after long avoiding a vote, has now approved a bill that would require a Virginia local government to try to sell its municipal natural gas utility before simply closing it.  The watered down conference report was all that remained of a more robust bill protecting the natural gas business in Virginia from the climate catastrophe fanatics.

It offers little to no real protection to municipal gas users beyond notifications. Continue reading

Only Part of the Gas Tax Would Be Suspended

by Steve Haner

The gas tax in Virginia today is 33.8 cents per gallon and the diesel tax is 34.7 cents per gallon.  The fresh proposal from Governor Glenn Youngkin (R) for a 90-day suspension of those taxes does not eliminate Virginia’s full fuel tax bite.  The oft-ignored wholesale tax will remain while only the retail tax goes away.

Bacon’s Rebellion has plowed this ground before.  The Division of Motor Vehicles’ posted information on taxes remains intentionally misleading, listing the retail taxes in one place and mentioning the wholesale taxes somewhere else.   These taxes are also set up by different sections of the Code of Virginia.  Youngkin’s proposal would amend only one of those Code sections. Continue reading