Tag Archives: Stephen D. Haner

Politicians Back Interest-Heavy Fuel Debt Payoff

Posted on September 1, 2023 by | 21 comments

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 →

21 Comments

Posted in Consumer Protection, Energy, General Assembly, Regulations and Government Oversight, Utilities

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Democrats Cannot Hide From Vote to Ban Gas Cars

Posted on August 30, 2023 by | 108 comments

By Steve Haner

Yes, Virginia, the Democrats are coming for your gasoline and diesel powered cars. The only way to decouple Virginia from the California Air Resources Board’s relentless drive toward electric vehicles only on new car lots is to change the political landscape in Richmond and reverse a 2021 bill.

A Republican candidate for Virginia Senate used the illustration above to challenge his opponent, current Delegate Danica Roem (D-Manassas), now seeking a seat in the less numerous body. The blog Blue Virginia rushed to Roem’s defense. Here is the full link to the article so you can get the link and the tenor of the message all in one. Continue reading →

108 Comments

Posted in Business and Economy, Elections, Energy, Environment, General Assembly, Regulations and Government Oversight

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Which Virginia Taxes Have Grown and How Much

Posted on August 25, 2023 by | 39 comments

Click for larger view.

By Steve Haner

What a difference just four years has made in Virginia’s financial condition, with the state’s General Fund tax revenue having increased 31% during the period and its Commonwealth Transportation Fund revenue increasing by almost 36%. This is comparing the annual results for the fiscal years ending June 30, 2023, just released, and the same summary for the year ending June 30, 2019. Continue reading →

39 Comments

Posted in Business and Economy, General Assembly, Government Finance, Taxes

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Virginia’s Balance Sheet is Embarrassingly Strong

Posted on August 24, 2023 by | 34 comments

Virginia is floating on a sea of unspent cash, but tax relief fails again.

By Steve Haner

“Our balance sheet couldn’t be stronger…this is our moment to soar.”

So said Virginia Governor Glenn Youngkin Wednesday. Every year, our governors come to the legislature to report on the end of the fiscal year financial result, and often they say something like that. They always prefer to bring a happy message over one of caution or doom.

This time, however, it is true. Continue reading →

34 Comments

Posted in General Assembly, Government Finance, Taxes

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Dominion Plan to Maintain Gas Attacked at SCC

Posted on August 21, 2023 by | 31 comments

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 →

31 Comments

Posted in Business and Economy, Energy, Environment, Regulations and Government Oversight, Resilience, Utilities

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Cruise Subsidy More Important Than Tax Relief?

Posted on August 20, 2023 by | 32 comments

What is this cruise ship doing in a story about Virginia’s budget and tax fight? Read and learn.

The Richmond Times-Dispatch has obtained and released the most recent negotiating offer from Democrats in the Senate as the standoff between the two political parties over the state budget continues.  It is contained in an on-line article that doesn’t appear to have made it into the print edition yet. Continue reading →

32 Comments

Posted in Business and Economy, General Assembly, Government Finance, Taxes

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What Global Warming? A Century of Virginia Julys

Posted on August 16, 2023 by | 43 comments

Graphing every daily high temperature for July in Purcellville, VA, more than a century of daily readings up through last month. What global warming? Click for full view.

By Steve Haner

The constant media hysteria about July’s temperatures gets even harder to swallow when the long-term data are examined. For example, take a look at that graph above, which represents every daily high in July going back to the 19th Century at Purcellville in Loudoun County.

The Purcellville weather monitor is one of just 19 in Virginia with a long enough and reliable enough history to be included in National Oceanographic and Atmospheric Administration’s U.S. Historical Climatology Network. It is the closest Virginia USHCN monitor to the Washington metropolitan region, but like many of the selected monitors is not deep in an urban setting.

The graph itself was generated by a program developed by a regular writer on climate topics named Tony Heller, who spent much of his career doing research at the Los Alamos and Sandia national laboratories. This is mentioned because he will be attacked by the Bacon’s Rebellion usual suspects as not a real scientist or not a climate scientist. More of his background.

The graphing program can be balky (it could be my equipment or operator error), and you can try it yourself here under “Daily Station Temperatures.” You can select by state, and if you get the version that includes a box at the top marked “Annual Average,” that gives you a pulldown menu for the individual USHCN monitor stations in each state. The graph adds a trend line if you wish, which I included in my screenshots.

Running through the Virginia stations, the thought that comes to mind is, what climate change? What spike in temperatures? Most seem to be complete through all or most of last month. The media coverage has admitted that Virginia was not among the areas supposedly “broiling.” The state’s official NOAA summary claims a temperature rise of only 1.5 degrees Fahrenheit since 1900, almost 125 years. Continue reading →

43 Comments

Posted in Environment

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NJ Democrats Tacking Away from Wind Power

Posted on August 15, 2023 by | 9 comments

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 →

9 Comments

Posted in Elections, Energy, General Assembly, Utilities

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A Bad Poll, Like a Blind Hog, Finds Some Acorns

Posted on August 12, 2023 by | 51 comments

By Steve Haner

The myth of the climate catastrophe is an easier sell to younger people with their shorter memories. A recent poll of Virginia adults 18 and up showed a marked difference of opinion based on age, with older voters less likely to claim they had personal experience of “impacts from climate change.”

The poll was a recent one conducted by the Virginia Commonwealth University’s Wilder School of Government and Public Policy, released in two parts. The first part dealt with election matchups and the second with issues, frankly using some ridiculous questions. They were not so much biased as just worthless. Other examples will follow but here is the climate issue question: Continue reading →

51 Comments

Posted in Media, Public Opinion Surveys

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Dominion “Bill Relief” Disappears September 1

Posted on August 8, 2023 by | 16 comments

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 →

16 Comments

Posted in Energy, General Assembly, Social Services and Entitlements, Utilities

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Why Dominion Stays Calm in Wind Industry Storm

Posted on August 7, 2023 by | 45 comments

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 →

45 Comments

Posted in Energy, Environment, General Assembly, Regulations and Government Oversight, Utilities

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Restoring Sales Tax Holiday is Not Tax Relief

Posted on August 4, 2023 by | 36 comments

by Steve Haner

Virginia’s Democratic legislators are convinced that citizens are happy to pay taxes for state services and will rebel at the polls if taxes are cut when there are “unmet vital needs.”  That is why they have so far resisted any and all proposals from Governor Glenn Youngkin and Republican legislators to split the state’s fat cash surplus between tax relief and more spending.

So, why are those same Democrats not applauding the 2023 General Assembly’s failure to extend the state’s previous pre-school sales tax holiday? Shouldn’t the voters be happy to pay more for school supplies and clothes since the schools need the money? Instead they are joining the scramble to reinstate that tax break, open to all taxpayers, rich and poor.

The good news is the Assembly’s incompetence (or was it an accident?) in letting the sales tax holiday lapse is providing another prod to keep Democrats at the table for tax policy discussions. Frankly, from a tax policy purist point of view, these tax holidays are not good policy, but they are wildly popular.

That is because the sales and use tax is one people can see at the checkout counter. If you are saving $6-$7 on a Target run or Amazon bill, you notice. The other tax cuts under discussion – a higher standard deduction, a tweak to the income level that triggers the top income tax rate – only come up at tax-filing time, and if you use a computer program or outside accountant to file, you may never notice.

The bad news is that now the General Assembly can come together and fix this oversight (if it was an oversight) and claim a victory for taxpayers. They will claim a bipartisan victory over something that leaves those taxpayers exactly where they were a year ago, no better off at all. From the beginning, the claim that nobody had put the sales tax holiday on the Assembly’s radar during the session has lacked credibility. If so, retailers need new lobbyists. Continue reading →

36 Comments

Posted in Business and Economy, General Assembly, Government Finance, Taxes

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Senators Cry “Voodoo Estimating” In Tax Fight

Posted on August 1, 2023 by | 39 comments

By Steve Haner

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

Not only are the leading Virginia Senate budget negotiators adamantly opposed to providing Virginians with additional tax relief in this election year, but they are now hinting at partial roll back of one of the major individual tax reforms approved just last year.

When the 2022 General Assembly approved a major increase in the standard deduction used by most Virginia taxpayers, it applied a condition — that the underlying General Fund revenue had to continue to grow at least 5% in both fiscal years 2022 and 2023. If it did not, the standard deduction for that year would be reduced again. The revenue growth would be adjusted for the tax cuts, so the target was 5% growth before the revenue reductions those caused.

Meeting that trigger target for FY 2022 was easy in that year’s overheated economy. Last week Governor Glenn Youngkin’s administration certified that the second target was also met, meaning the full standard deduction also applies for this tax year. The goal was barely met, with growth of 5.1%, leading Democrats to accuse the Department of Taxation of “voodoo estimating.”

The accusation against the usually-trusted tax staff was reported in a Richmond Times-Dispatch article. It failed to address whether the Democrats plan to act on their suspicions, but why complain otherwise? If they fight to certify the target was missed, and win, the standard deduction for a married couple filing jointly will drop by $1,000 and their tax bill will rise $58. A key Democrat dismissed it as “less than $30,” but that is for an individual. Continue reading →

39 Comments

Posted in General Assembly, Government Finance, Taxes

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Shocking Omission at Sank Roo Doo Noo

Posted on July 28, 2023 by | 30 comments

Sank Roo Doo Noo.

Now that is an easy address in Paris to memorize, and that phonetic spelling for 5 Rue Daunou (a few blocks from the Opera stop on the Paris Metro and the main Galeries Lafayette) has long replaced the official address.  Anything associated with Ernest Hemingway and the other American expatriates in Paris is on my check list, and this trip I found Harry’s New York Bar.

Now I need to ask an important question to others who may have been there before me.  The interior décor is dominated by the banners of American colleges and universities, hundreds of them.  But as hard as I looked, I could not find banners for either the College of William and Mary or the University of Virginia.

Virginia Tech, George Mason, Virginia Military Institute, Washington and Lee – they were all there, and other Virginia schools.  Some I actually saw on the walls, and then I saw them again when the waiter gave me a plastic-coated listing with agate type so small it comes with a magnifying glass.   Again, I didn’t see them on the list, not W&M or UVA.

If I just missed them and others can confirm their presence or know where they are, please advise.  It is a surprisingly small place, just a couple of rooms, for all the history it has (they claim George Gershwin wrote American in Paris there.)  It is not the bar that Hemingway famously “liberated” in August 1944.  That one was at the Paris Ritz, a favored Nazi haunt during the occupation.

But this is a famous American hangout and I want to be sure those schools are represented.  If nobody can testify their colors are there, that is reason enough to mount another expedition to the Second Arrondissement.  (Not that we can’t find another excuse go back yet again in a couple of years.)

— SDH

30 Comments

Posted in Education (higher ed)

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One Hand Applauds for Dominion “Bill Relief”

Posted on July 6, 2023 by | 6 comments

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 →

6 Comments

Posted in Business and Economy, Energy, General Assembly, Regulations and Government Oversight, Utilities

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