Whether Dominion is building the solar farm or just buying its output makes a huge difference in cost.
by Steve Haner
In preparing for the latest round of new additions to its solar generation assets, Dominion Energy Virginia rejected eight privately- developed projects which were substantially cheaper than the projects it wanted to build on its own with ratepayer money. Just how much more expensive the company-owned projects will be is not clear, but the higher costs will be locked in for decades.
It is the 2020 Virginia Clean Economy Act which is driving the massive solar buildout, and one part of the statute is being read one way by the utility and another way by most of the other stakeholders. Dominion believes the law requires it to provide a fixed 35% of the new renewable electricity from third-party providers under long-term power purchase agreements (PPAs). It claims the law dictates that it must own 65% of the generation assets directly.
Just about every other party to the most recent application for new solar believes that 35% is a floor, a “no less than” target, and a higher percentage could be from PPAs. Entities taking that position include the Office of the Attorney General, environmental activists, and even large electricity users such as Walmart. The issue dominates final arguments on the application filed this week at the State Corporation Commission.
What is the solar price differential? As with far too many of these disputes, most of the key financial information is confidential, available only to case participants who have filed a promise to maintain secrecy. But in its final brief, the staff for Attorney General Jason Miyares (R) provides some dramatic comparisons. Continue reading →
by Bill O’Keefe
