Tuesday, October 27, 2020
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Governor Northam Appoints Jehmal Hudson to Powerful State Corporation Commission

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See below for press releases from Gov. Ralph Northam's office and from the Chesapeake Climate Action Network (CCAN) on the appointment of Jehmal Hudson...

Virginia State Corporation Commission Directs Electric, Gas, Water Companies to Suspend...

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Check this out from the Virginia State Corporation Commission: Listen  SCC DIRECTS ELECTRIC, NATURAL GAS AND WATER COMPANIES TO SUSPEND SERVICE DISCONNECTIONS DURING COVID-19 STATE EMERGENCY RICHMOND...

Virginia State Corporation Commission Orders Heavily Fossil-Fuel-Based Appalachian Power to Model...

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In a sign of how "the times they are a changin'" in Virginia, check out this order from the Virginia State Corporation Commission (SCC)...

Video: House Labor and Commerce Committee Votes 10-9 to Expand Powerful...

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I'm very happy to see that the House Labor and Commerce Committee earlier today voted 10-9 to expand the powerful State Corporation Commission (SCC)...

After the Grid Mod Bill, the SCC Wants to Know How...

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by Ivy Main, cross posted from Power for the People VA It’s no secret the State Corporation Commission didn’t like this year’s big energy bill,...

Virginia Regulators Reject Dominion Renewable Energy Tariff

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by Ivy Main, cross posted from Power for the People VA Virginia’s State Corporation Commission (SCC) has rejected Dominion Energy Virginia’s application for approval of a...

Dominion Tool John Watkins is Pretty Much the LAST Person Gov....

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Recently, State Senator Scott Surovell wrote an op-ed which noted that, in addition to the GOP-controlled Virginia General Assembly failing to pass a budget, they...

Dominion Admits Cost of North Anna 3 Nuclear Plant Will Top...

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Dominion Virginia Power is projecting that the capital cost of a third nuclear reactor at its North Anna facility will total over $19 billion, according to filings in its 2015 biennial review before the State Corporation Commission (PUE-2015-00027).  

This works out to over $13,000 per installed kilowatt, according to the testimony of Scott Norwood, an energy consultant hired by the Attorney General's Department of Consumer Counsel to analyze Dominion's earnings evaluations. He notes that this capital cost is "approximately ten times the capital cost of the Company's new Brunswick combined cycle unit," which will burn natural gas.

As a result of this high capital cost, the  "total delivered cost of power from NA3 is more than $190 per MWh in 2028." That translates into 19 cents per kilowatt-hour.

By comparison, in 2014 the average wholesale price of electricity in the PJM region (which includes Virginia) was 5.3 cents per kWh. Dominion currently sells electricity to its customers at retail for between 5.5 and 11 cents/kWh.

In other words, NA3 is ridiculously expensive.

Dominion had kept its cost projections for NA3 secret until this rate case forced the disclosure. Previously, executives had acknowledged only that the cost would be "far north of 10 billion."

This cost revelation may point to the real reason Dominion pushed so hard for SB 1349, the 2015 legislation that insulates the company from rate reviews until 2022. As Norwood testifies, "DVP forecasts a dramatic increase in NA3 development costs over the next five years, during which there will be no biennial reviews."  

Dominion makes a play for utility-scale solar, but Amazon steals the...

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This winter Dominion Virginia Power promised Governor Terry McAuliffe it would build 400-500 megawatts (MW) of utility-scale solar power in Virginia by 2020, part of the deal it cut to gain the governor's support for a bill shielding it from rate reviews through the end of the decade. The company also took a welcome first step by announcing a proposed 20-MW solar farm near Remington, Virginia.

The applause had hardly died down, though, when Amazon Web Services announced it would be building a solar project in Accomack County, Virginia, that will be four times the size of Dominion's, at a per-megawatt cost that's 25% less.

Why such a big difference in cost? The way Dominion chose to structure the Remington project, building and owning it directly, makes it cost more than it would if a third party developed the project, as will be he case for the Accomack project. That means Dominion is leaving money on the table-ratepayers' money.

There is nothing wrong with the Remington project otherwise. The site seems to be good, local leaders are happy, and solar as a technology has now reached the point where it makes sense both economically and as a complement to Dominion's other generation. But by insisting on building the project itself, and incurring unnecessary costs, Dominion risks having the State Corporation Commission (SCC) reject what would otherwise be a great first step into solar.

And that's a crying shame, because solar really is a great deal for consumers these days. Utilities now regularly sign contracts to buy solar for between 4.5 and 7.5 cents per kilowatt-hour. Compare that to the 9.3 cents/kWh cost of electricity produced by Dominion's newest coal plant in Virginia City, and it's no wonder that solar is the fastest growing energy source in the country.

Utilities get those rates by buying solar energy from solar developers, not by playing developer themselves. From the ratepayer's point of view, developers have three advantages over utilities: they are experts at what they're doing, they work on slimmer profit margins, and they get better tax treatment. Dominion loses all three advantages if it builds the Remington solar farm itself.  

SCC approves Appalachian Power’s “solar tax”

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The State Corporation Commission has granted Appalachian Power Company's request to be allowed to impose "standby" charges on residential customers with solar systems over 10 kilowatts. The charges can range up to more than $100 per month, regardless of how much electricity the homeowner actually draws from the grid.

In its Final Order in case number PUE-2014-00026, dated November 26, the SCC ruled that APCo's standby charge complies with § 56-594 F of the Virginia Code, which provides for standby charges for net-metered residential systems between 10 and 20 kW. (The law does not allow for net metering of residential systems over 20 kW.)

Environmental groups intervened in the case and ran a grassroots campaign that generated over 1500 comments to the SCC, opposing what has been dubbed a "tax on the sun." The result, however, was never in much doubt. The SCC has repeatedly demonstrated a willingness to accept without scrutiny utility assertions that solar customers impose costs on other customers.

Attorneys at the Southern Environmental Law Center, who argued against the standby charges on behalf of the Sierra Club and other groups, say the SCC's reasoning is flawed. According to Cale Jaffe, Director of the SELC's Virginia office, "Appalachian Power actually conceded during the hearing that it was 'not in a position' to determine whether solar customers had 'a positive or negative impact to the distribution cost of service.'  In other words, Appalachian Power said that solar customers might be having a positive impact in helping to reduce APCo's distribution costs, but that the power company didn't have the data and didn't know one way or the other."