Thursday, July 24, 2008
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Tracking Virginia’s General Assembly
since 2007.

Search 2008 Bills:

HB3068: Electric utility service; advances scheduled expiration of capped rate period.

Chief Patron

Del. Clarke Hogan (R-60)

Clarke Hogan (R-60)
South Boston, VA
Served: 2002–

Progress

Yes Introduced
Passed Committee
Yes Passed House
Yes Passed Senate
Yes Signed by Governor
Yes Became Law

Status

04/04/2007: enacted

View Entire History

Summary

Virginia Electric Utility Restructuring Act.  Provides that if the State Corporation Commission is unable to identify regional electricity markets where competition is an effective regulator of rates, it shall establish the post-capped rate period rates for a distributor's generation component of default service at rates that are in the public interest, do not prejudice or disadvantage any class of customers, provide incentives for improved performance, are not excessive, are adequate and seek to ensure the safe and reliable provision of default service.  If a distributor asserts that these default service generation rates do not allow it to recover its prudently incurred costs and an adequate return, the Commission shall establish the rates in a cost-of-service rate case proceeding.

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Comments

Dan writes:

Amend the bill with efficiency & conservation measures and non-fossil fuel production standards

The only good I see from this bill is Dominion will have the money to finance the North Anna nuclear expansion. Since this project will certainly power the state in the future without new GHG and C02 emissions, I guess this is a good thing. Secondly, Dominion will also have the ability to upgrade existing coal-fired plants which are currently some of the biggest polluting plants in the nation. Also when technology advances enough to construct market-ready near-zero emission hydro-coal power plants, Dominion could have the financial opportunity to replace the old power plants it currently uses.

However, what makes no sense is that the Virginia General Assembly let this bill evolve as a state alone bill. The legislative body killed a bill with an energy efficiency and conservation measures. Secondly, Sen. Whipple's bill for a renewal energy portfolio was left in committee, apparently to die a slow death.

If Dominion is permitted to raise the price its charges for every kilowatt is sells to consumers, it seems prudent that the existing grid should be made more efficient and the state's energy policy be geared towards investments away from dirty fossil fuel generation.

The bill should mandate utilities reduce peak demand consumption on an incremental basis. Since reliability standards set by NERC & FERC require about double the amount of electricity at all times, including peak times, targeting these spikes as a way to stave of more generation & transmission is an optimal solution.

Participation in energy efficiency programs should be made mandatory by the utility providers for the state's largest industrial, government, educational, sports, corporate and retail facilities. With that participation, those entities can learn how to reduce their electricity consumption, save money and decrease their overall energy footprint. From that point, it would be voluntary as to when and how those entities would implement those measures, but at least they are educated on the matter. And being that the DOE recently reported (1) if all businesses in the nation changed all lighting to CFL, 21,000 MW of demand could be eliminated, and (2) 70% of all electricity generated is consumed by non-residential entities, and 40% of all electricity purchased by industry, is wasted and never used in its process, it seems fair such a mandate becomes law.

While alternative energy production is fairly limited in our state in terms of viability and capacity, the bill should also include some sort of financial incentive for energy generation more towards nuclear and clean-coal production.

Neither of these measures should be left to Dominion or other utilities to decipher as to when and how, since federal policy currently allows industry to make these changes at their own behest, they have hesitated to do so. If Dominion and other utility providers in our state are given the incentives to make these things happen, like re-regulation can provide, an amended bill will bring the state's energy policy and Dominion out of its old energy mentality which pre-dates the 1970s, and into the 21st century.

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Bill Text

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