Dive Brief:
- A Virginia lawmaker has proposed freezing Dominion's base rates for five years while also prohibiting state regulators from having oversight over those rates.
- State Sen. Frank Wagner (R), who proposed the measure, said he wants to lock in rates while Virginia determines which of the U.S. Environmental Protection Agency standards and mandates will apply.
- Attorney General Mark Herring opposes the measure, the Virginian-Pilot reports, which he believes would force regulators to give up too much oversight over the utility.
Dive Insight:
The bill, SB 1349, "bars the State Corporation Commission from conducting a biennial review of the rates, terms, and conditions for any service of Dominion Virginia Power for the eight test periods beginning January 1, 2013, and ending December 31, 2020," according to its summary.
Wagner, a Republican, said EPA mandates set to go into effect this summer are likely to drive up electricity rates. At the same time, there is uncertainty over which mandates will stand in the face of several court cases. "What I'm hearing from the big consumers is that they're comfortable with the rates they've got right now, and they're willing to do that," Wagner told The Virginian-Pilot.
The state's attorney general opposes the idea, however, saying it would leave regulators with insufficient oversight over the utility's rates.
Virginia Gov. Terry McAuliffe (D) in the fall unveiled the state’s quadrennial energy plan, keeping the state's energy mix at 36% nuclear, 30% natural gas, and 29% coal while increasing solar, pushing for offshore wind, and calling for state government-led efficiency programs. Investor owned utilities in the state have a renewables goal to reach 15% of base year 2007 sales by 2025. The governor has not indicated whether he would sign or veto the bill.
