Dive Brief:
- Virginia Gov. Terry McAuliffe has signed a law freezing Dominion rates for five years and exempting the utility from scrutiny by state regulators.
- In signing the bill, the Washington Post reports McAuliffe indicated he was wary of the measure said he believes it is in the best interest of Virginia's economy.
- Dominion had been advocating for the rate freeze, arguing that new emissions mandates could spike rates before going through a lengthy legal challenge that may alter or loosen some directives.
Dive Insight:
After a lengthy and controversial debate, Gov. McAuliffe has signed off on a law freezing rates for Virginia electric customers for five years. The measure, which The Washington Post reports was crafted and backed by Dominion, also exempts the utility from regulatory oversight by the State Corporation Commission.
McAuliffe issued a statement saying he had “concluded that this legislation represents a net positive benefit to Virginians and to our economy.”
Dominion has lobbed for the rate freeze, telling lawmakers it was necessary to get in front of carbon regulations which could cause some coal plants to be shuttered and costs to rise. The utility also said it was concerned a series of legal challenges made it uncertain which mandates would ultimately hold up.
