Delegate Christopher Peace (R-Hanover) chimes in on the Grid Transformation and Security Act in the pages of the Richmond Times-Dispatch, and does so in a way that’s going to make plenty of folks think:
While I was a dissenting vote, an electric-rate freeze bill passed in 2015 by a wide margin because there was concern that the Obama administration’s Clean Power Plan would impose major carbon reduction requirements on states — largely at the expense of utilities — and be passed on to customers. Because of the ominous Clean Power Plan, Dominion Energy would have had to absorb compliance costs — and customers’ base rates would be frozen for five years.
In one paragraph, Peace captures the problem succinctly. Now that the Obama-era regulations are gone, the path forward seems to be bi-partisan and clear.
It is estimated that customer bills would immediately drop by about $6 a month. Additionally, the bill would require Dominion to reinvest excess profits in important renewable energy and long overdue grid transformation projects instead of payouts to shareholders.
If the company fails to invest in grid modernization projects approved by the SCC, then rate rebates/reductions would be triggered. The bill also provides for substantial rate reductions not available under current law.
Additional savings of $740 million would be passed on to customers from Dominion’s agreement to forgo collection of biomass generation plant construction (riders) costs over the next 20-plus years. Also, $100 million in tax savings from the federal corporate tax cuts recently passed by Congress would flow directly to customers.
More could make its way to customer’s pocketbooks pending the SCC’s determination, if more is due.
In short, this bill moving through the General Assembly is a win-win-win-win for Richmond, ratepayers, businesses and the environment all the way around.
Though the die-hards on the progressive left are sure to miss their boogeyman (one they ostensibly created with the Obama-era regulations that made energy prices go up), the bill has every chance of hardwiring Virginia’s economic renaissance for the next 30 years — as the infrastructure improvements are sorely needed to keep the Port of Virginia a principal international port of call.
All good things. Delegate Peace’s full op-ed can be read here, and it is worth the time.
