BREAKING: Senate Committee Votes Down Public Utility Money Ban
January 19, 2021

FOR IMMEDIATE RELEASE 

CONTACT:

Diana Williams, Clean Virginia Communications Lead
diana@cleanvirginia.org, 540-836-8125

January 19, 2021

BREAKING: Senate Committee Votes Down Public Utility Money Ban
Senators vote again to allow contributions from the utilities they are elected to regulate

Richmond — In a 5-10 vote today, the Senate Privileges and Elections Committee failed to pass the Ban on Political Donations from Utility Monopolies, SB 1236, introduced by Senator Chap Petersen. In response, Clean Virginia Executive Director Brennan Gilmore said, 

“Utility monopoly campaign contributions present a clear and unique conflict of interest in our political system. Today, Virginia legislators voted in their own interest to continue accepting money from the monopolies they regulate, rather than voting for their constituents, who have no choice but to subsidize those contributions through their utility bills. Virginia’s utility companies have donated nearly $20 million to Virginia legislators since 1996, with electric utility monopolies alone donating $16 million. In this period, Virginia residents have watched utility monopolies raise their bills and use that money to manipulate regulations in their favor.” 

SB 1236 would have banned campaign contributions from Virginia’s 60 public utility monopolies to candidates, campaign committees, and political committees. By outlawing contributions from regulated utilities, it would have swiftly ended the ability of Virginia’s utility monopolies to directly influence the same legislators tasked with providing regulatory oversight.

A majority of states, 28 in total, ban contributions from public utilities in some form while 22 states ban corporate contributions altogether. Yet, as Virginia continues to allow utility campaign contributions, it also continues to provide a favorable regulatory environment for its utilities, including weak oversight that permits these monopolies to overcharge customers and legally avoid issuing refunds. 

The final Senate Privileges and Elections committee vote tally is as follows: 

Senator Deeds (Chair):Yes

Senator Bell: Yes

Senator Boysko: Yes

Senator Dunnavent: No

Senator Ebbin: Yes

Senator Howell: No

Senator Mason: No

Senator McClellan: Yes

Senator McDougle: No

Senator Peake: No

Senator Reeves: No

Senator Ruff: No

Senator Spruill: No

Senator Surovell: No

Senator Vogel: No

###

 

Power Play: Inside the Dominion lobbying blitz that’s going to raise your electric bills
October 13, 2020

This article was produced in partnership with the ProPublica Local Reporting Network. Sign up for ProPublica’s Big Story newsletter.

When Democrats campaigned for the Virginia legislature last year, they took aim at the state’s largest power broker: Dominion Energy.

The electric utility’s clout was legendary in the state Capitol, where it doled out millions in campaign contributions and employed an army of lobbyists who helped write energy policy for decades. The result was soaring electricity bills and an energy grid heavily reliant on fossil fuels.

Democrats vowed to change that. After winning total control at the state Capitol for the first time in a generation, lawmakers unveiled the Clean Economy Act. They said it would phase out carbon-based energy and lower consumers’ power bills.

In a stark display of role reversal, one of Dominion’s top lobbyists watched from the back of the room as Democratic lawmakers stood alongside environmentalists and clean energy backers to introduce the legislation at a press conference.

But over the next 11 weeks, Dominion fought back and ended up as a winner in a bill intended to diminish its influence. By doubling the size of its lobbying corps and tapping its long-standing relationships with legislative leaders and Gov. Ralph Northam, the utility secured in the Clean Economy Act the right to build its top priority: a massive offshore wind farm set to be the most expensive utility project in Virginia history.

State regulators estimate a typical residential customer will pay nearly $70 more per month for the same amount of electricity by the end of the decade. About 40% of that increase is tied to the new law.

At the behest of Dominion, records show, a senior Northam administration official made last-minute changes to the legislation that increased the wind project’s price tag by an estimated $2.5 billion. The tweaks meant more money for Dominion, because state law guarantees utilities roughly 10% profit on construction projects. Neither the environmental representatives who helped craft the bill nor the state senator who sponsored it said they were aware of the changes until after the legislature passed it.

What happened in those 11 weeks — detailed in emails, internal documents and dozens of interviews conducted by The Richmond Times-Dispatch and ProPublica — offers an inside look at how Dominion wields political influence in Richmond, even as growing ranks of lawmakers denounce its name and refuse its money.

Dominion defended its role in the process, saying that the legislation directly affected its business.

“If the lights go out, people call us. So the No. 1 thing we always bring in any discussion of energy bills is we’re very aware we’ve got responsibility for this — keeping the lights on,” said Bill Murray, Dominion’s head lobbyist. “And that informs sort of everything else that we do.”

He said the utility pressed for the changes to the legislation to lock in the cost of the wind project. That helps offset the risks of building offshore wind, which is more expensive than other forms of energy. The company says it can’t meet the state’s new renewable energy goals without using offshore wind.

Today, Northam and Democratic lawmakers champion the Clean Economy Act as landmark legislation that places Virginia, long among the worst states on clean energy, at the forefront of the fight against climate change. It will also promote construction of solar energy and mandate utilities generate electricity without fossil fuels by 2050.

Nevertheless, if wind costs escalate or the offshore project doesn’t produce the energy expected, Dominion’s customers will still be on the hook.

“There’s no reason that we have to make these policy decisions that say that this regulated monopoly must profit off of all of these other projects,” said Del. Sam Rasoul, a Democrat from the mountain city of Roanoke, who unsuccessfully sought to curb costs in the Clean Economy Act. “I feel as though Dominion is still solidly in control of the legislature.”

Monopoly Rule, Big Bills

Like most public utilities, Dominion has a monopoly on its territory, providing power to two-thirds of customers in Virginia and a small slice of North Carolina. In exchange, the company is required to convince a board of independent state regulators, the State Corporation Commission, that it isn’t overcharging customers. But over the years, Dominion has pushed for and won legislation that undercuts regulators’ authority.

In 2015, Dominion convinced Virginia lawmakers to pass a bill that blocked the SCC from reviewing base electricity rates for the next seven years. (The utility had cited the Obama-era Clean Power Plan, saying it needed “rate stability” from Virginia in the face of expensive federal mandates. The Trump administration has since killed the environmental rule.)

The strategy has resulted in massive profits for Dominion while ratepayers’ bills soar. By law, utilities are entitled to earn about 10% profit on their assets and investments. Anything over that amount is considered “over-earnings,” money that could go back to customers as refunds. According to the SCC, Dominion made more than $500 million in excess earnings between 2017 and 2019.

The preliminary figures, released in a report in August, will be evaluated in a formal review next year. Dominion spokesman Rayhan Daudani said the company expects to use excess earnings for clean energy investments and assistance for people with unpaid bills during the pandemic.

“The customer is getting benefit back from those dollars,” he said.

Years of excess earnings, however, have driven public anger. Today, according to the U.S. Energy Information Administration, Virginia households pay some of the most expensive electricity bills in the nation. Daudani said Dominion believes electricity rates are a better metric for comparison. The company’s rates are below the national average, he said, but Virginians use more electricity.

The utility’s residential power bills have jumped nearly 29% since 2007, largely due to new construction projects, according to an SCC report released in August.

“We have maintained reliable service, bolstered by our efforts to modernize the electric grid, and we have made record investments in clean energy,” Daudani said. “We are very proud of this record.”

Typically, state regulators would evaluate those projects to determine whether they were necessary. That’s how neighboring states oversee investor-owned utilities, which still earn millions in profit, said Joel Eisen, an energy and environmental law professor at the University of Richmond who has studied public utility regulation in America for 20 years.

But in Virginia, Dominion has routinely pressed the General Assembly to declare its projects “in the public interest,” language designed to force regulatory approval.

In 2007, lawmakers urged the commission to approve the Virginia City Hybrid Energy Center, a $1.8 billion power plant in Southwest Virginia. They also awarded Dominion a bonus as an incentive to build the plant. Five years later when it started generating power, it was one of the last coal plants to open in the United States.

Today, it isn’t scheduled to operate more than 11% of the time. The plant, however, makes up the largest single generation charge on a customer bill: nearly $4 a month for the typical residential customer. A 2012 state attorney general’s office report showed customers are paying an extra $146 million to Dominion over the project’s lifetime for the bonus that lawmakers approved.

State regulators have questioned the need for some of Dominion’s most expensive projects. SCC officials said in a report in 2018 that the utility has regularly overstated electricity demand in Virginia. Daudani, the Dominion spokesman, said that as a result of that report the company changed the way it predicts demand.

Still, the utility has found ways to continue building and to keep its excess profits. In 2018, amid a brewing revolt over customer costs, Dominion supported a law to allow the company to invest much of the excess earnings in clean energy projects — instead of issuing refunds.

Eisen said he’s “unaware of any comparable provision elsewhere in the nation that allows a utility to take money that a commission would otherwise decide it has to give back to ratepayers and allow the utility to plow that into new projects.”

All of this led to a massive opposition effort.

Beginning in 2018, a wealthy hedge fund investor, Michael Bills, offered financial support to any politician who refused to take campaign donations from Dominion. The response was overwhelming, with Bills shelling out $3 million to candidates and his political action committee, Clean Virginia.

Today, a third of state lawmakers have pledged not to take money from Dominion, its executives or lobbyists. Bills has supplanted the utility and every other person and corporation in Virginia as the state’s top political donor.

He gave Northam $586,000 from 2013 to 2017, more than double Dominion’s contributions to the governor in the past decade.

Bills said in an interview that he has no investments that compete with Dominion. He wants the legislature to allow more competition for clean energy and empower state regulators to stop Dominion from keeping excess profits.

“You can have clean energy and all the advantages of non-carbon producing energy without busting the bank,” Bills said, “and more importantly, busting the poor ratepayers’ backs.”

Dominion’s Friends in the State Senate

Democrats saw the Clean Economy Act as an opportunity to remake Virginia’s energy landscape and help lower power bills. Utilities would have to meet tougher energy efficiency targets and accept more solar and other renewable energy generated by producers other than Dominion.

Among the legislation’s primary authors was Virginia Advanced Energy Economy, a trade association that represents wind and solar developers, energy efficiency companies, and corporate energy buyers like Amazon and Facebook that want to reduce their carbon footprint.

Democrats in the House embraced the bill.

But leaders in the Senate bristled.

The upper house was ruled by Senate Majority Leader Dick Saslaw, a longtime Dominion ally from Fairfax County. Elected to the legislature in 1975, the 80-year-old lawmaker drives a purple Jaguar with the license plate “1” because he is Virginia’s senior state senator. A popular conservative radio talk show host calls him “the godfather.”

Dominion is Saslaw’s biggest political supporter. The utility’s PAC has given him $435,508 since 1996, nearly two times more than his second-largest donor, the Virginia Bankers Association, according to the nonprofit Virginia Public Access Project, which tracks money in state politics. And Dominion executives have given Saslaw an additional $48,000.

The utility is also the largest corporate donor to the Senate Democratic Caucus, giving nearly $400,000 in the past 20 years.

In 2019, as the anti-Dominion wave crested, Yasmine Taeb, a lawyer from Northern Virginia, challenged Saslaw in a primary, pledging to get excess Dominion earnings back to customers. She criticized what she called “‘an old Virginia way’ that still runs Richmond” and blasted Saslaw, who she said had “done Dominion’s bidding.” Saslaw has defended his record, saying the utility’s donations don’t influence his decisions. “I haven’t done any more than anybody else has” to help Dominion, he said in an interview.

With talk of a potential upset, Dominion stepped in. Five days before the election, the utility sent a letter to shareholders in his Senate district in the Washington suburbs touting his efforts on company projects.

Saslaw squeaked past Taeb by less than 3 points, his closest race in four decades.

He spent about $1.4 million on the primary, seven times more than Taeb.

Saslaw told environmental leaders that to get any climate bill through the Senate, they’d need agreement from Dominion. In an interview for this story, he said that the state’s largest utility would be directly affected by the measure, so it needed to be a player in the discussions.

“Your best legislation is when everybody involved reaches a compromise,” Saslaw said. “That’s the way the legislature works.”

After getting little out of past legislation backed by Dominion, environmentalists remained enthusiastic.

“We were excited because for the first time we were working from our language,” said Harrison Wallace, then the Virginia director of the Chesapeake Climate Action Network and one of the bill negotiators. “This was our bill, which we are now coming together to defend, and that was exciting.”

In Virginia, where the General Assembly usually convenes for an alternating 45 or 60 days each year, lobbyists have taken on an outsized role in policymaking.

Lawmakers file so many bills during the frantic sessions, rushing from hearing room to hearing room, that they often leave special interests to hammer out the details.

So last January, at Saslaw’s direction, representatives of environmental groups and Dominion began a series of negotiation meetings. The lawmakers who sponsored the bill did not participate in the sessions.

A Conference Room With No View

At first, the environmental and clean energy negotiators tried to meet with Dominion representatives in the cramped state legislative building, even in the room designated for news conferences. But space was scarce.

Dominion offered a solution: The group could use one of the utility’s office towers just a few blocks from the Capitol. Environmentalists were reluctant; they wanted neutral ground and felt moving the talks would give their longtime foe an advantage. But, under pressure to reach an agreement, they relented.

Over the next five weeks, the group often decamped to a conference room that had one window looking out onto a brick wall. Negotiators would spend three- to five-hour chunks, sometimes all day, hashing out details of the legislation. Dominion occasionally bought meals from fast-casual restaurants like Chipotle for the group.

After years of Republican rule, the environmentalists were thrilled to be at the table. But now they faced the consummate political insider.

Bill Murray, Dominion’s top lobbyist and lead negotiator on the legislation, had 29 years of legislative experience, about half with Dominion. He had worked in the administrations of two former governors, Mark Warner and Tim Kaine, both now U.S. senators. After joining Dominion, Murray was part of the transition teams for the office’s most recent occupants, Terry McAuliffe and Northam.

Many lawmakers, especially those of the older generation, know and trust Murray because they’ve worked with him for years. He has personally given campaign money to more than 30 current lawmakers — a fifth of the General Assembly.

Joining Murray at the table was Katharine Bond, a 21-year veteran of Dominion who was the lobbyist at the environmental groups’ press conference with lawmakers.

Murray gave advice to the environmentalists and told stories about how to get a bill passed in the legislature, said Wallace of the Chesapeake Climate Action Network.

But he and Bond had a consistent message for the other negotiators: The provisions of the Clean Economy Act as presented were too costly.

The talks dragged on, and environmentalists believed that Dominion was using delay tactics. For instance, the utility initially agreed to annual benchmarks on energy efficiency designed to save customers money but later pared down the program, environmental negotiators said. Daudani, the Dominion spokesman, didn’t directly address the negotiations but noted that state regulators will set new efficiency targets after the program ends.

The change prompted a lobbyist with the Natural Resources Defense Council to leave the negotiations on Jan. 30.

By February, the talks were shaky.

“Legislative negotiations are always complicated and miscommunication can happen, but this occurred too often to be pure coincidence and caused unwarranted delays,” said Harry Godfrey, the executive director of Virginia Advanced Energy Economy.

Murray responded in an interview that everything had to be checked “with the people who operate the grid.”

To some in the room, it was as if the legislature had not changed hands.

“In the Public Interest”

The original Clean Economy Act called for offshore wind as part of a mix of clean energy but didn’t include language mandating that Dominion own it. The utility wanted to change that.

After years of investment in coal, natural gas and nuclear power, it had recently expanded into renewable energy.

The utility won a federal lease for the area off the coast of Virginia Beach in 2013, as it considered building an offshore wind farm. Five years later, in 2018, it was pursuing a two-turbine test project. Just as it had done with its previous construction efforts, Dominion successfully pressed the legislature to declare the pilot project “in the public interest.”

Saying the law tied its hands, the SCC approved the project but raised concerns.

The turbines would cost customers $300 million and generate 12 megawatts of electricity, enough to power only 3,000 homes with sustained winds. The cost of the wind energy was 26 times greater than purchasing it from the market and nearly 14 times greater than solar, the commission wrote in its order.

Regulators said that customers would bear almost all of the risk if costs went up or the project flopped.

Now, in early 2020, with the test project still under construction, Dominion pushed to go bigger. It wanted to build a $7.8 billion expansion, which would make its offshore wind operation the largest in the nation. And it saw the Virginia legislature as the vehicle to make it happen.

Offshore wind is largely a new frontier in America. During the legislative session, there was only one offshore wind farm in the United States, made up of five turbines off the coast of Rhode Island. There are 18 projects in the planning stages in other states, according to the American Wind Energy Association. But Virginia Democrats, many of whom campaigned on promises to combat climate change and protect the environment, backed Dominion’s plan.

text highlights 2
Legislators wrote a law in 2018 saying Dominion Energy’s test wind project was “in the public interest,” and they did so again in 2020 for the utility’s much larger offshore wind farm. (Highlights added by ProPublica and The Times-Dispatch)

While environmentalists and Dominion negotiated in the utility’s office tower, the Democratic sponsors of the Clean Economy Act, Del. Rip Sullivan of Fairfax County, and Sen. Jennifer McClellan of Richmond, added language that declared the wind farm “in the public interest.”

Another addition to the bill went further. It said the SCC should find certain costs to be “reasonably and prudently incurred.”

The provision meant legislators were directing state regulators to approve a future request from Dominion to recover billions from customers for its offshore wind plan.

While the SCC still makes the final decisions, the “reasonable and prudent” language makes the commission’s hearing more of a formality. The Virginia attorney general’s office warned lawmakers early in the session that the wording takes away a key ratepayer protection.

Such language is not the norm elsewhere, said James Van Nostrand, a utility law professor and director of the Center for Energy and Sustainable Development at West Virginia University who spent 22 years representing investor-owned utilities. Typically, he said, a public utility commission would determine whether a proposed project should move forward. The regulated utility has the burden of proof to show regulators that its proposed costs are reasonable and prudent.

The Clean Economy Act removes that burden, he said, calling it “a big advantage for the utility to have this.”

“The more the legislature weighs in, the more you see what Dominion can do just by its influence over the legislature,” Van Nostrand said in a recent interview. Lawmakers are removing authority “from an agency that has the expertise and has the proceedings that invite the level of rigor and scrutiny that’s going to test that number.”

The lawmakers who sponsored the bill said they largely left the details to Dominion and the environmental groups.

“Other than just generally focusing on ‘What can we do to expand wind,’ I was not involved in the weeds of the language negotiations,” said McClellan, who sponsored the legislation with Sullivan. “Rip and I basically told all of the stakeholders: ‘Negotiate this bill. When you can’t reach agreement, come to us and we’ll be the tiebreaker.’”

Sullivan said in interviews that the language came from “the ongoing collaborative process between lots of stakeholders. And I think I’d be misdescribing the process if I told you that one particular person or one particular entity asked for that specific language. It became part of the ongoing discussions.”

But key environmental negotiators — including Wallace of the Chesapeake Climate Action Network, Will Cleveland of the Southern Environmental Law Center and Mike Town of the Virginia League of Conservation Voters — said they didn’t write the language or help write it.

Dominion’s Murray and Bond said they didn’t know who wrote it; asked if Dominion’s lawyer wrote it, Murray said the utility’s legal representatives were “involved in discussions about it,” but the company declined to provide more detail.

Sullivan said in interviews that the language came from “the ongoing collaborative process between lots of stakeholders. And I think I’d be misdescribing the process if I told you that one particular person or one particular entity asked for that specific language. It became part of the ongoing discussions.”

But key environmental negotiators — including Wallace of the Chesapeake Climate Action Network, Will Cleveland of the Southern Environmental Law Center and Mike Town of the Virginia League of Conservation Voters — said they didn’t write the language or help write it.

Dominion’s Murray and Bond said they didn’t know who wrote it; asked if Dominion’s lawyer wrote it, Murray said the utility’s legal representatives were “involved in discussions about it,” but the company declined to provide more detail.

“Is it not the case that the reason we have not had a rate review … is because of two bills that you all helped draft and asked for?” he asked during a House subcommittee hearing.

The bill easily passed the House.

Then, it went to the Senate Commerce and Labor Committee. At the helm: Saslaw, the state’s most-senior senator.

The sponsors made their case and a long line of supporters formed to speak.

“This is about protecting the consumer, protecting the ratepayer,” said Del. Jay Jones, D-Norfolk. “That money belongs in the pockets of the people of Virginia.”

But Dominion lobbyists told lawmakers the bill would undercut Dominion’s ability to do clean energy projects, a claim refuted by the SCC.

Browder, speaking softly and without naming Dominion, told senators, “I believe that there may be some attempt at confusion on the issues here.”

He reminded them of times Dominion made claims that didn’t pan out, like in 2014 when lawmakers passed a bill allowing Dominion to charge customers for research on a nuclear reactor. The utility had argued it needed the funds to keep the project moving. Dominion charged customers $320 million for the work but later paused development of the reactor.

Others on the panel defended the utility.

“There are 26 to 29 states with higher rates than Dominion, so are they ripping off their customers too?” Saslaw asked one speaker; two speakers then told him rates are only part of what Dominion customers see on their bills. Dominion’s base rates make up about 60% of the average residential power bill, with additional charges for construction projects and fuel costs making up the rest.

The Senate Republican leader, Tommy Norment, accused “environmental groups and lower-income groups” of having “done their absolute unequivocal best to bend Dominion over in every way imaginable.”

The rate bill died in the Senate committee, 8-7. Six Democrats, including Saslaw, were joined by two Republicans in killing the measure.

With a Little Help From the Governor’s Office

For much of the session, environmental groups and Dominion were at an impasse over the Clean Economy Act. And with time running short, the Northam administration stepped in to mediate.

The governor, who had called for ambitious clean energy goals, supported Dominion’s offshore wind plan. He also had deep ties to the utility. Dominion has contributed $291,000 to Northam’s political campaigns and committees throughout his career. Northam also had tapped some of the utility’s top lobbyists — including Murray — to help his transition team in 2017 and later hired Dominion’s director of strategic communications as his chief communications officer.

Angela Navarro, Northam’s deputy commerce secretary, led talks between Dominion and the environmental groups.

Before entering state government, she was a lawyer for the Southern Environmental Law Center. Both sides saw her as a credible broker. Emails obtained through the Virginia Freedom of Information Act show Navarro taking the lead in making changes to the Clean Economy Act based on the negotiations.

One of the sticking points was cost: The amount lawmakers would order regulators to approve for the offshore wind project was obscured in the bill by a complicated equation. One part called for multiplying the energy cost of a certain type of natural gas plant by 1.6. Negotiators agreed to reduce 1.6 to 1.4, thereby cutting the projected cost.

Another part of the equation specified that the average energy cost of that gas plant should be the cost most recently estimated by a federal agency.

On Jan. 29, the most recent federal estimates were published, showing a 25% drop from 2019. Under the bill’s language, that meant the amount the legislature was telling regulators to allow Dominion to charge its customers fell, to $7.3 billion.

But on March 4, the day before lawmakers would introduce a new version for a final debate, Navarro made a critical alteration to the legislation.

Records show she changed “most recently” to “2019,” a tweak backed by Dominion that immediately boosted the acceptable price tag of the offshore wind project. The increase was roughly $2.5 billion, an analysis by the SCC would later show.

text highlights
The change to “2019” added roughly $2.5 billion to the project’s acceptable cost. (Highlights added by ProPublica and The Times-Dispatch)

Navarro said in a July interview she had no records from anyone asking her to make that change. She said the group negotiated the language. “I think we discussed it amongst all of the stakeholders,” Navarro said.

But five of the main environmental and trade association members who participated in discussions told the Times-Dispatch and ProPublica they did not ask for the alteration and weren’t aware of it at the time.

“We definitely did not ask for that change,” said Town, of the League of Conservation Voters.

Documents obtained through a FOIA request show that the language change was, in fact, a priority for Dominion. And phone records reveal that Navarro spoke to the utility’s representatives on March 4 just before and after emailing negotiators the tweaked legislation. One of those representatives did not return phone calls seeking comment and the other said she did not remember the nature of the conversation.

The next morning, a lawyer for Dominion emailed Navarro requesting several changes to the bill, records show. A state bill drafter had added “2019” to the cost formula, as Navarro directed, but did not cut “most recently.” The Dominion lawyer told Navarro to strike “most recently” and listed that request among “policy choices/more than typos.”

Dominion’s legal team also wanted Navarro to insert language into the bill that would allow Dominion to charge its Virginia customers extra if North Carolina regulators wouldn’t let the utility pass the Clean Economy Act charges along to Dominion’s 123,000 customers there. That language had been removed inadvertently, so Navarro approved putting it back into the legislation.

Navarro declined to comment about her phone records, her emails and the statements from environmental negotiators that they had not been involved in the key change that benefited Dominion.

Clark Mercer, the governor’s chief of staff, said in a statement for this story that Navarro was not aware of any new federal data that would have changed the cost in the bill until after the bill passed, and he wrote that she believed the change was “consensus language” from stakeholders.

Navarro left her job in the governor’s office on Sept. 4. Northam’s press secretary said Navarro had been planning to leave for several months.

Clean Economy Act supporters note that Dominion will be required to take competitive bids for most of the work to build the offshore wind farm, which it said would lower costs.

But under the bill, Dominion can recover at least $9.8 billion in costs — more than $2 billion above its latest estimate, the SCC later said in an analysis.

A Historic Law, a Risky Bet

Lawmakers in the House debated the new version of the Clean Economy Act on March 5. No one brought up the change in the cost equation or the resulting dollar amount.

McClellan, the Senate sponsor, told the Times-Dispatch and ProPublica she was unaware of the alteration until the news organizations asked her about it, months after the bill passed. Sullivan, the House sponsor, said he was aware of the change but not the resulting dollar amount.

That day, Sullivan described the Clean Economy Act as “transformative and historic” and said it would help the coastal Virginia region become a national hub for offshore wind manufacturing. Other states “are vying to become that hub,” he said on the House floor, “and Virginia needs to act now.”

But a few Democrats spoke against the bill, casting it as a giveaway to Dominion.

Del. Lee Carter, a Democratic socialist from Manassas, told his colleagues that they had been manipulated.

“Dominion Energy’s addiction is to its monopoly power and to ratepayer money, and they have adapted to Democratic control over the General Assembly,” he said. “In previous years, they’ve gotten their ratepayer money through fossil fuel projects because that is what they could get through a Republican-held General Assembly. Now they have adapted and they’re doing their price gouging on renewable energy projects. They are, in my opinion, taking advantage of this new majority’s desire to do something for the environment and they are using that as a way to gouge the citizens of this commonwealth.”

Rasoul, the Dominion critic from Roanoke, introduced amendments to reduce the cost of offshore wind development, but Sullivan labeled them a “poison pill.” The majority killed them.

The Clean Economy Act passed the House, 51-45, on March 5, and passed the Senate, 22-17, the next day. One Republican in each chamber joined Democrats.

Northam signed the legislation in April.

The environmental negotiators say they are happy with the progressive policies in the new law.

Its mandate that utilities generate all electricity without fossil fuels by 2050 is the first of its kind in the South.

The law requires the SCC to consider the social costs of carbon emissions for new utility projects, which environmentalists say will help the state fight climate change.

“It will be very hard for Dominion to get approval to build any gas of any size,” said Cleveland,  who helped write the original Clean Economy Act.

The law also shrinks Dominion’s energy monopoly a bit, allowing private parties to own 35% of new large solar projects. Previous law capped that amount at 25%. Environmental negotiators wanted a 50-50 split.

Other environmentalists, however, said the bill moves too slowly toward a transition to renewable energy. On energy efficiency, the language in the law was watered down to the point that the utility can nearly meet the mandate through programs it already planned under a previous law, according to a company filing.

Will Reisinger, a former assistant attorney general who practices with Richmond clean energy firm ReisingerGooch, said the bill is good for Dominion because it allows the company to make a lot of money. And the legislature missed an opportunity to pair that with fair electricity rates, he said.

“We have to pay attention to costs,” he said. “If we do the clean energy transition in a really expensive, inefficient manner, it’s going to impose unreasonable, unbearable costs on consumers and businesses and I just don’t think it’s going to work.”

But from Wall Street, Virginia took away risk for investors, which is important, said Shar Pourreza, managing director for North American power and utilities at New York investment firm Guggenheim Partners.

In other states, the risk of developing offshore wind is on the utility, he said.

For Dominion, the law has taken on even more significance.

Four months after the session ended, on July 5, its parent company announced it was selling its gas assets and canceling plans to build the Atlantic Coast Pipeline, an $8 billion project to carry natural gas from West Virginia. Dominion said the federally regulated project collapsed, in part, because of legal challenges from environmentalists.

Dominion Executive Chair Tom Farrell said in a news release that the company would instead focus on something else: A clean energy profile in “its premier state-regulated, sustainability-focused utilities.”

In Full-Page Richmond Times-Dispatch Ad, Organizations Call on Lawmakers to Force Dominion Energy Refunds
October 5, 2020

FOR IMMEDIATE RELEASE 

In Full-Page Richmond Times-Dispatch Ad, Organizations Call on Lawmakers to Force Dominion Energy Refunds 

Dominion Energy is trying to keep over $500 million that it overcharged Virginians.”

October 5, 2020

CONTACT:

Cassady Craighill, Clean Virginia Communications and Advocacy Director

cassady@cleanvirginia.org, 828-817-3328

RICHMOND, VA —  Nearly 40 organizations placed a full-page ad in Sunday’s Richmond Times-Dispatch calling on lawmakers to demand that Dominion Energy return the $502.7 million it has overcharged Virginians since 2017. 

VIEW FULL AD HERE 

A coalition of 36 prominent advocacy organizations from Virginia signed onto the ad, which reads: “The Virginia General Assembly cannot let Dominion Energy get away with exploiting the legislative session by turning what was supposed to provide economic relief for families and businesses into another way for them to keep and take money from Virginians.” The ad is also running on the Richmond Times-Dispatch’s homepage. 

The House and Senate have so far failed to include a budget proposal from Governor Northam that would return $320 million of the utility monopoly’s overcharges back to Virginians in the form of customer refunds and debt forgiveness. The State Corporation Commission denied the Governor’s latest request for a utility disconnection moratorium last week after months of warning that legislative action was required to avoid shifting the financial burden to paying customers. 

“Legislators who accept massive amounts of money from Dominion are once again letting the monopoly get away with a stark injustice,” said Clean Virginia Executive Director Brennan Gilmore. “Even before the COVID crisis, Black households were three times more likely to make serious sacrifices to pay their utility bills than non-minority households and Latinx households were twice as likely. The Virginia General Assembly must combat economic inequality during two unprecedented crises by demanding Dominion Energy refund its overcharges back to Virginians who have already paid more than their fair share.”

The Richmond Times-Dispatch ad was signed by the following organizations: American Promise, Allegheny-Blue Ridge Alliance, Appalachian Voices, ARTivism Virginia, Chesapeake Climate Action Network, Clean Virginia, Climate Action Alliance of the Valley, Community Climate Collaborative, Earth Rise Indivisible, EcoAction Arlington, Food & Water Action, the Humanization Project, Indivisible Virginia, Lewinsville Faith in Action, the Manufactured Home Community Coalition of Virginia, Mothers Out Front VA, NAKASEC Virginia, Network NOVA, New Virginia Majority, NOVA Grassroots,  Piedmont Environmental Council, Progress Virginia, Rappahannock League for Environmental Protection, Sierra Club Virginia Chapter, Tenants and Worker United, Virginia Conservation Network, Virginia Housing Alliance, Virginia Grassroots Coalition, Virginia Interfaith Power & Light, Virginia Justice Democrats, Virginia League of Conservation Voters, Virginia Organizing, Virginia Poverty Law Center, WE of Action Virginia, 350 Alexandria, 350 Fairfax.

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Clean Virginia is an independent advocacy organization with an associated Political Action Committee, Clean Virginia Fund. Clean Virginia works to fight corruption in Virginia politics in order to promote clean energy and community control over our energy policy.  For more information, visit cleanvirginia.org.

 

Virginia’s Energy Kingpin Could Finally Face A Reckoning Over Race
July 23, 2020

Dominion CEO Thomas Farrell’s history of railroading Black communities and glorifying the Confederacy is under new scrutiny after the demise of his controversial pipeline.

By Alexander Kaufman

Summer 2014 was an exciting and nostalgic season for the most powerful unelected man in Virginia.

In May of that year, Dominion Energy CEO Thomas F. Farrell II made his cinematic debut with “Field of Lost Shoes,” a Civil War drama following the victorious Confederate cadets at the Battle of New Market. He had co-written, produced and financed the film. In addition to being a lawyer and the boss of a $62 billion Richmond, Virginia-based utility that serves 6.7 million people in eight states, Farrell is a history buff who said he pulled many of the movie’s lines straight from diaries and speeches of the time. Historians, however, say he added one glaring fiction to his film: depicting the young, white Rebel heroes as would-be abolitionists, who were either apathetic about or opposed to slavery.

Historical criticism aside, Farrell was still riding high on that premiere when, in September, he arrived in a blue suit at the historic state capitol building in Richmond to accept then-Gov. Terry McAuliffe’s support for the Atlantic Coast Pipeline, a natural gas project that Farrell hoped would define his legacy as one of his generation’s great industrialists.

“In the 19th century, we had railroads, the steam engine and the beginning of steel manufacturing. In the 20th century, we had the automobile assembly line, the internet and ― from my perspective, the most important of all ― the electric grid,” Farrell told reporters at the press conference, held on the hottest day in Richmond that year. “In the 21st century, the expansion of our natural gas pipeline network looks to be one of those key infrastructure developments.”

Six years later, the Atlantic Coast Pipeline project has been torpedoed by a mix of changing economics, accusations of environmental racism and climate recklessness. The collapse of the pipeline coincides with a national movement against anti-Black racism that has had particular resonance in Virginia, once home to the capital of the Confederacy. Critics of the racial impact of Dominion’s actions under Farrell’s leadership hope that, together with the financial loss from the pipeline project, the current political ferment could finally end his 14-year reign.

Under Farrell, Dominion has become a national symbol of how political corruption and monopoly power can undercut efforts to reduce the country’s dependence on fossil fuels. That was worked for Farrell so long as Dominion’s cash could buy it the acquiescence of state legislatures. But now Virginia and many other states are looking to transition to 100% carbon-free electricity, and Dominion’s shareholders are in revolt. In May, nearly 47% of those shareholders voted in favor of a proposal to require an independent board chair, which would have given Farrell ― who currently serves as both chairman and chief executive ― a boss. In early July, Dominion’s stock price plunged more than 11% after the company and its partner, North Carolina-based Duke Energy, announced the Atlantic Coast Pipeline’s cancellation. The stock price has yet to fully recover, even as the market rebounds.

Virginia progressives, who cheered the toppling of four Confederate monuments in Richmond in recent weeks, hope Farrell could be the next storied edifice to fall.

“Clearly there’s a need for new leadership and new direction,” said state Del. Sam Rasoul, a Democratic legislator from Roanoke. “Dominion has consistently operated counter to the interests of Virginians and … when you have a CEO who championed a film that essentially glorifies the Confederacy, with all that is going on, it’s clear that there’s a new mindset needed.”

Dominion declined to comment on the record, but internal messages show the company worried this story aimed to “tar” Farrell as part of a coordinated effort to damage the firm. In an on-background phone call, a spokesman pointed to the company’s recent commitments to donate $25 million to historically Black colleges and universities in Virginia, Ohio, North Carolina and South Carolina and to fund $10 million in scholarships for minority students. The spokesman also highlighted a corporate pledge in June to direct $5 million to “social justice” and “community rebuilding efforts.”

“At Dominion Energy, we have a saying that ‘Actions Speak Louder.’ We share the anger of our communities at the unjustified deaths of Breonna Taylor, Ahmaud Arbery and George Floyd,” Farrell said in a press release announcing the latter commitment. “Our communities are grieving. Words can evoke empathy, compassion and understanding, but actions truly speak louder. So, we are investing in recovery and reconciliation, and in the vital work of overcoming years of debilitating actions, attitudes and abuses of authority that have traumatized our country.”

The company denied a request to interview Farrell.

A Tale Of Two Compressor Stations

Opposition from environmental justice groups contributed to the demise of the Atlantic Coast Pipeline. The proposal would have sent the pipeline through Buckingham County, a rural, mountainous area roughly 90 minutes west of Richmond. Dominion also planned to erect a compressor station in Union Hill, a historically Black community in Northern Virginia that freed slaves founded in the 1800s before the Civil War.

Compressor stations, which use fuel from the pipeline to run a series of gas-compressing engines that keep fuel flowing through the pipeline, emit air pollutants that cause respiratory and cardiovascular problems. Dominion said the Union Hill permit that the Virginia Air Pollution Control Board had unanimously approved set limits on emissions four to 10 times lower than other recent permits granted in the state. But that still allowed for the release of a cocktail of pollutants, including nitrogen oxide, carbon monoxide and particulate matter.

For years, Union Hill residents protested and organized groups against the project. The Virginia NAACP condemned Dominion’s plans and urged regulators to halt permitting. In an August 2018 letter, the 15-member state Advisory Council on Environmental Justice urged Gov. Ralph Northam (D) to suspend the permits already granted and conduct a review of potential “civil and human rights violations” and “ensure that predominantly poor, indigenous, brown and/or black communities do not bear an unequal burden of environmental pollutants and life-altering disruptions.”

“We strongly disagree with the Advisory Council’s recommendations,” the company told The Washington Post at the time.

The company then proposed pouring $5.1 million into the Union Hill community, vowing to build a community center and fund an expansion of emergency services. The money proved divisive, which some there said was exactly the point.

“Dominion is an expert at the divide-and-conquer tactic,” Rev. Paul Wilson, the preacher at one of Union Hill’s two historically Black churches and a leading opponent of the pipeline, told NBC News in 2018. “There’s a group of people who are even moving to get me out as pastor. Once you inject money into the conversation, it becomes a wedge.”

When former Vice President Al Gore and anti-poverty activist Rev. William Barber II denounced the compressor station as environmental racism in 2019, Dominion started running Facebook ads featuring video from a high school essay contest on civil rights that it had sponsored.

Meanwhile, the company plowed ahead with plans to build the compressor station ― until a federal court intervened in early 2020, overturning the permit because Dominion had failed to resolve questions about how emissions would affect Union Hill.

It had taken Union Hill activists five years to get redress from the courts.

But a similar fight in a largely white and affluent community played out much differently. Three hours north, in Charles County, Maryland, Dominion spent two years planning another compressor station for the Eastern Market Access project. Then the Mount Vernon Ladies Association intervened, noting that the project would sully the view from President George Washington’s plantation across the Potomac River in Virginia. Four months after the society group joined local environmentalists in opposing the compressor station, Dominion canceled its plans.

Building Over Black History

It’s difficult to say how Farrell’s personal views have factored into company positions. But critics argue that redevelopment schemes that Farrell supported as a real estate investor, independent of his work at Dominion, have shown a similar disregard for Black history and communities.

In 2017, Farrell led a group of developers pushing a $1.5 billion project to rebuild a 10-block swath of downtown Richmond into a new arena, hotel, offices and luxury apartments. He and his co-investors dubbed the planned development Navy Hill after a Black neighborhood that was razed in the 1960s to make way for highways. That clearance demolished landmarks and displaced more than 1,000 families. This time, Farrell lined up the support of Richmond Mayor Levar Stoney (D), who is Black and has recently expedited the removal of Confederate monuments in response to the new protests against racism. Stoney received $10,000 from Dominion during his first year in office and announced in 2018 that he planned to continue accepting donations from the powerful utility.

While the project’s wealthy backers promised some funding, the city planned to largely finance the redevelopment through bond market debt. The proposal swore off tax hikes. But the need to pay off that bond debt threatened to divert funding from city services for decades to come, risking more budget cuts at a moment when municipal deficits were already triggering increased austerity.

Many also feared the project would gentrify a historically Black area of the city and make the neighborhood unaffordable for its longtime residents.

A November 2019 editorial in the Richmond Free Press, a weekly newspaper serving the city’s Black community, savaged the project. The editorial board called the plan “a travesty” that risked “leaving the taxpayers … stuck with the bill for the rising costs of city services.” Any new municipal revenue from the project would end up going toward paying off the new arena, the newspaper concluded.

“With this latest scheme, our community once again winds up as losers,” the editorial stated. “Only Mr. Farrell and friends are benefiting from this project and the charade being perpetrated to pull it off.”

There was a lot of race-baiting from folks who want to maintain a certain kind of racial capitalism in the former capital of the Confederacy.Chelsea Wise, organizer and host of the Richmond radio show “Race Capitol”

Chelsea Wise, an organizer and host of the Richmond politics radio show “Race Capitol,” said she saw members of her family holding up picket signs supporting the project at a key city council hearing. When she confronted them, they said they’d been offered $25 to show support.

“I like to joke that, after that, Thanksgiving was very different,” Wise said.

But the project was no laughing matter, she said. Wise took to calling the Navy Hill proposal “the second wave of the Bartholomew project,” a reference to the displacement of Black families during the 1960s under city planner Harland Bartholomew.

Among Navy Hill supporters, “there was a lot of race-baiting from folks who want to maintain a certain kind of racial capitalism in the former capital of the Confederacy,” Wise said. “This project would hurt Black people.”

The Richmond Free Press suggested the paltry rate at which Farrell’s group compensated picketers was an insult unto itself. “Sadly, it shows how deep poverty and depression is within Richmond’s African-American community that $25 can get people to show up and hold signs at a City Council meeting,” the editorial read.

In February, the Richmond City Council voted for a resolution that effectively killed the project.

“While the council resolution didn’t name him, the development proposal process did not reflect civic needs so much as the interests of one man in particular: Navy Hill’s leader and Dominion Energy’s chief executive, Tom Farrell, who has been arguing for a new Richmond arena for almost a decade,” Richard Meagher, an associate professor of political science at Randolph-Macon College, wrote in a February op-ed in Style Weekly, Richmond’s alt-weekly newspaper.

The Rates Card

Electricity rates are another area where the public interest in Virginia has been increasingly at odds with Farrell’s. In 2007, a hastily passed law proposed and backed by lawmakers who received donations from Dominion restricted the State Corporation Commission’s ability to police the utility rates the company charges. Between 2009 and 2018, the company overcharged Virginians by an average of $234 million per year, according to analysis by the advocacy group Clean Virginia. In 2018 alone, state regulators found that the company overcharged ratepayers by nearly $300 million, which averaged out to an extra $113 per customer for the year.

Dominion also asked to raise the percentage of its revenues it could keep as profit ― a request that regulators rejected last November. Now the company wants to raise rates by as much as $50 a month to help cover the cost of complying with Virginia’s new renewable energy targets.

That would come on top of the financial tsunami ratepayers already face in the months ahead as unemployment in Virginia sits at roughly 10% and workers struggle to make rent amid the coronavirus pandemic. Virginia extended its moratorium on utility service shutoffs for nonpayment until the end of August. Dominion said it will maintain the policy until Oct. 15.

By then, when colder weather risks inflaming the coronavirus infection rate, thousands could lose access to electricity in the state with the seventh-highest average monthly residential electric bill in the country. (Not to mention the other states where Dominion operates. The company said it will apply the same Oct. 15 endpoint to all eight states it serves.)

The risk of losing electricity, advocates say, will fall disproportionately on communities of color. Median-income families in Richmond and Virginia Beach, for example, spent between 3% and 4% of household income on utilities, according to 2013 data from the progressive nonprofit New Virginia Majority. But Black households in the same two cities spent 8% and 10%, respectively. Latino households spent about 6%.

“If you look at what’s actually affordable, paying the current bill plus catching up on arrearage that may have been accumulated during COVID, that may be hard to accommodate,” said Dana Wiggins, director of the Center for Community Outreach and Affordable Clean Energy at the Virginia Poverty Law Center. “When you take into account that they have been overcharged over a long period of time, it makes it very difficult.”

Dominion, meanwhile, increased its dividend to shareholders in February and then paid them an equivalent sum in June.

Had the nearly $3 billion Dominion spent on the Atlantic Coast Pipeline gone instead toward solar and wind projects, it would have likely lowered the cost of Virginia’s effort to transition to 100% clean energy by 2045.

But Farrell has long maintained that fossil fuels are the past and the future. Until early July, Dominion owned an entire gas transmission and storage subsidiary separate from its utility business. “We’ve come a long way in a relatively short time with renewable energy, but we’re still in the age of fossil fuels, whether we like it or not,” Farrell said in a 2015 speech to regional business leaders. “Seventy-five to eighty percent of it is going to come from fossil fuels, as I said, for many decades to come.”

The election of President Donald Trump, a fossil fuel hardliner, only cemented those views. “We need to acknowledge we are an energy superpower and start acting like it,” Farrell said in a July 2017 lecture to the U.S. Chamber of Commerce’s Global Energy Institute. “Instead of trying to keep it all in the ground.”

Thanks to that mindset, Virginia still produces about 63% of its electricity from fossil fuels, compared to 7% from renewables, according to federal figures. The new state rules require that 26% of electricity come from renewables by 2025. In a lone on-the-record statement to HuffPost, a Dominion spokesman said: “We intend to comply with that.”

But climate change’s mounting toll of more disastrous storms, heat waves and flooding show that just meeting that minimum standard is insufficient and “Dominion needs new leadership,” said Harrison Wallace, a community organizer and the Virginia director of Chesapeake Climate Action Network, a regional grassroots environmental group.

“The leadership of our utility monopoly should at least represent the changing tide in politics and how climate is affecting our planet,” he said.

Farrell’s Lost Cause Film

Farrell’s movie may offer the most damning indication that the executive is out of step with the current moment. The $6 million film ― which received $1 million in public funding via a state filmmaking tax credit ― was widely panned for its historical revisionism.

The script for “Field of Lost Shoes,” which Farrell co-wrote, depicts its Confederate heroes at the Virginia Military Institute as deeply conflicted over slavery.

Historian Jeffrey Evan Brooks complained in a review that a “black character named Old Judge, who runs the VMI bakery, is inserted into the story in order to give the cadets a slave with whom to sympathize when he runs into trouble.” In The Hollywood Reporter, critic Frank Scheck said that the movie “doesn’t exactly score points for objectivity.”

“Amazingly, none of the staunch Southerners seem to hold any negative feelings toward blacks,” Scheck wrote.

At one point, a main character suggests as a given that the newly independent Confederacy must abolish slavery after winning the war. Another insists: “This war is not about slavery. It’s about money. It always is.”

For a white person in the Civil War era to express skepticism about slavery, much less outright support for abolition, would “have been an untenable position in Virginia,” said historian Rev. Benjamin Campbell, author of “Richmond’s Unhealed History,” a book about the city’s failure to confront the oppressive racist policies that shaped its past.

“A white person would have been thrown out of the state,” Campbell said. “A newspaper editor who simply questioned slavery was challenged to a duel in 1848 and killed in Virginia.”

Politically acceptable opinions at the time, he said, ranged from full-throated support of slavery to “advocating the American Colonization Society,” which was an effort to deport freed Black people to Africa and establish a U.S. trading colony there.

Campbell said he knows Farrell, who is in his mid-60s, personally and the Dominion boss is “not a rigid racist.”

“He’s a Virginian of his generation, and he’s a person in moral and emotional transition like all the rest of us,” Campbell said. “But it may not be fast enough.”

An internal text message HuffPost obtained showed what appeared to be public relations employees worrying about a “total of three negative pieces brewing” that will “try to tar us,” including this story, an op-ed due out in a local newspaper criticizing a lawmaker for accepting Dominion contributions, and an investigation in another outlet examining the company’s political donations. The texting thread of five Richmond-area numbers, which appears to have accidentally included this reporter, suggested the publications were “brewing all in rough coordination,” though HuffPost had no prior knowledge of the other two pieces.

Farrell’s role should “certainly be questioned” in the wake of the pipeline project, said Barber, a towering figure of the current civil rights movement.

“A company that would attempt to do all this to communities and put its customers through this kind of fight should be challenged in so many ways,” he said. “Racism is not just about symbolism, it’s about substance.”

Munley: Virginia doesn’t need McAuliffe, the pipeline cheerleader
July 23, 2020

By Cynthia Munley

Former Virginia Governor Terry McAuliffe has recently raised $1.7 million in political cash, threatening a potential second term run as Virginia governor. McAuliffe wants to waltz back onto Virginia’s political landscape after literally mutilating our region with a miles-long pipeline ridge scar that disfigures our once-intact Blue Ridge Mountains. With his double boondoggle “pipelines-for-Virginia” idea, McAuliffe’s Atlantic Coast and Mountain Valley pipelines (ACP and MVP) imposed heartbreaking damage to our region and communities still fighting to preserve their safety.

Can Virginia withstand any more McAuliffe wheeling-and-dealing? In an April 1, 2020, interview, McAuliffe boasted a scandal-free, pro-business administration. But under McAuliffe, Charlottesville saw a policing failure in the 2017 white nationalist rally and the state gave $1.4 million to a no-show Chinese company. Then, there are McAuliffe’s pipelines.

ACP’s cancellation validates opponents’ argument that these pipelines are unneeded. Dominion immediately endorsed the Clean Economy Act — demonstrating that stopping pipelines frees clean energy investment. Even the Dominion and Duke builders decided that ACP was an expensive dud. McAuliffe flippantly dismissed the ACP failure as needing to pass regulatory review while expressing no regret for the suffering and damage his pipelines caused by granting them eminent domain for private profit. McAuliffe demonstrates that men with power and no empathy can inflict colossal harms without remorse.

Recently defending Virginia pipelines, McAuliffe said, “You can’t have manufacturing jobs without cheap energy.” The cluelessness of this statement demonstrates that McAuliffe is either uninformed that MVP raises gas rates despite plentiful, cheaper existing sources, or he thinks Virginians don’t notice his bait-and-switch pipeline rip-offs. Business does not thrive on increased energy costs for bogus infrastructure. Also, MVP’s 139 granted variances mean the project is significantly altered from the one originally permitted, consuming more land than originally proposed, including around 6,000 acres of prime farmland.

McAuliffe’s pay-to-play schemes with campaign contributors Dominion Energy and MVP are as shameful as the epic damage they inflict. McAuliffe’s deals absolved industry from all damages for a paltry $58 million for ACP and $27.5 million for MVP for water and mountain resources and $2.5 million for MVP damage to historic resources. MVP is a textbook boondoggle: “wasteful or pointless activity that gives the appearance of having value.” This is not governing, but exploitation of the Virginians who elected him. Virginia would do better electing a candidate free from Dominion Energy’s money.

McAuliffe knowingly threw Virginia into a predatory state and federal regulatory system where most advantages were rigged for industry. Landowners and environmentalists were left to fight with a stack of disadvantages including a McAuliffe-Northam Department of Environmental Quality apparently following the lax, anti-regulatory, pro-industry Trump EPA model. Adding insult, after hosting the calamitous MVP over Virginia Appalachia’s unsuitably steep and karst-ridden terrain, Virginia ratepayers are then expected to help pay for MVP — the most expensive per-mile pipeline.

McAuliffe offered up Virginia’s waters as prey for MVP — which routed around citizen rights with state and federal agency complicity. Virginia’s own water quality standards demand clean waters where pollution may not interfere directly or indirectly with Virginians’ rightful use for swimming, boating, fishing or enjoyment of the beauty of these natural places. Our federal rights under the Clean Water and the Endangered Species acts guarantee protection of headwaters as “critical to the health of … downstream communities.” In our region of springs and pristine waters (including Bent Mountain’s Tier 3 and trout stream upland Roanoke River headwaters), protection has been delayed or ignored by zombie federal agencies.

The sometimes mud-filled Roanoke River and countless streams lawlessly choked with MVP construction sediment deny all these rights and may have made the Roanoke Logperch extinct after an orchestrated regional decades-long comeback.

A 2015 Key-Log Economics study estimated the total cost to an eight-county region in the Virginias at around $8.9 billion, including $119.1 to $130.8 million yearly post-construction loss in land cover, property tax revenues and dampened economic growth. On every front, the MVP harms have grown from these initial estimates. Despite an unrelenting opposition to protect Virginia’s resources, MVP exploited unjust “tolling orders” to prematurely and recklessly permit and construct MVP while the DEQ, through inaction, helped MVP bulldoze Virginians’ rights to property, clean water and natural heritage.

The billions Virginians lose from McAuliffe’s pipelines become the McAuliffe gift that “keeps on giving.” Laws that make America better and Virginia cleaner have been boldly violated. McAuliffe should not be empowered to “play us again” with secret deals and destructive scams that permanently diminish Virginia’s resources. Terry McAuliffe’s big money and big deals are too expensive for Virginia.
BREAKING: Dominion and Duke Energy Cancel Atlantic Coast Pipeline
July 5, 2020

FOR IMMEDIATE RELEASE 

CONTACT:

Cassady Craighill, Clean Virginia Communications Director

cassady@cleanvirginia.org, 828-817-3328

Dominion and Duke Energy Cancel Atlantic Coast Pipeline

Strong Opposition Across Virginia and Legal Challenges Render Project Unviable

July 5, 2020

Charlottesville, VA — Dominion Energy announced today the cancellation of the Atlantic Coast Pipeline. In response, Clean Virginia Executive Director Brennan Gilmore said:

“Today marks a huge win for Virginia. For years, communities across the Commonwealth have fervently opposed the unnecessary and dangerous Atlantic Coast Pipeline, the most acute manifestation of Dominion Energy’s commitment to putting its financial interests above the health and economic well-being of Virginians. We owe a debt of gratitude to the many Virginians, from community activists to environmental lawyers, who successfully fought this project. We also thank Virginia’s General Assembly, which unanimously passed a law this year that created serious obstacles for Dominion Energy to pass the ballooning cost of the pipeline onto Virginians.”

“As Virginia faces an unprecedented climate crisis and economic uncertainty due to the Covid-19 pandemic, it is more important than ever that our utilities put public service above maximizing profit. The Atlantic Coast Pipeline was never in the best interests of Virginians. That it was allowed to fester as long as it did is evidence of a fundamentally broken utility system that will only be remediated through structural reform. While we welcome the Atlantic Coast Pipeline’s demise, this only marks the end to one symptom of the structural problem of Virginia’s monopoly utilities–the problem itself remains. We must all remain vigilant and continue working towards the creation of a sensical utility system that prioritizes the public interest and prevents projects like the Atlantic Coast Pipeline from ever seeing the light of day.”

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Clean Virginia is an independent advocacy organization with an associated Political Action Committee, Clean Virginia Fund. Clean Virginia works to fight corruption in Virginia politics in order to promote clean energy and community control over our energy policy.  For more information, visit cleanvirginia.org.

Dominion Energy’s costly new energy blueprint fails to meet challenge of Virginia’s clean energy transition
May 1, 2020

FOR IMMEDIATE RELEASE

CONTACT:
Cassady Craighill, Clean Virginia Communications Director
cassady@cleanvirginia.org, 828-817-3328

Dominion Energy’s costly new energy blueprint fails to meet challenge of Virginia’s clean energy transition 

Clean Virginia: Plan approval should depend on full rate case review of Dominion’s spending

Richmond, VA — Dominion Energy released its latest Integrated Resources Plan (IRP) today, projecting significant rate increases and an increased reliance on short-term fracked gas, despite the monopoly’s recent public commitments to clean energy.

“After decades of delays and resistance, Dominion has been forced by recent law to move forward on clean energy. The new Integrated Resource Plan appears after an initial review to be a flawed and imperfect reflection of the clean energy directive from the Governor, General Assembly, and citizens of the Commonwealth,” said Clean Virginia Executive Director Brennan Gilmore.

The utility monopoly filed its latest IRP to account for the Virginia Clean Economy Act (VCEA), which Governor Ralph Northam signed into law last month. Primary findings from the plan include:

  • Significant rate increases. Dominion estimates that the cost of its proposal will result in a rate increase of 37% over the next 10 years, with a typical residential customer’s monthly power bill rising by $45.92. Dominion customers already pay among the highest electric bills in the United States and the monopoly has consistently overcharged by hundreds of millions of dollars each year. In advance of any new rate increases, the General Assembly must empower regulators to hold a comprehensive rate case that would set a fair base rate for customers, review Dominion’s spending, and issue refunds for overcharges as appropriate.
  • Declining demand for the Atlantic Coast Pipeline. Dominion forecasts no new baseload natural gas generation in its IRP, illustrating the declining demand for natural gas to meet Virginia’s energy needs and undermining its justification for the $8 billion Atlantic Coast Pipeline. In its proposal, Dominion includes high-cost combustion turbines, or peaker plants, which would operate only during periods of high demand and do not justify continued investments in a multi-billion-dollar interstate gas pipeline.
  • Inadequate solar and storage resources. Dominion prioritizes the development of new high-cost gas peaking facilities at the expense of low-cost combined renewable and battery storage resources. As utilities across the country invest in plans to meet 100% clean energy goals, Dominion told the Richmond Times-Dispatch that “there is not a plan to do that. What we would need is new technology.” The company’s statement underscores the need to increase competition in Virginia’s energy market in order to spur innovation and meet the overwhelming mandate from Virginians to prioritize clean energy.
  • Abandonment of the $19 billion North Anna 3 nuclear plant. Dominion states in its IRP that it has “paused” development of a third nuclear reactor at its North Anna facility. This is further confirmation that  North Anna 3 was never a cost-effective generation project and will not be built, as the office of the Virginia Attorney General warned in 2015. Dominion has already spent over $300 million of customer’s money for North Anna 3, money that otherwise would have been refunded. Clean Virginia detailed the failed North Anna 3 project in the Dominion Scam report. 

“Dominion is proposing a substantial overhaul of the way electricity is generated, consumed, and stored, all of which will have a significant economic impact for Virginian families and businesses,” Gilmore said. “The new construction envisioned by its IRP will generate significant shareholder profit for Dominion, but major rate increases for customers. However, the utility monopoly has aggressively opposed any attempt at a transparent review of its rates, despite overcharging Virginians by $1.3 billion since 2015. Dominion’s continued unwarranted reliance on fossil fuels and evasion of a fair review of rates — particularly at a time of unprecedented hardship — is deeply irresponsible. The General Assembly should urgently mandate regulators to conduct a full, transparent review of Dominion’s current rate structure in light of its massive spending plans.”

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Virginia session sets up clean energy investment, Dominion regulations fall flat
March 24, 2020

Virginia lawmakers passed bills during the 2020 legislative session that unlock billions of dollars in potential clean energy investments and continue shifting off of fossil fuels, although proposals to challenge the power of the state’s largest electric utility gained little traction.

Bills that sought to open up the state to retail competition, curb contributions from Virginia’s investor-owned utilities and put stricter regulations on utility earnings were either weakened or passed over.

Dominion Energy Inc. still has a “very strong tool in the toolkit” in Senate Majority Leader Dick Saslaw and the “powerful” Senate Commerce and Labor Committee, Brennan Gilmore, executive director of Clean Virginia, said in a March 13 phone interview.

“They still have an ability to use the legislature through that tool, but the wall that that tool provided in the past has been breached and we were able to get around it in a couple places,” Gilmore said.

The Senate Commerce and Labor Committee on March 2 killed a bipartisan bill that would have given the Virginia State Corporation Commission the ability to lower Dominion Energy Virginia’s base rates and order customer refunds for excess earnings.

The SCC showed in a late August 2019 report that Dominion subsidiary Dominion Energy Virginia and American Electric Power Co. Inc. utility Appalachian Power Co. earned millions in excess revenues for the second year in a row following a reinstatement of rate reviews in 2018. Dominion is now held to a “maximum $50 million rate reduction” following the first review of excessive earnings.

The state Senate committee voted 8-7 to indefinitely table the Fair Energy Bills Act.

“I think that was a loss, but at the same time it exposed just how badly a clean rate case is needed and I think it helped fuel the appetite for more structural reform in the system,” Gilmore said.

Clean Virginia endorsed and contributed to the campaigns of dozens of candidates for the state legislature in the November 2019 general election, all of whom refused to accept money from Dominion.

Democrats then took full control of the Virginia General Assembly for the first time in more than 25 years in a legislative shift seen as paving the way for the state to embrace stricter clean energy mandates and join the Regional Greenhouse Gas Initiative, or RGGI.

Customer and clean energy advocates said they are seeing signs of change even if direct challenges to power largely fell flat.

“For the past decade, [Dominion has] essentially had their way with the legislature and there wasn’t any point where … they were held to the fire in negotiations around a big energy bill over things like cost containment or competition,” Gilmore said. “They were able to get into the code a lot of incredibly utility-friendly ratemaking provisions. I think the dynamic that we saw during this session was that is just not the case anymore.”

Although Dominion Energy has previously expressed concerns about Virginia’s effort to join RGGI and efforts to deregulate the electricity market, the utility said it will work to slash emissions in line with the state’s new policies.

“We are committed to net-zero carbon and methane emissions company-wide by 2050, including meeting any emissions requirements signed by the Virginia governor as a result of the General Assembly session,” Dominion spokesman Rayhan Daudani said in a March 20 email.

Virginia Clean Economy Act

One significant piece of legislation passed by the Virginia General Assembly is Senate Bill 851, known as the Virginia Clean Economy Act.

The legislation essentially phases out coal-fired generation by the end of 2030 and requires Dominion Energy Virginia and Appalachian Power to “retire all other electric generating units located in the Commonwealth that emit carbon as a by-product of combusting fuel to generate electricity” by Dec. 31, 2045.

The legislation replaces the state’s voluntary renewable portfolio standard with mandatory annual benchmarks that would eventually require electricity suppliers to produce 100% of their electricity from renewable sources.

Appalachian Power must procure 100% of its electricity from renewable resources by 2050, while Dominion Energy Virginia must hit that benchmark by 2045.

It also requires Dominion Energy Virginia, known legally as Virginia Electric and Power Co., and Appalachian Power to “retire all generating units principally fueled by oil with a rated capacity in excess of 500 [MW] and all coal-fired electric generating units operating in the Commonwealth” by Dec. 31, 2024. The bill provides an exception for coal plants co-owned with a cooperative utility and for Dominion Energy Virginia’s 624-MW Virginia City Hybrid Energy Center, which must be shut down by the end of 2030.

The measure adopts a target for energy storage deployment of 3,100 MW by the end of 2035. A new energy efficiency standard also would apply to both utilities with a 5% energy savings target for Dominion and a 2% target for Appalachian Power by 2025, both from 2019 levels.

“From a Clean Virginia perspective, it was a bit of a mixed bag,” Gilmore said. “From a climate perspective, it’s a great bill.”

Under the legislation, “the construction or purchase” of offshore wind facilities up to 5,200 MW off the Virginia shoreline by Dec. 31, 2024, is in the public interest.

Dominion Energy Virginia in September 2019 announced plans to build the “largest offshore wind project” in the U.S. off the coast of Virginia Beach in three phases of 880 MW each. If approved, the first phase of the $8 billion project would be completed in 2024, with the final phases expected to come online in 2025 and 2026.

“I think there is a pretty big delta between a gold-plated, profit-padding offshore wind deployment and one that is deployed with particular attention to cost and cost overruns,” Gilmore said. “There is some good language in the [Virginia Clean Economy Act] about the SCC’s ability to monitor this process to ensure that there is competitive procurement in a way to keep costs down. We would’ve liked to see more of that language but I think it’s going to bear careful attention in the years to come.”

Virginia set to join RGGI

In February, the General Assembly passed legislation that would lay the groundwork for the state to join RGGI.

The legislation authorizes the director of the Virginia Department of Environmental Quality to “establish, implement, and manage an auction program to sell allowances into a market-based trading program consistent with the RGGI program.”

The vote comes after the Virginia Air Pollution Control Board in April 2019 adopted a rule to move forward with linking the state to RGGI and effectively curb total power plant carbon emissions 30% by 2030.

States involved in RGGI use a market-based cap-and-trade program to reduce greenhouse gas emissions from regional power plants, selling nearly all emissions allowances through auctions and investing proceeds in energy efficiency projects.

Dominion Energy Virginia has previously claimed that linking to RGGI could lead to emissions increases outside the state, a phenomenon known as leakage.

The utility has also claimed that such a move “would raise rates considerably in Virginia” and threaten the company’s competitive retail electric rates.

Gov. Ralph Northam is expected to enact the legislation.

Legislative Session Opens Door for Ambitious Energy Reform in Virginia
March 12, 2020

FOR IMMEDIATE RELEASE 

Contact: 

Cassady Craighill, cassady@cleanvirginia.org, 828-817-3328

March 12, 2020

Clean Virginia: Legislative Session Opens Door for Ambitious Energy Reform in Virginia

Lawmakers Should Continue Holding the Line on Dominion Energy Accountability 

Richmond — A suite of energy bills that challenge the dominant role of Virginia’s regulated utility monopolies passed with bipartisan support and are now on their way to Governor Northam’s desk upon adjournment of the General Assembly on Thursday. 

“For the first time in decades, legislators overcame Dominion Energy’s strong opposition to pass legislation that first and foremost protects ratepayers. A newly emergent bipartisan coalition of lawmakers rightfully put the interests of Virginians above those of shareholders, sending a strong message that Dominion Energy will no longer be able to use the General Assembly as a rubber stamp for its profit-padding legislation,” said Clean Virginia Executive Director Brennan Gilmore. “New lawmakers have joined seasoned members of both chambers to build a firewall of support for consumer protection, good governance, and distributed clean energy.” 

Legislators from both parties worked vigilantly this session to shift the power from utility monopolies to third-party regulators and Virginia energy customers: 

    • Passing the first Dominion-opposed bill in recent memory. House Bill 528 (Delegate Suhas Subramanyam, D-Loudoun) restores the State Corporation Commission’s oversight of cost recovery for early retirements of power plants for Dominion Energy. Without passage of this legislation, Dominion could force ratepayers to shoulder a disproportionate financial burden for the clean energy transition and use these expenses to deny customer refunds when they overcharge Virginians, a notable concern of both Democratic and Republican representatives.
    • Blocking the first Dominion-supported bill in the General Assembly. A top priority for the utility, Senate Bill 1096 (Senator Louise Lucas, D-Portsmouth), would have significantly raised customer bills and handcuffed public schools to Dominion Energy’s profit incentives through an exclusive electric school bus contract. While earlier versions of companion legislation in the House would have balanced the goal of electrifying school transportation with ratepayer protection, SB 1096 was a clear example of monopoly overreach.
    • Advancing multiple attempts to increase competitive options for energy providers to next year. Both chambers passed pilot competition bills with bipartisan patrons and support, signaling interest in overhauling Virginia’s vertically-integrated monopoly structure.
    • Advocating for a fair rate case hearing for Dominion Energy next year. Despite broad bipartisan support from the Office of the Governor, Office of the Attorney General, environmental groups, low-income advocates, faith organizations, the business community, real estate interests, data centers, and conservative grassroots coalitions, the Senate Commerce and Labor Committee failed to advance the Fair Energy Bills Act (Delegates Jay Jones, D-Norfolk, and Lee Ware, R-Powhatan) by one vote after passing the House of Delegates 77 (Y) – 23 (N). 

“There is still tremendous work to be done to fight utility monopoly corruption in Virginia politics and to distribute both electric and political power more equitably across the Commonwealth,” Gilmore said. “General Assembly leadership can start by committing to grant all bills a fair hearing next session — Delegates were never given a chance this session to vote on a good governance bill that would have prohibited unlimited campaign contributions from utility monopolies. Virginia voters gave the legislature a clear and overwhelming mandate on this issue last November and the General Assembly must listen.”

“Lawmakers overcame what once seemed like an insurmountable barrier during the 2020 legislative session — considering Virginia’s energy market on the customers’ terms, not the terms of Dominion Energy. The outcome of this legislative session demonstrates that there is a growing bipartisan appetite to broadly reform Virginia’s utility monopoly structure. We look forward to working with legislators and stakeholders to ensure that legislation to power Virginia with a 21st-century energy market is as strong as possible.”

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BREAKING: Senate Committee Votes “No” on Public Utility Money Ban
January 21, 2020

FOR IMMEDIATE RELEASE 

CONTACT:

Cassady Craighill, Clean Virginia Communications Director

cassady@cleanvirginia.org, 828-817-3328

January 21, 2020 

BREAKING: Senate Committee Votes “No” on Public Utility Money Ban 

In rebuke to 2019 election mandate, 10 Senators voted against curbing political spending from utility monopolies 

Richmond — In a 10-5 vote today, the Senate Privileges and Elections Committee failed to pass the Public Utility Campaign Contributions Ban, SB 25, introduced by Senator Chap Petersen and co-patroned by Senator John Bell and Senator Jennifer Boysko. In response, Clean Virginia Executive Director Brennan Gilmore said, 

“Every Senator that voted to allow Dominion Energy and other utility monopolies’ money into Virginia politics voted to weaken public trust in Virginia’s government. Passing this bill in the Senate would have sent a strong message that the General Assembly is finally ready to prioritize people over monopoly profit. Sadly, these Senators, who collectively have taken at least $413,166 from Dominion, let down their constituents. Every time one of Dominion’s captive customers turns on their lights, they are unwittingly subsidizing the corporation’s political influence. We have seen over the past decade how that political influence has been directly detrimental to those same customers’ interests in terms of higher bills, billions in overcharges and environmental degradation.”

“It is now up to the House of Delegates to protect the democratic process in Virginia from legalized monopoly corruption. Every flipped seat in 2019’s General Assembly elections went to a candidate with a principled stance against accepting campaign contributions from Dominion Energy and Appalachian Power Company. We hope all Delegates listen to their constituents and vote ‘yes’ for the Public Utility Campaign Contributions Ban.”

The final Senate Privileges and Elections committee vote tally is as follows: 

Deeds (Chair ): Y

Howell: N 

Vogel: N

Reeves: N 

Ebbin: Y 

Chafin: N 

Ruff: N

Spruill: N 

Peake: N

McDougle: N 

Surovell: N

Mason: N

McClellan: Y 

Boysko: Y

Bell: Y 

The Privileges and Elections Campaign Finance Subcommittee in the House of Delegates is expected to hear the companion version of this bill, HB 111, introduced by Del. Joshua Cole (D-Fredericksburg), later this week.

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