House passes utility regulation changes, scrapping renewable energy incentives
RICHMOND — Without opposition, the House of Delegates voted today to eliminate financial incentives that Virginia’s investor-owned electric utilities have received for using renewable energy, advancing an agreement worked out between the utilities and Attorney General Ken Cuccinelli.
Cuccinelli’s office produced a report in November which concluded that the renewable energy incentives contributed to increases in customers’ bills without producing environmental benefits that were envisioned when the incentives were authorized in 2007. Eliminating the incentives could save Appalachian Power Co. customers an estimated $7.75 million annually through 2025, according to the attorney general’s office.
Cuccinelli’s office determined that the utilities have not built new renewable energy facilities to comply with the goals set out in a 2007 law that established a new regulatory scheme for the state’s electric utilities. Instead, the power companies have relied primarily on buying renewable energy certificates from existing renewable facilities, including hydroelectric plants that have been in service for more than 80 years.
After the report was made public in November, Cuccinelli’s office negotiated changes to the 200 law with representatives of Appalachian Power and Dominion Virginia Power. The legislation (House Bill 2261) passed today also will stagger biennial rate cases for the two utilities. That means Appalachian’s rate case before the State Corporation Commission will be pushed from 2013 to 2014.
“This legislation will significantly lower electric costs for Virginia businesses and families, while also ensuring the State Corporation Commission has the time and resources it needs to review rate cases of the utility companies,” said Del. Terry Kilgore, R-Scott County, the bill’s sponsor.
The Senate Commerce and Labor Committee unanimously endorsed a similar bill (Senate Bill 1339) today, sending it to the full Senate for a vote.
– Michael Sluss
January 28, 2013 - 7:38 PM
I’ll wait and see if this really lowers electric bills, honestly my guess is it won’t. Just the republicans pulling the wool over their sheep’s eyes.
APCO has 1 million customers in Virginia, per their website. So, that means the “significant” savings works out to about 65 cents per month, assuming APCO dropped their rates accordingly.
Whoopdeedoo. Every 2 months, I can buy a Coke out of a vending machine. Kilgore is a buffoon. And that’s also assuming the full $7.75 million annually is realized.
Good for them. The state needs to get out of the green energy business and focus on reducing our taxes!
Way to go VA!
This post is entirely too kind to Cuccinelli. He took an argument that environmentalists have pointed out for years and he twisted it to remove incentives for renewable energy without fixing the policy problems that have failed to bring renewable energy jobs to Virginia. The Saslaw/Kilgore/Cuccinelli/Dominion bills are not a step forward and Cuccinelli does not deserve any credit. This reads like a press release from the AG’s office.
@ hokie hater, then maybe the state should just give the utility all this extra money and keep our rates higher if it is “just pulling the wool over their sheep’s eyes”. Why do you automatically think it is the Republicans out to somehow get you?
Funny how easily even Cuccinelli would see the political machinations behind this one, if they were from Dems…
Today I got an e-mail from delegate Charles Poindexter congratulating himself and other delegates in Virginia about this bill. Of course he left out all the implications for renewable energy and just focused on lowering the electric bill. Tell people what they want to hear, and keep them in the dark (no pun intended) about Global Warming. Having Cuccinelli working on this is like having the fox in the henhouse.
Everyone knows renewable energy is a ridiculous concept…
http://www.bloomberg.com/news/2013-01-17/hoover-dam-builder-hired-for-google-backed-ocean-wind-power-line.html
http://www.bechtel.com/ivanpah.html