RD181 - Report of the State Corporation Commission to the Commission on Electric Utility Regulation of the Virginia General Assembly - Status Report: Implementation of the Virginia Electric Utility Regulation Act


Executive Summary:
In 2008, the General Assembly amended § 56-596 B of the Code of Virginia (or “Code”) to require the State Corporation Commission (“SCC” or “Commission”) to provide annual reports to the Governor and the General Assembly on the status of the implementation of the Virginia Electric Utility Regulation Act, §§ 56-576 through -596 of the Code (the “Regulation Act”), and to offer recommendations for any actions by the General Assembly or others. (*1) On September 1, 2009, the Commission provided its second report (“2009 Report”) and now tenders its third annual report in compliance with § 56-596 B of the Code.

During the past year, the SCC continued its oversight of components of the Regulation Act as required by statute. We also note that the Commission, both by itself and as a member of the Organization of PJM States, Inc. (“OPSI”), continued to participate in various proceedings before the Federal Energy Regulatory Commission (“FERC”) this past year. The electric investor-owned utilities (*2) continue their participation in PJM Interconnection, LLC (“PJM”) (*3) markets and purchase a significant portion of their energy needs from PJM administered wholesale markets. Additionally, Virginia’s electric cooperatives and municipal utilities and their retail customers are directly affected by exposure to PJM’s wholesale market electricity prices.

Accordingly, this report will highlight these activities and address matters before the Commission, as well as relevant FERC proceedings.
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(*1) The SCC is not making any legislative recommendations in this report.

(*2) Electric investor-owned utilities include Virginia Electric and Power Company d/b/a/ Dominion Virginia Power (“Dominion Virginia Power” or “DVP”) and Appalachian Power Company (“Appalachian” or “APCo”). The Potomac Edison Company d/b/a Allegheny Power (“Allegheny Power” or “AP”), concluded the sale and transfer of its Virginia service territory to Rappahannock Electric Cooperative and Shenandoah Valley Electric Cooperative on June 1, 2010, as approved by the SCC in Case No. PUE-2009-00101. PPL Corporation petitioned the SCC on June 14, 2010 to acquire the assets of Kentucky Utilities d/b/a Old Dominion Power (“KU”) in Virginia, along with E.ON AG, E.ON US Investments Corp., and E.ON U.S. LLC. Case No. PUE-2010-00060 is pending before the Commission.

(*3) PJM is a regional transmission organization in the mid-Atlantic area comprising all or part of 13 states: Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia. PJM attempts to ensure the reliable operation of the electric power supply system, facilitate an effective wholesale electricity market, and manage a long-term regional electric transmission planning process to maintain grid reliability and relieve congestion. Additional information is available at: http://www.pjm.com.