RD170 - 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:
The Commission’s fourth annual report, in compliance with § 56-596 B of the Code of Virginia, updates the General Assembly on the status of the implementation of the Virginia Electric Utility Regulation Act, §§ 56-576 through -596 of the Code. Major changes since the last report presented on September 1, 2010, include the following:

• Though scaled back, the Virginia Energy Sense program continues to offer consumers information to help save energy. Over the past year, businesses and organizations have become program partners and public service announcements have begun.

• The Commission is currently revising its Regulations Governing Net Energy Metering and expects changes to be effective by the end of 2011.

• Over the past year, the Commission has approved the construction of a 49.9 MW biomass facility in Halifax County and has approved the acquisition by Appalachian Power Company of a partially constructed 580 MW combined-cycle natural gas facility in Dresden, Ohio. The Commission is also in the process of evaluating applications by Virginia Electric and Power Company to construct a 1,300 MW combined-cycle facility in Warren County, Virginia, and to convert three existing coal facilities at Altavista, Southampton, and Hopewell, Virginia, into biomass facilities. The Commission has received no applications for approval of distributive solar generation facilities at this time.

• Concerning transmission, the Commission granted the withdrawal of an application of the PATH-VA project. Additionally, the TrAILCo transmission project was completed and energized on May 19, 2011.

• Both Appalachian Power Company and Virginia Electric and Power Company have stated that they have met the first renewable portfolio standard goal of § 56-585.2 of the Code.

• The Commission has approved an application by Virginia Electric and Power Company for an electric vehicle pilot program.

• The Commission is currently considering an application by Kentucky Utilities for approval of four demand-side management and energy efficiency programs, as well as for an adjustment to its base rates.

• During the first six months of 2011, the Commission has received and is considering several applications from Appalachian Power Company and Virginia Electric and Power Company for biennial reviews of base rates as well as rate adjustment clauses related to generation facilities, renewable energy, and expenditures related to transmission and environmental concerns. Though Appalachian Power Company is not requesting a change to its fuel rates at this time, Virginia Electric and Power Company has requested, and the Commission has approved, a fuel factor increase from 2.803 to 3.289 cents/kWh. The Commission also has approved a fuel factor increase for Kentucky Utilities from 2.482 to 3.026 cents/kWh.

• The Commission is considering a rate increase for Central Virginia Electric Cooperative and recently approved a rate decrease for Northern Virginia Electric Cooperative.

• Electricity rates for Appalachian Power Company and Virginia Electric and Power Company appear to be competitive with their peers, though pending rate requests could lessen the competitiveness of rates in the future.

• The Commission continues to be involved in and monitoring several dockets at the Federal Energy Regulatory Commission concerning PJM Interconnection, LLC.