RD764 - Combined Reports: Annual Report on Grid Modernization, Reliability, and Integration of Renewables Pursuant to Chapter 296 of the 2018 Virginia Acts of Assembly, Annual Report on the Transmission Line Undergrounding Pilot Pursuant to Chapter 296 of the 2018 Virginia Acts of Assembly, and Annual Report on Construction of New Solar and Wind Projects Pursuant to Chapter 296 of the 2018 Virginia Acts of Assembly – December 1, 2022


Executive Summary:

This document contains the combined reports ("Report") of the Virginia State Corporation Commission ("Commission") pursuant to several provisions of law. The Commission has reviewed and investigated each of the areas or topics listed below, and reports as follows:

Grid Modernization, Reliability, and Integration of Renewables (The Grid Transformation and Security Act ("GTSA"), 2018 Virginia Acts of Assembly Chapter 296) and Infrastructure Investments to Improve Reliability (2022 Virginia Acts of Assembly Chapter 653):

Concerning reliability, Virginia electric utilities continue to participate in regional transmission planning through PJM Interconnection, L.L.C. ("PJM"), the entity that manages the electric grid primarily at transmission-level voltages. At the distribution level, the Commission monitors reliability in part through utility reports on measures related to tree-trimming and indices that measure frequency and duration of electricity service outages.

Utility-owned and third party owned renewable generation resources are being added to the electric distribution grid. Before connecting utility-scale resources to the electric grid, owners must coordinate with the affected local utility and with PJM. Under certain circumstances, the projects are also subject to Commission approval.

Concerning grid security and hardening activities, the Commission has previously given approval for Virginia Electric and Power Company d/b/a Dominion Energy Virginia ("DEV" or "Dominion") to implement, among other things, mainfeeder hardening, targeted corridor improvement, voltage island mitigation, hosting capacity analysis, and physical and cyber security.

Both DEV and Appalachian Power Company ("APCo") are expected to have sufficient capacity to meet peak energy demands in the near term, either through company-owned generation or market purchases. Both companies also continue to invest in the generation, transmission, and distribution of electricity. During 2021, such annual investments were:

Company: Dominion Energy Virginia
Generation: $549.0M
Transmission: $760.0M
Distribution: $782.0M

Company: Appalachian Power Company
Generation: $50.2M
Transmission: $421.9M
Distribution: $219.0M

With respect to infrastructure investments to improve reliability, as part of the two most recent GTSA filings, Dominion is performing (i) mainfeeder hardening projects targeting improvements for poorly performing mainfeeder segments; (ii) targeted corridor upgrades that remediate ash tree mortality and apply herbicides for ground floor maintenance; (iii) voltage island mitigation projects; and (iv) fault location, isolation and service restoration projects ("FLISR").

Transmission Line Undergrounding Pilot (GTSA, 2018 Virginia Acts of Assembly Chapter 296):

The GTSA established a pilot program for underground electric transmission lines ("Undergrounding Pilot"), consisting of two qualifying projects to be constructed in whole or in part underground. Dominion's Haymarket Project – specifically, its I-66 Hybrid Route – was the first project the Commission approved as part of the Undergrounding Pilot. According to DEV, this project has been energized and is currently in service as of the end of March 2022. DEV reports that some construction activities, such as site area cleanup and right-of-way restoration, remain ongoing. The project cost, originally estimated to be approximately $171.9 million, is currently estimated at $230 million, which is unchanged from the Company's 2021 projection and represents an increase of approximately 33.8% over the original estimated cost.(*1)

The Commission also approved, on June 24, 2021, another DEV construction project – Dominion's Partial Line #2010 230 kilovolt ("kV") Single Circuit Transmission Line Underground Pilot Project (Tysons-Future Spring Hill Substation) – as the second qualifying project under the Undergrounding Pilot program. This project, currently in the final engineering and preconstruction phase, has a projected in-service date of December 31, 2025 and will cost approximately $30.4 million.

Construction of New Solar and Wind Projects (GTSA, 2018 Virginia Acts of Assembly Chapter 296) and Storage Projects (2020 Virginia Acts of Assembly Chapter 1190):

Between July 1, 2018, and June 30, 2022, Virginia utilities placed into operation solar facilities totaling 821 megawatts ("MW") of nameplate generation capacity in the Commonwealth. Dominion also has under development approximately 1,903 MW of nameplate solar generation and 2,587 MW of nameplate offshore wind generation capacity off the Commonwealth's Atlantic shoreline.(*2) APCo currently has 150 MW of nameplate solar generation capacity under development. Third parties are also developing facilities that may provide approximately 4,052 MW of additional nameplate solar generation capacity in the Commonwealth. DEV has constructed the Scott I Battery Storage Pilot, as well as, the Correctional Battery Storage Pilot, totaling 14 MW.3 Cooperatives have constructed approximately 2.2 MW of energy storage facility.

Solar Demonstration Programs (2011 Virginia Acts of Assembly Chapter 771):

The Commission has approved two programs under this legislation. First, Dominion's Solar Purchase Program features a tariff designed to facilitate customer-owned distributed solar generation. Second, as part of Dominion's Solar Partnership Program, nine solar projects were constructed by qualifying commercial, industrial, high school, and university customers. These facilities continue to be operational, with a total capacity of 6.4 MW. Total capital expenditures to date represent approximately $27.7 million of the $80 million program cap.
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(*1) Due to a typographical error, the percentage increase stated in the December 1, 2021 Combined Reports addressing the Transmission Line Undergrounding Pilot was 34.8% and has been corrected herein.
(*2) These figures refer to data provided by Dominion as of June 30, 2022. In next year's report, the Commission will update these amounts to include additional projects and purchased power agreements ("PPAs") proposed in Dominion's 2022 RPS Filing, Case No. PUR-2022-00124, filed on October 14, 2022.
(*3) Application of Virginia Electric and Power Company, to participate in the pilot program for electric power storage batteries pursuant to § 56-585.1:6 of the Code of Virginia, and for certification of a proposed battery energy storage system pursuant to § 56-580 D of the Code of Virginia, Case No. PUR-2019-00124, 2020 S.C.C. Ann. Rept. 304, Final Order (February 14, 2020).