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Utility Intervening In Retail Supplier Licensing Dockets, Raising Concerns on Supplier Finances, Regulatory History
Dominion Virginia Power has intervened in at least two recent applications by retail suppliers for Virginia electric competitive service provider licenses, making note of the suppliers' financial positions and, in one case, noting a supplier's regulatory history
Specifically, Dominion Virginia Power has filed comments regarding the license applications of Noble Americas Energy Solutions LLC and Direct Energy Services, LLC (both applications had been first reported by EnergyChoiceMatters.com last month)
Regarding Noble, Dominion Virginia Power said, "The Company further urges the Commission and the Staff to investigate and closely examine Noble Americas' business model and financial fitness, as even large players in the competitive retail electric markets have been experiencing recent financial pressures. Regarding the Application here, the Company urges a close substantive review of the financial statements and related materials available to the Commission and the Staff through the website Dominion Virginia Power further said, "Equally as important, this Chairman's Statement (and other documents available through this website) conform that Noble Group Limited is seeking to sell Noble Americas later this year ... This pending or proposed sale is mentioned nowhere in Noble Americas' Application in this docket. The Company respectfully urges the Commission and the Staff to inquire further into this sale - and any related disruptions impacting Noble Americas' potential compliance with the Retail Access Rules."
"While Noble Group Limited is admittedly a large international corporation, these figures and trends - and the pending or proposed sale of Noble Americas - confirm the need for further investigation of Noble Americas consistent with the requirements and protections in Rule 40 A 13 and the other provisions of the Retail Access Rules," Dominion Virginia Power said
Dominion Virginia Power also alleged that Noble Americas' application "appears" incomplete
In response to Dominion’s filing, Noble Americas Energy Solutions responded in a statement to EnergyChoiceMatters.com that, "it received a memorandum from the Virginia State Corporation Commission dated August 30, 2016 stating that its Status of Filed Application for Licensure is complete. Commission Staff has indicated that Noble may address any administrative oversights during the next few days in order to be included in Staff’s report containing their recommendation regarding the issuance of a license."
Regarding Direct Energy Services, Dominion Virginia Power said, "The Company urges the Commission and the Staff to investigate and closely examine Direct Energy's proposed operations to ensure Direct Energy's compliance with the Retail Access Rules - including Direct Energy's business model and financial fitness under Rule 40 A 13 of the Retail Access Rules, 20 VAC 5-312-40 A 13, as even large players in competitive retail electric markets have been experiencing recent financial pressures. In its Application, Direct Energy did not provide any financial statements for itself -- but rather referred to those of Centrica plc ('Centrica'), its corporate parent. The excerpted financial statements for Centrica included in Exhibit E to the Application show that Centrica experienced a total comprehensive loss of 1,399 billion pounds (currency) in 2015, and 1.228 billion pounds (currency) in 2014, with the value of its total assets declining almost 17% from 2014 to 2015."
"While Direct Energy is admittedly a large entity, these and other materials in their application confirm the need for further comprehensive investigation consistent with the requirements and protections in Rule 40 A 13 and the other substantive provisions of the Retail Access Rules," Dominion Virginia Power said
Dominion Virginia Power further said, "The Company also urges the Commission and its Staff to review Exhibit F to the Application where Direct Energy listed several regulatory proceedings in other jurisdictions that involve affiliates and itself. The range of issues identified in these proceedings emphasizes the importance of ensuring that Direct Energy's operations comply with the Retail Access Rules if the license application in this docket is granted."
In a statement, Ron Cerniglia, Direct Energy's director of government and regulatory affairs for the Mid-Atlantic, told EnergyChoiceMatters.com that, "Direct Energy supports and is following the Commission’s process where it will consider our license request to provide renewable energy choices to Virginia. As part of the process, we expect the Commission to review and ensure that Direct Energy meets the financial, technical and managerial requirements necessary to provide competitive retail electricity service in the state. As one of the largest competitive electricity and natural gas providers in North America, we are confident in our proven abilities to bring competitive choices, simplicity and innovation to Virginia, as we are delivering today to nearly five million homes and business. We look forward to offering Virginians 100% renewable energy soon."
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September 22, 2016
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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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