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Environmental Groups Back Direct Energy Sought Clarifications on Retail Choice Sales in Virginia

Direct Notes Utilities Have Had 10 Years To Offer Statutory Green Power Supply Tariff, Haven't Done So


January 30, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Environmental groups have filed comments in support of several clarifications sought by Direct Energy concerning the carve-out for renewable energy supply sales as one of the last vestiges of retail electric choice in Virginia, as Direct Energy and the utilities continue to spar over the text of the 2007 statute which generally ended customer choice in Virginia.

As first reported by EnergyChoiceMatters.com last summer (click here), Direct Energy has petitioned the Virginia State Corporation Commission for a declaratory judgment concerning several aspects of retail electric suppliers' ability to serve customers with a 100% renewable electricity product.

Serving customers with, "electric energy provided 100% from renewable energy," if the utility, "does not offer an approved tariff for electric energy provided 100% from renewable energy," is one of the limited exceptions allowing for retail choice in Virginia.

While certain utilities have filed green tariff programs with the SCC, to date, the SCC has not found that any utility offers a tariff that meets that statutory requirement that would preclude such competitive retail sales (for example, the SCC has ruled utility REC-only programs do not meet the statuary standard which triggers the prohibition on competitive retail sales). Appalachian Power has what Direct Energy called a third iteration of a proposed green tariff program pending before the SCC.

Dominion and Appalachian Power do offer customers programs marketed as green programs, but such programs rely on RECs and do not meet the statutory criteria for a renewable energy supply tariff that would foreclose sales by alternative suppliers.

Direct Energy, which in August stated an intent to market a 100% renewable product initially to residential customers, has asked the SCC to rule that Direct Energy may:

A. continue to provide a 100% renewable energy product to existing and future customers once the utility has in place an approved tariff to provide 100% renewable energy in its service territory;

B. provide a 100% renewable energy product to commercial and industrial customers whose demand for the previous calendar year exceeded five MWs; and

C. indicate to commercial and industrial customers that they are not subject to the five year minimum stay provision because they are purchasing a 100% renewable energy product from Direct Energy.

Direct Energy and the utilities recently filed responsive comments in the proceeding, which largely reiterated their earlier positions.

EnergyChoiceMatters.com detailed each party's positions in our prior stories, which can be accessed below:

Direct Energy

Dominion

Appalachian Power (APCo)

The Chesapeake Climate Action Network and Appalachian Voices have filed comments generally supporting Direct Energy's position, and even suggesting that the statue provides greater opportunities for customers to take renewable supply from an alternative supplier

Discussing the utilities' opposition to Direct Energy's sought clarifications, Ron Cerniglia, Director of Government and Regulatory Affairs at Direct Energy, said, "It's a bit ironic to us that both APCo and Dominion have had monopoly authority since 2007 and have had ten years to implement a 100% green [supply] tariff, something that is in demand by their customers," but have yet to implement a green supply program which meets the statutory parameters as interpreted by the State Corporation Commission that would foreclose the offering of new green energy offers from competitive suppliers, and now that Direct Energy is seeking to bring renewable power supply solutions to customers, seeking necessary clarifications to make the market viable, "they are making it quite difficult."

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