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Dominion Files For Approval of Virginia Renewable Supply Tariff, Would Foreclose Ability Of Certain Customers To Take Competitive Supply
Dominion Virginia Power has filed with the Virginia SCC for approval of six voluntary 100 percent renewable energy tariffs (for various customer classes/voltages) whereby participating non-residential customers with peak measured demands of 1,000 kW or greater can voluntarily elect to purchase 100 percent of their energy needs from renewable energy resources.
A customer would be permitted to aggregate its own accounts or meters to meet the demand threshold as provided in the applicable Dominion rate schedule.
There will be a Requirements Contract between Dominion and the customer that will define the terms of the customer's purchase of renewable energy, including the negotiated all-inclusive tariff rate. The customer will be responsible for all payments during the full term of the Requirements Contract. The term of the Requirements Contract will be for a minimum of five (5) years, or longer as may be mutually agreed upon by Dominion and the customer.
Virginia Code § 56-577 (A)(5) provides that individual customers, regardless of customer class or size, may purchase from a competitive retail supplier, "electric energy provided 100% from renewable energy," if the utility, "does not offer an approved tariff for electric energy provided 100% from renewable energy."
Dominion's proposed new tariff would offer customers 100% renewable energy supply and, subject to adjudication, meet this standard under (A)(5) (as opposed to earlier proposals from various utilities for REC tariffs which the SCC has found do not qualify under (A)(5))
Although not addressed in Dominion's application for approval of the new tariffs, the utility's offering of the 100% renewable energy supply tariffs would foreclose the ability of customers to take service from a competitive supplier under the 100% renewable exemption. Furthermore, as Dominion's proposed tariffs would only be open to customers 1 MW or larger, it is unclear if the exception allowing customers to take competitive supply via a 100% renewable option would remain for customers not meeting Dominion's 1 MW eligibility requirement, or if the presence of any 100% renewable utility tariff would foreclose the renewable energy competitive supply exception for all customer classes, regardless of whether customers qualified for the utility tariff.
Direct Energy recently petitioned the SCC for clarifications of the various competitive supply exemptions under statute (see story here)
Ron Cerniglia, Director of Government and Regulatory Affairs at Direct Energy, provided the following statement concerning Dominion's filing:
"Given that Dominion has had 10 years to file a 100% renewable tariff, we hope the SCC considers the timing of their filing and its implications of eliminating choice for consumers.
"Just a few weeks ago the SCC clarified the rules of the state to allow competitive retailers to offer a 100% renewable product in Virginia.
"If Dominion’s filing is approved, it will prevent competitive renewable choices for customers in Virginia.
"Just over the border in Pennsylvania and Maryland residential and commercial customers have full access to renewable energy choices and have seen the benefits of having the ability to choose."
-- Ron Cerniglia, Director of Government and Regulatory Affairs, Direct Energy
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May 10, 2017
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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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