Energy Choice
                            

Matters

Direct Energy Champions Bill To Expand Electric Choice In Virginia

January 17, 2018

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

Direct Energy, which has been leading the effort to expand choice in Virginia (including seeking various declaratory orders), championed the introduction of a bill (SB 837) in the Virginia Senate which would expand the availability of electric choice in the state.

Ron Cerniglia, Director of Corporate and Regulatory Affairs at Direct Energy, said of the bill, "Direct Energy has created and is leading a coalition of business, environmental, and residential customers who are advocating support for SB 837 during the 2018 General Assembly session to lower electric costs, foster economic development, and provide businesses and residential electric customers with more renewable options."

"Ten years ago, Virginia’s legislature intended to provide consumers competitive options, but while well-intentioned, the barriers to market entry were too prohibitive and the goal has not been achieved despite growing interest to do so. The 5-year advance notice to return to utility service requirement for large consumers, the ability for a utility tariff to eliminate renewable choice options for residential and smaller business customers, and the very large 5 MW threshold have acted as 'poison pills' that have discouraged choice," Cerniglia said

"SB 837 will fulfill the original intent of the 2007 statute and allow competition and energy choice to work in Virginia by reducing the 5 year advanced notice provision to 90 days, will reduce the individual or aggregated shopping threshold from 5MW to 1MW, and will eliminate the provision which blocks retailers from offering a 100% renewable product once a utility has one approved by the State Corporation Commission," Cerniglia said

"Reinforcing the need for this legislation, Virginia’s likely voters are overwhelmingly supportive of electricity provider choice. A 2017 survey found that 88 percent support a competitive power market, with 57 percent citing lower prices and 19 percent citing environmentally friendly plan options as primary reasons for switching," Cerniglia said

As previously reported, SB 837 would grant all customers, regardless of size, at the investor-owned electric utilities (IOUs) the ability to take service from a competitive electric provider if the customer purchases 100% renewable energy, regardless of whether the utility offers a renewable energy tariff.

Under the bill, the State Corporation Commission would determine, "the manner in which a supplier may supply 100 percent renewable energy," under this provision.

Under one of the current limited avenues for electric choice in Virginia, all customers may take service from a competitive provider if they take 100% renewable energy. However, if the utility later implements a tariffed 100% renewable program that meets certain requirements, then the ability for customers to take service under the 100% renewable exemption is eliminated for new customers, and existing customers may only continue through the duration of their contract.

SB 837 would not change this requirement at the electric cooperatives.

Virginia Code § 56-577 (A)(3) allows customers whose demand for the previous calendar year exceeded five MWs to purchase energy from a competitive service provider, regardless of renewable content. Under this 5 MW exception alone, a five-year notice period is generally required for any return to utility supply.

SB 837 would reduce the minimum demand threshold, from 5 MW to 1 MW, for large customers at the IOUs to take service from a competitive electric provider for service that is not 100% renewable. As allowed currently, SB 837 would allow nonresidential aggregation to meet the MW threshold

SB 837 would also reduce the required advance notice for a customer on competitive supply to return to utility service from 5 years to 3 months.

The bill was introduced by Sen. David Suetterlein

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Business Development Manager -- Retail Supplier -- Philadelphia
• NEW! -- Operations Manager -- Retail Supplier
• NEW! -- Commercial Energy Advisor -- Dallas
• NEW! -- Analyst Billing and Transaction Services, Retail Operations -- Retail Provider -- Houston
• Business Development Manager -- Retail Supplier -- Houston / Dallas
• Director, Retail Energy Supply and Pricing -- Retail Supplier -- Houston
• Operations Analyst -- Retail Supplier