Virginia AG: Returning to Retail Choice "Not A Realistic Course Of Action"

Virginia's Attorney General and the State Corporation Commission have each recently issued analyses regarding the impacts of the state's 2007 electric re-regulation law, which ended customer choice except under limited circumstances and granted the incumbent utilities a variety of adders, and while changes have been recommended, none call for the re-introduction or expansion of customer choice

The AG's analysis concludes that, "[f]ive years of data and experience strongly suggest that the RPS and generation adders [granted to the utilities under the 2007 law] be eliminated or significantly changed, as they are not meaningfully advancing the goals of protecting customers from price volatility and unnecessary rate increases, promoting reliable electricity, promoting fuel diversity, providing environmental benefits, and stimulating economic development."

However, the AG called examining the possible merits of deregulation and retail competition in Virginia as beyond the scope of the inquiry.

"Moreover, the Office believes that it is generally accepted among Virginia policymakers and key stakeholders that reconsideration of the 2007 policy decision to abandon deregulation and return to a regulated model in Virginia is not a realistic course of action at this time," the AG's report states.

Link to AG's report

The AG's report follows reports on the cost of the new law by the SCC which show rates are higher under the 2007 law.

The 2007 law ended electric customer choice with two exceptions:

1) Under the 2007 law, customers exceeding 5 MW of electricity demand maintain the ability to shop among licensed competitive service providers (CSPs) for their electric supply, and nonresidential customers may apply with the Commission to aggregate load up to the 5 MW threshold to receive services from a CSP.

2) Residential retail consumers have the statutory right to purchase electric generation service from CSPs selling electric energy provided 100% from renewable energy resources (§ 56-577 A 5 of the Code) but only if the incumbent electric utility serving these consumers does not offer an approved tariff for electric energy provided 100% from renewable energy resources.

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