State denies Dominion’s plan to pass on costs
Energy firm hoped to recover $6 billion from customers
Dominion Energy, which hoped to spend about $6 billion and 10 years to transform its grid, will only get about $1 billion from its customers to do so based on a ruling by Virginia regulators.
The State Corporation Commission said Thursday that a lack of evidence and high costs is why it denied much of the utility’s proposal for the first phase of its plan, which was expected to take three years to complete. Dominion wanted to recover $1.3 billion initially from customers. Instead, the commission approved just under $155 million for security improvements, including cyber protections.
“While we find the plan elements related to cyber and physical security are well-conceived, well-supported and costeffective, we find that the remaining plan elements, which will cost customers hundreds of millions of dollars, are not,” the commission determined, according to a statement from the state agency.
Ed Baine, senior vice president for Dominion’s electrical distribution, in an e-mailed statement said the commission had approved “important upgrades.”
“However, we’re disappointed they denied significant, foundational elements of our plans, including a new customer information platform and smart meters which would be paid for through existing base rates.”
Over the life of the 10-year plan, the parts the commission denied — including smart meter technology and replacing electricity lines — would have cost ratepayers close to $5 billion. Commissioners said they agreed with the state attorney general’s consumer counsel and environmental groups who said there would be little benefit to customers, considering the high cost.
“Attorney General Herring had to oppose significant parts of this proposal that were either underdeveloped, prohibitively expensive, or both,” said Michael Kelly, the office of the attorney general’s director of communications. “While the General Assembly has limited the tools at his disposal in these proceedings, he is still going to fight for Virginia customers whenever possible.”
The commission said the utility can submit an amended plan, or one with more support, in the future. Baine said Dominion remained, “committed to building a smarter, stronger, and greener grid for our customers and will use the guidance provided by the Commission as a framework to refile our next plan.”