Below is our firm’s summary of notable energy regulatory activity at the Virginia State Corporation Commission (“SCC” or “Commission”) during February, 2025. Please contact attorneys Will Reisinger or Matt Gooch should you have any questions about these cases or Virginia’s energy market. ReisingerGooch PLC provides regulatory and transactional counsel to clean energy businesses, associations, and public interest organizations. The following is presented for informational purposes only and does not constitute legal advice.
Rate cases, oversight, and resource planning:
- Commission approves Dominion Energy proposal to combine existing generation riders – Case No. PUR-2024-00097
On June 4, 2024, Dominion Energy Virginia (“Dominion”) filed an application for approval to combine six existing generation riders, called rate adjustment clauses (“RACs”), into a single generation RAC designated “Rider GEN.” The existing riders are designed to recover the capital and operational costs of several natural gas, biomass, and solar generating facilities. Dominion also proposes to include the costs of a natural gas storage project approved in Case No. PUR-2024-00096. The application requests approval of a biennial update procedure for the new rider.
Dominion states that the rate impact of its proposal would depend on a customer’s rate schedule and usage. Dominion projects that a residential consumer using 1,000 kWh per month would experience a $1.00 per month bill increase in the first year of Rider GEN, followed by a $1.84 per month decrease during the second year. The SCC approved Dominion’s application in a February 27 final order.
- Dominion Energy files quarterly report regarding offshore wind development; reports $900 million projected cost increase for Coastal Virginia Offshore Wind project – Case No. PUR-2024-00206
On February 3, Dominion Energy Virginia filed a quarterly update regarding the construction of the Coastal Virginia Offshore Wind (“CVOW”) project. Dominion reports that the project is approximately 50% complete. The company still projects the facility to be completed by the end of 2026. Dominion reports that the total estimated project budget has increased from $9.8 billion to approximately $10.7 billion. The majority of the $900 million increase is attributable to higher interconnection costs and fees assessed by PJM.
The SCC approved the CVOW project in 2022. The 2022 order approving the project also approved a settlement agreement regarding cost overruns. The agreement was signed by Dominion, the Attorney General, and several customer advocates. Under that agreement, Dominion’s customers are required to pay for any CVOW project cost overruns between $9.8 billion and $10.3 billion. Overruns between $10.3 billion and $11.3 billion are to be shared 50-50 between Dominion and customers, while overruns between $11.3 billion and $13.7 billion are to be borne by Dominion alone. Pursuant to the agreement, if the CVOW costs ultimately exceed $13.7 billion, the SCC is empowered to determine cost recovery for any such amounts above $13.7 billion.
- Interested parties file direct testimony regarding Dominion Energy integrated resource plan – Case No. PUR-2024-00184
On October 15, Dominion Energy Virginia filed its latest Integrated Resource Plan (“IRP”). The IRP is filed under Virginia Code §§ 56-597 through 56-599. In Virginia, an IRP represents the utility’s general plan for meeting anticipated demand over the next 15 years. Dominion’s IRP includes four Portfolios, representing alternative pathways for meeting customer demand. Each alternative includes the addition of natural gas resources in 2030-2031 and small modular nuclear reactors (“SMRs”) beginning in 2035. Dominion’s IRP states that the company recently issued an RFP for an SMR development at the existing North Anna nuclear site. The IRP projects that, by 2035, the monthly bill for a residential customer using 1,000 kWh could be between $215.62 and $277.31, depending on which methodology is used to calculate the bill increases.
On February 28, several interested parties filed expert witness testimony. Several parties, including Advanced Energy United, Clean Virginia, the City of Alexandria, the Natural Resources Defense Council and the Sierra Club, criticized Dominion’s plan for its reliance on natural gas additions and its non-compliance with the Virginia Clean Economy Act. The Commission will hold an evidentiary hearing on April 15, 2025. The deadline for interested parties to submit written comments on the IRP is April 8.
Renewable energy, energy efficiency, and, electrification programs:
- Dominion Energy files transportation electrification plan – Case No. PUR-2025-00022
On February 3, Dominion filed a transportation electrification plan to support EV adoption in its service territory. The plan describes near-term and longer-term efforts, including educational initiatives; time-of-use rate schedules and incentives for EV owners to participate in demand response programs, and grid enhancements to support EV demand growth. Dominion projects 750,000 EVs in its Virginia and North Carolina service territories by 2030. Dominion filed its plan pursuant to an August 7, 2024, directive in Case No. PUR-2020-00051.
The SCC has not yet established a procedural schedule for purposes of reviewing the transportation electrification plan.
- Commission approves new energy savings targets for Dominion – Case No. PUR-2023-00227
On January 5, 2024, the SCC established a proceeding to set energy efficiency savings targets for electric utilities. The order notes that the 2020 Virginia Clean Economy Act (“VCEA”) established annual savings targets for Dominion Energy Virginia and Appalachian Power Company (“APCo”) through 2025. For 2025, the statute directs APCo to implement energy efficiency measures designed to achieve annual energy savings equal to “at least 2.0 percent of the average annual energy jurisdictional retail sales by that utility in 2019.” Dominion’s statutory target for 2025 is 5.0% of the utility’s retail sales in 2019. The statute, at Va. Code § 56-596.2(B)(3), provides that “[f]or the time period 2026 through 2028, and for every successive three-year period thereafter, the [SCC] shall establish new energy efficiency savings targets.” The statute also provides that “[i]n advance of the effective date of such targets, the Commission shall, after notice and opportunity for hearing, initiate proceedings to establish such targets.” On July 26, 2024, the SCC published procedural schedules for reviewing each utility’s proposal. Dominion’s savings targets will be reviewed in docket number PUR-2023-00227 and APCo’s targets will be reviewed in docket number PUR-2024-00134.
The SCC held an evidentiary hearing regarding Dominion’s proposal on October 15, 2024. The Hearing Examiner assigned to the case published a report and recommendation on November 12, 2024. The SCC published a final order on February 27. The order approved the Hearing Examiner’s recommendations and authorized energy savings targets for Dominion of 3.00% for 2026, 4.00% for 2027, and 5.00% for 2028. The Commission also established separate targets for programs developed for certain customers who qualify as “low-income, elderly, disabled, or veterans of military service.”
Transmission and new energy infrastructure:
- Commission approves Dominion natural gas storage programs despite SCC Staff objections – Case No. PUR-2024-00096
On June 4, 2024, Dominion Energy Virginia filed an application for approval to construct and operate a liquified natural gas storage project in Brunswick and Greensville counties. The gas storage facility would serve as a backup fuel source for the company’s Brunswick and Greensville natural gas power stations. Dominion currently receives natural gas supply from the Transco interstate pipeline. The application states that the storage facility is necessary “to maintain an onsite, safe, and reliable fuel source for the Brunswick County and Greensville County Power Stations in the event of severe weather, cyberattacks, natural disasters, or other interruptions that disrupt the Company’s primary natural gas supply.” The application states that with a “full tank,” the facility could operate the Brunswick and Greensville power stations at full capacity for four days. Dominion states that the estimated cost of the project is $547 million. The application does not include an estimated consumer rate impact.
The SCC Staff filed several volumes of direct testimony opposing the application on October 15, 2024. The Staff concluded that Dominion did not sufficiently justify the proposal and urged the Commission to deny the application. The Staff noted that Dominion’s economic analysis was incomplete and that the utility had not demonstrated that consumers would benefit from the project. The SCC approved the application in a February 24 final order. The Commission determined that the facility is “required by the public convenience” and would “guard against threats to reliability.”
- SCC approves transmission proposals in Loudoun County; declines to address cost allocation issues for data-center-driven projects – Case No. PUR-2024-00032 and PUR-2024-00044
On February 5 and February 6, the SCC published orders approving certificates of public convenience and necessity (“CPCNs”) for several new transmission projects in Loudoun County, Virginia. The two cases were consolidated pursuant to a prior SCC directive. Dominion asserted that both projects were needed, in part, to serve data center customers. In its February 5 order approving the Apollo-Twin-Creeks project, the SCC stated that it would not address issues related to cost allocation in the context of CPCN cases. In its February 6 order approving the Aspen-to-Golden transmission line, the SCC approved an overhead route for a 9.4-mile segment of transmission line. In so doing, the SCC rejected an alternative proposal from Loudoun County that would have placed a portion of the line underground.
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