“Two utility issues of major concern to Virginians’ pocketbooks will come up at the 2007 General Assembly session,” said Irene E. Leech, president of the Virginia Citizens Consumer Council.

“First, several years ago legislation was passed to require our utilities to build a new coal-fired electric generation plant in Southwest Virginia — with no estimate of what the cost of that plant will mean to Virginia ratepayers. The utilities hold what amounts to a blank check signed by the legislature and former Governor Mark Warner and with the support of Attorney General Jerry Kilgore.”

According to the Consumer Council, the second key energy issue before the legislature this year will be how Virginia returns to some form of regulated electricity. The State Corporation Commission (SCC) is the Virginia agency whose job is to oversee corporations, including electric utilities. The Council strongly advocates legislation that returns the ability to do its job to the SCC.

Virginia’s investor owned electric utilities, led by Dominion Virginia Power, have given up on their seven year push to deregulate Virginia electric rates. Leech (of the Consumer Council) said, “That’s good news for Virginia consumers! We don’t want our electric rates set by the volatile, extremely high competitive market.” However, Dominion now wants legislation that guarantees the utilities extraordinary earnings and ties the hands of our regulators.

As a result of pressure from utilities, the governors, legislators and other state officials who have served over the least seven years have already significantly reduced the ability of the SCC to do its job, the Consumer Council claims. Legislation has increasingly addressed key technical issues in ways that please the utilities. Decisions have been based upon sound-bites of information and discussions on the floor of the General Assembly, instead of on thorough study and analysis by the SCC, the experts that Virginia taxpayers pay to do this, Leech said.

Unfortunately, even many legislators are hardly aware of the damage that has been done. At the General Assembly, a few legislators take the lead on specific areas of legislation. Generally, their colleagues accept their recommendations, especially in highly technical areas like the economics of utilities.

“The legislative leader of Virginia utility legislation,” Leech said, “is Senator Tommy Norment of James City County. He is closely tied to the utilities. And Dominion is so powerful that most decision makers have a hard time voting against legislation it wants.”

In the fall of 2006, Dominion asked the SCC to approve the rate of return for the proposed southwestern Virginia power plant. However, Dominion did not present any concrete information or even an estimate of cost to consumers. Senator Norment and Senator William Wampler of Bristol told the SCC at that time that it has no choice but to approve the generation facility. Luckily for consumers, the Commission told Dominion that it cannot approve part of a proposal without all of the details. However, when Dominion presents the full proposal, the SCC is required by state law to approve it — even if its cost to consumers is unfair and it will hurt Virginia’s economy.

Even some legislators think the SCC can deny permission to build that facility if the cost to consumers is too high. Unfortunately, unless the legislature changes the previously passed law, that is not true.

“Historically, Virginia has had some of the lowest electricity rates in the country. At the same time, our utilities have prospered and are among the national leaders,” said Leech. “We have more diversity in energy sources than many states. No one wants Virginia utilities to be weakened. We need for them to be strong. However, it is not fair for Virginia consumers to shoulder all of the financial risk. That should be shared with utility shareholders who historically, and especially in recent years, have reaped tremendous financial rewards.”

On this issue, as on every other issue discussed in this news magazine, the only way that our interests will be protected is if enough voters speak up and speak up loudly. Tell your state delegate and senator, Governor Tim Kaine, Lieutenant Governor Bill Bolling, and Attorney General Robert F. McDonnell to return to the State Corporation Commission the authority to do its job — balancing the needs of consumers and our utilities. Tell them to tear up that blank check on the Southwest Virginia Coal Facility and to design new electric utility legislation to give the SCC the flexibility to make appropriate decisions on our behalf in the future. It is especially important that your legislators hear from you if they are members of the Senate Commerce and Labor Committee or of the House Commerce and Labor Committee. And share this information with anyone you know who uses electricity in their home.

For more information, contact Irene E. Leech, President, Virginia Citizens Consumer Council at (804) 344 4321 or visit www.virginiaconsumer.org.