The Virginia Senate passed a bipartisan House bill 35-5 on Thursday, giving state regulators control of cost recovery over power plant retirements, despite opposition from Dominion Energy.
As the largest investor-owned utility in the state, Dominion has opposed several bills aimed at electric utilities, including a bipartisan effort to deregulate retail markets, ending Dominion's monopoly.
HB 528 would allow a neutral third party to manage the cost of retiring coal plants by establishing a recovery period that "best serves ratepayers," according to the bill, introduced by Del. Suhas Subramanyam, D. The utility fought hard against this measure, according to advocates for the bill.
Under the current law, Dominion is allowed to recover as a one-time expense the remaining balance of retired units, without refunding the overearning to customers, Subramanyam said.
The bill would require the Virginia State Corporation Commission to determine the length of time that a utility can recover "any appropriate costs" from retiring coal and gas generation early. The measure undoes a former provision that gave Dominion the flexibility to skirt refunds on coal and natural gas plants retired early.
The bill is seen as a key example of the Democrat-led legislature standing up to Dominion, despite nearly a decade of successful lobbying from the utility. However, Dominion saw many wins as the legislative session winds down, including the advancement of bills that would guarantee utility cost recovery of offshore wind development.
Read the full story at Utility Drive.