Dominion Energy wins regulator OK to transform Virginia's electric grid

Zach Gibson/Getty Images News

• Dominion Energy (NYSE:D) says it received approval from the Virginia State Corporation Commission to proceed with its 10-year plan to transform the state's electric distribution grid.
• The SCC ruling approved more than $650M of investments in 2022-23 for Phase 2 of Dominion's Grid Transformation Plan, which will aim to integrate distributed energy resources, such as small-scale solar projects, energy storage facilities and electric vehicles.
• The company says it will deploy smart metering infrastructure and intelligent grid devices that will provide visibility of grid conditions, and invest in the infrastructure and systems that will optimize grid operations and improve reliability.
• The plan's Phase 1, which already is underway, will seek to enhance the grid's reliability and security, and develop a new customer information platform to help customers understand their usage and bills.
• Citing the utility's regulated rate base growth story and "clean regulatory calendar," UBS upgraded Dominion shares this week to Buy.

Comments

[thumb.ai]

1. Virginia passes 2018 law pushing grid modernization
2. Dominion reacts to the new law with 10 year grid plan
3. Grid plan approved twice by state regulators (phase 1, now phase 2)
4. Everyone is happy and angry

GOP celebrates passage of 2018 law:

“With the rollback of the Obama administration’s overreaching carbon regulations, Virginia is now in position to reconsider the 2015 legislation that established a rate freeze to provide stability in the uncertainty regulatory environment,” said Speaker Kirk Cox (R-Colonial Heights). “This legislation will lower electric bills, put money back in people’s pockets, unwind the rate freeze, and set up a viable long-term model for securing our electric grid and investing in sustainable energy.”

virginiahouse.gop/...

Dominion cites to law for new grid plan:

"With the passage of the Grid Transformation and Security Act of 2018 (“GTSA”), the Commonwealth of Virginia recognized this need, declaring electric distribution grid transformation to be in the public interest and mandating that utilities file a plan for grid transformation. The GTSA set forth two objectives for grid transformation: (i) facilitating the integration of DERs and (ii) enhancing grid reliability and security. In response to this need, Dominion Energy Virginia prepared a comprehensive 10-year plan..."

cdn-dominionenergy-prd-001.azureedge.net/...

Green electricity lobby ecstatic that state regulators following the 2018 law:

"For years, Virginia’s leading investor-owned utility, Dominion, has lagged behind its peers when it comes to investments in energy efficiency (EE). According to the American Council for an Energy Efficient Economy (ACEEE), in 2017 Dominion ranked 50th out of 51 large utilities in EE, narrowly avoiding last place. Those days may be at an end following a stunning decision by the Commonwealth’s State Corporation Commission (SCC) earlier this month approving in full the programs – and budget..."

blog.aee.net/...

Or the whole thing is really new bribes fighting old bribes:

"Virginia has long been seen as a state friendly to electric utilities, especially investor-owned Dominion Energy and Appalachian Power. Dominion in particular has a reputation for cozy relationships with lawmakers and has been one of the state’s largest corporate campaign donors, giving generously to both Democrats and Republicans.

In recent years, however, the utility has experienced a backlash. In 2018, Charlottesville-based hedge fund manager and millionaire Michael Bills founded a political action committee and advocacy group called Clean Virginia explicitly to counter Dominion’s influence in Richmond. Recipients of the PAC’s funds must pledge not to accept donations from Dominion. To date, 41 members of the 100-member House of Delegates and 10 of the 40-member Senate have made the pledge, with 49 receiving Clean Virginia funds..."

2020 Clean Economy Act sets up more theatrics:

energynews.us/...

Who knew Virginia could be this much fun?

[Jamjack]

Governor elect: “We can do this with common sense,” Youngkin said in a debate. “We should embrace all energy sources. Yes, wind, yes, solar. But we can’t dismantle our reliable, clean, inexpensive natural gas.”

Amen!

[jokilcrease]

In my opinion any investment in or for d is bad. Sounds like they are attempting to provide transmission capability to small solar projects.

[abcde1]

sounds like a grand experiment with other people's money. what happens if it doesn't work? i guess all those democrats in VA, and the democrats who are buying stock in D, will blame XOM?

[blenkep]

@abcde1 Virginia has a Republican governor and House. There goes your argument.

[Windy Hill]

@blenkep Not quite yet. And the miserable handling of the snowstorm this past week wasn't the Governor-elect's failure, either.

[User 49655511]

@blenkep

The recently elected Republican governor isn’t in office yet.

[bill h illify]

$650,000 million will hardly dent the scope described…good luck VA.

[dynx]

Long. D is a dumpster fire.

[CJFerg]

Happy to own a chunk of D and DCUE.

[firsTraveler]

How about hardening it against storms and EMP.

[Will501]

@firsTraveler - exactly…I agree. Currently, storms come poles and cross arms break and guess what??…..D puts them back up the exact same way!!!! What a waste!!

[Simon Chatham]

@Will501 Florida has been hardening its electric grid for years. Concrete pylons for local delivery and for higher voltage lines. Burying cable where possible. We pay a few $ per month in our bill specifically for that hardening.

[firsTraveler]

@Simon Chatham People here have been trying to just get a second supply line for the last at least fifty years.

[leftside]

Look like a good company:
www.dominionenergy.com/...

[dgiinvestor]

Welcome to Europe, Dominion state.

[Old Professor]

Whatever this portends, the market of late seems to have been kind of Dominion Energy.

[wagont44]

I cannot imagine how high and fast electric bills will escalate once the ocean wind farm and all this new stuff starts hitting the P & L statement.

[abcde1]

@wagont44 amen. those democrat bureaucrats VA and DC won't be able to afford AC at home during those lovely summers they have, will have to sleep in their government offices.

[Coe76]

Can we please take the politics out of this forum folks? People come to SA to read about companies and investments, not rants about one party or another.

[Optionputter]

@Coe76 Amen.

[ledskyn]

They'll lose a fortune when all the invoices print with Biden's name on them.

[Jeff Pokorny]

@ledskyn I see what you did there....hilarious