No to SB1416, Down Dominion, Bad Dog!

A Brief essay I wrote on why the governor of Virginia should not pass SB 1416. it's dry...very dry.

SB1416 Electrics Utilities bill (commonly called Re-Regulation) should not be passed because it violates anti-trust laws, hurts the consumer and places unhindered power in the electric company in question, Dominion’s, hands. It effectively puts electric customers at vendor lock-in as well as fixes price and profits while insuring against losses for a private business at the expense of the choice-less customer. Only minimal benefits for the consumer and the state are included. The construction of new coal plants by a company already ranked among the worst polluters in the world (20^th highest polluter in the SP500, Wash. Post) – a leading cause of air pollution and acid rain - without any mitigating efforts for environmental and healthcare-related costs, is allowed and encouraged.

Dominion protests that it cannot provide services without knowing and increasing its profits, and thus, it wants re-regulation. However, this bill solves a problem that doesn’t exist. Even under State Corporation Commission (SCC) regulated rates, Dominion saw large profits. In this bill, Dominion is assured profits of equivalent companies in the South (and possibly more, as dictated by the SCC) – however, those companies do not enjoy the same regulation benefits that Dominion will. Dominion should not receive such a high profit margin (and one that is extremely adjustable) and profit-security without resulting benefits to taxpayers and customers. The current promised benefits are meager and vague, and are on top of a large profit margin.

This bill will give unlawful control to Dominion over customer choice (prohibits leaving if damaging to utility) and create a monopoly that will hamstring a developing market in renewable energy, which is expected to double by 2013 (CEERT).

Proponents of re-regulation say that the de-regulation experiment did not work. De-regulation needs more time to allow the market to fix any current problems. Deregulation did not work only because Dominion’s rates were set under the market share and discouraged competition. Private competition encourages diversity, innovation and low pricing in energy manufacture (Pennsylvania). A free electricity market in today’s social climate will create jobs in Virginia and attract business, especially when paired with other bills on energy efficiency in the House now.

Some states have re-regulated to avoid price hikes, but projections of fuel costs are variable and inaccurate. The bill was introduced too quickly to have proper education, comment and public feedback. If regulation is deemed necessary, a better plan with more expert input from balanced sources is required.

The bill essentially provides guaranteed funding for the new nuclear/coal plants Dominion wants while providing no impetus to invest in renewable energy, air clean-up or clean burning technology. Dominion has not provided documentation showing that more plants are needed. These probably unneeded new coal plants will greatly increase already high rates of air pollution in Virginia, which will further degrade ecosystems, visibility, and air quality. Shenandoah’s place as most polluted (air and acid rain) national park will be even more cemented. Studies show that by implementing cost-effective, cheaper, fuel conservation measures, Virginia will have power for years to come. The bill allows for the hidden costs of coal plants to be passed along to the taxpayer with no benefits.

In addition, there has been active citizen, institutional and press backlash and disapproval.

For all these reasons, SB1416 should not be passed. It is not in the best interests for constituents.