Dominion (NYSE: D) expressed concern about potential adverse impact on electric reliability and customer bills in comments filed with the U.S. Environmental Protection Agency on the EPA’s proposed “Clean Power Plan” regulations.
The company also said some states – such as Virginia and North Carolina – are treated unfairly in the proposal because of the “greater and unreasonable” reductions required in carbon dioxide emissions rates relative to other nearby states. The proposed regulations could penalize states that already have reduced their carbon intensity, the company said.
“We are supportive of policies and programs that will achieve meaningful emission reductions and environmental benefits while maintaining electricity reliability, minimizing effects on customer rates, and recognizing and appropriately accounting for measures states and affected entities have already undertaken to reduce carbon emissions,” the company wrote in comments signed by Pamela F. Faggert, Dominion vice president and Chief Environmental Officer. “However, we are concerned the (Clean Power Plan) proposal falls short of these principles in many respects.”
Dominion noted it has an integrated strategy for reducing greenhouse gas emissions intensity that already has produced significant results. The average carbon dioxide emissions rate – or carbon intensity – for all the company’s owned generation fell by about 39 percent from 2000 to 2013. The carbon intensity for the power stations serving Dominion Virginia Power and Dominion North Carolina Power fell by about 19 percent during the same period.
The company was able to achieve those reductions by constructing clean, modern, diverse power generation that also promotes reliability and stable customer rates. Dominion’s generating portfolio includes efficiently operated nuclear, coal, natural gas, oil, hydro and renewable generation. It also has implemented cost-effective energy conservation and other programs.
While EPA’s efforts to avoid a “one-size-fits-all” approach are laudable, the Clean Power Plan must do better to provide consistency, reasonableness and equity among the states. For example, Virginia already is a low-carbon state, but would have to reduce its emissions intensity by 38 percent, yielding a state goal for Virginia that is significantly stricter than all of its neighboring states and at least twice as strict as two of its neighboring states. “This dichotomy creates an economic and competitive advantage to those states that have done the least and a disadvantage to those who have done the most,” Dominion said.
Robert M. Blue, president of Dominion Virginia Power, testified earlier this month before a joint meeting of the Virginia House and Senate Commerce and Labor committees that customers would see a significant increase in their electricity rates and in their bills by 2025 under the EPA proposal. Blue also said that despite the company’s concerns, it must begin preparing immediately for the new targets because of the short lead time for compliance, which begins in 2020 under the draft rule.
In addition to advocating for more-reasonable and equitable standards for Virginia and North Carolina, Dominion also recommended:
A copy of Dominion’s comments can be found here.
Dominion is one of the nation’s largest producers and transporters of energy, with a portfolio of approximately 23,600 megawatts of generation, 10,900 miles of natural gas transmission, gathering and storage pipeline and 6,400 miles of electric transmission lines. Dominion operates one of the nation’s largest natural gas storage systems with 947 billion cubic feet of storage capacity and serves utility and retail energy customers in 10 states. For more information about Dominion, visit the company’s website at www.dom.com.
This Dominion news release includes certain “forward-looking information.” We have identified and will in the future identify in our SEC Reports on Forms 10-K and 10-Q a number of factors that could cause actual results to differ from those in the forward-looking statements. We refer you to those discussions for further information.