Sumer Shaikh, sumer.shaikh@sierraclub.org, 774-545-0128
RICHMOND, Virginia - Today, the Virginia State Corporation Commission took a stand to protect Virginians by rejecting Phase 1 of Dominion Energy’s “grid modernization” plan, as the corporation failed to present the benefits or need for the proposed expensive and unnecessary measures. Of Dominion’s one billion dollar plan, the SCC only approved the $150 million dollars for cyber and physical security. The rest of the investment, half of which would have gone towards grid hardening, would have bolstered Dominion’s profits but done little to increase renewable energy penetration, increase customer choice, or provide other benefits to customers.
One of the primary areas of Dominion’s “grid modernization” proposal was the $485 million for grid hardening, supposedly a means to decrease outage duration and reduce restoration time. Dominion’s own proposal conceded that this charge, which would have been paid by customers across the state, would increase energy reliability by only five minutes a year for only 4.3% of all of the utility’s customers.
True grid modernization will serve both customers and the environment. Intelligent grid devices and smart meters can increase reliability and efficiency, support renewable energy integration, and enable greater productivity and economic growth. Yet Dominion failed to demonstrate how its proposal would provide such benefits. Its proposal, if approved, would have looked great on Dominion’s income statement, but would have left customers with higher bills and no significant environmental or economic benefits.
In response, Marjorie Leach-Parker, Chair of the Sierra Club’s Virginia Chapter, stated:
Today’s decision by the SCC was a victory for all of Dominion’s customers who have grown tired of watching the corporation’s pockets get fatter at their expense. We would have loved to support a true “grid modernization” proposal by Dominion, if the company had proposed measures to increase renewable energy penetration, reduce energy waste, and facilitate electric vehicle integration. Instead, Dominion’s self-serving proposal was met with a firestorm of opposition, and the SCC rightly rejected it. We continue to stand ready to support grid modernization measures that are responsive to customers’ clear desire for clean energy while reducing their bills.
About the Sierra Club
The Sierra Club is America’s largest and most influential grassroots environmental organization, with more than 3 million members and supporters. In addition to helping people from all backgrounds explore nature and our outdoor heritage, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.