Details for Dominion Power Public Notice

Updated

NOTICE TO THE PUBLIC OF A PETITION BY VIRGINIA ELECTRIC AND POWER COMPANY FOR REVISION OF RATE ADJUSTMENT CLAUSE: RIDER E, FOR RECOVERY OF COSTS INCURRED TO COMPLY WITH STATE AND FEDERAL ENVIRONMENTAL REGULATIONS CASE NO. PUR-2020-00003 Virginia Electric and Power Company d/b/a Dominion Energy Virginia ("Dominion") has applied for revision of a rate adjustment clause, designated Rider E, for recovery of costs incurred to comply with state and federal environmental regulations. Dominion requests approval of a total revenue requirement of approximately $88,060,000 for its 2020 Rider E. According to Dominion, this amount would decrease the bill of a typical residential customer using 1,000 kilowatt hours per month by at least $0.26. A Hearing Examiner appointed by the Commission will hear the case on June 16, 2020. Further information about this case is available on the SCC website at: http://www.scc.virginia.gov/case. On January 8, 2020, pursuant to § 56-585.1 A 5 e of the Code of Virginia ("Code"), Virginia Electric and Power Company d/b/a Dominion Energy Virginia ("Dominion" or "Company") filed with the State Corporation Commission ("Commission") a petition ("Petition") for an annual update of its rate adjustment clause, designated Rider E, for the recovery of costs incurred to comply with state and federal environmental regulations. Rider E was previously approved for the recovery of costs related to certain environmental projects at the Company's Chesterfield, Mt. Storm, and Clover Power Stations. The Company also seeks approval under Code § 56-585.1 A 5 e to recover its actual and projected costs of three additional projects at the Company's Chesterfield and Bremo Power Stations (collectively, "New Environmental Projects"). Pursuant to Code § 56-585.1 A 7, the Commission is required to issue its final order on the Petition within eight months of the filing date. The New Environmental Projects at the Chesterfield Power Station include: (i) closure of the Lower Ash Pond and (ii) closure of the Upper Ash Pond. The total estimated costs for the closure work for the Lower and Upper Ash Ponds is $103.8 million. At the Bremo Power Station, the New Environmental Projects include construction of the Bremo East Pond (Outfall 008), at a total estimated cost of $1.5 million. According to the Company, the New Environmental Projects are required to comply with the United States Environmental Protection Agency's ("EPA") "Hazardous and Solid Waste Management System; Disposal of Coal Combustion Residuals From Electric Utilities; Final Rule" ("CCR Rule"). The Company states that to comply with the CCR Rule, it is required to close or retrofit certain coal ash ponds and certain water treatment basins and flue gas desulfurization sludge ponds that contain coal ash at its coal-fired power stations. In addition, the Company asserts that compliance with the EPA's Steam Electric Power Generating Effluent Guidelines is also a driver of certain of the New Environmental Projects. The Company seeks recovery of three general categories of costs related to the New Environmental Projects: (i) actual costs associated with closure of existing assets (such as a coal ash pond) at the Power Stations; (ii) actual and projected costs associated with newly constructed assets necessary to allow the Power Stations to continue to operate in compliance with environmental laws and regulations; and (iii) actual and projected costs associated with asset retirement obligations for the newly constructed assets. In this proceeding, Dominion asks the Commission to approve Rider E for the rate year beginning November 1, 2020, and ending October 31, 2021 ("2020 Rate Year"). The Company states that the three components of the revenue requirement are the Projected Cost Recovery Factor, the Allowance for Funds Used During Construction ("AFUDC") Cost Recovery Factor, and the Actual Cost True-Up Factor. The Company requests a Projected Cost Recovery Factor revenue requirement of $87,802,000, an AFUDC Cost Recovery Factor revenue requirement of $258,000, and an Actual Cost True Up Factor revenue requirement of $0. Thus, the Company proposes a total revenue requirement of $88,060,000 for service rendered during the 2020 Rate Year. The Company indicates that included in this revenue requirement is the amortization over the 2020 Rate Year of certain deferred costs (including financing costs) incurred prior to the beginning of the 2020 Rate Year. For purposes of calculating the revenue requirement in this case, Dominion states that it utilized a rate of return on common equity of 9.2%, which was approved by the Commission in its Final Order in Case No. PUR-2019-00050. The Company states that retail choice customers taking service from a competitive service provider are currently exempt from paying Rider E. As previously directed by the Commission, the Company states it is providing alternative schedules calculated where retail choice customers are not exempt from paying Rider E. According to the Company, the inclusion of retail choice customers would raise the Rider E revenue requirement to $88,107,000. Dominion proposes that Rider E be effective for usage on and after November 1, 2020. If the proposed Rider E for the 2020 Rate Year is approved, the impact on customer bills would depend on the customer's rate schedule and usage. According to Dominion, implementation of its proposed Rider E on November 1, 2020, would decrease the monthly bill of a residential customer using 1,000 kilowatt hours per month by approximately $0.27 if retail choice customers are not exempt from paying Rider E, and would decrease the monthly bill of a residential customer using 1,000 kilowatt hours per month by approximately $0.26 if retail choice customers are exempt from paying Rider E. Interested persons are encouraged to review the Petition and supporting documents for the details of these and other proposals. TAKE NOTICE that the Commission may apportion revenues among customer classes and/or design rates in a manner differing from that shown in the Petition and supporting documents and thus may adopt rates that differ from those appearing in the Company's Petition and supporting documents. The Commission entered an Order for Notice and Hearing that, among other things, scheduled a public hearing on June 16, 2020, at 10 a.m., in the Commission's second floor courtroom located in the Tyler Building, 1300 East Main Street, Richmond, Virginia 23219, to receive testimony from members of the public and evidence related to the Petition from the Company, any respondents, and the Commission's Staff. Any person desiring to testify as a public witness at this hearing should appear fifteen (15) minutes prior to the starting time of the hearing and contact the Commission's Bailiff. The public version of the Company's Petition, as well as the Commission's Order for Notice and Hearing, are available for public inspection during regular business hours at each of the Company's business offices in the Commonwealth of Virginia. Copies also may be obtained by submitting a written request to counsel for the Company, David J. DePippo, Esquire, Dominion Energy Services, Inc., 120 Tredegar Street, Richmond, Virginia 23219. If acceptable to the requesting party, the Company may provide the documents by electronic means. Copies of the public version of the Petition and other documents filed in this case also are available for interested persons to review in the Commission's Document Control Center located on the first floor of the Tyler Building, 1300 East Main Street, Richmond, Virginia 23219, between the hours of 8:15 a.m. and 5 p.m., Monday through Friday, excluding holidays. Interested persons also may download unofficial copies from the Commission's website: http://www.scc.virginia.gov/case. On or before June 9, 2020, any interested person wishing to comment on the Company's Petition shall file written comments on the Petition with Joel H. Peck, Clerk, State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118. Any interested person desiring to file comments electronically may do so on or before June 9, 2020, by following the instructions on the Commission's website: http://www.scc.virginia.gov/case. Compact discs or any other form of electronic storage medium may not be filed with the comments. All such comments shall refer to Case No. PUR-2020-00003. On or before March 24, 2020, any person or entity wishing to participate as a respondent in this proceeding may do so by filing a notice of participation. If not filed electronically, an original and fifteen (15) copies of the notice of participation shall be submitted to the Clerk of the Commission at the address above. A copy of the notice of participation as a respondent also must be sent to counsel for the Company at the address set forth above. Pursuant to Rule 5 VAC 5-20-80 B, Participation as a respondent, of the Commission's Rules of Practice and Procedure ("Rules of Practice"), any notice of participation shall set forth: (i) a precise statement of the interest of the respondent; (ii) a statement of the specific action sought to the extent then known; and (iii) the factual and legal basis for the action. Any organization, corporation, or government body participating as a respondent must be represented by counsel as required by Rule 5 VAC 5-20-30, Counsel, of the Rules of Practice. All filings shall refer to Case No. PUR-2020-00003. On or before May 5, 2020, each respondent may file with the Clerk of the Commission, and serve on the Commission's Staff, the Company, and all other respondents, any testimony and exhibits by which the respondent expects to establish its case, and each witness's testimony shall include a summary not to exceed one page. If not filed electronically, an original and fifteen (15) copies of such testimony and exhibits shall be submitted to the Clerk of the Commission at the address above. In all filings, respondents shall comply with the Commission's Rules of Practice, including 5 VAC 5-20-140, Filing and service, and 5 VAC 5-20-240, Prepared testimony and exhibits. All filings shall refer to Case No. PUR 2020-00003. All documents filed with the Office of the Clerk of the Commission in this docket may use both sides of the paper. In all other respects, all filings shall comply fully with the requirements of 5 VAC 5-20-150, Copies and format, of the Commission's Rules of Practice. The Commission's Rules of Practice may be viewed at http://www.scc.virginia.gov/case. A printed copy of the Commission's Rules of Practice and an official copy of the Commission's Order for Notice and Hearing in this proceeding may be obtained from the Clerk of the Commission at the address above. VIRGINIA ELECTRIC AND POWER COMPANY

1300 East Main Street, Waynesboro, VA 22980

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