EPSA Files Brief Urging Rejection Of Dominion's Proposed Resource Plan
Dominion Will Be Gambling With Ratepayer Funds on Unneeded Self-Built Generation If Proposed Plan Is Implemented
WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) has filed its post hearing brief with the Virginia State Corporation Commission (VSCC) urging rejection of Dominion's proposed 2011 Integrated Resource Plan (IRP). Under the proposed plan, Dominion seeks to build billions of dollars of new power plants without even first testing the wholesale market for less costly alternatives. A copy of the brief is available at www.epsa.org. EPSA's brief summarizes the considerable matters at stake in this important matter as follows:
"EPSA contends that Dominion's 2011 IRP, as filed with the Commission, is neither reasonable nor in the public interest because the Company has failed to properly evaluate all available options, including short and long-term market opportunities, to meet any need for capacity. The record demonstrates that PJM, the regional market of which Dominion is a member, has ample existing capacity to meet any purported need in Virginia through 2016 and has met the capacity needs of its members in every year since its inception. Further, according to the 2011 IRP, Dominion has no intention to enter into any power purchase agreements with independent power producers or to renew any of its existing contracts with non-utility generators physically located in Virginia. If the Commission does not require an open and transparent competitive market test either in the IRP or the appropriate Certificate of Public Convenience and Necessity (CPCN) process, Dominionís customers could be forced to pay significant costs in excess of what they would otherwise be required to pay for un-needed generation for years to come.
"Ultimately, without considering available alternatives, Dominion is gambling with ratepayer money, betting its preferred IRP plan, which relies almost exclusively upon self-built rate-based generation, will provide reliable electricity at prices better than what could be obtained in the competitive market of which Dominion is a part. Absent a competitive market test to ensure customer needs are met at the lowest reasonable price, the 2011 IRP cannot be considered reasonable and in the public interest."
EPSA President & CEO John E. Shelk said, "EPSA joins many others in opposing a plan that ignores the broader wholesale market that Dominion joined a decade ago and discriminates against in-state non-Dominion power plants and their Virginia employees. Spending billions of ratepayer dollars relying on self-serving projections without a market test is clearly unreasonable. EPSA appreciates that the Commission asked for briefs to help focus on key issues. EPSA also commends Virginia's Attorney General for separately undertaking a review of the 2007 re-regulation statute sought by Dominion which risks putting the Commonwealth at an economic disadvantage through higher electricity costs than needed to serve consumers."
CONTACT: JOHN SHELK
(202) 349-0154or 703-472-8660
EPSA is the national trade association representing competitive power suppliers, including generators and marketers. These suppliers, who account for nearly 40 percent of the installed generating capacity in the United States, provide reliable and competitively priced electricity from environmentally responsible facilities serving global power markets. EPSA seeks to bring the benefits of competition to all power customers.