Dominion Energy's long-term strategy faces criticism from Virginia regulators, yet receives approval regardless.

Virginia Regulators Call for Reforms in Dominion Energy's Future Plans

In a recent ruling, Virginia regulators have directed utility Dominion Energy to make significant changes in its future plans for energy production. The State Corporation Commission (SCC) has highlighted concerns about Dominion's planning process and called for improvements, particularly in the areas of carbon-free electricity, battery storage, grid-enhancing technologies, and energy efficiency.

Nate Benforado, senior attorney with the Southern Environmental Law Center, welcomed the SCC's decision, stating that it rightfully notices problems with Dominion's planning process. He added that the "real question" is what will happen in the meantime, as billions of customer dollars are at stake.

The new requirements for Dominion's future plans include at least one scenario where all fossil-fueled plants are shuttered by the law's deadline, spanning 20 years instead of the previous 15. Regulators have also instructed Dominion to aim to shave more power demand through energy-efficiency measures, with the commission finding Dominion's proposed 2.73% energy savings by 2028 to be the low end of feasible. A more reasonable target, according to the commission, would be 5%.

In addition, the SCC has directed Dominion to discuss grid-enhancing technologies in their future plans and to improve its approach for its next forecast, due October 2026. The commission's order addresses concerns about Dominion's plans ignoring clean energy requirements and driving up electric bills, as voiced by Dyanna Jaye, deputy director of strategy and governance at nonprofit Clean Virginia.

It is important to note that the SCC's ruling does not reject Dominion's plan outright, but has called it merely "legally sufficient." The accepted plan by Dominion Energy stops six years shy of 2045, the year by which Dominion is supposed to generate 100% carbon-free electricity, according to the 2020 Virginia Clean Economy Act.

The commission's action comes after advocates urged the SCC to reject Dominion's plan outright. However, the commission could still factor in Dominion's plan when considering the company's bid to build a gas-burning complex outside of Richmond. By recognizing the potential harm Dominion's plans can cause, the commission has called for significant reforms moving forward.

In light of these developments, it is clear that Dominion Energy's future plans will undergo a significant transformation. The utility will need to adapt to the new requirements and address the concerns raised by the SCC and environmental advocates to ensure a sustainable and affordable energy future for Virginia.

Dominion Energy's long-term strategy faces criticism from Virginia regulators, yet receives approval regardless.