The Virginia Senate on Thursday passed a bill that would end the state’s years-long venture into electricity deregulation, agreeing by a wide margin to a controversial new system of oversight for the state’s principal power company.
The Senate voted 35-3 to approve the measure, though there were concerns about the level of consumer protections in the labyrinthine new legislation. If the governor signs off on it, the legislation would limit most consumers to a single electric supplier and advance the expiration date of a rate cap from 2010 to 2008. The House of Delegates passed its version of the bill Wednesday.
Civic groups and some state and local officials had protested that the new law would result in rate hikes and huge profits for Dominion Virginia Power. Proponents had fired back that the legislation would instead implement new consumer protections and state control of Dominion’s rates.
The legislation would end what is widely seen as an unsuccessful experiment to allow consumers to shop for energy suppliers. The General Assembly passed deregulation in 1999 in an attempt to foster new competition for Dominion. No such alternatives emerged, however.
“We agree with everybody else that deregulation didn’t turn out as expected, and that some level of regulation is appropriate,” said Gov. Tim Kaine spokesman Kevin Hall. “We have until March 26 to review the legislation, and this one will get a thorough look.”
Opponents, who labeled the legislation corporate welfare, failed to muster enough votes to shoot down the bills. Among the critics were the Piedmont Environmental Council and Fairfax County Board of Supervisors Chairman Gerald Connolly, who said local rate payers would “be automatically charged up to an additional $300 per year.”
Del. Clarke Hogan, R-South Boston, who introduced the House’s version of the bill, told The Examiner this week Dominion “cannot add one dime of cost to electricity” unless approved by the State Corporation Commission.
