Shareholder vote shows growing unease over Dominion’s role in climate change

Dominion 2017 Ped Bridge

Black curtains are visible inside the pedestrian bridge over Marshall Street leading to the Richmond Convention Center (background on the left). They were installed to block shareholders’ view of protesters lining the sidewalk outside Dominion Resources’ 2017 shareholder meeting last week. Photo credit: Chesapeake Climate Action Network.

A stunning development occurred during Dominion Resources’ annual shareholder meeting in Richmond last Wednesday. But as shareholders, board members, and company officials left the meeting, no one yet knew about it. What’s more, the Richmond Times-Dispatch’s coverage also missed it, focusing instead on the company’s name change to Dominion Energy. (To its credit, the Norfolk Virginian-Pilot did break the story two days later.) Dominion’s hometown newspaper didn’t just bury the lede; it overlooked it altogether. And therein lies an interesting tale.

What was so stunning? Simply this—some 48 percent of Dominion shares that were voted supported the resolution of a major shareholder, the New York State Common Retirement fund, calling on the company’s board of directors to report on how the company will deal in coming years with the fact that the world needs to reduce greenhouse-gas emissions to an extent consistent with limiting global warming to 2 degrees Celsius. The resolution’s full text is available on p. 60 of Dominion’s 2017 proxy statement.

Understanding why the vote on this resolution is stunning requires some context.

Shareholders have been submitting resolutions for at least eight years urging Dominion’s board to face up to global warming and the company’s role as a major carbon polluter contributing to that warming. In the past, some resolutions have gotten favorable votes as high as 24 percent, while others have been in single digits. Many large investors routinely follow the company board’s advice, and Dominion’s board always recommends a “no” vote on any environment- or climate-related resolution. Getting favorable votes is an uphill battle when a company’s powerful board is working against you.

That’s why the 48 percent vote for the retirement fund’s resolution this year is so huge. The total value of the nearly 198 million shares voting for the resolution was $15.5 billion, based on Dominion’s May 9 closing stock price.

“The vote by Dominion’s shareholders speaks volumes,” said New York State comptroller Thomas P. DiNapoli, trustee of the state’s retirement fund. “This is a wake-up call for the company to be responsive and explain how the Paris Agreement’s worldwide effort to rein in global warming will impact its business. Shareholders need to know what steps Dominion is prepared to take to address climate risk.”

But there’s still more to the tale. The stunning vote spike didn’t become known until hours after the meeting, and even then only to those who knew where to find the results and had a calculator handy to compute the vote percentages. That delay was no accident, but the result of Dominion’s efforts to keep the news from coming out during the meeting.

Until a few years ago, Dominion announced vote totals on shareholder resolutions during each meeting. That’s easy enough to do, since virtually all votes are cast in advance, and literally just a handful are cast on paper ballots collected during the meeting. But as favorable vote percentages on shareholder resolutions crept upwards over the years, Dominion discontinued the practice of announcing vote counts during the meeting. Instead it now reports only whether the resolutions got more than 50 percent of the vote. So this year it was simply announced during the meeting that the four shareholder resolutions on the ballot failed to get a majority of votes. End of story; nothing more to see here, folks.

By law, however, Dominion must report the actual shareholder vote totals to the Securities and Exchange Commission for public disclosure. It did so in the afternoon following the meeting, and put its SEC filing on the company’s website. Those who thought to look for them and knew where to look could find the vote results. Then, with a calculator or spreadsheet they could compute the vote percentages.

Dominion’s quiet move to prevent shareholders (and reporters) attending the meeting from learning the vote totals until later in the day is part of a pattern of subtle and not-so-subtle company efforts to tightly control messaging at its shareholder meetings. The control efforts have evolved each year as more shareholders have questioned the company’s environmental and climate record during meetings, and as demonstrators have begun to appear regularly outside to protest.

The company’s control effort reached somewhat absurd levels this year, as shareholders had to show their drivers’ licenses and admission tickets at four separate checkpoints before gaining entry to the meeting. As shareholders crossed an elevated pedestrian bridge across Marshall Street from the parking garage to the Richmond Convention Center, they found black curtains temporarily set up on floor stands to line the glass walls of the bridge, serving no purpose but to block any views of demonstrators on the street below. Then, when shareholders descended an escalator to the hallway outside the first-floor meeting room, they also found a long line of temporary stands of more black curtains. They were about eight feet high—just enough to block views through the wall of windows facing Marshall Street, where protesters had gathered on the sidewalk. This served to cast a bit of a funereal pall over the hallway, as shareholders drank coffee and ate Virginia ham biscuits before the meeting.

But enough about the voting process and window curtains. Understanding the true significance of the big vote spike for the retirement fund’s climate resolution requires a brief look at how Dominion addresses, and fails to address, the climate crisis. Dominion occasionally talks up its reductions in carbon intensity in electricity generation over the years. That’s the amount of carbon dioxide emitted per unit of electricity. And the company touts new solar projects, which are growing, but not nearly fast enough to catch up with Virginia’s neighboring states or to reduce carbon emissions on the needed timetable.

But Dominion has plans to increase its total carbon-dioxide emissions over the next fifteen years. And what the company never, ever does, is link its plans and its planned future greenhouse-gas emissions to what climate science tells us is needed to keep global warming to no more than 2 degrees Celsius. Indeed, as I wrote last year, Dominion executives studiously avoid even mentioning climate change in public, even when the topic is right in front of them, begging for attention. George Mason University climate-communication expert Edward Maibach and coauthors reported last year that silence on climate change can lead to more silence, in what they call a “climate spiral of silence.”

Meanwhile, while publicly silent about climate, Dominion still belongs to and supports the American Legislative Exchange Council (ALEC), which has a long track record of misinforming state legislators about climate science and working to block meaningful action to reduce greenhouse-gas emissions.

That’s why the 48 percent vote for the retirement fund’s resolution is so huge. Shareholders owning nearly half of the Dominion shares that were voted last week told the company’s board of directors and management that they need to start publicly talking and seriously thinking about climate change, and to explain how they will operate a business that is consistent with the need to keep global warming under 2 degrees.

Perhaps Dominion’s board believes, as at least one Dominion executive does, that climate change is an overblown issue that is pushed by “warmists,” that there’s been no global warming for fifteen years, and that global warming (which by the way isn’t happening) may not be human-caused. Such a belief would allow the board to ignore this shareholder vote, and assume that in future years the resolution will never get a majority vote because climate change concerns will go away as more people see climate change as a hoax. But maybe Dominion’s board, or at least a majority of its members, know better and will listen to the wake-up call delivered to them last week.

As I left the meeting I passed again by the black curtains in the convention hall windows and on the pedestrian bridge over Marshall Street. Just as Dominion used curtains to block views of protesters, its executives seemingly wear blinders to avoid looking at (and talking about) climate change. It’s past time for the blinders to come off and for Dominion’s management and board to look around at the wider world out there.

On May 22, Seth Heald will receive a master of science degree in energy policy and climate from Johns Hopkins University. His final paper in the program was about climate silence and moral disengagement. He is a Dominion Energy shareholder, and chair of the Sierra Club’s Virginia Chapter.

Dominion Power promises huge solar investments and a lower carbon footprint—or does it?

Dominion Virginia Power says energy from solar farms is now a low-cost option. Photo credit Kanadaurlauber.

Dominion Virginia Power released its updated Integrated Resource Plan (IRP) this week with a press release that promised thousands of megawatts (MW) of new solar power and a dramatically lower carbon footprint. In a remarkable turnabout, the Executive Summary declares, “The Company must now prepare for a future in which solar PV generation can become a major contributor to the Company’s overall energy mix.”

Alas, a closer look reveals Dominion will actually increase its carbon emissions over the period studied. Meanwhile, the solar would be built at a rate of only 240 MW per year over the 15-year period covered by the IRP, about the same amount being installed in Virginia this year. (Over 25 years, Dominion says its solar could reach 5,200 MW, which means the pace of installation would actually drop in the out years.) That should elicit yawns, not excitement.

The solar numbers pale in comparison to the more than 4,600 MW of new natural gas combined-cycle plants Dominion has been building just in this decade. (Remember that solar farms generate electricity at about 20-25% of “nameplate” capacity on average, while combined-cycle gas plants nationally average 50-60%, and can achieve 70% or higher.*) And even come 2032, the new solar will make up only a tiny fraction of a generation portfolio that consists almost entirely of coal, gas and nuclear.

I’ll be interested to see the numbers analyzed, but my guess is that all the renewable energy Dominion proposes to build over the next 15 years represents no more than 5-10% of its total electric generation. That’s too little, too late, in a state that can do so much better.

So the more things change, the more Dominion stays the same. Behind the hype being offered to the press stands a utility that is still committed to fossil fuels and nuclear power.

Virginia utilities file IRPs with the State Corporation Commission (SCC) every year. The plans are supposed to reflect the utilities’ best sense of how they will meet consumers’ needs for electricity while complying with state and federal laws and policies. This involves some guesswork about the direction of future regulations, including regulations of CO2 emissions.

In spite of President Trump’s determination to roll back climate protections while he is in office, Dominion’s IRP assumes an eventual price on carbon. Most utilities nationwide are doing the same thing. But given the uncertainties, Dominion has chosen (as it did last year) to model different scenarios instead of committing to a single plan.

Even the low-cost plan that wouldn’t comply with the EPA Clean Power Plan contains just as much solar as the other plans, reflecting the company’s assessment (on page 3) that solar is now “cost-competitive with other more traditional forms of generation, such as combined-cycle natural gas.”

Yet the carbon reductions Dominion promises in its press release appear to be something of a sleight-of-hand. For one thing, Dominion has chosen to compare its CO2 output in 2032 to its output in 2007, not 2017. CO2 emissions were markedly higher in 2007 than now, with the shale gas boom and the rise of renewables leading to massive coal retirements in the interim.

Moreover, a careful reading of the press release reveals the reductions Dominion promises are per-capita, not overall. A chart on page 115 of Dominion’s IRP shows every one of the scenarios Dominion studied will actually increase the company’s total CO2 emissions between now and 2042.

That reality exasperates climate activists. Glen Besa, former Director of the Virginia Chapter of the Sierra Club, comments, “The only impression you could have reading Dominion’s release was that it was making dramatic reductions in carbon pollution, which obviously is not the case.”

CO2 emissions would not increase if Dominion were simply shutting down coal and building more solar. But all of the alternative scenarios Dominion models for its IRP contain more gas plants: at least another 1,374 MW of gas combustion turbines in all plans, and 1,591 MW of combined cycle gas in some scenarios. Combustion turbines are more flexible than combined-cycle plants and so are better for meeting spikes in demand and integrating renewable energy like solar, but while they run less often, they are typically higher-polluting. Many utilities are using demand response or installing battery storage instead; Dominion appears to prefer gas.

All this gas means higher CO2 output. Not incidentally, burning more gas also means more business for Dominion’s parent corporation, Dominion Resources (soon to be known as Dominion Energy), which is heavily invested in gas transmission. And crucially, Dominion Energy needs more gas power plants to justify building the Atlantic Coast Pipeline. So building more gas plants serves the interests of Dominion’s affiliates, not its customers.

The problem with building new gas plants is that it lowers carbon only so far compared to coal, and then you’re stuck at that level for the life of the gas plants, unless you’re willing to abandon them early. That’s why any utility that’s serious about protecting ratepayers from stranded costs has to invest in wind, solar, energy efficiency and storage, not natural gas.

Speaking of wind, the IRP includes the 12 MW pilot project known as VOWTAP in all of the plans, even though Dominion lost millions of dollars in federal funding when it would not commit to building the two test turbines by 2020, three years past the original deadline. But none of the scenarios studied include any land-based wind, and none include a build-out of the federal offshore wind energy area Dominion bought the rights to, which could support at least 2,000 MW of offshore wind power. This is a strange omission given that Dominion continues to include a scenario in which it would build the world’s most expensive nuclear reactor, known as North Anna 3.

Polls consistently show overwhelming public support for renewable energy. Yet right now, ordinary Virginia ratepayers have no access to renewable energy unless they put solar on their own rooftop. Corporations like Amazon Web Services and Microsoft account for the bulk of the solar energy being installed in Virginia, with most of the remaining going to the military, state government, universities, and schools.

So 3,200 MW over 15 years won’t even begin to satisfy consumer demand. North Carolina installed almost 1,000 MW last year; I’d like to see Dominion set that as an annual target, bringing it up to the 15,000 MW over 15 years it modeled for last year’s IRP (before hiding the encouraging results from pubic view). Round out the solar with other cost-effective clean energy options, and we will see the kind of carbon reductions that don’t have to be fudged in a press release.


*On page 88 of the IRP, Dominion provides it own capacity factor forecasts: solar 25%, combined cycle gas 70%, gas combustion turbines 10%, nuclear 96%, onshore wind 42%, offshore wind 42%. The chart does not include a number for coal.

Arlington Creates Legal Authority for Solar-on-Schools Power Purchase Agreements; Plans October RFP

By Will Driscoll

Clearing a legal hurdle that may affect other Virginia school systems, Arlington Public Schools has created a new type of purchasing authority so it may enter into power purchase agreements (PPAs) for solar power.

Arlington’s School Board created that authority by amending its purchasing resolution at its April 20, 2017 meeting, by unanimous vote.  The school system staff plans to issue a request for proposals (RFP) for solar power in October, and complete its first PPA project by September 2018, according to a draft timetable.

 
The Arlington School Board voted unanimously to create the authority to enter into solar power purchasing agreements, on April 20, 2017.  From left: Tannia Talento, Barbara Kanninen, Nancy Van Doren, James Lander, and Reid Goldstein.  (Photo credit: author)

Arlington officials concluded that the previous version of its purchasing resolution, which satisfied the requirements of the Virginia Public Procurement Act, did not permit procuring construction or capital projects through “alternate methods” such as power purchase agreements (PPAs).

Arlington Public Schools (APS) officials determined that such alternate methods of procurement must meet the requirements of Virginia’s Public-Private Educational Facilities and Infrastructure Act of 2002 (PPEA).

Specifically, according to the approved amendment, “Section 56-575.16 of the PPEA requires that APS may not consider any Unsolicited PPEA Proposal nor solicit PPEA Bids or Proposals for a Qualifying Project until APS has adopted and made publicly available guidelines that are sufficient to enable APS to comply with the PPEA.  These Guidelines are adopted by the [School] Board for the purpose of satisfying that requirement.”

APS purchasing office staff and legal counsel prepared the proposed amendment, modeling it on procedures outlined in the PPEA.  The new provisions, now incorporated in the APS Purchasing Resolution, call for competitive bidding on any PPA project, and require School Board approval before any PPA agreement is signed.

“This is a really big deal for us,” said school board member Barbara Kanninen.  “We are opening up the opportunity to have solar power for Arlington Public Schools.  That’s really forward thinking, it’s smart energy use and I’m fully supportive of this.”

School board member James Lander noted the opportunity “to walk the walk that we talk when we talk about being a progressive environment, a forward-thinking community.” He added that solar on schools “will allow instructional opportunities for our students.”

In public comments prior to the vote, Tim Whitehouse, executive director of Chesapeake Physicians for Social Responsibility, said that the group’s 150 members in Arlington “strongly support the effort of the Arlington School Board to enter into power purchase agreements for solar.”  He added, “We’ve seen in schools where this happens, children get interested in renewable energy and the school systems develop programs that help educate the kids.”  Will Driscoll (author of this article) of Arlington 350 noted that prices for installed commercial solar declined 20 percent in 2016, creating an opportunity for the school district to save money with solar.  Noting that the school board must approve any PPA agreement before it may be signed, and could reject any agreement they find unsatisfactory, he said “we have nothing to lose, and much to gain.”

The new provisions provide an opportunity for solar contractors to submit an unsolicited proposal to APS, along with a proposal review fee of $2,500.  Any such proposal may prompt the school district to undertake a solar project, in which case the school district would solicit competing bids, in accordance with PPEA guidelines.

The provisions call for APS to hire “qualified professionals” from outside the APS staff to review all solicited proposals.  These professionals may include an architect, professional engineer, or certified public accountant.  APS will also hold a public hearing prior to entering into any PPA agreement.

To date, Arlington has installed a 497 kilowatt solar system on Discovery Elementary School and a 90 kilowatt system on Wakefield High School, both through outright purchase during the construction phase for each school.

Potential 50,000 Rooftop Solar Jobs in Virginia, for Ten Years

By Will Driscoll

Virginia could produce 32 percent of its electricity from rooftop solar installations, according to a report from the National Renewable Energy Laboratory (NREL).  Yes, that’s a lot:

  • It’s 28,500 megawatts of solar capacity—almost double the 15,000 megawatts that Dominion Virginia Power found would save customers $1.5 billion, but said it wouldn’t know where to site the solar panels.
  • Installing that much rooftop solar in Virginia would yield about 50,000 jobs for ten years, based on the number of U.S. solar jobs in 2016 and the number of megawatts of solar installed.
 ind-8-convert-solar-va-beach
Al Chiriboga and Andrew Schultz of Convert Solar install a 10 kilowatt solar system on an office building in Virginia Beach.

The NREL analysis evaluated the potential for solar on buildings with at least one unshaded roof plane that is nearly flat, or faces east, southeast, south, southwest, or west.  If any such roof plane could accommodate at least 1.5 kilowatts of solar panels, NREL modeled solar on that roof plane.  Summing across all buildings in Virginia yielded a technical potential of 28,500 megawatts of rooftop solar.  NREL found that nationwide, 66 percent of large building rooftop area is suitable for solar, versus 49 percent for medium-size buildings and 26 percent for small buildings.

The technical potential is simply what the laws of physics allow, combined with common sense—i.e., no north-facing panels.  (NREL did count west-facing panels, which have value for meeting late afternoon electricity demand, and east-facing panels, which are equally productive.)  NREL assumed an average solar panel efficiency of 16 percent, and noted that if panels averaging 20 percent efficiency were used, the solar potential would be 25 percent greater (because 20 is that much greater than 16).  At least three firms make solar panels exceeding 20 percent efficiency.

The technical potential is just a theoretical maximum.  Yet the economic potential, or the sum of all money-saving rooftop solar investments, may not be far behind, especially over the next ten years, as solar costs keep falling due to technology improvements and economies of scale.  Each year more building owners realize they can save money with rooftop solar, including Virginia school systems.

 J Elkin Install Shockoe Solar 12.7 KW.jpg
Ryan Phaup and Andrew Harrison of Shockoe Solar install photovoltaic panels in Urbanna, VA.

The Solar Foundation counted 260,077 U.S. solar workers in 2016, and the Solar Energy Industries Association reported 2016 U.S. solar installations of 14,626 megawatts.  Dividing the two yields 18 workers per megawatt of solar installed.  Finally, spacing out the installation of NREL’s 28,500 megawatts of Virginia rooftop solar over ten years would mean 2,850 megawatts of rooftop solar installed per year, times 18 workers per megawatt, or 50,000 workers—for a ten-year period.

For rooftop installations, the jobs per megawatt would tend to exceed 18, since rooftop jobs are smaller and more labor-intensive than the 2016 U.S. mix of utility-scale solar (10,000 megawatts) and rooftop solar.  That is the experience of Edge Energy, whose co-owner Anthony Colella reports that installing one megawatt of solar per year requires a staff of 20—a roofing crew, an electrical crew, a project manager, a production manager, and sales and administrative support staff.  He sees a growing solar potential in Virginia, and says his firm plans to add 15-20 staff members this year and a similar number in 2018.

On the other hand, as the rooftop solar industry grows to meet the NREL potential, economies of scale should also come into play, enabling firms to sell and install more panels in less time.  So on balance, 18 jobs per megawatt, and 50,000 jobs over ten years, seems like a good ballpark estimate.

 20160708_174506-edge-energy
Henry Portillo (peak), Tulio Guzman and Carlos Cardona of Edge Energy celebrate an 8 kilowatt solar installation in Arlington, VA.

The NREL report noted that “In practice, the integration of a significant quantity of rooftop solar into the national portfolio of generation capacity would require a flexible grid, supporting infrastructure, and a suite of enabling technologies.”

Mr. Colella of Edge Energy said that “to reach for the big numbers,” Virginia needs to lift the size limits on residential and commercial systems; eliminate demand charges on larger systems; change the voluntary renewable portfolio standard into a requirement, with a closed Virginia market for solar renewable energy credits; and allow solar leases, solar power purchase agreements, and community solar.

In response to the NREL projection, a Dominion Virginia Power representative stated that the utility is installing solar toward a state goal of 500 megawatts of solar by 2020.  Appalachian Electric Power declined to comment.

Virginia currently has 238 megawatts of solar capacity, compared to North Carolina, which has 3,012 megawatts.

Virginia legislative session wraps up with action on solar, coal ash, and pumped storage

Next year I'm bringing him to lobby with me. Photo credit: Sierra Club

Next year I’m bringing him to lobby with me. Photo credit: Sierra Club

The Virginia General Assembly wraps up its 2017 session on Saturday, February 25. As usual, the results are a mixed bag for energy. On the plus side is the promise of a new solar purchase option for customers. On the downside, utility opposition to energy efficiency and distributed generation meant a lot of worthwhile initiatives never made it out of subcommittee.

Putting it into perspective, it could have been worse. For clean energy advocates in Virginia, that’s what we call a success!

Governor Terry McAuliffe has already acted on some of the bills that passed and will have until March 27 to act on the remaining bills. Under Virginia law, the governor can sign, veto, or amend the bills for legislators’ consideration.

“Rubin Group” bills move renewable energy forward—and back.

Negotiations between utilities, the solar industry trade association MDV-SEIA, and the group Powered by Facts produced three pieces of legislation that appear likely to become law (and all of which I’ve discussed previously). The most significant of these “Rubin Group” bills (named for facilitator Mark Rubin) is SB 1393 (Wagner), the so-called “community solar” bill, which is designed to launch a utility-controlled and administered solar option for customers. The utilities will contract for the output of solar facilities to be built in Virginia and will sell the electricity to subscribers under programs to be approved by the State Corporation Commission. Critical details such as the price of the offering will be determined during a proceeding before the State Corporation Commission.

This was the only one of the Rubin Group bills that had participation from members of the environmental community (Southern Environmental Law Center and Virginia League of Conservation Voters), and it received widespread (though not unanimous) support from advocates.

Broader legislation that would have enabled true community solar programs did not move forward. SB 1208 (Wexton) and HB 2112 (Keam and Villanueva), modeled on programs in other states, had the backing of the Distributed Solar Collaborative, a stakeholder group composed of everyone but utilities. In the Senate, Wexton’s bill was “rolled into” Wagner’s bill, but only her name, not the provisions of her bill, carried over.

SB 1395 (Wagner), a second Rubin Group bill, increases from 100 MW to 150 MW the size of solar or wind projects eligible to use the state’s Permit by Rule process, which is overseen by the Department of Environmental Quality. The legislation also allows utilities to use the PBR process for their projects instead of seeking a permit from the SCC, if the projects are not being built to serve their regulated ratepayers.

The third Rubin Group bill establishes a buy-all, sell-all program for agricultural generators of renewable energy. Although supported by MDV-SEIA as part of the package deal, passage of SB 1394 (Wagner) and HB 2303 (Minchew) should be considered a loss for solar. The program replaces existing agricultural net metering rules for members of rural cooperatives and could lead these coops to reach their 1% net metering cap prematurely, blocking other customers from being able to use net metering. And while negotiators say the program should be economically beneficial to participants, it appears to offer generators no options they don’t already have under existing federal PURPA law.

The governor has until March 27 to act on these bills.

Appalachian Power PPAs for private colleges only

Under HB 2390 (Kilgore), the existing pilot program that allows some third-party power purchase agreements (PPAs) in Dominion Power territory will be extended to Appalachian Power territory, but only for the private colleges and universities who could afford to hire a lobbyist to negotiate the special favor, and only up to a 7 MW program cap. APCo is expected to use passage of the bill to assert that PPAs for all other customers are now illegal. The governor has not indicated whether he will sign the bill.

Intellectual property

SB 1226 (Edwards, D-Roanoke) allows solar developers to keep confidential certain proprietary information that would otherwise be subject to disclosure under the state’s Freedom of Information Act (FOIA). It resolves a problem that has held up a solar project on the Berglund Center, a public building in Roanoke.

Storage, pumped or otherwise

HB 1760 (Kilgore) and SB 1418 (Chafin) allow Dominion Power to seek rate recovery for a scheme to use abandoned coal mines for pumped storage facilities. If you think this sounds weird and possibly dangerous, you are not alone. Usually the idea is to keep water out of coal mines to avoid the leaching of toxic chemicals into groundwater. Apparently no one has ever used coal mines for pumped storage before, and neither the company that would construct the project, nor the sites under consideration, nor the technology to be used, have been revealed.

SB 1258 (Ebbin) adds storage to the mandate of the Virginia Solar Energy Development Authority.

Dominion’s nuclear costs, and the politics of the “rate freeze”

HB 2291 (Kilgore) allows Dominion to charge ratepayers for the costs of upgrading its nuclear facilities. Because the charges will appear as a rider on top of base rates, consumers would not be protected by the “rate freeze” Dominion pushed through in 2015’s SB 1349.

That 2015 legislation, of course, was supposedly designed to shield customers from the impact of the EPA’s Clean Power Plan, a ruse that has been since laid bare. Instead, it will allow Dominion to keep an estimated billion dollars of customers’ money it would otherwise have had to refund or forego. This year, with the CPP on death row under Trump, Senator Chap Petersen introduced SB 1095, which would repeal the rate freeze. His bill was promptly killed in committee, but continues to gain support everywhere outside the General Assembly. Governor McAuliffe belatedly announced his support for Petersen’s bill, but did not use his authority to resurrect it.

Petersen is encouraging the Governor to offer an amendment to Kilgore’s HB 2291 that would repeal the rate freeze, an option allowed by Virginia’s legislative procedure since both provisions affect the same provision of the Code.

Dominion, of course, says the CPP isn’t actually dead and buried just yet, and Republicans seem to fear its resurrection. HB 1974 (O’Quinn) requires the Department of Environmental Quality to submit any Clean Power Plan implementation plan to the General Assembly for approval, so they can stab it with their steely knives.  The governor is expected to veto the bill.

State’s failures on energy efficiency will now be tracked

SB 990 (Dance) requires the Department of Mines, Minerals and Energy to track and report on the state’s progress towards meeting its energy efficiency goals. Or in Virginia’s case, its lack of progress.

HB 1712 (Minchew) expands the provisions of state law that allow public entities to use energy performance-based contracting.

That’s it for energy efficiency legislation this year. Several good bills were offered but killed off in the House Energy Subcommittee, notably HB 1703 (Sullivan), which would have required electric utilities to meet efficiency goals, and HB 1636 (Sullivan again), which would have changed how the SCC evaluates energy efficiency programs. Delegate Sullivan, by the way, introduced a companion bill to SB 990, but his was killed in that same House subcommittee, all on the same day.

Coal ash legislation watered down but passes

SB1398 (Surovell) will require Dominion Power to monitor pollution and study options for the closure of its coal ash impoundments, including removal of the ash to secure, lined landfills. Unfortunately amendments in the House will allow Dominion to proceed with capping the waste in unlined pits while it completes the study. As one editorial put it, “Why not do it right the first time?” The editorial—along with a lot of people who have to live near the coal ash dumps—would like to see the governor offer amendments to the bill, but we’ve heard nothing from the governor’s office on that yet.

Republicans keep trying to throw taxpayer money down a rathole; Governor vetoes

Governor McAuliffe has already vetoed HB 2198 (Kilgore), which would reinstate the coal employment and production incentive tax credit and extend the allowance of the coalfield employment enhancement tax credit. SB 1470 (Chafin) is identical to HB 2198 and so likely faces a veto as well.

With Rooftop Solar Prices So Low, Virginia Schools Can’t Pass Up the Savings

By Will Driscoll

With today’s low solar prices, schools can save money by installing rooftop solar, and use the savings to improve education.  Schools in three Virginia communities are leading the way, achieving net energy savings after commissioning 1.7 megawatts of solar systems in 2016. Student leadership, power purchase agreements, and one outright purchase helped make it happen.

In Albemarle County, students helped drive a decision to install 1.1 megawatts of solar on six schools.  Back in 2014, Sutherland Middle School students gave pro-solar testimony in Richmond at a hearing on Dominion Virginia Power’s resource plans.  Meanwhile, students at Monticello High School wrote to the school board to make the case for solar.  The school division last year added rooftop solar to these schools and four others, by entering a power purchase agreement (PPA) with solar developer Secure Futures in Staunton.  The school division projects savings of at least $80,000 over the life of the 20-year PPA agreement, based on a projected annual increase of two percent in Dominion Virginia Power’s electricity rates.  (Photos below.)

Arlington’s new Discovery Elementary School is jam-packed with 497 kilowatts of solar panels.  That much solar was possible under Virginia’s net metering law because the school is heated using electric-powered geothermal heat pumps—so the school can net meter not only its air conditioning and lighting load but also its electric heating load.  The school district paid $1,369,500 for the solar system, funded through the same bond used to build the school.  The cost will be paid off in 14 years, assuming a two percent annual increase in energy costs, and the solar panels should produce free electricity for many years after that.  (That 14-year amortization is based on the bond’s interest rate of 2.63 percent and full-year 2016 energy cost avoidance of $101,000, increasing by two percent per year.)  The school is designed as a net-zero-energy building, and ran at net-zero in 2016. (Photo below.)

Lexington City Schools, which operates just three schools, added a 91.5 kW solar system to the Lylburn Downing Middle School. “No matter how big or how small a school division you are—and that translates into real life, no matter how big a corporation or how small—you can make an impact on the environment” explained School Principal Jason White in a video interview with Washington and Lee University’s Rockbridge Report.  Lexington School Superintendent Scott Jefferies added that the solar project “speaks beyond how much you can actually save financially—more so … that you’re actually trying to do something good for the environment.” Like Albemarle County, Lexington financed this solar system through a PPA with Secure Futures.

Looking Ahead:  To accelerate placement of cost-saving solar systems on schools—and to show our children that we care about their future—Virginia legislators could extend the right to enter into power purchase agreements (PPAs) beyond the current pilot program in the Dominion Virginia Power territory.  The legislature could also allow customers to net meter more solar-generated electricity than they consume, because we need all the solar we can get, and because Dominion claims it has difficulty siting solar generation.  And soon, legislators will need to increase the net metering limit, now fixed at one percent of total electricity consumption.

Virginia can produce 32 percent of its electricity from rooftop solar, according to a National Renewable Energy Laboratories report.  Virginia’s 2,093 public schools, with unshaded roofs ideal for low-cost commercial scale solar, represent a promising component of that potential.  Our progress in 2016 moved us eight schools closer to that target.

Albemarle County Schools–Photos 

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Staff of Mountain View Solar (in high-visibility clothing) and Secure Futures conduct commissioning tests for Albermarle High School’s solar installation. (Photo courtesy of Secure Futures LLC.)

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Sutherland Middle School’s 279 kW system. (Photo by Grant Gotlinger; courtesy of Secure Futures.)

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Baker-Butler Elementary School’s 224 kW system. (Photo by Grant Gotlinger, courtesy of Secure Futures.)

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Brownsville Elementary School’s 130 kW system. (Photo by Grant Gotlinger, courtesy of Secure Futures.)

Arlington’s Discovery Elementary School–Photo

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496 kW of solar panels on Arlington’s Discovery Elementary School, with a neighboring school shown at top left. (Photo courtesy of VMDO Architects and Digital Design & Imaging Service, Inc.)

 

 

While U.S. leaders were worrying about coal jobs, clean energy snatched the lead: even Virginia now has more people working in solar than coal.

 

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Jobs in electric generation do not include fuel jobs, so for example, the coal jobs in the two charts have to be added together to get total employment. Wind and solar, of course, have no fuel costs. Charts come from DOE.

Jobs in electric generation do not include fuel jobs, so for example, the coal jobs in the two charts have to be added together to get total employment. Wind and solar, of course, don’t need employees to produce their “fuel.” Charts come from DOE.

A new report from the U.S. Department of Energy takes stock of energy employment in the U.S. and comes up with fresh evidence of the rapid transformation of our nation’s electricity supply: more people today work in the solar and wind industries than in natural gas extraction and coal mining.

According to the January 2017 U.S. Energy and Employment Report, 373,807 Americans now work in solar electric power generation, while 101,738 people work in wind. By comparison, a total of 362,118 people work in the natural gas sector, including both fuel supply and generating plants.

Total coal employment stands at 160,119. And while renewable power employment grew by double digits last year—25% for solar, 32% for wind—total job numbers actually declined across the fossil fuel sectors, where machines now do most of the work.

If generating electricity employs a lot of people, not generating it employs even more. The number of Americans working in energy efficiency rose to almost 2.2 million, an increase of 133,000 jobs over the year before.

Those are nationwide figures, but the report helpfully breaks down the numbers by state. For Virginia, 2016 was a watershed year. In spite of the fact that our solar industry is still in its infancy and we have no operating wind farms yet, more Virginians now work in renewable energy than in the state’s storied coal industry. A mere 2,647 Virginians continue to work in coal mining, compared to 4,338 in solar energy and 1,260 in wind.

Dwarfing all of these numbers is the statistic for employment in energy efficiency in Virginia: 75,552.