Jan. 7-Electric Utility Regulatory Work Group releases it's final report and recommendations to the Virginia General Assembly. They recommend reverting to the regulations in effect prior to deregulation in 1999.

Source: Roanoke Times January 7, 2011 VA Electric Utility Regulatory Work Group releases final report, recommendations The Virginia Electric Utility Regulatory Work Group has made its final report and released its legislative recommendations for the General Assembly. The group proposed a revert to the Chapter 10 regulation that was in effect prior to deregulation in 1999, but with updates including giving the State Corporation Commission the appropriate discretion in setting electric rates. Here is a press release from Delegate Ward Armstrong’s office: The Virginia Electric Utility Regulatory Work Group today released its final report and legislative recommendations prior to the 2011 General Assembly Session. Delegate Ward Armstrong formed the Virginia Electric Utility Regulatory Work Group to review the current electric utility regulatory scheme in Virginia and develop new legislation to address deficiencies that may exist. The bi-partisan work group is comprised of current and former legislators, former SCC commissioners, consumer advocates, certified rate of return analysts, former electric utility executives, residents and business leaders. The work group met throughout the summer to study the evolution of electric utility regulation in Virginia over the last decade, Virginia’s current regulatory law, and regulations in place in other states. The Work Group examined problems and shortcomings in Virginia’s current regulatory standards as they relate to the high cost of electric service and limited protections for consumers. “I am grateful for the time and hard work that the members of the Work Group committed to this important issue,� said Delegate Ward Armstrong. “This work group is comprised of persons with knowledge of the regulatory process, the legislative process, and the impact of electric utility bills on the average consumer. These individuals have high credibility with the citizens of this great Commonwealth and their opinions and recommendations will carry great weight with the General Assembly.� In the report the Work Group proposes returning Virginia to the Chapter 10 regulation that was in effect prior to deregulation in 1999, but with several updates, stating: It is the belief of the Work Group that this proposal would give the State Corporation Commission the appropriate discretion in setting rates. Under this proposal, like the pre-1999 regulatory system, electric utilities would be allowed to make only base rate petitions as well as request fuel rate adjustments if their fuel costs went up or down. However, the Work Group also endorses as a “Plan B� the rewriting of the code to attempt to add balance and fairness to the current system, replacing and repairing the 2007 legislation. The Report concludes: The excess charges provided for in the 2007 law are the equivalent of a tax on every home and business in the Commonwealth. If the General Assembly does not make changes to Virginia’s electric utility regulatory laws to ensure rates are fair, just, and reasonable, the Commonwealth is destined to join the group of states with the highest electric rates in the nation; thereby placing our citizens and businesses at a regrettable, and ultimately preventable, economic disadvantage. “This problem affects not just southwest Virginians but citizens and businesses all across the Commonwealth,� added Armstrong. “This is a problem that will only continue to grow if we do not take action now.� The Report and the draft legislation can be accessed online at: http://www.wardarmstrong.com/node/150