The hearing examiner concluded that Dominion’s “decision not to affirmatively explore actual, third-party alternatives to the Brunswick Plant . . . calls into question the necessity and prudence of the Brunswick Plant,” and recommended that the SCC deny Dominion’s application. The SCC is expected to rule on the hearing examiner’s recommendation by early August.
In December 2012, after Dominion submitted its CPCN application, the Virginia Attorney General issued a report sharply criticizing the ROE enhancement adders such as that requested by Dominion in its application. The reported concluded that those adders provide utilities with an incentive to construct their own generation even if there are less expensive options available from independent electric generators.1 Largely as a result of the Attorney General’s report, in February 2013 the Virginia legislature passed legislation requiring a utility seeking an ROE enhancement adder to demonstrate that it has considered and weighed alternative options to its self-build proposal.
1 REPORT OF THE OFFICE OF THE ATTORNEY GENERAL ON RETURN-ON-EQUITY ENHANCEMENT ADDERS OF THE 2007 VIRGINIA ELECTRIC UTILITY REGULATION ACT (Nov. 2012) (the “ROE Report”).