Dominion, American Electric Power update Virginia lawmakers on grid plan

01 July 04 - Virginia's two largest electric utilities hope to turn over their transmission wires to a regional operator by this fall, the companies told legislators.

A state legislative commission that oversees electric deregulation heard updates yesterday from Dominion Virginia Power and American Electric Power on their efforts to join the PJM Interconnection. Pennsylvania-based PJM operates the largest electricity grid and electricity market in the country.

Lawmakers did not hear from critics of utility plans to join PJM, although parts of those plans have been criticized by the State Corporation Commission staff and others.

Utility officials said Virginia stands to benefit from increased grid security and reliability and lower power costs by joining the regional company. A Virginia Power study concluded that joining PJM will save consumers $255m to $464m by the end of the state's capped electric rate period in 2011.

Lawmakers gave scant attention to Virginia Power's controversial plans to defer and collect from customers after the end of capped rates roughly $280m in PJM-related costs. Some critics feel such a deferral makes a mockery of capped rates. Virginia Power, on the other hand, has said consumers, who will benefit from the utility joining PJM, should bear the costs.

Sen. John C. Watkins, R-Powhatan, said he still has a problem with Virginia Power attempting to collect $40m in startup costs for joining a regional system but said the utility should get a chance to make a case before federal regulators for passing $40m in yearly PJM costs onto consumers.

The law requires the utilities to join a regional transmission system by Jan. 1.

Sponsored by FLSmidth

Related Articles

FERC's Clark advises caution on EPA's CO2-reduction plan

FERC Commissioner Tony Clark said Dec. 2 that EPA's Clean Power Plan could trigger massive infrastructure changes in a short time.

New England sees dramatic jumps in spot power, natural gas prices

A weekend preview of winter, which included snow in some areas, set the stage for higher spot prices in some locations such as New England.

Follow Power Engineering on Twitter

Latest News

Shutterstock coal production trucks

Weekly Coal Production

The Weekly Coal Production shows how much coal is being produced across the U.S.

Federal Reserve Bank of Dallas Weekly Economic Indicators financial business

The Federal Reserve Bank of Dallas' Economic Indicators

The Federal Reserve Bank of Dallas offers a glimpse into how the markets are doing domestical...

Kvaerner awarded contract for gas-fired power plant in Delaware

Kvaerner North American Construction Inc. and its joint venture partner, Parsons Brinckerhoff...

Canadian Solar purchases two solar projects

Canadian Solar Inc. has acquired a majority interest in two utility-scale solar power project...

Operators Restart Unit 2 at PPL Susquehanna

Unit 2 at the PPL Susquehanna nuclear power plant near Berwick, Pa. resumed generating electr...

Settlement agreement limits cost recovery at Edwardsport

The Indiana Utility Regulatory Commission (IURC) on Dec. 27 modified and approved a settlemen...

Toshiba in talks to sell portion of Westinghouse nuclear unit

Toshiba Corp is in talks  to sell up to 16% of its stake in the Westinghouse Electric Co...

Utah nixes nuclear waste storage facility

Plans to park radioactive waste at a storage facility in Utah have been officially called off.

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Industry Wire News

Perma-Fix Environmental Services Appoints Larry M. Shelton Chairman of the Board

Perma-Fix Environmental Services Appoints Larry M. Shelton Chairman of the Board

Scorpio Bulkers Inc. Announces Agreement to Sell Kamsarmax Newbuilding

Scorpio Bulkers Inc. Announces Agreement to Sell Kamsarmax Newbuilding

Next Generation ZaZZZ Proprietary and Identity-Verifying Vending Machines Ship to 18 Locations This Month

Next Generation ZaZZZ Proprietary and Identity-Verifying Vending Machines Ship to 18 Lo...

Rockdale Resources Enhances Operations, Implements Cost Reductions and Changes Board Composition

Rockdale Resources Enhances Operations, Implements Cost Reductions and Changes Board Co...

Cardinal Energy Group, Inc.: Bradford Lease Drilling Report

Cardinal Energy Group, Inc.: Bradford Lease Drilling Report

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>