Virginia makes over energy regulation legislation
Virginia Governor Bob McDonnell this morning signed into law a revamping of the state's utility regulation policy.
Specifically, the law adjusts the 2007 Virginia Electric Utility Regulation Act, which re-regulated the state's electricity market. McDonnell was state Attorney General when the original legislation passed, and it has been under scrutiny over the past few months.
The new law was drafted after a five-year review into the effectiveness and incentives of the 2007 law. The November 2012 report found the need to make over the renewable energy incentives included in the law. Stakeholders met in mid-January to discuss changes to the law, including what to do about return-on-equity "adders." These adders were designed to incentivize utilities for development and infrastructure improvements, but did not always work as planned.
"By rolling back the adders put in place in 2007, customers will pay less for electricity than if this bipartisan group of Virginia leaders had not acted," McDonnell said in a prepared statement.
The new legislation also eliminates renewable energy incentives, which were found to be ineffective and costly for customers.
Virginia utilities, lawmakers to reform renewable energy policy