One of the most significant bills of this session is HB1558, which would repeal the Utility Rate Freeze Bill of 2015. There has been much confusion and controversy about what the bill does, and does not, actually do. Many of you are aware that in 2015, in response to concerns about possible rate increases in the aftermath of passage of the federal Clean Power Plan, a bill was passed to prevent increases by freezing electricity rates for several years. That bill also removed the State Corporation Commission (SCC) from its role in reviewing rates until 2022.
Over the last several years, two big changes have happened. First, the Trump administration has unraveled the Clean Power Plan. Second, our major utilities have accumulated substantial “overearnings.” Most estimates place these overearnings at several hundred million dollars. There is no reason that these overearnings should not be returned to consumers.
In response to this, several bills were proposed that would undo the rate freeze and reinstate SCC oversight for Dominion and the other utilities. Straight repeal has been defeated, and only HB1558 has a chance of passage this Session. The question, then, is whether this bill will return any overearnings to consumers, and the extent to which the bill will lead to new investments in renewable energy availability and use, grid modernization, and weatherization improvements to save energy. [Read more…]