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EPSA Commends Virginia AG Cuccinelli for Revealing Report on Utility Roe Adders
AG Concludes Costs Outweigh Consumer Benefits
WASHINGTON, D.C. - Electric Power Supply Association President and CEO John E. Shelk released the following statement in response to the report issued yesterday by Virginia Attorney General Kenneth T. Cuccinelli, II on the generous return-on-equity bonuses available to Virginia's utilities under the state’s 2007 electricity re-regulation statute:
"EPSA commends Attorney General Cuccinelli for conducting an in-depth review of the bonus adders available to Virginia's two largest monopoly electric utilities under the 2007 statute. EPSA was pleased to have participated in the review process and appreciates being recognized in the report for doing so.
"It is particularly noteworthy that the attorney general's analysis stresses that far from only returning to traditional utility ratemaking principles, the 2007 statute's exceptional bonus profit adders are costing Virginia consumers even more. The report documents these excess costs to be in the hundreds of millions of dollars to date, with potentially billions more in the future.
"Attorney General Cuccinelli plays an important role under Virginia law as consumer counsel before the State Corporation Commission. EPSA joined with his office and many others in raising concerns about Dominion Virginia Power's recently approved Integrated Resource Plan. EPSA appreciates the hard work his office put into the case and the commission's recognition in its final order that competitive market tests should be used in future decisions on proposed new power plant projects eligible for these costly adders.
"This week's report documents why it is important for consumers to get a better deal on their electric rates in Virginia through greater access to competitive power generation and greater use of the PJM regional power market of which Virginia is a part. EPSA agrees with the attorney general that this report should encourage serious policy discussions about the 2007 re-regulation statute."
CONTACT: JOHN SHELK
(202) 349-0154or 703-472-8660
EPSA is the national trade association representing competitive power suppliers, including generators and marketers. These suppliers, who account for nearly 40 percent of the installed generating capacity in the United States, provide reliable and competitively priced electricity from environmentally responsible facilities serving global power markets. EPSA seeks to bring the benefits of competition to all power customers.