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Virginia ALJ Reaffirms Competitive Process, Finding That Dominion Unreasonably Excluded Competitive Suppliers

WASHINGTON, D.C. - The Electric Power Supply Association (EPSA) today commended an independent administrative law judge's (ALJ) report to the Virginia State Corporation Commission (SCC) concerning Dominion Power's proposal to construct a new natural-gas fired power plant. After considering the record, the ALJ concluded that Dominion unreasonably excluded other potential suppliers from bidding to provide electricity to Virginians. The ALJ recommended to the SCC that Dominion should be required to reopen its solicitation process, without any limits on who can submit a proposal.

John E. Shelk, president and CEO of EPSA said, "We applaud the ALJ's reaffirmation of the competitive procurement process in Virginia. The competitive procurement process allows all interested suppliers to compete on the same footing and ultimately results in the most effective and efficient way to meet consumers' needs."

In March 2008, Dominion Power requested the Virginia SCC's approval to construct and operate a new 580 megawatt (MW) natural-gas combined cycle plant in Buckingham County, Va. Dominion issued an RFP that invited only electric power generators not currently interconnected to the company's transmission system to submit bids. The ALJ's report found that Dominion should not have restricted the competitive suppliers who could bid on the RFP and directed Dominion to reissue it without such limitations.

Shelk said, "EPSA believes competitive wholesale markets and competitive power procurement are proving the best paths forward to more efficient use of existing resources, building additional supplies and providing the overall best deal for consumers. We urge the SCC to adopt the ALJ's findings and recommendations as outlined in the report."

The ALJ's written decision is available at the Virginia SCC Web site:
Part 1, containing case history and background:
http://docket.scc.state.va.us/CyberDocs/Libraries/Default_Library/Common/frameviewdsp.asp?doc=86201&lib=CASEWEBP%5FLIB&mimetype=application%2Fpdf&rendition=native

Part 2, containing findings and recommendations:
http://docket.scc.state.va.us/CyberDocs/Libraries/Default_Library/Common/frameviewdsp.asp?doc=86202&lib=CASEWEBP%5FLIB&mimetype=application%2Fpdf&rendition=native

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.