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renewable energy

GreeneHurlocker at The Advanced Energy Conference

Advanced Energy signage

Advanced Energy signageWe are pretty excited to attend and be a sponsor of the Advanced Energy Now – East conference today in Richmond. Along with hearing about recent developments in the energy space, we’re catching up with our clients and colleagues in the renewable and advanced energy industry at the Richmond Convention Center downtown.

GreeneHurlocker energy lawyers work hard at staying informed and educated on the best practices and current opportunities in the energy field, with a special interest in renewable resources development and deployment. If you’re in Richmond at the conference today, please look for us. We’d love to say “hi.”

Good for the Earth

Back in 1970, few who celebrated the first Earth Day could have imagined the many ways that our world would have changed in the nearly five decades since. One good change is the increasing use of renewable energy, something we have a firm interest in since many of our clients are developing, financing and servicing the industry. And the fact that it has become an industry and grows stronger every year is definitely good for the earth. So, Happy Earth Day!

If you have a question about renewable energy in Virginia or the mid-Atlantic, simply contact any of our energy lawyers.

We’re Back at TomTom to Support Renewable Energy

On Wednesday, April 10, the TomTom Festival and Summit will hold its Renewable Energy Day in Charlottesville, Virginia, during the six day-long series of panels, speakers, podcasts, performances, parties and other notable goings about art, community, food, music, creative and entrepreneurial ecosystems, and innovation. We’re proud to be a sponsor again, and we are focused on the 9 AM panel “The Economic Development Opportunity of Renewable Energy.”

Many of our lawyers will be attending, and our partners Eric Hurlocker, Brian Greene and Jared Burden will be in Charlottesville to welcome you personally and to talk to you about the work we’re doing in renewable energy development and regulation. In addition, we would be glad to have the opportunity to introduce you to our OPENgc services for companies that currently operate without inside general counsel. If you don’t see us at the panel or breaks, come on to the exhibit area where we will try to answer your questions and send you home with a few small gifts.

If you are interested in knowing more about our TomTom sponsorship, the renewable energy industry or have a legal issue that you need to discuss, please feel free to contact Eric Hurlocker, Brian Greene, Jared Burden or any of our Virginia energy lawyers and business lawyers.

Solar Powers Augusta Schools

We were really excited last week when our good client, Secure Futures, was out in Augusta County Public Schools (ACPS) to talk about the installation of a total of 1.8 megawatts of solar power across seven campuses. ACPS, with more than 5,000 solar panels deployed, is the largest solar energy system of any public school division in Virginia. Some excellent coverage of this initiative is here. Augusta County students created some great posters about how much they love solar and those are featured on the Secure Futures homepage.

Secure Futures’ partnership with ACPS meant the school division had no capital investment for this solar project. Additionally, and most importantly, they receive monthly savings on their utility bill by using the electricity generated by the solar panels. ACPS has a special webpage where you can look at their solar energy production in real time. Pretty cool!

If you want to know more about solar energy issues in Virginia or have legal matters that involve solar or other renewable energy resources, contact any of our Virginia energy lawyers.

SCC Order OKs new, but limited, APCo customer renewable tariff

On January 7, the State Corporation Commission (“SCC” or “Commission”) approved a request by Appalachian Power Company (“APCo”) to offer a 100% renewable energy tariff to its customers. The APCo proposal, designated Rider WWS, would include energy generated at several wind and hydroelectric facilities that are currently part of the utility’s generation portfolio. For residential customers taking service under the tariff and using 1,000 kilowatt hours per month, the monthly bill increase would be $4.25. Customers would also pay a “balancing” charge that is intended to ensure that non-participating customers are not affected by the tariff.

Several renewable energy and environmental advocates opposed APCo’s proposal. APCo and the intervening parties disagreed about whether the price of the tariff was based on current market prices for renewable energy and whether it is appropriate for APCo to sell energy that is already in its utility’s generation portfolio at a premium rate. Appalachian Voices, represented in the case by the Southern Environmental Law Center, argued that APCo’s proposal would “charge customers more than they currently pay for the privilege of claiming the output of certain resources already in APCo’s fleet.” Several parties noted that the rate customers would pay is tied to renewable energy credit (“REC”) market prices, as opposed to the actual cost of the underlying renewable energy. The Commission’s staff also questioned whether Rider WWS would constitute a renewable energy tariff at all, since the tariff price would be based on the cost of RECs – not on the price of renewable energy itself.

Finally, several parties noted that approval of the application would eliminate the rights of many APCo customers to shop for renewable energy. The effect on retail choice is due to Virginia’s unique regulatory structure. Virginia is, for the most part, a traditionally regulated jurisdiction. This means that incumbent electric utilities such as APCo hold state-protected monopolies on the sale of electricity in their service territories. Virginia law, however, provides a few exceptions under which customers can purchase electric generation from non-utility companies licensed by the SCC to sell retail electricity.

One of these exceptions is for 100% renewable energy purchases. The Code allows any Virginia customer – including residential customers – to purchase electricity “provided 100% from renewable energy” from non-utility suppliers. Pursuant to the statute, however, this option is only available if the customer’s incumbent electric utility does not offer an SCC-approved tariff for 100% renewable energy. Prior to the SCC’s decision in this case, no Virginia utility had an SCC-approved 100% renewable tariff in place. The Commission’s final order did not reference the tariff’s implications on retail choice.

The Commission’s final order also rejected the recommendation of the hearing examiner who conducted the evidentiary hearing. The hearing examiner recommended that the Commission deny the application because the proposal would result in “unjust and unreasonable” rates. The hearing examiner found that the evidence presented by APCo to support the application was “unsubstantiated” and based on outdated market prices for renewable energy.

Should you have any questions about this case, please contact one of our energy regulatory attorneys. The Code sections authorizing retail choice are discussed in our firm’s Virginia electric regulation guide.

Renewable Energy Down South

Later today, we will be heading to Atlanta for the Southeast Renewable Energy conference being held at the Westin Atlanta Perimeter Hotel. We’re going to this networking event where the entire southeast renewable energy community gathers to get the latest insights into the market and to meet key players as well as clients and colleagues.

In the sessions on Thursday and Friday, we hope to learn about the key trends impacting renewable energy project development, finance and investment; meet with utility procurement managers; and engage in networking with the decision-makers who are driving the industry forward. If you are planning to attend, please look for me and let’s talk about renewable energy in Virginia and the Mid-Atlantic.

If you have questions about or issues in renewable energy, just contact any of our renewable energy lawyers.

SCC Approves First Renewable Energy Projects

offshore wind projectOn Friday, November 2, the Virginia State Corporation Commission (“SCC” or “Commission”) approved the first major renewable energy investments by Dominion Energy Virginia (“Dominion”) following the passage of Senate Bill 966 (“SB 966”), the sweeping utility overhaul legislation enacted in March. SB 966 provides that it is “in the public interest” for Dominion and Appalachian Power Company to purchase or construct up to 5,000 MW of new wind and solar energy resources. The legislation specifically states that a wind demonstration project located off Virginia’s coast would be “in the public interest.”

The SCC approved a 12 MW, $300 million offshore wind demonstration project proposed by Dominion, which will be constructed 27 miles off the coast of Virginia Beach. While finding the project to be prudent, the SCC’s Final Order strongly suggests that the application would have been rejected absent legislation deeming such projects to be “in the public interest” as a matter of law.

The Commission’s Final Order stated that the wind proposal “would not be deemed prudent [under this Commission’s] long history of utility regulation or under any common application of the term.” The SCC noted that the offshore wind project, which will be constructed by a Danish energy developer, was not subject to competitive bidding and that the energy costs will be “26 times greater than purchasing energy from the market” and “13.8 times greater than the cost of new solar facilities.” Finally, the Commission found that the project is not needed for Dominion to ensure reliability or meet any forecasted demand. Nonetheless, the Commission concluded that, “as a matter of law,” the Commission’s “factual analysis” of the reasonableness of the project is “subordinate [to] the legislative intent and public policy clearly set forth [by the 2018 amendments.”

The Commission also approved Dominion’s request to purchase 80 MW of solar energy via a power purchase agreement (“PPA”) with a non-utility company, Cypress Creek Renewables. The Commission noted that, unlike the offshore wind project, Dominion customers would be protected from financial and performance risks of the project since the utility is purchasing the energy from private developers.

The Final Order in the offshore wind matter (Case No. PUR-2018-00121) is available here and the Final Order in the solar PPA matter (Case No. PUR-2018-00135) is available here. Please contact one of our energy regulatory attorneys if you have questions about either of these cases.

We Shed Some Light on Solar PPAs in Fairfax

We were pleased to be involved in the Sierra Club’s presentation organized for local governments in the Northern Virginia area last month, as we detailed here. Afterward, the Sierra Club said:

“This briefing was sponsored by the Great Falls Group and held at the Fairfax County Government Center to educate the participants on the budget-neutral tools of solar Power Purchase Agreements (PPA) and Energy Savings Performance Contracts (ESPC). Presentation and handout information is available on the GFG website and the video recording is here.

Debra Jacobson had a lot of positive feedback from this event. There will be an article on this event for the next GFG Cascade.”

Here are a few pictures of the audience at the Government Center and Eric Hurlocker opening the panel.

If you want to know more about this meeting, Power Purchase Agreements, Energy Savings Performance contracts, or other issues in the renewable energy field, contact any of our energy lawyers.

Heading North for the Sierra Club

I am excited to have been invited by the Great Falls Group of the Sierra Club to join in the “Clean Energy Financing Workshop for Local Governments” that will be held this Friday (September 7) from noon to 1:30 p.m. at the Fairfax County Government Center. I’ll be talking about one of our favorite topics: solar power purchase agreements (SPPA), an accessible way for financing renewable energy projects that local governments can use.

This brown bag lunch event is free, but registration is required as space is limited. If you can’t make it on Friday, I understand you can register as a virtual attendee and get access to the video after the session. Maybe I will see you there. If we miss each other, I can answer any questions about this topic or renewable energy development here, or just contact one of our renewable energy lawyers.