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Tel: 804.864.1100

VA SCC Grants Injunction, Orders Dominion to Move Customers

wind turbines and solar arraysThe Virginia Commission has entered an Order on Enrollments granting motions for injunctive relief filed by Calpine Energy Solutions, LLC and Direct Energy Business, LLC. In the Order, the Commission directed Dominion Energy Virginia to “immediately resume processing enrollment requests under Section A 5 for customers who wish to purchase from Direct Energy or Calpine.”

Under Va. Code Section 56-577 A 5 (“Section A 5”), a customer shall be permitted to purchase “electric energy provided 100 percent from renewable energy” from a competitive service provider (“CSP”) if the utility has not filed an approved 100% renewable tariff. To date, Dominion does not have an approved 100% renewable tariff, and several nonresidential customers, with multiple accounts, have signed contracts with Calpine and Direct, two CSPs, to take retail service under Section A 5.

In July, Dominion filed petitions for declaratory judgment asking the Commission to determine that Calpine and Direct had not demonstrated that they were providing “electric energy provided 100 percent from renewable energy” to their customers as required by Section A 5. Calpine and Direct are disputing Dominion’s allegations as well as Dominion’s proposed standard for providing service under Section A 5. In the interim, however, Dominion had refused to process pending and future enrollments until the case was decided.

On July 22, 2019, Calpine and Direct filed for injunctive relief, asking the Commission to require Dominion to process their respective customers’ enrollments – thereby allowing the customers to switch to Calpine and Direct – while the cases are pending.

The Commission held a hearing on the injunction on August 7 and held an expedited hearing on the merits of the cases on August 20, 2019.

In a footnote to the order, the Commission held that Calpine and Direct had satisfied the elements needed for the issuance of an injunction, including: (a) absent the instant order, Calpine and Direct Energy will suffer irreparable harm; (b) Calpine and Direct have no adequate remedy at law; and (c) the Commission is satisfied of Calpine’s and Direct Energy’s equity. The Commission also noted that “A temporary injunction allows a court to preserve the status quo between the parties while litigation is ongoing.”

Our firm is representing Calpine in the proceedings.

If you have questions about this case or electric service in general, please contact one of GreeneHurlocker’s energy and regulatory lawyers.