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Second in a Series: What’s in it for them? Why Dominion is Committed to ‘Selling’ the Atlantic Coast Pipeline to Virginians

August 2, 2016 By Editor

By Nigam Trivedi, Lehigh University

Those who argue in favor of construction or expansion of non-renewable facilities say it will create jobs. In that vein, advocates for Dominion’s Atlantic Coast Pipeline (ACP) point to the significant benefits it will have for Eastern North Carolina. To transport the fracked gas the 554 miles from West Virginia, however, the ACP will be routed through rural Virginia, which is not going to realize the same benefits from it.

In our last post, we shared an example of how the ACP poses risk to homeowners in and around its projected path. The issue, however, reaches deeper. The eminent domain granted to Dominion has already wreaked havoc on the lives of many Virginians, who have banded together to form “All Pain No Gain,” (APNG) to highlight the negative impacts the ACP will have on property owners, the environment, small businesses, public safety, local heritage and history.

Virginia Constitution Article I, Section 11 gives a utility, if granted the authority, the ability to use or cause ruin to any private property without the permission of the property owner as long as the effort is directed towards an effort of public service. Dominion has even asked the Virginia Outdoors Foundation to abdicate responsibility of 10 protected areas in favor of the ACP.

If the gas is going to North Carolina, is it truly a “public service” to Virginians? Since it won’t benefit Virginians, eminent domain shouldn’t be invoked for the ACP. This issue and others prompted Dominion to commission impact analyses from Chmura Analytics and ICF International, both of which they have used to substantiate the claim that the ACP will drive the creation of thousands of new jobs and create millions in economic benefits.

APNG disputes the studies, and says the ACP will spur a rise in energy prices for Virginians, while simultaneously creating less than 10 percent of the 9,000 jobs Dominion claims it will. In my opinion, it is always better to find a neutral source, such as the Synapse Energy Economics study commissioned by the Southern Environmental Law Center (SELC).

This study also counters the claims made in Dominion’s reports and noted that at least one of them has a noticeable lack of transparency and lacks clarity in the presentation of its data. SELC study leveled eight main criticisms against the ICF report, including the claim that the ACP will bolster reliability for regional consumers. To support the claim, the ICF used data from an electric utility based in Maryland and does not provide any data on reliability impacts that relate to the ACP in particular.

The SELC study also criticizes Dominion’s Chmura report for a shortage of data or assumptions relevant to its claims, specifically regarding whether ACP would provide tax revenue benefits for the states in which it will actually be located.

So why is Dominion working so hard to justify the construction of the ACP?

Pipeline surrounded by bundles of moneySimply put, it is profitable. In fact, current regulatory policy favors utilities that build pipelines for natural gas. Rates of return can be as high as 14% from a natural gas pipeline, compared to the average return of under 10%, despite the fact that the Federal Energy Regulatory Commission (FERC) has done little to verify the necessity of such a large rate of return. While the FERC can challenge the rate that a utility requests, it generally does not do so until after a pipeline is in service.

The FERC process actually incentivizes utilities to overbuild, because it does not require that a utility take into account regional demand in the area that it proposes to build. Also, the FERC will declare a pipeline necessary, if the would-be-builder has convinced a certain number of companies to join in on capacity for the line. As long as the pipeline has enough partners signed up for participation, FERC will approve their request.

If Virginia residents wish to protect their property rights and values, look out for their own economic interests, and preserve their physical environment for their safety and health, they need to ask, “What’s in it for me?” Currently, it seems that the answer is financial, environmental and human health risks – all at no benefit to Virginians and with great benefit to Dominion.

This is just another reason that the task falls on Virginia energy consumers to gain energy independence as quickly and effectively as possible and to push for a better mix of energy options for the commonwealth.

In his next post in this series, Nigam will compare the cost of renewables to the cost of the pipeline, the output from both scenarios and how each will affect ratepayers in Virginia.

Filed Under: Myth & Fact, Virginia Energy & Power Tagged With: All Pain No Gain, Atlantic Coast Pipeline, Dominion Power, eminent domain, facts, Federal Energy Regulatory Commission, pipeline, renewable energy, solar energy, Southern Environmental Law Center, Virginia agriculture, virginia energy, Virginia Outdoors Foundation, virginia renewable energy, Virginia Renewable Energy News

Creating Distributed, Adaptable, Resilient & Reliable Sources of Energy Will Help Protect America

May 12, 2016 By Editor

distributed-usaBy Karen Schaufeld

A gas well explosion in Pennsylvania continues to raise concern for the area, and it was a reminder that the way America produces and distributes energy is not only costly, but also exposes us to dangerous situations. In fact, relying on an electrical generation and distribution infrastructure that is more than 100 years old is so dangerous that a cohort of retired military leaders says it is a “national security imperative” to change the way America approaches the production and distribution of energy.

I recently read “National Security and Assured U.S. Electrical Power,” a report by the CNA Military Advisory Board, which outlines ways we can move away from the “vulnerabilities inherent in today’s grid” to a safer, more distributed infrastructure. The 36-page report calls for “a new approach to our nation’s power paradigm.”

Why? “Cities and regions get their power primarily from large clustered electric power producers,” and “electricity is typically transmitted over long distances, across vulnerable, high-voltage infrastructure.” That puts every step of the process at risk from attack, weather or other threats that could create sustained power outages and, frankly, cripple parts of our nation.

While we don’t know what caused the explosion in Salem Township, PA, we do know that it is a great example of how our traditional energy system works. The well and gas line involved are owned and operated by Texas Eastern Transmission and are connected to the grid of natural gas pipelines that crisscross the nation.

In addition to the potential for natural disasters, such as tornado or other extreme weather, the threat of targeted attacks is real and growing. From 2011 to 2014, according to the report, there were 362 targeted attacks that caused outages or other power disruptions. The Board calls this a distressing trend, which “requires us to consider the potential for even more serious assaults, with strategic consequences.”

Luckily, we are at a “unique point in history,” because advancing technologies and proven, innovative sources will allow us to produce electrical power closer to the consumer thereby reducing our reliance on the traditional grid.

One way we can do that is through distributed renewable energy sources, such as solar. By producing energy closer to consumers and breaking up the traditional grid, it will be much harder for adversaries and natural disasters to bring entire regions of our country down with a single, targeted attack.

“The new production paradigm will be driven by technological advances, demand for increased flexibility, more secure and lower-cost power, and a growing public demand for cleaner energy sources,” according to the report.

Assuring that we have reliable, accessible, sustainable, and affordable electric power is a national security imperative.

Filed Under: Myth & Fact Tagged With: coal, distributed energy, energy grid, natural gas, pipeline, renewable energy, solar energy, solar power, virginia energy laws, virginia renewable energy, Virginia Renewable Energy Legislation

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