A Look into Dominion’s Lobbying Practices

The Richmond Times Dispatch, in collaboration with ProPublica, released an eye-opening piece on Dominion Energy’s lobbying practices and the influence it has gained over the General Assembly.

In the article, readers are taken through the introduction and passage of Virginia’s Clean Economy Act. This was an omnibus bill passed in the most recent legislative session with progressive renewable energy goals. It was proposed by environmentalists and championed by Democrats, but over the course of the 2020 session Dominion’s lobbyists managed to alter the bill very much in the company’s favor.

Some alterations include:

1.     An increased allowable cost of $2.8 billion for Dominion’s offshore wind project.

2.     A mandate that Dominion own the offshore wind development.

3.     Language that makes the project “in the public interest,” which forces the SCC to approve it.

The most remarkable discovery made by RTD’s investigation is not the changes themselves, but the process by which they came about. The original bill was developed by environmental groups. When it became clear that this would be a contentious proposal, the bill’s sponsors, Delegate Sullivan and Senator McClellan, asked stakeholders to negotiate the language among themselves. 

Over the next 11 weeks lobbyists negotiated. During the formal negotiation, other parties felt that Dominion was simply using delay tactics, stating regularly that the proposal was too costly. The negotiations seemed to stall, but the language that ended up back in the General Assembly was decidedly favorable to Dominion. Neither the stakeholders nor the bill sponsors could pinpoint when the language was changed.

Through these lobbying practices and campaign contributions, Dominion has long seen favorable legislative outcomes. It is because of this practice that Virginians see soaring electricity bills. The SCC reported utility bills have increased 29% since 2007, largely because of new construction. Estimates also suggest residential electric bills will increase by an average of $70 per month over the next decade, much of which is due to the Clean Economy Act’s unintended consequences paired with changes favorable to Dominion. According to U.S. Energy Information Administration, Virginia’s residents pay some of the highest bills in the entire country.

Utility rhetoric around “keeping the lights on” has frightened the public and bullied regulators. This disingenuous argument has been used to justify building unnecessary and expensive projects. Now that Virginia’s leaders are setting emissions reduction goals, Dominion is overblowing the cost and size of renewable energy projects to secure unreasonable returns.

We as consumers must remain informed and involved. With increased efficiency and falling costs, renewable energy is more viable than ever. We cannot allow utilities to hijack and monopolize the conversation around reshaping our electric grid.

Your dedication to our mission is more important than ever and we thank you for your engagement!