Dominion Works To Stimulate Competition; Pilot
Programs Would Be More Attractive To Suppliers
RICHMOND, Va. - Dominion Virginia Power is proposing
two significant revisions to its retail access pilot programs to encourage further
development of a competitive electricity supply market in Virginia.
First, the company asked the Virginia State Corporation
Commission to eliminate the competitive transition charges, or wires charges,
for pilot participants. Second, Dominion asked the Federal Energy Regulatory
Commission to approve a new backup supply service for competitive retail suppliers
that would ensure their ability to serve their customers.
Taken together, the proposals should remove two
barriers that competitive suppliers have told the company block their ability
to participate in the pilot programs.
"Dominion is committed to helping make competition
work in Virginia. One of the main goals of the pilots is helping determine the
best methods for fostering customer choice," said Thomas F. Farrell II,
president and chief operating officer. "The proposed changes are designed
to help make Virginia more attractive to competitive suppliers. If these pilots
are successful, we will have created a firm foundation for the development of
retail electric markets."
The competitive transition charge set annually
by the SCC is designed to help utilities recover past costs. The company proposed
and the SCC approved last September a 50 percent reduction in the charge for
pilot participants. But competitive suppliers said further reductions were needed
because market prices for electricity had risen significantly in recent months.
Eliminating the competitive transition charge for pilot customers should provide
the opportunity for attractive offers to be made to customers.
In its FERC filing, Dominion said delays in integrating
the company with its chosen regional transmission organization, PJM Interconnection
LLC, had made it difficult for competitive suppliers to acquire transmission
service to get their electricity to Virginia. Under the proposal, Dominion would
provide backup energy when necessary, for a limited time, to allow the competitive
supplier to continue serving its pilot customers. This interim backup service
would end once Dominion integrates its transmission system into PJM.
For participants in the company's pilot programs,
approval of these proposals would mean competitive suppliers would have a better
opportunity to develop attractive price offers for potential customers. Dominion
expects the program to provide valuable experience for customers, suppliers,
utilities and regulators as Virginia develops a competitive electricity marketplace.
Regardless of which company supplies the power,
Dominion Virginia Power, will continue to deliver electricity to customers and
maintain the company' wires, poles and equipment. Any time during the pilot
program, customers can return to Dominion for electricity supply service at
their current rate, which is capped until Dec. 31, 2010.
Dominion is one of the nation's largest producers
of energy with an energy portfolio of more than 24,000 megawatts of generation.
Dominion also serves 5.3 million retail energy customers in nine states. For
more information about Dominion, visit the company's Web site at www.dom.com.
