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Doswell Letter To Virginia State Public Utility Commission and Attorney General Urges Suspension of Uncompetitive Solicitation Process for New Power Generation Peaking Resources

November 21, 2019 GMT

NEW YORK, Nov. 21, 2019 /PRNewswire/ -- LS Power, through its affiliate Doswell Limited Partnership, today announced that a letter was sent to the Virginia State Utility Commission and Attorney General encouraging the review and suspension of a Dominion Energy Virginia request for proposals for up to 1,500 MW of new peaking resources.

“The RFP limits participation to only new supply resources, does not provide for an independent third-party to evaluate responses, and includes other uncompetitive requirements that all but guarantees that a Dominion self-build option will prevail. Dominion’s ratepayers should get the benefit of a competitive auction and not have to be burdened with higher costs to benefit Dominion shareholders,” said Nathan Hanson, Senior Vice President of LS Power.

“We urge the Virginia State Public Utility Commissioner and Attorney General, in his capacity as consumer protector, to suspend the solicitation as it is currently structured, review the requirements, and implement changes that will make the process competitive, for the benefit of Virginia consumers.”

The full text of the letter is below.

November 18, 2019

William F. Stephens
Director of Public Utility Regulation
Virginia State Corporation Commission
P.O. Box 1197
Richmond, Virginia 23219

Mark R. Herring
Attorney General of Virginia
Office of the Attorney General
202 North Ninth Street
Richmond, VA 23219

Re: Dominion Energy Virginia 2019 Solicitation for Peaking Power Supply Generation, November 6, 2019

Dear Director Stephens/Attorney General Herring:

We write to you regarding our concerns related to the Dominion Energy Virginia (“Dominion”) solicitation (“RFP”) issued on November 6, 2019 to procure up to ~ 1,500 MW of new peaking resources. Bids will be compared to the projected costs of Dominion building all or a portion of the 1,500 MW of generation in the Commonwealth.

Typically an RFP is utilized to assure a competitive process that will achieve the lowest cost for the consumer. However, Dominion’s RFP is structured in such a way that it limits competition and will not provide the competitive results that will ensure the consumers in Virginia and not the shareholders of Dominion are the beneficiaries of the process.

We respectfully request that you intervene in your capacity as regulators and the protectors of consumers’ interest to suspend the current RFP process in order to thoroughly review the requirements of the process and make the necessary changes to ensure it is truly competitive.

Among the areas to be reviewed that we believe make the current RFP uncompetitive and need to be revised include:

Without the changes described above it is likely that this uncompetitive process will not provide the results that will ensure the ratepayers of Dominion are receiving the benefits in the form of low rates that a truly competitive process can provide. Left in its current form, the supposedly “competitive” process will only ensure that the ratepayers are not receiving the most competitive rates achievable.

Respectfully submitted,

/s/ Nathan Hanson

Nathan Hanson
Doswell Limited Partnership

About LS Power:
Founded in 1990, LS Power is a privately owned, independent power company with offices in New York, New Jersey, Missouri, California and Texas. LS Power is a developer, owner, operator and investor in power generation and electric transmission infrastructure throughout the United States. Since inception, LS Power has developed, constructed, managed or acquired more than 41,000 MW of competitive power generation and 630 miles of transmission infrastructure, for which it has raised over $40 billion in debt and equity financing. For more information, please visit www.LSPower.com

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SOURCE LS Power