VA: New law sweetens pot for Dominion’s utility-scale solar

Virginia has enacted legislation (H.B. 2237) that provides an enhanced rate of return for a utility’s (i.e., Dominion’s) construction or purchase of solar facilities larger than 1 MW that are located in the state. The utility may propose a rate adjustment clause based on a market index in lieu of a typical cost-of-service model for such a facility. The bill also contains language creating a somewhat ill-defined and possibly tenuous requirement that projects must be developed in whole or in part using Virginia goods and services, allows utilities to purchase power from these facilities prior to purchasing the facility itself, and places an overall cap of 500 MW on the measure. H.B. 2237 further states that utility-owned solar facilities are in the public interest, which is a basic criterion that must be met in order to secure the favorable rate treatment.