Virginia SCC approves utility asset transfers between Dominion, Potomac Edison

The Virginia State Corporation Commission on March 22 issued two orders granting the approval of certain utility asset transfers between Virginia Electric and Power d/b/a Dominion Energy Virginia and Potomac Edison.

As noted in one order, Dominion Energy Virginia and Potomac Edison in December 2018 filed a joint petition with the commission seeking approval for the acquisition by Dominion of certain transmission facilities from Potomac Edison relating to the Virginia portion of the 500-kV Mt. Storm-Valley Line, designated by Dominion as Line #550, and the acquisition by Dominion of certain transmission assets from Potomac Edison relating to the 500-kV Front Royal-Meadow Brook Line, designated by Dominion as Line #580 – collectively referred to as the transmission facilities.

Dominion requested that the commission approve and amend its certificates of public convenience and necessity (CPCNs) for its acquisition and operation of the transmission facilities under the Utility Facilities Act.

The commission added that in a March 1 report, its staff concluded that adequate service to the public at just and reasonable rates will not be impaired or jeopardized by the proposed transaction. Staff recommended that the commission grant Utility Transfers Act approval of the proposed transaction subject to certain requirements outlined in its report. The commission added that staff further recommended that the commission grant Utility Facilities Act approval for Dominion to revise its Virginia CPCN to reflect its acquisition of the transmission facilities.

The commission said that it finds that the proposed transaction will not impair or jeopardize the provision of adequate service at just and reasonable rates and, therefore, is approved subject to certain requirements, which include:

  • The commission’s approval is to have no accounting or ratemaking implications
  • Within 60 days of completing the proposed transaction, the companies are to file a report of action with the commission, subject to administrative extension by the commission’s director of the Division of Utility, Accounting and Finance. The report is to include such information as the effective date of the proposed transaction

The commission also said that upon the companies filing the report of action, it will issue the CPCNs to Dominion stating that Dominion is authorized to operate certain certificated transmission lines and facilities in Augusta County, Frederick County, Rockingham County, and Warren County.  

In a separate March 22 order, the commission noted that Dominion Energy Virginia and Potomac Edison in December 2018 filed a joint petition with the commission seeking approval for the disposition by Dominion and the acquisition by Potomac Edison of certain transmission facilities relating to the existing 500-kV Greenland Gap-Meadow Brook Line, designated by Dominion as Line #540 (Virginia facility).

Potomac Edison also requested that the commission approve and revise the CPCN authorizing its acquisition and operation of the Virginia facility, the commission said.

Potomac Edison and Dominion are co-owners of the existing Virginia facility, the commission said, adding that under a FERC interconnection agreement, Potomac Edison is the responsible party that performs the operations and maintenance of the Virginia facility.

As proposed, on the closing date of the proposed transaction, all easements and land rights associated with the Virginia facility would also be transferred to Potomac Edison to the extent appropriate. The commission added that according to the companies, following the proposed transaction, Potomac Edison would be the sole owner of the Virginia facility and, under PJM Interconnection’s functional control, would continue to provide service to the Allegheny Power and Dominion Transmission Zones.

Commission staff, in a March 1 report, concluded that adequate service to the public at just and reasonable rates will not be impaired or jeopardized by the proposed transaction. The commission added that staff recommended that the commission grant Utility Transfers Act approval of the proposed transaction subject to certain requirements outlined in an appendix attached to the staff report. Staff also recommended that the commission grant Utility Facilities Act approval for Potomac Edison to revise its Virginia CPCN to reflect its acquisition of the Virginia facility.

The commission added that upon the companies filing a report of action, the commission will issue a CPCN authorizing Potomac Edison “under the Uitlity Facilities Act to operate certificated transmission lines and facilities in Frederick County…”

The commission said that the proposed transaction is approved subject to certain requirements, including that its approval is to have no accounting or ratemaking implications.

About Corina Rivera-Linares 3054 Articles
Corina Rivera-Linares, chief editor for TransmissionHub, has covered the U.S. power industry for the past 15 years. Before joining TransmissionHub, Corina covered renewable energy and environmental issues, as well as transmission, generation, regulation, legislation and ISO/RTO matters at SNL Financial. She has also covered such topics as health, politics, and education for weekly newspapers and national magazines. She can be reached at clinares@endeavorb2b.com.