NOTICE TO THE PUBLIC OF

VIRGINIA ELECTRIC AND POWER COMPANY'S

REQUEST TO DECREASE ITS FUEL FACTOR

CASE NO. PUE-2012-00050

 

     On May 2, 2012, Virginia Electric and Power Company

("Dominion Virginia Power" or "Company") filed with the State

Corporation Commission ("Commission") its application

("Application"), written testimony, and exhibits requesting to

decrease its fuel factor rate from 3.289 cents per kilowatt-hour

("¢/kWh") to 2.706¢/kWh, effective for usage on and after July 1,

2012.

 

     The Company's proposed total fuel factor, Fuel Charge

Rider A, consists of both a current and prior period factor. Fuel

Charge Rider A's proposed current period factor of 2.589¢/kWh is

designed to recover the Company's estimated Virginia

jurisdictional fuel expenses of approximately $1 .7 billion for the

period July 1, 2012, through June 30, 2013 . Fuel Charge Rider A's

proposed prior period factor of 0.117¢/kWh is designed to recover

approximately $78.3 million in estimated Virginia jurisdictional

fuel expenses, which represents the net of: (1) a projected

$196.1 million over-recovery balance associated with recovery of

fuel expenses incurred for the period July 1, 201 1, through

June 30, 2012; and (2) a projected under-recovery balance of

$274.4 million associated with the recovery of fuel expenses

incurred for the period July 1, 2010, through June 30, 201 1, under

the mitigation proposal approved by the Commission in the

Company's 2011 fuel factor proceeding, Case No. PUE-201 I -

00045 . According to the Company's Application, the Company

experienced an over-recovery during the July 1, 2011 - June 30,

2012 fuel period that was influenced primarily by lower than

expected commodity and power prices and by unusually mild

weather conditions.

 

     In total, the proposed fuel factor represents a 0.583¢/kWh

decrease from the fuel factor rate presently in effect (3.289¢/kWh),

as approved in Case No. PUE-2011-00045. According to the

Company, its proposal would result in an annual fuel revenue

reduction of approximately $388.8 million when applied to the

Company's projected kWh sales. The proposed fuel factor would

decrease the average weighted monthly bill of a typical residential

customer using 1,000 kWh of electricity by $5.83, or

approximately 5.2%.

 

     The Commission entered an Order Establishing 2012-2013

Fuel Factor Proceeding ("Order") that, among other things,

scheduled a public hearing to commence at 10 a.m. on

September 6, 2012, in the Commission's second floor courtroom in

the Tyler Building, 1300 East Main Street, Richmond, Virginia

23219, to receive testimony from members of the public and

evidence related to the Application . Any person desiring to testify

as a public witness at the hearing should appear in the

Commission's second floor courtroom at 9:45 a.m. on the day of

the hearing and identify himself or herself to the Commission's

Bailiff. Individuals with disabilities who require an

accommodation to participate in the hearing should contact the

Commission at least seven (7) days before the scheduled hearing at

1-800-552-7945 (voice) or 1-804-371-9206 (TDD).

 

     The public version of the Company's Application, prefiled

testimony, and exhibits is available for public inspection during

regular business hours at all of the Company's offices in the

Commonwealth of Virginia. A copy of the public version of the

Company's Application also may be obtained by written request to

counsel for Dominion Virginia Power, Mark O. Webb, Esquire, or

William H. Baxter, II, Esquire, Dominion Resources Services, Inc.,

120 Tredegar Street, Richmond, Virginia 23219. Dominion

Virginia Power shall make a copy available on an electronic basis

upon request.

 

     Interested persons also may review a copy of the public

version of the Company's Application in the Commission's

Document Control Center, located on the First Floor of the Tyler

Building, 1300 East Main Street, Richmond, Virginia 23219,

between the hours of 8:15 a.m. and 5 p.m., Monday through

Friday, excluding holidays. In addition, unofficial copies of the

Application, Commission orders entered in this docket, the

Commission's Rules of Practice and Procedure ("Rules of

Practice"), as well as other information concerning the

Commission and the statutes it administers, may be viewed on the

Commission's website: http://www.scc.virginia.gov/case.

 

     On or before August 31, 2012, any person desiring to file

written comments on the Company's Application shall file such

comments with Joel H. Peck, Clerk, State Corporation

Commission, c/o Document Control Center, P.O. Box 2118,

Richmond, Virginia 23218-2118. Any person desiring to file

comments electronically may do so, on or before August 31, 2012,

by following the instructions found at the Commission's website :

http://www.scc.virginia.gov/case. Compact discs or any other

form of electronic storage medium may not be filed with the

comments. All comments shall refer to Case No.

PUE-2012-00050.

 

     On or before July 24, 2012, any interested person may

participate as a respondent in this proceeding by filing a notice of

participation. If not filed electronically, an original and fifteen

(15) copies of the notice of participation shall be filed with the

Clerk of the Commission at the address set forth above and shall

simultaneously be served on counsel to the Company at counsel's

address set forth above. Pursuant to Rule 5 VAC 5-20-80 B,

Participation as a respondent, of the Commission's Rules of

Practice, any notice of participation shall set forth: (i) a precise

statement of the interest of the respondent; (ii) a statement of the

specific action sought to the extent then known; and (iii) the

factual and legal basis for the action . All filings shall refer to Case

No. PUE-2012-00050. Interested persons should obtain a copy of

the Commission's Order for further details on participation as a

respondent.

 

     On or before July 24, 2012, each respondent may file with

the Clerk of the Commission, and serve on the Commission's Staff,

the Company, and all other respondents, any testimony and

exhibits by which the respondent expects to establish its case. If

not filed electronically, an original and fifteen (15) copies of such

testimony and exhibits shall be submitted to the Clerk of the

Commission at the address set forth above. In all filings, the

respondent shall comply with the Commission's Rules of Practice,

including: 5 VAC 5-20-140, Filing and service; 5 VAC 5-20-150,

Copies and format; and 5 VAC 5-20-240, Prepared testimony and

exhibits. All filings shall refer to Case No. PUE-2012-00050.

 

 

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NOTICE TO THE PUBLIC OF AN APPLICATION BY

VIRGINIA ELECTRIC AND POWER COMPANY

FOR APPROVAL OF A RATE ADJUSTMENT CLAUSE

CASE NO. PUE-2012-00052

 

     On May 2, 2012, Virginia Electric and Power Company

("Dominion Virginia Power" or "Company"), pursuant to

§ 56-585.1 A 4 ("Subsection A 4") of the Code of Virginia

("Code"), submitted an application with the State Corporation

Commission ("Commission") for approval of a rate adjustment

clause ("RAC") designated as Rider T I ("Application").

Subsection A 4 allows an investor-owned electric utility to recover,

with Commission approval, certain costs through a RAC and

deems to be prudent the "costs for transmission services provided

to the utility by the regional transmission entity of which the utility

is a member" and "costs charged to the utility that are associated

with demand response programs approved by the Federal Energy

Regulatory Commission [("FERC")] and administered by the

regional transmission entity of which the utility is a member."

 

     The Application states that, effective May 1, 2005,

Dominion Virginia Power became a member of PJM

Interconnection, L.L.C. ("PJM"), a regional transmission entity and

FERC-approved regional transmission organization. The

Company, as an integrated electric utility member of PJM, obtains

transmission service from PJM and pays PJM charges for such

service at the rates contained in PJM's open access transmission

tariff approved by the FERC. The Company states that it also pays

PJM charges for costs associated with demand response programs

approved by FERC and administered by PJM.

 

     The Commission has previously approved the recovery of

Subsection A 4 costs through a RAC designated as Rider T in Case

Nos. PUE-2009-00018 ("2009 Rider T Case"), PUE-2010-00006

("2010 Rider T Case"), and PUE-2011-00044 ("2011 Rider T

Case"). Consistent with the Commission's November 30, 2011

Final Order in the Company's biennial review, Case No.

PUE-2011-00027, and § 56-585 .1 A 3 ("Subsection A 3") of the

Code, Dominion Virginia Power combined its existing 201 1

Rider T rates into the Electricity Supply Service portion of base

rates. The Company states in its Application that, to implement

Subsection A 3 for purposes of this proceeding, it will continue to

identify and track separately the revenues of the existing Rider T,

thus preserving deferral accounting and dollar-for-dollar recovery

of all qualifying costs as previously approved by the Commission.

 

According to its Application, Dominion Virginia Power

seeks to recover its Subsection A 4 costs through a combination of

base rates and a new increment/decrement RAC, designated as

Rider TI. The Company asserts that Rider TI is designed to

recover the increment/decrement between revenues produced from

the Commission-approved 2011 Rider T, now combined with base

rates, and the new revenue requirement developed from the

Company's Subsection A 4 costs for the rate year.

 

Specifically, the Company has proposed a Rider TI that, if

approved, would produce a revenue requirement for the rate year

of $372,900,596. This represents an annual revenue decrease of

$99,556,568. The Company's proposed Rider T1 would be

effective for usage during the rate year of September 1, 2012,

through August 31, 2013 .

 

     The Company does not propose for Rider TI any changes

from the cost allocation and rate design methodologies previously

approved for Rider T. According to the Company, while

Dominion Virginia Power has engaged in discussions with

interested parties with respect to rate design modifications for the

GS-4 rate class, as was agreed in the 2010 Rider T Case, no

consensus was achieved. Dominion Virginia Power asserts that it

has notified those interested parties of its intention not to propose

any such modification in this proceeding.

 

The Commission entered an Order for Notice and Hearing

("Scheduling Order") that, among other things, scheduled a public

hearing to commence at 10 a.m. on June 25, 2012, in the

Commission's Second Floor Courtroom, Tyler Building, 1300 East

Main Street, Richmond, Virginia 23219, for the purpose of

receiving testimony from members of the public and evidence

related to the Company's Application. Any person desiring to offer

testimony as a public witness at the hearing on the Company's

Application need only appear in the Commission's Second Floor

Courtroom in the Tyler Building at the address set forth above

prior to 9 :45 a.m. on the day of the hearing and identify himself or

herself to the Commission's Bailiff. Individuals with disabilities

who require an accommodation to participate in any hearing

should contact the Commission at least seven (7) days before the

scheduled hearing at 1-800-552-7945 (voice) or

1-804-371-9206 (TDD).

 

     The Company's Application and the Commission's

Scheduling Order are available for public inspection during regular

business hours at all of the Company's offices in the

Commonwealth of Virginia. Interested persons may also review

the Company's Application in the Commission's Document Control

Center, located on the First Floor of the Tyler Building, 1300 East

Main Street, Richmond, Virginia 23219, between the hours of

8:15 a.m. and 5 p.m., Monday through Friday, excluding holidays.

A copy may also be obtained, at no cost, by written request to

counsel for the Company, William H. Baxter 11, Esquire,

Dominion Resources Services, Inc., 120 Tredegar Street,

Riverside-2, Richmond, Virginia 23219. In addition, unofficial

copies of the Company's Application, Commission orders entered

in this docket, and the Commission's Rules of Practice and

Procedure, 5 VAC 5-20-10 et seq., as well as other information

concerning the Commission and the statutes it administers, may be

viewed on the Commission's website :

http://www.scc.virizinia.gov/case.

 

     Any interested person may participate as a respondent in

this proceeding by filing, on or before June 8, 2012, a notice of

participation . If not filed electronically, an original and fifteen

(15) copies of the notice of participation shall be submitted to

Joel H. Peck, Clerk, State Corporation Commission, c/o Document

Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118.

A copy of the notice of participation simultaneously shall be

served on counsel to Dominion Virginia Power at the address set

forth above. Pursuant to Rule 5 VAC 5-20-80, Participation as a

respondent, of the Commission's Rules of Practice and Procedure,

any notice of participation shall set forth: (i) a precise statement of

the interest of the respondent ; (ii) a statement of the specific action

sought to the extent then known; and (iii) the factual and legal

basis for the action. Interested persons shall refer in all of their

filed papers to Case No. PUE-2012-00052.

 

     On or before June 15, 2012, each respondent may file with

the Clerk of the Commission, and serve on counsel to the

Company, the Commission's Staff, and all other respondents, any

testimony and exhibits by which the respondent expects to

establish its case. If not filed electronically, an original and fifteen

(15) copies of such testimony and exhibits shall be submitted to the

Clerk of the Commission at the address set forth above.

Respondents shall comply with the Commission's Rules of Practice

and Procedure, including: 5 VAC 5-20-140, Filing and service ;

5 VAC 5-20-150, Copies and format; and 5 VAC 5-20-240,

Prepared testimony and exhibits. Respondents shall refer in all of

their filed papers to Case No. PUE-2012-00052.

 

     Also on or before June 15, 2012, any interested person may

file with the Clerk of the Commission, at the address set forth

above, written comments on the Application . On or before June

15, 2012, any interested person desiring to submit comments

electronically may do so by following the instructions found on the

Commission's website: http://www.scc.virpinia.gov/case . All

comments shall refer to Case No . PUE-2012-00052.