The Virginia State Corporation Commission determined in an order issued July 15 that Dominion Energy’s 2024 Integrated Resource Plan was legally sufficient, but it ordered changes to the utility’s future IRPs.
“The commission emphasizes, though, that such acceptance does not express approval in this final order of the magnitude or specifics of Dominion’s future spending plans, the costs of which will significantly impact millions of residential and business customers in the monthly bills they must pay for power,” the SCC said.
State law requires at least 15 years of planning in an IRP, but it gives the regulator flexibility to require more time. Dominion must file plans that look 20 years out, in line with PJM’s 20-year forecast window. That also will help the IRP be better coordinated with the utility’s planning to meet Virginia’s renewable portfolio standard.
The utility also will have to submit at least one scenario where its generation plans are in line with the default carbon targets in the Virginia Clean Economy Act.
In the next IRP, Dominion will have to model increasing its annual build limits for storage and investigate long-duration storage as those technologies become commercially viable. Dominion also must model higher levels of efficiency for 2026 through 2028, which will influence its use of demand-side management.
Its next filing also must include a narrative discussion of its potential use of grid-enhancing technologies and advanced conductors, especially using them to ensure reliability and safeguarding the physical and cybersecurity of the distribution system.
Dominion will be required to keep using PJM’s demand forecast, minus efficiency targets and separating out the load associated with data centers, the order said.
A statement from the utility welcomed the SCC’s thorough review and said it would follow the new requirements for its future IRPs.
“Our customers are using 5% more power each year, and demand is expected to double in 10 years. This is the largest growth in power demand since the years following World War II,” a Dominion spokesperson said in the statement. “We’re focused on serving our customers’ growing needs with reliable, affordable and increasingly clean energy. We’re investing in new power generation from every source, grid upgrades to strengthen reliability and energy efficiency programs to help our customers save.”
Most of the new power generation being developed is from carbon-free resources, including the Coastal Virginia Offshore Wind project. It’s the largest offshore wind project being built in the country, and Dominion has the third largest solar fleet. The growing demand also will require natural gas, because renewables are not always available, the company said.
Clean Virginia, which was an intervenor in the IRP case, welcomed the changes from the SCC but called for further reforms so that monopoly utilities no longer control the planning process.
“This latest order underscores how broken Virginia’s energy planning process is,” said Clean Virginia Deputy Director Dyanna Jaye. “Year after year, Dominion files plans that ignore clean energy requirements, lock in expensive fossil fuel infrastructure and drive up electric bills. By recognizing the harm this process can cause to Virginia families and businesses, the commission has taken a step in the right direction by calling for significant reforms moving forward.”
Dominion said it was focused on keeping rates affordable and delivering value for its customers.
“Our residential rates remain below the national average, and they’re projected to grow by less than 3% a year,” its spokesperson said. “At the same time, we’re delivering more reliable service by burying power lines in the most outage-prone areas. That’s substantially reducing storm-related outages and shortening restoration times for our customers.”
