Dominion is selling the electricity side of its competitive retail energy business and hopes to have a transaction closed in the next several months. “It just doesn’t fit our business model,” CEO Tom Farrell told analysts, according to an earnings call transcript from Seeking Alpha.
Shrinking margins and higher volatility have struck other retailers, too, Farrell observed. “It’s a volatile market out there. We are not going to quantify it for you, but it’s extraordinary to watch.”
At the same time, the company said it would expand its portfolio of contracted utility-scale solar projects by nearly 250 MW, with projects coming online in 2014 and 2015.
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Court OKs Incentives for Dominion Tx Projects
The Fourth Circuit ruled that the Federal Energy Regulatory Commission properly granted incentives to a Dominion unit for five transmission projects, rejecting the claims of North Carolina utility regulators that the commission abused its discretion (case #12-1881).
The North Carolina Utilities Commission had challenged the incentives FERC granted in 2008 to five Virginia Electric & Power Co. transmission projects under FERC order 679. The North Carolina commission contended that four of the five projects didn’t satisfy a three-prong test to determine eligibility for incentives.
More: Law360
Former Duke Chief Rogers Would Be Utility ‘Attacker’
If he were starting in the business today, former Duke Energy chief Jim Rogers would go all out for solar roofs and would be an “attacker, not a defender” of the traditional utility model. In an interview with EnergyBiz magazine, Rogers spoke of “a continuing battle between central and distributed generation.”
The Alliance for Solar Choice welcomed Rogers’ remarks and urged him to persuade Duke and the utility industry to “see a better way forward” instead of defending their central-station model.
More: EnergyBiz; Alliance for Solar Choice
FERC to Audit Duke Merger
The Federal Energy Regulatory Commission told Duke Energy it would audit the utility’s compliance with conditions FERC put on its 2012 merger with Progress Energy. The conditions included making power sales to third parties while North Carolina transmission upgrades that would ease competition concerns were completed. A Duke spokesman said the upgrades were ahead of schedule, and Duke was complying with other conditions.
More: Charlotte Observer
Eyes on Exelon IRS Dispute
Tax experts are closely watching Exelon’s challenge of a $517 million tax bill stemming from transactions in 1999, when the company sold some power plants and acquired others in what it characterized as a tax-free exchange. The Internal Revenue Service says the transactions were taxable and the matter awaits Tax Court resolution. If Exelon loses, such transactions risk being viewed by the IRS as “abusive tax shelters,” tax lawyers said. No trial date been set.
More: Reuters
Exelon Sets Nuclear Record
Exelon Generation’s 10 nuclear plants in Illinois, Pennsylvania and New Jersey produced 134 million net MWh in 2013, their highest output ever, exceeding the previous record set in 2007. The plants operated at a 94.1% capacity factor.
More: MarketWatch
AEP Launches Liquid Cargo Business
AEP River Operations, a subsidiary of American Electric Power, received the first of 20 tank barges that will constitute its new Liquids Division. Starting Feb. 20, the unit’s barges will carry liquid cargoes, including petrochemicals and agricultural chemicals. “Entering the liquid cargo market means we can offer our customers a more complete range of services,” company President Keith Darling said.
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