By Matt Leonard
Capital News Service
Special to The Tidewater News

RICHMOND
After weeks of debate, Gov. Terry McAuliffe signed into law Tuesday a bill that will allow Dominion Virginia Power to forgo biennial base rate regulation by the State Corporation Commission while freezing electric rates for five years.

Dominion and other advocates of the legislation say it will help Virginia comply with the U.S. Environmental Protection Agency’s Clean Power Plan, which requires states to cut carbon emissions by 2030.

Sen. Frank Wagner, R-Virginia Beach, sponsored Senate Bill 1349, which was approved 32-6 by the Senate and 72-24 by the House. Wagner issued a statement thanking McAuliffe for signing the bill.

“I also encourage the governor to stand strong for Virginia and oppose any effort by the EPA to hold Virginia to a higher or different carbon dioxide emission standard than our neighboring states,” Wagner said.

He said Virginia is more severely affected by emission cuts than its neighboring states. The EPA has called on Virginia and nearby states to reduce emissions by these amounts:

· Kentucky: 18.3 percent

· Maryland: 36.5 percent

· North Carolina: 39.7 percent

· Tennessee: 38.8 percent

· Virginia: 37.5 percent

· West Virginia: 19.8 percent

Under SB 1349, Dominion will agree to freeze its base rates, which make up just over half of customers’ electric bills, for five years. During this period, the State Corporation Commission will not be able to conduct biennial reviews to see if the company has earned excessive profits. Past reviews have resulted in refunds to customers.

While critics say the legislation benefits the utility more than consumers, supporters say it will help keep electric rates stable during a time of uncertainty.

“This legislation will keep Virginia’s electric rates the lowest in the mid-Atlantic and among the cheapest in the nation, it will protect thousands of jobs and will provide certainty as businesses plan to locate, grow and expand in the commonwealth,” Wagner said.

He also said the bill calls for completion of a solar power facility in Virginia by 2020. McAuliffe cited that aspect of the legislation in a statement Tuesday.

“When this bill was introduced, I expressed concerns about several of its provisions. However, after working with the General Assembly to make several key changes, I have concluded that this legislation represents a net positive benefit to Virginians and to our economy,” McAuliffe said.

“This bill will make a dramatic expansion of Virginia’s renewable energy economy possible and will lead to lower energy bills for many families who may be struggling to keep up with their energy costs today.”