Dominion Energy's Market-Based Rate Authority Update

Strategic Insights -

The Federal Energy Regulatory Commission (FERC) has accepted the notice of change in status submitted by Dominion Energy, a leading electricity and gas utility company, for its market-based rate authority. The update pertains to Dominion Energy's commercial operation of numerous generation facilities across various regional markets. The company's market power analysis and monitoring regime have been deemed sufficient to address potential market power concerns.

Key Takeaways:

  • Dominion Energy's 1,329 MW facility in the PJM Interconnection, L.L.C. market has entered commercial operation.
  • The company's solar generation facilities in the ISO New England Inc., Southern Company, Tennessee Valley Authority, Midcontinent Independent System Operator, and California Independent System Operator Corp. markets have also commenced commercial operation.
  • Dominion Energy relies on Dominion Energy Marketing, Inc.'s market power analysis for the pivotal supplier and wholesale market share screens in the PJM market and its submarkets.
  • While the company passes the pivotal supplier screen and wholesale market share screen in the PJM market and PJM-East submarket, it fails the wholesale market share screen in the AP South submarket.
  • The FERC-approved market monitoring and mitigation rules administered by the PJM market are deemed sufficient to address market power concerns.
  • The Dominion Sellers' submittals satisfy the Commission's requirements for market-based rates regarding horizontal market power.
  • The notice of change in status was accepted for filing without prejudice to any findings or orders made in pending or instituted proceedings.
  • Requests for rehearing by the Commission may be filed within 30 days of the date of issuance.

Statistics:

  • 1,329 MW facility in the PJM market
  • 5 MW solar generation facility in the ISO New England Inc. market
  • 8 MW solar generation facility in the Southern Company market
  • 32 MW of generation capacity in the Tennessee Valley Authority market
  • 28.6 MW of generation capacity in the Midcontinent Independent System Operator market
  • 159 MW of generation capacity in the California Independent System Operator Corp. market
  • $ billion: Not specified
  • 30 days: Timeframe for filing requests for rehearing

Sources:

  • Federal Energy Regulatory Commission (FERC)
  • Dominion Energy
  • Dominion Energy Marketing, Inc.
  • PJM Interconnection, L.L.C.
  • ISO New England Inc.
  • Southern Company
  • Tennessee Valley Authority
  • Midcontinent Independent System Operator
  • California Independent System Operator Corp.