Virginia Law Requires Regulators to Review Cost Recovery of Early Power Plant Retirements

Virginia lawmakers approved legislation on March 5 that requires the State Corporation Commission to determine the amortization period for the recovery of any costs associated with the early retirement of coal and natural gas generation.

The commission is tasked with performing an independent analysis of economic factors pertaining to the operation of each electric utility’s fleet of coal- and gas-fired power facilities and establish the criteria to determine when the operation of such facilities becomes uneconomical.  The commission should determine the remaining undepreciated capital costs and establish a recovery period that best serves ratepayers.