The times they are a changing…

Thanks to years of cumulative persistence, resistance, insistence, networking, dedicated hard work, and the urgent climate crisis, our allies have accomplished what was not possible years ago. That said, the resistance to this particular project started en force a mere 6 months ago… Deep gratitude.

Richmond, VA — Today, (June 26) the Virginia State Corporation Commission (SCC) issued a preliminary ruling against a controversial fracked-gas expansion project referred to as the “Header Injustice Project” by affected communities. Under the terms of the decision, the utility may re-apply for a permit but must comply with certain conditions that could prove extremely difficult to meet.  If the utility, Virginia Natural Gas (VNG), can show by December 31, 2020, that its main customer — the 1050-megawatt C4GT gas plant — has the financing it needs to build, VNG must also submit information about needed environmental justice analyses and confirm that it will protect VNG’s customers from unnecessary rate increases.

The second condition related to cost protections might prove especially challenging for VNG to meet. To shield VNG’s customers from “holding the bag” for the costs of the project should the gas plant cease operation, the Commission is requiring that the capital cost of the project must be recovered over 20 years instead of the 70 years proposed. VNG’s own rebuttal testimony recognized that “[t]here is a very real risk that if the entire cost of the Project is required to be amortized over 20 years that the Project will be cost prohibitive and not be completed.”

The Commission found that there was a “very real risk” that C4GT might shut down before VNG fully recovered the costs of the Project. In its 2020 session, the Virginia General Assembly voted to join the Regional Greenhouse Gas Initiative (RGGI), which will raise the cost of all carbon-emitting facilities in Virginia, making it more difficult for merchant facilities like C4GT, which sell energy and capacity into the regional power grid, to make a profit.

The Chesapeake Climate Action Network and the Sierra Club, represented by Appalachian Mountain Advocates, intervened in the proceeding and consistently raised concerns about the potential impacts to ratepayers from the proposed 70-year cost-recovery period, among other issues. The Chesapeake Bay Foundation also intervened as did the Southern Environmental Law Center on behalf of Appalachian Voices and Virginia Interfaith Power & Light.

Read the full press release: Chesapeake Climate Action Network

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