Native Load

Native Load

Jul 12 - Richmond Times - Dispatch

By January 1, Dominion Virginia Power and American Electric Power most likely will have turned over their transmission lines to PJM Interconnection, the nation's largest regional transmission entity. PJM insists it can work with states that have fully restructured the generation, transmission, and distribution of electricity and with states that have neither deregulated electric utilities nor unbundled their electricity services. It says it plays well with others, including those having ventured into retail competition and those that haven't - e.g., states such as Virginia that still cap rates. Critics have raised questions about Dominion and AEP joining PJM - but have they raised the right one?

Most are focusing on the rate caps. PJM offers the state's two largest electric utilities access to less costly electricity generated by PJM-affiliated utilities in the Midwest, where coal- fired and nuclear plants are prevalent. So some consumer groups suggest the "caps" may actually prove financial windfalls specifically to Dominion. In other words, Dominion could generate, transmit, and distribute electricity far more cheaply than the rates consumers are locked into paying until 2011.

Another criticism faults legislators for allowing Dominion to collect from its customers the costs associated with PJM. Some argue that instead of passing off those costs, the utility ought to use the foreseen rate-cap profits for starting up with PJM.

But the question mostly ignored is this: What control will the State Corporation Commission - even Dominion and AEP - have regarding native load, i.e., the electricity covering the customer base? If, as the Federal Energy Regulatory Commission suggests, states can pull no strings to protect their native load, then can PJM brown-out rate-paying Virginians to avert a blackout elsewhere? Should Virginia generating units be called into interstate duty when on certain hot and cold days the Commonwealth needs nearly all its generating capacity to cool and heat its own office buildings and houses?

The native-load question deserves a prompt response.

For far more extensive news on the energy/power visit: http://www.energycentral.com .