$16.1 Million Spent on Lobbying, Report Says

Jul 17 - Virginian - Pilot

Utility giant Dominion spent more than $942,300 in the past 12 months lobbying state officials and polishing its public image, a five-fold increase over the previous year, according to documents released by state officials Monday.

The energy conglomerate Dominion Resources and its subsidiary, Dominion Virginia Power, deployed 17 lobbyists to work the halls of the General Assembly this winter as the power company struggled to win support for two controversial initiatives.

Dominion won approval for a new regulatory system that offers the utility generous incentives to build nuclear power plants. The legislation caps rate increases at 4 percent annually for three years.

Although that action protected customers from an expected rate spike this summer caused by high fuel costs, consumer advocates argued that, under the deal, Dominion will be allowed to collect profits beyond what is necessary to be competitive with other utilities .

Dominion also waged a public relations campaign in Northern Virginia for its proposed 64-mile transmission line, which has drawn opposition from property owners and historic preservation groups.

The utility lobbyists were not the only ones spending large sums to win allies among state lawmakers and other government leaders. A coalition of payday lenders spent more than $647,700 in a successful fight to block caps on the interest rates for short-term loans .

Colonial Downs, which owns a horse track in New Kent County and off-track betting parlors across the state, spent nearly $214,600 in a failed effort to win approval for a new electronic horse racing game.

In total, corporations and advocacy groups reported spending nearly $16.1 million to woo legislators and state leaders over the past year, up from $15.4 million in 2005-06. The reports must be filed annually by July 1.

Dominion spent nearly $289,000 for a mailing about the transmission line to more than 600,000 customers in Northern Virginia. The line was the subject of most of the company's $390,500 in reported media advertising, according to spokesman Jim Norvelle.

The power company spent more than $50,000 to entertain legislators at restaurants, football games, NASCAR races and other events. One of the most frequent guests on those outings was Sen. Frank Wagner, R-Virginia Beach , who is active on energy policies . Dominion lobbyists reported taking him to dinner three times and paying $437 for a golf outing for him and another state senator. The utility also flew Wagner and Gov. Timothy M. Kaine home on its corporate plane from a national gubernatorial conference last summer.

Wagner did not return calls for comment Monday evening. The governor took a commercial flight to the conference, but stayed afterward to tour some offshore oil facilities and flew back on Dominion's plane, said his spokesman, Kevin Hall.

Christina Nuckols, (804) 697-1562 or christina.nuckols@pilotonline.com