Energy Efficiency, Regulation, Sourcing Renewables  -  May 17, 2018

Virginia biomass case challenges state’s renewable market

A biomass company that wants to sell power to Ferrum College, a small, private college in Virginia, is challenging regulators’ interpretation of the state’s competitive supplier law.

Last month, the State Corporation Commission rejected English Biomass’ arrangement with the college to provide 25% percent of the school’s electricity, according to a report by the Energy News Network. While Virginia law allows large customers to shop around for renewable power, the commissioners said such contracts have to cover 100% of customers’ power needs.

An attorney for English Biomass filed an appeal to the state’s Supreme Court on May 10 to dispute the commission’s "all-or-nothing" interpretation of the law.  "We think the commissioners read the statute incorrectly," said Attorney Eric Page. "We are going to get the Supreme Court to tell them what the General Assembly really meant."

The report noted that a while a court victory is likely a longshot, a win for the biomass startup could have big implications for the state’s renewable energy market. "If we win this appeal, we will not be the savior of renewable energy in Virginia," Page said, "but I think it will encourage competitors to come in and build small facilities to supply small amounts of renewable energy to customers."

Supporting Page’s challenge that the Commission’s interpretation of the law is incorrect is the state attorney general’s office, which agrees that load-splitting is acceptable. "It is not practical to expect a renewable portfolio to provide 100 percent renewable energy in every hour of every day," the office’s Division of Consumer Counsel wrote in an October opinion filed with the SCC.

However, Attorney Noelle Coates, who represents Appalachian Power, the college’s utility, said she doubts the court will alter the SCC’s decision favoring her client. "It makes sense that the commission would uphold these tariffs because those provisions have been around for so many years."