Dominion Energy 2025-2026 Fuel Reconciliation and Securitization Dockets
Synapse provided technical assistance to Sierra Club in reviewing Dominion Energy Virginia's 2025-2026 fuel reconciliation and securitization applications. Dominion Energy was requesting to revise its fuel factors and recover some of its fuel balance through securitization.
Synapse evaluated the unit commitment practices of Dominion Energy's fleet during the fuel factor historical period and found that Dominion Energy self-committed its coal fleet regularly when the plants were available. As a result, Dominion Energy incurred avoidable variable net losses during specific months in the historical period. Synapse also identified five specific events where Dominion Energy imprudently utilized a must-run status at Mt. Storm to avoid short cycling and manage coal inventories and incurred avoidable net losses. Synapse reviewed Dominion Energy's coal contracts and found imprudent contracting decisions based on the price, timing, and quantity of coal purchased. Dominion Energy once again relied on decrement pricing to manage its oversupply. Synapse also evaluated Dominion Energy's securitization application and its request to securitize some of its under-recovery. We found that the proposal reduced ratepayer shocks in the short term but also reinforced a dangerous precedent that reactive measures can address risk better than proactive planning.
We recommend that the Commission disallow from inclusion in the fuel factor the avoidable losses associated with specific uneconomic events at its coal plants. We also recommend the Commission disallow from inclusion in the fuel factor excess costs associated with its most costly coal contracts. We recommend that Dominion Energy be required to file documentation of its profit and loss workbook with its initial filing in future fuel factor proceedings. We also recommend that the Commission require Dominion Energy to be more proactive with its management of fuel costs through its resource planning processes and mechanisms such as fuel cost sharing, rather than rely on reactive measures such as securitization.