This narrative revolves around themes of monopoly power, illicit financial gain, bipartisan corruption, the exploitation of consumers, and the detrimental effects of immense corporate influence. It also sheds light on a recent triumph over these vices, a victory that brought together unexpected allies such as the Sierra Club, Americans for Prosperity, Amazon, Google, and members of both progressive and conservative factions of the Virginia legislature. The rarity of this particular story makes it all the more compelling, and it may hold promising implications for the seemingly immobilized state of our political landscape.
Dominion Energy, a prominent utility corporation, exerts control over two-thirds of Virginians by providing them with power. The omnipresence of the Dominion name and logo can be seen on monthly billing statements, utility trucks, regional offices, and even on towering structures like the Dominion Energy Center for performing arts in Richmond. Additionally, Dominion sponsors numerous sports events, philanthropic ventures, and the Charity Classic golf tournament. The State Corporation Commission (SCC) regulates Dominion as a monopoly, with the responsibility of establishing fair rates for customers and a reasonable return for the utility. However, Dominion also funnels over $1 million in campaign donations each year to Virginia politicians, including members of the general assembly who play a significant role in determining the company’s regulatory framework. Unsurprisingly, Dominion’s lawyers and lobbyists are the primary architects of the legislation in question.
Over the past fifteen years, the general assembly has passed a series of Dominion-backed bills that gradually stripped the SCC of its power, allowed the utility to operate without rate regulations, and enabled Dominion to overcharge Virginians by an estimated $2 to $3 billion on their electric bills. While such overearnings were meant to trigger refunds for customers, a significant portion of the excessive profits went to corporate executives, shareholders, and the acquisition of other companies. The refunds received by Dominion’s customers amounted to less than a third of the company’s surplus earnings. Remarkably, this arrangement remained legal and largely unnoticed for an extended period, shining a harsh light on the corruption deeply embedded within American politics.
During an enlightening conversation outside of Richmond’s neoclassical capitol building, I had the privilege of speaking with Albert Pollard, a former Democratic House delegate who is now a lobbyist affiliated with the Virginia Poverty Law Center. Pollard shed light on how Dominion managed to exploit the system. In 2007, the legislature passed a comprehensive energy regulation law. According to the law, if the SCC determined that Dominion had exceeded the legally permissible earnings, customers would receive a partial refund. However, Dominion’s lobbyists cunningly inserted provisions into the legislation that established profits well above the SCC’s authorized limits and prevented the SCC from lowering electric rates unless Dominion consistently overcharged in two consecutive reviews.
With the commencement of each new legislative session, Dominion introduced bills that featured innovative accounting techniques aimed at artificially reducing their earnings, which in turn minimized refunds and prevented rate reductions. Stephen Haner, a former lobbyist with the Newport News shipyard who was present during the negotiation of these bills, shared his insights with me. He revealed that Dominion’s primary objective was to ensure that base rates never decreased, a goal they successfully pursued for more than a decade. Dominion’s lawyers and lobbyists skillfully inundated the relevant section of the Virginia code with language so convoluted that it virtually guaranteed negative consequences for those not privy to the closed-door negotiations. “Dominion realized that legislators didn’t have a comprehensive understanding of utility regulation,” Pollard commented. He added, “If it took me just 20 minutes to explain it to you, nobody’s going to grasp it.” The general assembly’s limited timeframe, meeting only six to eight weeks during each winter, further complicated matters, especially considering the deluge of at least 1,000 bills for lawmakers to address. Pollard explained, “There are 100 legislative battles that you want to fight, and this is a hard one.” In this arena, Dominion’s numerous lobbyists held the monopoly on information, effectively controlling both sides of the political establishment.
Meanwhile, Dominion skillfully projected the image of a responsible corporate citizen. The company expedited power restoration during local outages, offered discounts to low-income customers, supported social justice initiatives, and proudly touted its investments in renewable energy. Dominion even sponsored a nonprofit organization’s training course in government ethics for newly elected officials. While Dominion continued to significantly overcharge Virginians, it maintained that its electric rates remained below the national average. The company made campaign contributions to politicians from both major parties, ultimately securing their support for Dominion-backed bills. As one legislator expressed to me, “The level of blind trust in Dominion should not be underestimated.” Will Cleveland, a senior attorney with the Southern Environmental Law Center, remarked, “It’s an honest form of corruption.” Haner echoed these sentiments by stating, “They do run a good company; they do provide a good product.” Dominion’s influence permeated throughout society, reminiscent of the behemoth railroad corporation described in Frank Norris’s 1901 novel, The Octopus.
Throughout the years, a few brave legislators dared to challenge Dominion. Often seen as outsiders or relics of a bygone era, these lawmakers stood against the status quo. One such figure was Lee Ware, a white-haired Republican member of the House of Delegates in rural central Virginia. His home library showcased an extensive collection of literature, philosophy, theology, and portraits of Confederate generals. Ware dedicated his efforts to thoroughly reading Dominion’s bills and consistently voted against them, deviating from the majority of his fellow Republicans who supported the company. In his eloquent manner, Ware admitted, “It became evident to me that Dominion was unfairly tipping the scales in their favor. It gradually became clear that this was improper.” Another notable advocate was Chap Petersen, a bow-tied Democratic senator from Northern Virginia. Although he faced criticism from progressives due to his opposition to an assault weapons ban and the name change of the Washington Redskins, Petersen introduced bills as early as 2008 aimed at promoting renewable energy and limiting Dominion’s dominance. Yet, his efforts were continually rejected by his colleagues in the general assembly, including fellow Democrats. Opening up about his motivations, Petersen said, “I got involved because no one else was doing it, and it posed an intellectual challenge. Breaking up a monopoly and curbing its power is a fundamental aspect of American democracy.”
In 2015, the Obama administration unveiled the Clean Power Plan, a set of regulations aimed at curbing carbon pollution from power plants. Under the guise of shielding customers from the financial burden of implementing the plan, Dominion drafted a bill that froze rates and suspended the SCC’s oversight until 2022. However, energy costs were experiencing a significant decline, and the true consequence of the rate freeze was the prevention of lower rates for customers, allowing Dominion to self-regulate, bolster profits through investments, and retain the ability to request rate hikes. Almost all Republicans and a majority of Democrats supported the bill, and Governor Terry McAuliffe swiftly signed it into law. As they watched their authority diminish, several members of the SCC humorously suggested forming their political action committee for the purpose of bribing legislators. (Subsequent legislation partially reinstated oversight by the SCC and mandated a $200 million refund to customers.)
The election of Donald Trump effectively rendered the Clean Power Plan obsolete. By the end of 2016, when the issue had become inconsequential, Pollard from the Virginia Poverty Law Center contacted Petersen and informed him, “There is no longer a rationale for the rate freeze.” The following month, Petersen introduced a bill to repeal the freeze, only to witness its immediate defeat. Despite the uphill battle, perseverance prevailed, and a unique series of events unfolded in the 2021 session of the Virginia legislature—finally leading to the dismantling of Dominion’s stranglehold.
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