"The Commonwealth of Virginia's New Hybrid Regulatory Model (or How to pay for a new Nuclear Plant) "

The IEEE Richmond Section will be meeting jointly with the Virginia Section of the American Nuclear Society for our September meeting. The meeting will be held at Dominion's Innsbrook Technical Center at 5000 Dominion Blvd., Glen Allen, VA 23060 on Thursday, 20 September 2007. The Social starts at 5:30 PM, Dinner at 6:15 PM and Talk at 7:00 PM. Mr. J. Clayton Crouch Dominion Virginia Power Manager - Regulatory Data Management & Analysis will present "The Commonwealth of Virginia's New Hybrid Regulatory Model (or How to pay for a new Nuclear Plant) ". Reservations for the Meeting must be made by noon, Tuesday September 18, 2007 at http://local.ans.org/virginia/meetings/2007/crouch.html. Please note your IEEE affiliation when registering. Please indicate if you are a student.

This presentation will provide an overview of Senate Bill 1416 that passed in the Virginia Legislative session earlier this year. The Bill was a landmark shift in the de-regulation direction that many states including Virginia had embarked on over the past decade. The new law has been called a "Hybrid Regulatory Model" because it combines the best of Traditional Cost of Service Ratemaking with Performance Based Rates to ensure the added efficiency gains made recently are maintained and will be monitored by the VA SCC.

In addition to performance incentives, an adjustment clause or "rider" allows for cost recovery of new baseload generation plant costs in the Commonwealth. This rider is filed with the VA SCC and will provide an added return on equity associated with the construction of North Anna 3.