Senator Jim Webb displayed his strong leadership and courageous approach to politics this morning. He wrote a formal letter to the SCC opposing Dominion’s proposed rate hikes, saying “In this time of economic uncertainty, an increase in energy costs could compel individuals and families to choose between putting food on their table and paying their energy bill.”

As a Vice-President prospect, this is a heartening development. Sen. Webb is willing to take on one of the most powerful energy corporations in his own state. Dominion’s influence in Virginia politics is systemic, including as a top donor to Governor Kaine. That former boxer, Sen. Webb, is willing to wade into the fray and challenge Dominion’s power is a testament to his commitment to social justice.

With $4 gas prices squeezing rural US, Virginians are faced with rising gas prices on one side and higher electricity costs on the other; oil and coal are rapidly becoming energy sources of the past. Why should Virginians, who are willing to start moving toward cleaner energy, shell out money to support Dominion’s addiction to dirty energy? Dominion needs to start moving toward cleaner energy, create opportunities for green jobs, and make investments in energy efficiency. By starting to make investments in clean energy, not coal, Dominion has the potential of creating over 336,000 of good, local, green jobs that will help move Virginia’s economy into the future.

What Sen. Webb didn’t mention, and what we hope he will, is that Dominion’s proposed plant in Wise County will further raise rates. The $1.8 billion “investment in Wise County” is going to be paid for by the ratepayers of Virginia. The poorest in the state, already reeling from increased rates at the pump and on their energy bills, can’t afford to pay for another dirty plant using coal that is already one of the most expensive in the country and which will only rise in cost as congress puts a price on carbon.

EDIT: Here’s the full text of Sen Webb’s statement.

June 11, 2008

The Honorable Judith Williams Jagdmann
Virginia State Corporation Commission
Post Office Box 1197
Richmond, Virginia 23218

Dear Judge Jagdmann:

I am writing to express my concern about Dominion Virginia Power’s request to increase its fuel factor, which would increase the average consumer’s bill by 18.3 percent or $16.61 per month. My office has heard from many families in Virginia who are concerned regarding this potential rate increase.

There have been reports indicating that the proposed increase could raise a consumer’s average monthly bill from $91 to $107. I have concerns regarding the effect these potential increases will have not only on individuals and families, but also on small businesses. Moreover, as you know, high electricity rates disproportionately affect low income families living on fixed incomes. Furthermore, in this time of economic uncertainty, an increase in energy costs could compel individuals and families to choose between putting food on their table and paying their energy bill.

Last year the State Corporation Commission authorized a four-percent rate increase for Dominion Virginia Power. An 18.3-percent increase would be the largest one-time rate increase since 1970 for Dominion Virginia Power. While I appreciate that the soaring costs of energy have impacted all sectors of the economy, including the utility sector, many families across Virginia already have difficulties meeting their basic needs.

As you consider Dominion Virginia Power’s request, I ask that you carefully consider what an additional rate increase will do to the residents of Virginia. I would appreciate your affording my concerns every appropriate consideration in accordance with all applicable rules, regulations and statutes.

Sincerely,

Jim Webb
United States Senator