Constellation Now Offering Competitive Electricity Supply to Large Nonresidential Customers in Virginia
Constellation provides electricity, natural gas and renewable energy to nearly 2 million residential, public sector and business customers, including two-thirds of Fortune 100 companies and is bringing the knowledge, innovation, dependability and transparency to large business customers located in Virginia.
In Virginia, there are very specific rules on whether your business can participate in electricity choice. Below we explore those options.
CORe Virginia: Constellation’s 100% Renewable Energy Supply
- Access Competitive supply with market-based savings relative to current Dominion tariff
- 100% Renewable Energy Supply1
- Meets Virginia Statute 56-576
- Energy and RECs matched to monthly energy usage
- Renewable projects on the PJM electricity grid
- Quarterly verification, tracking and reporting
- No minimum energy usage requirements
- No need to petition SCC to aggregate accounts.
Q. Is Constellation a licensed and registered Competitive Service Provider (“CSP”) in Virginia, and does Constellation currently offer retail electricity supply products to nonresidential customers in Virginia?
A. In Virginia, Constellation is both a licensed and registered CSP behind Dominion Virginia Power (only) and currently offers its full suite of standard products to single-site nonresidential customers whose peak demand exceeds 5 MW.
Q. Does Constellation’s product conform to the Virginia statutory requirements for 100% renewable energy contracts (VA statute 56-576) (1) ?
A. Yes, Constellation’s renewable product for Virginia customers meets the State definition for 100% renewable energy supply. This includes the monthly balancing and quarterly reporting requirements, which will be fulfilled by Constellation.
Q. What happens if Dominion challenges my enrolling with Constellation for renewable supply?
A. If Dominion challenges your enrollment, your contract with Constellation includes a provision covering any adverse event that prevents our ability to serve your facility. Generally, there is a 60-day period to address the situation, including reforming the contract. If the parties can’t agree on new terms, either party can terminate without penalty.
Q. How will Supplier compliance with 100% Renewable Energy Contract requirements be verified?
A. The VA statute requires quarterly reporting to the SCC and Dominion within 90 days from the end of each calendar quarter. Constellation will provide this reporting to confirm renewable supply matching your usage.
Q. Where will Constellation source their renewable supply for VA customers?
A. Constellation’s CORe Virginia product includes the ability to point to a specific renewable asset that provides your energy. Constellation intends to use a pumped storage hydroelectric facility located on the Conowingo Pond on the Susquehanna River in Lancaster County, PA. As necessary, we may supplement power from other renewable assets in our portfolio.
Q. Are there any customer rate classes that Constellation cannot serve?
A. Any of the residential rates classes (100), are not eligible for Constellation service. Additionally, customers on a voluntary rate class, including Schedule 10, GS2T and DP2, may require additional customer action in order to fulfill all the Dominion requirements to switch to competitive supply.
Q. Why is Constellation just now offering renewable supply in Virginia?
A. Constellation offers a standard supply product for those customers with a peak demand of 5MW or greater. However, we did not offer a 100% renewable product because of uncertainty in the definition of what met the 100% renewable standards in Virginia. The recent SCC rulings clarified the definition of the product and that C&I customers are permitted to purchase from Competitive Service Providers (CSP) such as Constellation.
Q. What if Dominion offers a 100% renewable tariff prior to my energy flow date?
A. It is not clear how Dominion and the SCC would handle this situation. We encourage you to act promptly if switching to Constellation to avoid any potential conflict in this regard.
Q. Why does Constellation have a 60-day enrollment period
A. Dominion has required up to 60 days’ notice for some customers to switch to a CSP. To ensure compliance with Dominion’s requirement, we have implemented a 60-day enrollment period.
Q. What happens at the end of my initial contract term?
A. It is likely that by the end of your initial contract term Dominion will have an approved 100% renewable tariff, which would mean no new customers in Dominion service territory under 5 MW would be eligible to receive competitive supply. Under current law, however, customers can continue to receive competitive supply under 100% renewable agreements that were entered into before Dominion’s approved 100% renewable tariff was filed. Constellation’s contract has an option for hold-over provision which would allow you to continue to take 100% renewable competitive supply at market rates at the end of the initial term, which we believe would meet this requirement and allow you to remain on competitive supply. It is also possible, although not guaranteed, that you could renew your agreement at that point and continue to receive competitive supply. If Dominion successfully challenges these approaches, however, you will be required to return to utility supply at the end of your original contract term.
Contact Constellation today to learn more about electricity supply options in Virginia.
(1) Va. Code Ann. § 56-576 et seq. (2018).
(2) Under Virginia Law (Va. Code Ann. § 56-577 (A)(3) 2018), individuals or customer groups greater than 5 MW choosing to purchase supply service from a licensed supplier, may return to service provided by the Local Distribution Company (“LDC”) upon five years' written notice and at the prices, terms, and conditions of the tariffs approved by the SCC. Alternatively, electricity customers returning to utility service may seek an exemption from the SCC to provide less than five years' notice and, if such exemption is granted, return to service provided by the LDC at prices based on market-based costs. After terminating service with a CSP, the LDC may require a 12-month minimum stay period for electricity customers with an annual peak demand of 500 kW or greater.