Henrico, Chesterfield Users of Richmond Gas Unprotected by SCC, State Law

Pending termination

by Steve Haner

Sec. 13.10. No sale or lease of utilities unless approved by referendum. No sale or lease of the water, sewer, gas or electricity utilities will take place unless the proposal for such sale or lease is first presented to the qualified city electors in a general election and by a majority of all votes cast accepted in such an election.

This provision is contained in the Richmond City Charter as part of the Code of Virginia. Note that there is no need for city guides to consult with people before closing a city-owned utility, just before it is sold or leased.

City officials have been publicly silent about the importance of the September 13th vote in Richmond City Council to “end dependence on gas” and “keep the city’s gas utility operating … as an obstacle to the city’s goal of.” Net Zero Emissions “to look at.” Obstacles are things that are removed.

The silence is possible because the Richmond local media did not press city officials for details about it, at least not as reported. Perhaps they were privately told that the vote was actually meaningless, just a show to appease the climate alarmists who had been pushing for the 11-page resolution for months. But legally, shutting down the utility is entirely possible, albeit likely difficult.

For a brief overview of the full charter, see the provisions that authorize Richmond to operate a natural gas distributor “in and out of town”. But nothing in the charter appears to place an obligation on the city to maintain this service.

As a utility company owned and operated by a local government charter, Richmond Gas Works is also not regulated by the State Corporation Commission. A spokesman for the commission confirmed Monday that it has the utility’s safe operation under federal safety laws, but not its tariffs or terms of service.

The SCC has indirect authority over the boundaries of its service area as it defines areas for surrounding gas distributors owned by investors. Unaware of its new status as an obstacle in the past, Richmond Gas Works has aggressively defended its service area from private competitors.

It wasn’t until 2015 that the SCC settled a dispute between the city and Columbia Gas over service in some areas of Chesterfield County. The city claimed that Columbia gas entered the city’s supply area years ago, the city wanted to exhaust it, but the SCC allowed Columbia to stay. This judgment now has additional significance.

But other parts of Chesterfield and all of Henrico County are at the mercy of a Richmond City Council that they did not vote for. Your only option is to reach out to your members of the General Assembly. As much as cities like Richmond hate it, they are created and governed by Acts of Assembly. Charters can be changed. The SCC authorization can be extended.

In response to a voter shared with Bacon’s rebellion, a member of the city council attempted to refute the interpretation that the council intended to get out of the gas business entirely. But the message is not clear. I will print the forwarded message from First District Councilor Andreas Addison in full:

That was not the Council resolution. This was part of the decision to make our city more resilient and not turn off natural gas. This translation is very extreme in its actual intent and language. Our previous commitment to decouple our natural gas tariffs from our revenues meant that natural gas consumption was not directly related to our revenues and costs. Going on natural gas doesn’t mean you don’t have natural gas. Our city, like many others across the country, is facing a challenge from the impending electrification required to support electric cars and other resources. This is to push for a more sustainable future, not the extreme outcome as explained in this article.

As we run the natural gas division of public utilities, it is in our best interest to push for more sustainable options. Dominion Energy will push for more electricity across the region, if we don’t keep up with future trends we will be left with a minimally functioning natural gas agency. This is intended to push for more modern processes and approaches, as well as best practices from cities across the country.

Profits from the sale of natural gas inside and outside the city limits have been an important source of income for the city for decades. If the goal is merely to end their dependence on that money, it should still create concern among customers that the long-term trend is towards closure.

During the public hearing prior to the 8-0 vote on the resolution on September 13, one of the six speakers who spoke in favor (none against) was identified as the Sierra Club’s spokesman. This group was also heard in the comment string on the first article of Bacon’s Rebellion, with this one from their Virginia leader, Glen Besa:

How practical that Mr. Haner does not mention climate change. Nobody would shut down Richmond Gas Works overnight, as Haner suggests. If we start today, we could start leaking gas as current equipment ages and is replaced by high efficiency heat pumps and other electricity based equipment. The fossil fuel industry has brought climate protection measures to a standstill over the past 30 years. Now is the time for #ActonClimate.

Besa’s ultimate intention is clear. Customers in the Richmond Gas Works coverage area who intend to continue using natural gas for years to come must apply for protection at the Annual General Meeting. If such a calculation fails, the manuscript hangs on the wall.

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