State ex rel. Utilities Commission v. Virginia Electric and Power Company d/b/a Dominion Energy North Carolina

Summary

The North Carolina Supreme Court affirmed a Utilities Commission order governing the ratemaking treatment of Virginia Electric and Power Company's coal ash remediation costs. The Court upheld the Commission's decision to amortize the recoverable costs over ten years while excluding the unamortized balance from rate base and denying the company a return on that balance.

Holdings

1. The Commission was not obligated to adopt the same ratemaking treatment for Dominion's coal ash-related costs that it had used in prior proceedings because Commission ratemaking decisions are legislative in nature and are not entitled to stare decisis or res judicata effect. The Commission did not act arbitrarily and capriciously or violate equal protection by denying a return on the unamortized balance after considering the record and explaining its decision.
2. The Commission did not commit legal error or act arbitrarily and capriciously by authorizing Dominion to amortize its coal ash-related costs over ten years rather than five years.

Questions Presented

1. Whether the Utilities Commission acted arbitrarily and capriciously or violated equal protection by declining to follow its treatment of coal ash costs in prior Dominion and Duke Energy rate proceedings and by denying Dominion a return on the unamortized balance of its coal ash-related costs.
2. Whether the Utilities Commission acted arbitrarily and capriciously or otherwise erred by requiring Dominion to amortize its coal ash-related costs over ten years rather than five years.

Disposition

affirmed