Our nation had the support of industry and consumers in constructing the Grid, which serves to distribute power according to price, demand and supply since the 1940's. In Virginia regulated utilities have advanced legislation of model codes which suppress private investment in distributed energy. Examples may be found in search of the Virginia Legislative Information Syste, also mass media and trade publications; even in proposals advanced by private lobbyists such as ALEC. Rate payers and producers each merit proper consideration by the General Assembly, and yet we are concerned over the economic influence of utilities who utilize monies earned under SCC oversight of their companies to lobby the same boards who regulate this industry. Virginia would do well to recognize the dangers of regulatory capture in this environment.

We understand DMME is not the SCC, we also recognize the need for a technical basis in matching producers and markets. The Division as advisor to the Governor has a duty to develop information which might be used to promulgate legislation advancing the production of distributed energy throughout the Commonwealth. We also believe that cooperative producers merit a seat at these deliberations. Whether for profit, or not all producers deserve consideration of public concerns by the Legislature.

Rural Electrification Cooperatives were organized and administrated through acts of Legislature, it seems appropriate for the Commonwealth to investigate the means to use this precedent as one tool to support entrance of small producers into a competitive marketplace. This is applicable to all, whether rural, urban,  public, or private, and seems politically viable when suppliers are recognized as having vested rights to ship power through the regulated grid.

All suppliers should be entitled to access public infrastructure to transport electricity produced by their private investment to natural markets. This has been recognized in the highway system, internet, indeed even by example of pipeline and waterborne cargoes. It seem contrary to the public's interest to allow regulated monopolies to continue suppressing the marketplace by limiting energy produced through investment in technology such as used to convert wind, solar, biofuels, farm or landfill methane. Access to the marketplace must be guaranteed for technology to evolve, as does public investment in oversight of the distribution and reliable control of energy transactions.

Examples of regulatory suppression of net-metering type agreements include charges for "Distribution Services" or "Transmission Services" and production ceilings, which either penalize, prevent or discourage investment toward supplying electricity to the grid. Distributed production supports the grid especially rural networks which suffer "brownouts" (low voltage) and service interruption due to demand, or technical problems of inter or intrastate transmission. Distributed production also saves the utility from investing in peak shaving generation equipment or storage; typically solar energy enters the grid during times of peak loads (e.g. air conditioning) which are connected during peak insolation.

A reliable grid is best served by decentralized producers who need the assurance of state law to protect investment in production facilities. School boards. counties, fire & rescue, public parking are potential investors, joining commercial producers who earn economic returns by producing power at lower cost than the Grid is able to provide. Do we not support competition in Virginia?

I request the DMME address this concern in offering report to the Legislature and Governor. I wish to emphasize that private investment has been used to construct grid tied infrastructure, and the Commonwealth should develop the means to protect these investments, and encourage further investment in the energy market.

Thank you for your consideration of these matters,

Jeff Walker, Floyd VA