THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Tuesday, February 21, 1995 TAG: 9502210273
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY DAVE MAYFIELD
STAFF WRITER
LENGTH: Medium: 60 lines
A showdown over how much state regulators can keep Dominion Resources Inc. from managing the affairs of its Virginia Power subsidiary was averted Monday - temporarily, at least.
The two companies, whose boards and top officers fought a bitter public battle last year over who'll call the shots at Virginia Power, reached a compromise aimed at keeping Dominion Resources' hands off the controls of the utility subsidiary through June 1996.
After that, some lawmakers said they may need to pass legislation clarifying what the State Corporation Commission can do to protect Virginia's utilities from potentially harmful meddling by parent organizations.
Monday's settlement was reached hours before the Senate Commerce and Labor Committee was to vote on just such a bill. In the House of Delegates, where the bill passed 93-2 earlier this month, Virginia Power and Dominion Resources representatives had found themselves at odds over the measure - Virginia Power for, Dominion Resources against. It was the first public dispute between the two companies since a settlement last August ended their public bad-mouthing of each other.
The differences over the legislation raised a big question about the two companies' prior peace agreement: Might it be deteriorating?
Del. Clinton Miller, R-Woodstock, who sponsored the bill that passed the House, said Monday that he didn't think so. From what he hears, Miller said, ``that spirit of cooperation may be building.''
Miller withdrew his bill after the latest agreement between the two companies was reached. The compromise was hurried over to the State Corporation Commission for approval just hours before the Senate committee was to consider Miller's proposal.
The agreement bars Dominion from removing any of Virginia Power's board members or officers or amending the utility's by-laws without the commission's prior written approval. The prohibitions expire July 1, 1996.
Miller said he's prepared to revive the bill next year if there's a need then to extend the commission's authority. Such legislation will be necessary ``sooner or later,'' he said.
The dispute is more than an inside battle. ``The public has to be concerned that there's someone there to protect against mismanagement, to protect against excessive rates,'' Miller said.
Consumer advocates have expressed concern that if Dominion Resources' control over Virginia Power isn't kept in check, it will tilt decision-making at the utility more toward shareholders' interests, rather than the interests of customers. That, they have said, could mean higher rates and poorer service for utility customers.
Jean Ann Fox, president of the Virginia Citizens Consumer Council, had planned to testify in favor of Miller's bill.
KEYWORDS: UTILITIES GENERAL ASSEMBLY by CNB