Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, July 7, 1994 TAG: 9407070109
SECTION: VIRGINIA PAGE: C-3 EDITION: STATE
SOURCE: Associated Press
DATELINE: RICHMOND LENGTH: Medium
The SCC is trying to determine if the Richmond-based company violated a commission order when it attempted earlier this year to replace James T. Rhodes as the utility's president and chief executive officer.
Dominion lawyers Tuesday responded to the announced investigation, saying there is no public interest in the dispute that warrants intervention by the SCC because neither utility rates nor service is affected.
``Although a corporate struggle such as this one is always significant, it is beyond the commission's jurisdiction,'' the response said.
Virginia Power is the state's largest utility. In 1986, the SCC forbade Dominion Resources from dictating policy that would imperil the independence of the utility. Dominion Resources is publicly held and answers to its stockholders. Virginia Power is regulated by the SCC, including the utility's return on investment.
Dominion blamed the public showdown between the companies on Rhodes and a small group of Dominion board members who allegedly tried to take over the parent company in April.
The group persuaded Thomas E. Capps to retire as Dominion chairman, president and CEO by the end of next year and limited his power over the utility. Since then, Capps has regained the support of the Dominion board, which allegedly attempted to oust Rhodes without consulting the Virginia Power board of directors.
The SCC launched its investigation June 17 on the companies' relationship and whether the utility's independence had been compromised.
Capps said Tuesday that the holding company has done nothing to violate the SCC order or jeopardize the interests of Virginia Power's 1.9 million customers.
``Our response today demonstrates that there is no need - and no legal basis - for the commission's intervention,'' he said.
Dominion's lawyers questioned the validity of the SCC's authority to prevent the holding company from changing members of the utility's board of directors or management.
Virginia Power also filed a response to the investigation, which the utility said it would not oppose.
SCC spokesman Ken Schrad said Wednesday that the commission had the right to launch the investigation to see if its orders were violated.
by CNB