THE VIRGINIAN-PILOT
Copyright (c) 1996, Landmark Communications, Inc.
DATE: Saturday, February 3, 1996 TAG: 9602030337
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY ROBERT LITTLE, STAFF WRITER
DATELINE: RICHMOND LENGTH: Short : 44 lines
State senators approved a measure designed to protect Virginia's electric utilities and consumers, despite one Virginia Beach senator's fear that it could scare the Navy out of Hampton Roads.
The bill would help Virginia Power recover the cost of investing in facilities that would be left fallow if federal facilities in the state start buying their electricity elsewhere.
It was prompted by an amendment that recently nearly passed Congress and would have required the Department of Defense to shop for power.
The state Senate passed the bill 26-11 Friday. It next goes to the House of Delegates.
Supporters say the bill is necessary to keep Virginia Power from passing its potential losses of a huge client onto residential customers or its shareholders.
But Sen. Kenneth W. Stolle, R-Virginia Beach, thinks the law could cost the Navy money, making Virginia bases more likely candidates for closure.
``I would hate to see the General Assembly give the Department of Defense a reason to look at Virginia again in 1998 and consider relocating our bases,'' Stolle said.
Stolle's concern was over the Navy's contract with Virginia Power, which expires in 1998. The federal government could, by then, force the Navy to seek bids from other companies for its electrical power. The state, meanwhile, would be penalizing them if they accept a bid from anyone but Virginia Power, Stolle argued.
He proposed that the new law expire after 1998 so Virginia Power can incorporate stranded investments into a new contract with the Navy. The idea failed on a voice vote.
Opponents of Stolle's amendment argued that surrounding states already have passed similar bills, so the Department of Defense would not be encouraged to leave.
KEYWORDS: GENERAL ASSEMBLY DEREGULATION UTILITIES by CNB