Dominion Energy 2Q18: Cove Point, SCANA, ACP & More
There is a LOT going on at Dominion Energy that impacts the Marcellus/Utica region. Yesterday Dominion posted its second quarter 2018 update and held a conference call with investors to discuss what happened during 2Q18, and what to expect in coming quarters. Discussed on the call: (1) The Cove Point LNG export plant went online in 2Q18 and so far has shipped 19 cargoes of LNG–60 billion cubic feet of gas! (2) The $1.3 billion Greensville County, VA gas-fired electric plant is 95% built and will go online later this year. (3) The Atlantic Coast Pipeline and Supply Header Project is under construction and on track to be online by fourth quarter of 2019. (4) The SCANA Corporation merger is moving along, and a big decision from a judge is coming by Aug. 7 about whether or not SC can unilaterally force SCANA to lower electric rates by 15%. If the judge tosses that law and the 15% price reduction is out, the merger is in. If the price reduction stays, the merger is (our conclusion) questionable. Yeah, there’s a lot going on. Below are excerpts from the quarterly conference call, the full 2Q18 update, and the latest slide deck…
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Once upon a time, before far-out liberal governors like NY’s Andrew Cuomo weaponized the federal Clean Water Act (CWA), states would use their federally-delegated authority under the CWA (Section 401) to provide feedback and get changes/tweaks to interstate pipelines passing through their respective states. Then Cuomo (now others) started bending the intent of their delegated authority under the CWA and began abusing it to block federal policy by blocking approved pipelines that benefit the citizens of many states. That’s why the Federal Energy Regulatory Commission (FERC) was created–to review and authorize energy projects, like pipelines, that pass through multiple states. If not for FERC, no pipelines (or electric transmission lines) would ever get built across state lines because one state will selfishly block such projects–“What’s in it for us?” Andrew Cuomo has stated publicly that he has and will continue to block interstate pipeline projects and new gas-fired electric plants (see 
Yesterday we told you that a Pennsylvania landowner from Huntingdon County, PA, Ellen Gerhart, was arrested on Friday for violating a court order to not interfere with Mariner East 2 (ME2) pipeline work being done on her property (see 
The Algonquin Incremental Market (AIM) pipeline project is an expansion of the existing Algonquin pipeline system designed to carry 342 million cubic feet of natural gas per day to New England states that badly need the gas. On March 3, 2015 the Federal Energy Regulatory Commission (FERC) issued their final approval for the project, allowing it to go forward. Construction began in 2015 and, following extreme opposition from New York State over a small portion of the project, it finally went online in late 2016. New York’s radical, anti-drilling governor, Andrew Cuomo, tried to stop the Algonquin using the flimsy excuse that some of the drilling for the pipeline would happen a half mile from a nuclear power plant–a plant that’s shutting down anyway. A few weeks after Cuomo requested FERC shut it down, FERC told him “no”–which was the cue for Big Green groups to file an appeal with the District of Columbia Court of Appeals to force FERC to rehear/reconsider their approval (see 
An interesting development on Friday, when the Pennsylvania Dept. of Environmental Protection (DEP) issued a press release to announced that three radical environmental groups have dropped their objections to permits the DEP previously granted for the Mariner East 2 Pipeline. Clean Air Council, Mountain Watershed Association, and THE Delaware Riverkeeper “settled” their appeal of 20 permits issued to Sunoco for the ME2 project. What does it mean that they “settled?” According to the announcement, “The settlement does not alter any of the 20 permits in the appeal.” In other words, this is face-saving by the radical groups. They backed down. Gave up. Threw in the towel–recognizing that ME2 is about to be completed. In other words, they’ve lost. And we won! We love saying that. No matter how hard the radicals tried to spin the news (via their affiliated mouthpieces, like StateImpact Pennsylvania), you simply can’t gloss over the fact that they’ve backed down…
The Sierra Club and two other far-out, radical “environmental” groups have scored a minor victory in convincing the U.S. Court of Appeals for the Fourth Circuit to overturn permits issued by the U.S. Forest Service (USFS) and Bureau of Land Management (BLM) that allows EQT Midstream’s Mountain Valley Pipeline to cross 3.5 miles of Jefferson National Forest in West Virginia and Virginia. The court says USFS and BLM didn’t come to the right conclusion about sedimentation and erosion impacts of MVP. The judges (who don’t know a thing about these issues) say USFS and BLM’s contention that impacts can be adequately mitigated is in error. Ever notice how some judges love to tell other people how to do their jobs? In practical terms, the decision is merely an irritation–affecting maybe 1% of the overall project. But the broader implications are troubling. The Clubbers and their friends have a similar case against MVP at the same court (Fourth Circuit) that asks the court to block construction of MVP throughout Virginia on the theory that a stream crossing permit issued by the U.S. Army Corps of Engineers is faulty (see 
Every Friday afternoon from 4 to 5:30 pm, a single protesters (typically just one person) stand on a corner in Annville (Lebanon County), PA holding a sign to protest pipelines and fossil fuel energy. The selected protester, from a group calling itself Lebanon Pipeline Awareness, stands on a corner wearing clothes and sneakers made from plastics–i.e. fossil fuels. Sporting a sign made from materials that include fossil fuels. The protester was transported to that location using vehicles made from fossil fuels (loaded with plastic) and powered by fossil fuels (gasoline). The protester comes from a home or apartment heated and cooled with fossil fuels. The anti group alerted the media to come take a look at the “protest” by using computers made from and powered by fossil fuels. The protester drinks water from a plastic bottle–made from fossil fuels–as he/she stands there holding a fossil-fuel-made sign. And yet, these people are there to protest fossil fuels! Does anyone else see how utterly pathetic this is? How dishonest? How truly nutty?…
The main economic development agency in Otsego County, NY, known as Otsego Now, is working on a plan to build a “decompressor” in the Oneonta area to help with natural gas supplies. The proposed facility is described as “a decompression station for compressed natural gas deliveries by truck to supplement resources.” Here’s the problem. On really cold and really hot days, there’s not enough natural gas in the region, and some large users of gas (they get gas from local utility NYSEG), actually have to stop using gas and switch to oil as a backup. It’s nuts. Apparently NYSEG (New York State Electric & Gas, owned by Spainish-based Iberdrola) isn’t in the mood to upgrade a local pipeline that brings gas to the area. So to overcome lack of gas, the local econ development people are trying to chase down grants to build a decompression station, to accept CNG from a virtual pipeline (trucked in CNG), converting the compressed gas back to normal pressure so it can flow through NYSEG’s less-than-adequate pipelines in the area to large gas users that need it…
It’s the end of the road for a highly hypocritical order of nuns in Lancaster, the Adorers of the Blood of Christ, who use natural gas to heat an old folks home they operate, yet are trying to block the Atlantic Sunrise Pipeline from traversing that very same property. The nuns appear to be radical environmentalists. We don’t know how they justify using natural gas yet actively try to block a pipeline that delivers it. Only in the mind of a leftist. The nuns, with the help of local anti group Lancaster Against Pipelines, stuck a garden trellis and a few wooden park benches in the middle of a corn field they own (leased to a local farmer), declaring it a “chapel”–hence our attempt at humor, calling them “Sisters of the Corn.” The sisters then sued to block the pipeline based on religious grounds (see 
Despite intense opposition from nutty so-called environmentalists (i.e. fossil fuel haters), the Federal Energy Regulatory Commission issued permission on Tuesday to Dominion Energy to commence construction of the 600-mile, $6 billion Atlantic Coast Pipeline as it passes through North Carolina. Antis like those from the Southern Environmental Law Center are up in arms. Their strategy to stop the project is to attack it in small, specific areas. There is a pending lawsuit against the project using the Endangered Species Act, potentially blocking construction in certain geographies. If that lawsuit goes against the pipeline, it only affects construction in a small area and for a limited time. Yet Southern Environmental Law Center claims that if a pipeline project is stopped at any point along its route, that should trigger stopping the entire project at all points along the route. FERC isn’t buying into the legal bull and has cleared Dominion to start up the bulldozers. This pipeline will get built, despite the best efforts of antis. In fact, Dominion says it will be built and online by late 2019…
Yesterday MDN posted a story about our growing grumpiness that Federal Energy Regulatory (FERC) Commissioner Rob Powelson is about to leave FERC to further his own career, jeopardizing a number of important pipeline projects (see 
Last week MDN brought you the exciting news that Williams says their $3 billion Atlantic Sunrise Pipeline that runs through 10 Pennsylvania counties to connect Marcellus Shale natural gas from northeastern PA with the Williams’ Transco pipeline in southern Lancaster County will go online in August (see 
Anti fossil fuel radicals continue to try and stir up opposition to the Mariner East 2 (ME2) pipeline project near Philadelphia. Local supervisors in Middletown (Delaware County, PA) walk a tightrope between a desire to protect area residents and anti groups fomenting irrational fears. The Board of Supervisors hired a consultant to advise them on potential safety issues with ME1 & 2. Monday night the supervisors held a public meeting to allow residents to hear from and ask questions of the consultant. The consultant, to his credit, maintained his objectivity. He’s not for or against pipelines–he’s looking at safety issues and discussing realistic scenarios. His responses to some of the questions were not what antis in the crowd wanted to hear. They wanted him to feed their fear-mongering (and false) beliefs. The consultant refused to do so. We found one bit of news from the session highly instructive. There is an anti group calling itself Middletown Coalition for Public Safety. The group presents itself as a “nonpartisan grassroots group of parents and residents whose goal is to educate elected officials and the public regarding the risks associated with the proposed Mariner East 2 pipeline.” It is the exact opposite. Rabidly partisan (Democrat). And not composed of residents. The people who belong to the group, at least its leaders, aren’t from Middletown! At the Monday meeting one of their members, Eric Friedman, was not allowed to question the consultant because he doesn’t live in Middletown. What does that tell you about how these “grassroots” groups are operated and funded?…
Talk about obtuse–about cutting off your nose to spite your face. The dunderheads at the Nelson County Service Authority have just voted to turn down $3.5 million of revenue from Dominion Energy’s Atlantic Coast Pipeline (ACP) over the next two years. ACP wanted to buy water from the authority to use in underground horizontal directional drilling for the pipeline as it passes through the region. ACP would have paid half a million dollars for a hookup fee and a rate of 10 cents a gallon for the water. The five dunderheads on the board–three of them brand new in the past month–offered up all sorts of excuses to cover the fact they simply don’t want the pipeline. They don’t want to be seen “supporting” it. Makes for uncomfortable conversations at the local Five & Dime. Frankly, it doesn’t matter. ACP has said they already have an alternative source for the water and will simply truck it in. Congratulations to the Service Authority Board–you just made your community less safe and poorer. Less safe because now water truck after water truck will clog up the highways (running the risk of accidents), and poorer because you turned down $3.5 million you could have used to give a break in water fees to county residents…