Category Archives: Business and Economy

U.S. Constitution Calling Jason Miyares . . .

Posted on January 15, 2024 by | 79 comments

by Jock Yellott

Affirmative action is unconstitutional, said the U .S. Supreme Court last June.

But we’ll keep doing it until somebody tells us not to, says Virginia’s Department of Transportation. In some quarters, it seems we’re seeing Massive Resistance to the Supreme Court’s ruling.

An especially absurd, and ongoing, affirmative action boondoggle called the Disadvantaged Business Enterprise program magnifies the cost of Virginia roadbuilding … and causes minority lay-offs. Yes: it’s hurting the minorities it is supposed to help.

Recently, a Charlottesville small business won a city contract to build a bike path. But the Virginia Department of Transportation told the City: deny them the contract. Not enough “good faith effort” to go find minority subcontractors, they opined.

Losing the contract means laying off the small business’s employees. Nearly half of whom are minorities. Continue reading →

79 Comments

Posted in Business and Economy, Civil Rights

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Thank Coal, Gas for Your Warm House Today

Posted on January 15, 2024 by | 45 comments

PJM generation mix as of 8 a.m. this morning. Coal, natural gas and nuclear are meeting the vast majority of the demand.

By Steve Haner

Good morning, Virginia.  Your lights and heat are on, and you can thank coal and natural gas. Here are the 8 a.m. charts from PJM’s website, which you can check periodically today as the winter weather closes in. Those fuels were providing more than 66% of our electricity, with nuclear providing almost another third. Go to the website for the interactive version. The 9 a.m. chart is little changed.

The data are for the entire PJM region, not just Virginia.

Billions of dollars into the renewable energy transition, various renewable sources were providing less than 6 megawatts throughout the entire system, not even 5% of demand. Solar should increase a bit as the day proceeds, but the projection (on the same website) is that wind will dip toward the middle of the day.

The breakdown of generation from renewable sources, mainly hydro. The solar output should improve but in much of the region winter storm clouds will continue to limit it, and snow may pile up on solar panels.

Remember, this is a holiday and the peak demand projected for the workday tomorrow is higher. But the sun may be back to help at least a bit.

We could be Alberta, Canada. Here is what they are going through. Or Texas. Read those links and know, that is the future the General Assembly and the wind and solar industrial complex that owns it have planned for us.

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Posted in Business and Economy, Energy, Environment

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As Dominion and APCO $oar, NOVEC Drops Rates

Posted on January 10, 2024 by | 80 comments

Northern Virginia Electric Cooperative’s territory within the greater Northern Virginia region.

By Steve Haner

The major “rural” electric cooperative serving very urban Northern Virginia is drastically lowering its rates as of this month, because the cost it is paying for bulk power purchases has dropped. The contrast with what is happening with Virginia’s two major investor-owned electric companies may be telling Virginia something if anybody wants to listen.

NOVEC, or Northern Virginia Electric Cooperative, will be charging its residential users just under $114 for each 1,000 kilowatt hours of usage, down more than $26. The commercial and industrial users among its 175,000 customers are seeing comparable reductions. Continue reading →

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Posted in Business and Economy, Energy, General Assembly, Regulation, Utilities

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How Not To Do Tax Reform. Again.

Posted on January 8, 2024 by | 34 comments

By Steve Haner

According to the Richmond Times-Dispatch, Governor Glenn Youngkin’s administration had its first formal discussion with Virginia’s local governments about eliminating their car tax collections two days after he announced it publicly.

The General Assembly convenes Wednesday and if there is a plan to replace the $2.8 billion in local government revenue raised by that tax source, it has not surfaced. Voters truly detest the local levy, mainly because it is one of the few taxes everybody pays by check or with a credit card, but at this point it is safe to assume the idea is dead in the water. Continue reading →

34 Comments

Posted in Business and Economy, General Assembly, Taxes

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Rent Control Bill Introduced in Virginia

Posted on January 8, 2024 by | 7 comments

by Hans Bader

A just-introduced Virginia bill, HB 192, would limit rent increases to “one percent over the Consumer Price Index” in places where the rental vacancy rate is “less than 10 percent,” if the “Consumer Price Index … is greater than five percent.” Virginia has a rental vacancy rate of about 4%, well below 10%, so effectively, this would be a statewide rent control law.

The bill does not allow larger rent increases even to pay for things like major capital improvements.

The bill, introduced by Democratic Del. Marty Martinez, is called the “Landlord and Tenant Fairness Act.”  It contains this rent-control provision:

C. If the rental vacancy rate for a locality is less than 10 percent during the previous calendar year and the Consumer Price Index as reported by the Bureau of Labor Statistics of the U.S. Department of Labor is greater than five percent, any rent increase imposed by a landlord shall be no greater than one percent over the Consumer Price Index.

Continue reading →

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Posted in Business and Economy, General Assembly, Housing, Regulation

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Richmond’s Meals Tax Disaster

Posted on January 8, 2024 by | 8 comments

Richmond Mayor Levar Stoney

by Jon Baliles

(These reports were published first by RVA 5×5 and are republished here with permission.)

Starting about 25 years ago, Richmond’s restaurant scene began its ascent into the local consciousness as our region’s favorite (and only) professional sport. Offerings expanded and ventured into new directions and opened peoples eyes and expanded our tastes; it drove creative chefs to new heights, and we appeared in list after list of publications that officially put Richmond on the foodie map.

It was also, ironically, not long after that when restaurants became the “Sherpa” of sorts to help fill the city coffers. In 2003, City Council approved a one cent meals tax increase from five cents to six cents to help fund the renovation of Centerstage downtown. Many restauranteurs opposed the funding of an arts center on the backs of their customers by raising the pass through tax to fund one specific project. That deal later was overhauled and refinanced in 2006, but the one cent increase was not repealed as had been promised and it remained on the books as a permanent source of revenue to fund other city needs.

Then fast forward to early 2018 when Mayor Stoney pushed for a 25% increase in the city’s meals tax from six cents to 7.5 cents. It was a highly contentious debate that rightly riled up many restauranteurs who once again saw it as an unfair burden on their businesses alone that made their patrons’ bills higher with each bite and drink. They argued for another funding solution that was fair and spread across the city and not just on their industry. Continue reading →

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Posted in Business and Economy, Taxes

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Hey Virginia: Hands Off Those Cake Pops

Posted on January 5, 2024 by | 8 comments

Photo courtesy of Kelly Phillips

by Kerry Dougherty

There’s a reason Gov. Glenn Youngkin’s approval rating in the latest Mason-Dixon Poll perches at a lofty 58 percent in this once-blue state, despite Republicans losing control of the legislature in November’s election.

Youngkin gets it.

On X, he wrote:

“We’re going to fix this, Virginia will always be the best place to live, work, and bake cake pops!”

Like everyone else who heard about Kelly Phillips’ cake pop conflict, the governor immediately saw this for what it was: one more example of government overreach, punishing an enterprising Richmond woman with a small business for no good reason or public benefit.

According to The Virginia Mercury, cake pops are Ms. Phillips’ side hustle. Her day job is as a manager in a financial planning firm. But what began simply as irresistible treats she made for birthday parties and baby showers grew into a little cottage business.

Phillips now sells her gorgeously decorated confections mostly at craft fairs. If Richmond regulators have their way, she’ll have to stop.

Virginia’s stringent food safety regulations, designed to protect folks from unsanitary practices, make exceptions for small craft bakeries. But ridiculous regs, such as the one that allows these homemade goodies to be sold at farmer’s markets but not craft fairs make absolutely no sense.

“What is the difference between a farmers market and a craft show?” Phillips asked The Mercury.

Gee, I don’t know. A roof? Continue reading →

8 Comments

Posted in Business and Economy, Central planning, Entrepreneurialism, Regulation

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Keep Carytown Safe for Cars

Posted on December 19, 2023 by | 67 comments

by Jon Baliles

The debate about making Richmond’s Carytown a car-free zone is edging closer to the forefront in recent months with strong opinions, interesting suggestions, some good ideas, and some bad ones.

The Times-Dispatch Editorial Board weighed in with its opinion, and it was vocal. It’s worth the entire read and filled with stats you probably never heard of, such as that of the 250 or so pedestrian malls created in the U.S. since the 1960’s, only about 10 remain. The piece is filled with great information and two quotes worth noting:

Making Richmond a walkable paradise is certainly a worthy goal. But turning Carytown into a pedestrian mall, and undercutting the businesses that have made it into a regional shopping destination — is not.

The editorial points out that making Carytown car-free could lead many shoppers (who come from near and far) to go elsewhere, and worries that the owners of the unique mix of shops and merchants could be driven out of business, which is also a way of making it a car-free zone. It also points out that many in Carytown are open to new ideas, and certainly to making it safer, but skeptical of closing it to cars. Continue reading →

67 Comments

Posted in Business and Economy, Land use & development, Transportation

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SCC Examiner Says No to Dominion Gas Plans

Posted on December 10, 2023 by | 46 comments

By Steve Haner

A hearing examiner at the Virginia State Corporation Commission has recommended rejection of Dominion Virginia Energy’s plan to maintain and add to its fleet of fossil fuel generators. It failed to overcome the presumption in state law that all such plants must go away, she wrote.

In her extensive report following the months-long regulatory battle, Ann Berkebile notes that the Commission itself (still hobbled with only one full member and a retired commissioner sitting in) may reach a different conclusion. And the pending case, Dominion’s Integrated Resource Plan (IRP), does not actually involve final decisions on what power plants to add or delete from its assets in coming years.

But Dominion was looking for a blessing from the Commission on its proposal to maintain most of its natural gas plants and even add one, a 1,000 megawatt facility it wants to place in Chesterfield County. The 2020 Virginia Clean Economy Act has set a schedule for their retirement, with all fossil fuel generation expected to be gone in about 20 years. Dominion’s announcement last May that it was seeking to keep and add to its natural gas plants was immediately denounced by environmental advocates.

The 2020 legislation included a provision to allow the SCC to approve an additional fossil fuel plant if a utility demonstrates “that it has already met the energy savings goals identified in § 56-596.2 and that the identified need cannot be met more affordably through the deployment or utilization of demand-side resources or energy storage resources and that it has considered and weighed alternative options, including third-party market alternatives, in its selection process.” Continue reading →

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Posted in Business and Economy, Energy, Environment, Regulation, Utilities

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Virginia Beach Nixes Kitty Hawk Wind Cables

Posted on December 1, 2023 by | 17 comments

Site map for the first phase and cable connection route for the proposed Kitty Hawk Wind project.

by Steve Haner

The political leaders of the City of Virginia Beach have informed an offshore wind developer that they oppose its plan to bring power cables ashore at Sandbridge Beach. No formal vote was taken on the application, however, according to media reports.

The story appeared in The Virginian-Pilot and on local television station WAVY around Thanksgiving. When Bacon’s Rebellion last visited this matter, Virginia Beach City Council had conducted a May public hearing at which most speakers strongly opposed the power cable location. Continue reading →

17 Comments

Posted in Business and Economy, Energy, Environment, Land use & development, Regulation, Utilities

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Excess Profits Squeezed Out From Dominion Rates

Posted on November 17, 2023 by | 37 comments

By Steve Haner

The long struggle to prevent Dominion Energy Virginia from earning excess profits in its base rates year after year appears to be over and consumers finally won.  That is the main takeaway as the first general review of its base rates since the 2023 regulatory re-write is moving toward a quick settlement.

The complicated changes in the regulatory structure included wins and losses for consumers, but the impact on this first rate case review is proving to be net positive for the 2.6 million customer accounts.  Most of the various parties who have been dissecting the company’s accounts and forward projections are now willing to end the case with a settlement. Continue reading →

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Posted in Business and Economy, Energy, General Assembly, Regulation, Utilities

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SCC Approves Paying Extra for Fuel As “Relief”

Posted on November 3, 2023 by | 26 comments

by Steve Haner

The Virginia State Corporation Commission has approved Dominion Energy Virginia’s request to stretch out the back payments on $1.3 billion in old fuel bills from previous years over more than seven years. While the ultimate dollar cost to customers is millions higher because of interest charges, even the SCC news release touted the move as “rate relief.” Continue reading →

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Posted in Business and Economy, General Assembly, Regulation, Utilities

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Resorts Like Airports

Posted on October 29, 2023 by | 1 comment

by Jon Baliles

There has been a lot of boasting from the casino advocates about their partnership with Kentucky-based Churchill Downs, Inc. (CDI). The rebranded Richmond Grand casino developer Urban One is a radio and TV conglomerate that has said they are partnering with CDI because of their huge capitalization and experience with casinos. But let’s take a look at Churchill Downs’ casino portfolio, because it’s not what the casino advocates have been claiming.

CDI is obviously world-famous for the running of the Kentucky Derby horse race, and they have expanded their portfolio to include more and more gaming facilities in recent years. CDI bought out Peninsula Pacific Entertainment (PPE) in a $2.75 billion deal in 2022, and PPE had been Urban One’s original partner in the first, failed casino referendum. The deal included the Colonial Downs Racetrack in New Kent, as well as six Rosie’s Gaming Emporium historical horse racing facilities across Virginia plus two smaller casinos, one in Iowa and one in New York. But among the eleven casinos in the CDI portfolio, none are anywhere near the scale what they promise for Richmond. And none of those eleven casinos resemble anything grand — except for the indisputable fact that the house always wins, even if the resort looks more like an airport.

The Richmond Grand advocates claim their casino will have a 250-room hotel, an entertainment/concert venue with 3,000 seats, a TV and film production soundstage, and 15 restaurants and “dining options.” But if you look at their other casinos, they are all small casinos in small markets and are not even close to the “resort” they claim to be bringing to Richmond. Continue reading →

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Posted in Business and Economy, Economic development, Elections, Gambling

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How Pass Through Tax Rules Raid the U.S. Treasury

Posted on October 24, 2023 by | 23 comments

American Institute of CPA’s map of states with a pass through entity tax rule as of this past July.  Many of those that haven’t have no state income tax anyway.  Click for larger view.

By Steve Haner

When the General Assembly was briefed on the state’s financial status last week, the $412 million in unexpected revenue growth was dismissed as potentially misleading because of some new quirk in Virginia tax law called the Pass Through Entity Tax or PTET.  PTET keeps coming up in these discussions.

Approval of the Pass Through Entity Tax in 2022, with some tweaks to the rules in 2023, has indeed scrambled the state’s financial forecasting. Virginia is one of 36 states now offering this tax strategy.  The Senate Finance and Appropriations Committee got a briefing on it October 17.  Before the boring nuts and bolts, here are the headlines.

First, PTET is popularly seen as a way to undermine the 2017 Tax Cuts and Jobs Act’s limitation on the deductibility of state and local taxes (SALT).  If you seek itemized deductions on a federal tax return, the limit for state and local taxes paid is $10,000.  Now that Virginia and so many other states have adopted PTET, the big loser is the federal government.  PTET adds to the federal deficit. Continue reading →

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Posted in Budgets, Business and Economy, General Assembly, Taxes

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Deep Dive: Casinos, Highways, and Ignoring RVA Voters

Posted on October 13, 2023 by | 3 comments

Downtown Richmond

by Jon Baliles

Republished with permission from RVA 5×5.

They say the past is prologue and that if you don’t learn from history, you are doomed to repeat it, among other famous quotes that have stood the test of time. And they have a factor of truth and lesson in them. And so is the case with next month’s casino referendum, the second one we have had the chance to vote for because the first one was ignored by city leaders in 2021.

This Deep Dive is a look back at the last time Richmond faced two referendums on one topic in short succession — the people were asked to vote to register their voice and they said no to the city leaders, planners, and business leaders. Both times, the people’s voice was ignored, and both times the city leaders overruled their vote and their voice and pursued their plans irrespective of the results — with disastrous and long-lasting consequences.

This may be starting to sound familiar. Continue reading →

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Posted in Business and Economy, Economic development, Elections, Ethics, Gambling, Money in politics, Politics

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