The Virginia Department of Transportation has canceled its contract with US 460 Mobility Partners to build the U.S. 460 Connector between Petersburg and Suffolk, Transportation Secretary Aubrey Layne announced Wednesday. The action paves the way for initiating legal action to recover $252 million paid to the public-private partnership concessionaire for preparation and asset mobilization to start building the highway.
Layne had pulled the plug on the project a year ago when it was evident that the U.S. Army Corps of Engineers might not issue required wetlands permits along the proposed 55-mile route. It’s not clear what recourse the McAuliffe administration has to recover payments provided for under a contract negotiated and signed by the McDonnell administration. There is no evidence that U.S. Mobility Partners has done anything wrong (other than negotiate a highly favorable contract). Still, it’s worth the effort. Even recovering half the sum would be a big benefit to taxpayers.
Now… If only the McAuliffe administration would try to recover money from the Environmental Protection Agency for mandating hundreds of millions of dollars in upgrades to coal-fired power plants to reduce toxic emissions like mercury and sulfur dioxide — only to turn around and issue another set of regulations a few years later, the Clean Power Plan, that will effectively force Dominion to shut down three of the four coal plants it just upgraded.
Governor Terry McAuliffe did protect ratepayers from that fiasco, which would have cost Virginia ratepayers some $1.6 billion or more, assuming the facilities were shut down within five years — by getting Dominion to eat the costs instead. In exchange, however, in a legislative deal carved out earlier this year, Dominion gets to freeze its base rates for five years. Some observers characterize that concession as a give-away to Dominion (although Dominion strenuously disagrees).
While the U.S. 460 fiasco rightfully generated a slew of in-depth newspaper reports, the EPA fiasco made one brief blip in the news cycle and then disappeared. The media has made no comparable effort to examine the issue, much less to hold the EPA accountable for the absurdity of enacting regulations that will likely force Dominion (and other electric companies with coal plants) to shut down investments that the agency had required just a few years previously. If Dominion had been ripping off ratepayers to the tune of $1.6 billion, I suspect we’d be hearing about it. But when the EPA is doing the gouging… all I hear is crickets chirping.
— JAB
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