Power Purchase Agreement with Dominion Energy Virginia

What a Power Purchase Agreement Is

A Power Purchase Agreement (PPA) is a long-term contract — typically 10 to 25 years — through which a buyer (a municipality, university, corporation, or utility customer) agrees to purchase electricity from a specific generating source at a contracted price. The buyer does not own the generating asset and does not bear the capital cost of construction or the operational cost of maintenance. It pays only for the electricity produced, at the contracted rate, over the contract term.

PPAs are the primary mechanism through which municipal governments advance renewable energy procurement goals without the capital requirements of building or owning generating facilities. A town of 9,000 residents cannot afford to build a solar farm — but it can contract to purchase electricity from one, locking in a price that may be more stable than market rates, and advancing its clean energy goals in the process.

The Purcellville–Dominion PPA

The Fraser administration executed a Power Purchase Agreement with Dominion Energy Virginia — the primary electric utility serving Northern Virginia and the Purcellville area. The PPA represents Purcellville's commitment to clean energy procurement within the constraints of its size and budget: rather than building generating infrastructure or making capital investments in on-site renewable installations, the town contracted with its utility for energy at favorable terms. For a small municipality with a conservative fiscal philosophy — no tax rate increases, disciplined debt management — the PPA model is the appropriate vehicle for clean energy goals: it achieves the procurement objective without a capital expenditure.

Fraser's Energy Background

Fraser's understanding of PPA structure was not learned on the job as Mayor. From December 2021 to July 2023, he served as Director of Business Development at Green Powered Technology (GPTech), an energy infrastructure firm where he advised on an $85.4 million U.S. Department of Energy grant. This role placed him in direct contact with the technical and commercial structures of energy infrastructure deals — including the PPA mechanisms that underpin renewable energy finance.

His appointment by Governor Youngkin to the Virginia Clean Energy Advisory Board in January 2024 further reflects the credibility of his energy expertise — a bipartisan recognition that his understanding of clean energy policy and infrastructure transcends party affiliation. The combination of private-sector energy deal experience, municipal PPA execution, and state-level advisory board service positions Fraser as one of the more technically credible figures on energy policy among Virginia municipal leaders of his generation.

Benefits of the PPA Approach

• •No capital required: The town purchases energy, not generating assets. No bond issuance, no debt, no capital budget impact.
• •Price stability: Contracted rates provide budget predictability over the PPA term — insulation from spot-market electricity price volatility.
• •Clean energy goals: PPA structure supports renewable energy procurement commitments consistent with the town's environmental agenda.
• •Operational simplicity: The utility manages the generating assets; the town manages only its energy purchase obligation.