With rising electric bills encumbering residents, utility payers are looking for answers and relief.
Jason Hayes, energy and environmental policy expert at The Heritage Foundation, revealed the factors shaping high electric bills. He said there is a “mix of things” happening, from “rising demand” to “constrained supply.” Hayes said that a “growing population,” “economic growth,” “electrification policies,” and “increased demand for electricity” are all factors contributing to pricey bills. Virginia re-entering the Regional Greenhouse Gas Initiative will tack on approximately $13 dollars to electric bills, he explained. Hayes suggests that Virginia targetabundant, affordable, and reliable electricity generation.
Hayes says that, on a personal level, consumers can reduce their electric bills by doing basic things like monitoring how they use their air conditioner, how they power their house, or regulating the temperature they keep in their house. In a broader sense, residents can participate in hearings and vote for politicians that promote affordability and sound energy policies.
Greg Weatherford, communications director at the Virginia State Corporation Commission, said the commission is very aware that energy costs are high and causing significant difficulty for some people. He said the commission is doing everything it can to ensure costs remain as reasonable as possible. However, he said that Virginia is facing an “extraordinary amount of requests for energy, more than ever.” He said the commission is trying to negotiate a “complicated” and “demanding” electrical grid. Weatherford said the commission has been at the forefront, developing solutions that work for consumers.
Professor Terry Clower, director of the Center for Regional Analysis at George Mason University, said it is too early to tell how the NextEra Energy-Dominion Energy merger plans might impact electric prices.
“It is too early to draw conclusions about the merger. Virginia SCC hearings on the merger start the middle of next month and the conditions placed on the merger will determine impacts. The company has pledged that Virginia ratepayers will bear no cost of the merger and that they are offering bill credits of about $10/month for 4 years, most of which is supposed to come from ‘shareholders,’” said Clower.
Clower emphasized that a key reason electric bills are so high for so many is because power plants are not getting the investment they need.
“The under-investment in power plants is not unique to Virginia. In trying to address carbon-based pollution, we (general mid-Atlantic) have tended to take old power plants, particularly coal plants, offline without creating enough new generating capacity. This impacts the wholesale rate of power that gets passed through PJM to ratepayers as riders that are not directly controlled by the SCC,” said Clower.
Springfield District Supervisor Pat Herrity said that high electric bills in part stem from faulty legislation, imported electricity, and re-entering the Regional Greenhouse Gas Initiative.
“Energy bills in Virginia are rising rapidly in a large part due to the 2020 Virginia Clean Economy Act (VCEA). VCEA forced Virginia’s electric generation companies to shut and/or stop building many of the dispatchable energy plants, including natural gas, and instead rely on solar and wind, which are not readily available when the wind is not blowing or the sun is not shining,” he said.
“As a result, we are importing electricity from Pennsylvania and West Virginia. Imported electricity is not only more expensive and less green than a natural gas plant in Virginia, but it also requires the construction of massive power lines through Virginia,” he explained.
“The cost of electricity is also significantly impacted by Virginia’s decision to rejoin RGGI, which adds significantly to electric bills. Other states like Pennsylvania are leaving RGGI due to the costs. VCEA has crippled our energy infrastructure to the point where it cannot handle the base residential load, much less a growing economy and rising data center needs,” he concluded.
Craig Belden of Communities for Affordable Power warns that the proposed NextEra-Dominion merger will add to the burden on Virginians.
“Electricity bills under Dominion have already increased, and NextEra’s proposed takeover threatens to make matters worse. The deal would create the nation’s largest electric utility monopoly, and given NextEra’s track record in Florida, there is every reason to be concerned that Virginia customers will face even higher bills once the promised rebates expire. Those concerns are only heightened by NextEra’s plans to capitalize on Virginia’s booming data center industry, potentially leaving families and small businesses paying even more,” said Belden
“Communities for Affordable Power is encouraging Virginia residents to contact the State Corporation Commission (SCC) and urge commissioners to reject the deal. We’re also asking Virginians to contact their elected leaders in Richmond and make clear that they are paying attention to how their representatives respond to this takeover and expect them to do everything in their power to stop it,” he pleaded.
Franconia District Supervisor Rodney Lusk pointed to some possible relief for county residents struggling to pay their electric bills.
“I recognize that the costs of essential goods and services, like utilities, are rising. There are a number of resources available to assist residents with energy bills. They are detailed on the Fairfax County website: https://bit.ly/4z0u0Ab.
“Fairfax County residents can take advantage of multiple programs to improve their home’s energy efficiency, which could lower energy costs, including Fairfax Energy Compass, Solarize Virginia, and Switch Together,” said Lusk