Virginia’s green energy policies are facing increased scrutiny as residents experience rising utility bills. An op-ed series, a partnership between the Independent Women and the Washington Examiner, is examining the impact of state-level green energy initiatives, using Virginia as a key case study.

State Regulation and Electricity Costs

The series highlights the significant role state-level regulation plays in determining electricity costs. Under the Federal Power Act of 1935, Congress delegated power to states to regulate electricity, including decisions about generation portfolios, retail pricing, and green energy mandates.

The Virginia Clean Economy Act (VCEA)

In 2020, Virginia enacted the Virginia Clean Economy Act (VCEA), mandating the state’s largest utility to transition to 100% carbon-free electricity by 2045. This legislation also included the development of the Coastal Virginia Offshore Wind project. Simultaneously, Virginia joined the Regional Greenhouse Gas Initiative (RGGI), a cap-and-trade program.

Projected Cost Increases

The State Corporation Commission (SCC), Virginia’s utility regulator, warned that the VCEA would lead to increased energy bills. The SCC predicted annual increases of $300 by 2030 and $808 by 2050. Specifically, the SCC analysis projected:

  • Offshore wind buildout: $11-$12 per month
  • Solar buildout: $11-$16 per month
  • RGGI membership: $2.50 per month

Analysis has shown residential customers are already paying an additional $24 per month – nearly $300 annually – due to the VCEA’s requirements for offshore wind, solar, energy efficiency subsidies, and renewable energy certificates.

Recent Actions and Appointments

Governor Younkin’s administration provided some relief by withdrawing Virginia from RGGI, recognizing it added $4.50 per month ($54 annually) to customer bills. However, current gubernatorial candidate Abigail Spanberger has expressed support for RGGI, despite its impact on costs. On March 25, Spanberger appointed Josephus Allmond, a lawyer from the Southern Environmental Law Center, as Virginia’s first chief energy officer.

Concerns About Future Energy Policy

Allmond has emphasized climate change over energy security and plans to prioritize “homegrown clean energy and battery storage” over natural gas and nuclear power, which currently account for 87% of Virginia’s net-electricity generation. His former employer, the SELC, has also expressed skepticism towards small modular reactors. Polling by Independent Women indicates that over half of women feel misled about the costs associated with the transition to renewable energy.

Gabriella Hoffman, director of the Independent Women’s Center for Energy and Conservation, suggests that approving new natural gas and nuclear projects would be a prudent step towards lowering energy costs.