Legislators hoped that offering financial incentives to utilities to include renewable energy in their electricity profiles would spur the growth of wind farms, solar panel arrays and other renewable energy sources in the commonwealth. This would not only help the environment but also help Virginia’s economy.
The Problem
As it stands today, Virginia’s utility companies are gaming the system to get RPS credit for clean power from old, out-of-state facilities toward state renewable energy goals. Most of these facilities were already in operation when the RPS was passed. Utilities should earn credit for steel in the ground from new wind and solar projects, not for power from old facilities that were built well before these goals existed.
Dominion alone is receiving $76 million from ratepayers over the next two years for participating in the RPS. If Virginians are going to help utilities earn bigger profits as a reward for meeting renewable energy goals, we deserve to enjoy the benefits of that clean energy -- local jobs and cleaner air and water, right here in the commonwealth.
Put at its simplest, Virginia’s utility companies are simply shuffling papers around to earn RPS credit – they are following the letter of the law, but not the spirit. It’s kind of like giving a kid $10 extra allowance for doing a great job cleaning their room, and then finding out later they just shoved everything under their bed.
The Solution
In 2012, the Virginia General Assembly should pass legislation strengthening the RPS so that utilities only earn credit from newly-built and generated power mainly from within the commonwealth. Also, a certain percentage of this power should come from wind and solar power.
Adding these guidelines to the law will help to build a brand new clean-energy industry right here in Virginia.
Learn More
- Fact Sheet: Support Bills to Strengthen the RPS and Oppose Efforts to Weaken It
- Fact Sheet: Bills to Create Basic RPS Reporting Requirements
- "On Dominion's money and energy stance," by Benjamin Cuker. The Daily Press. February 7, 2012.
- "Dominion's wind and solar facade," by Ivy Main. The Washington Post, December 30, 2011.
- "Dominion's bait and switch," by Mike Tidwell. The Virginian-Pilot, January 25, 2012.
