Currently, there is only one utility allowed to generate electricity for Virginia under the structure of their state law. Dominion Energy enjoys a monopoly on energy generation in the state, but that could change if the Virginia Energy Reform Act moves forward. The bipartisan legislation—introduced by Delegates Mark Keam, D-Fairfax, and Lee Ware, R-Powhatan—seeks to deregulate the Virginia energy industry to allow new competition into the market.
Consumers and the environment stand to win if the measure succeeds.
Last month, the Virginia House of Delegates passed two related pieces of legislation, HB 868 and HB 889, that addressed consumer rights to shop for energy. The Senate equivalents, SB 376 and SB 379, however, failed to advance. Fortunately, some analysts believe there will be another opportunity—but there are only a few days left in this legislative session.
The original Virginia Energy Reform Act legislation was aimed at decoupling electricity generation from transmission and distribution so that newer, clean energy companies could set up shop in the state to offer consumers more choices on where they source their energy. The increase in competition would allow Virginia residents to buy cleaner energy at lower prices than what is available under the current system.
The bipartisan bill was intended to make a number of changes to Virginia’s current energy laws. Specifically, the act would create a competitive marketplace for electricity retailers in the state and would limit monopoly electric utilities to just owning and maintaining the in-state distribution system for electricity. The bill also proposed establishing an independent, nonprofit entity that would coordinate the operation of the new distribution system. And the bill would remove the existing roadblocks for consumer-owned energy resources.
Over the last decades, energy market deregulation is a trend that has spread throughout the United States and has proven to yield results.
Texas voted to deregulate its electricity sector in 2001, and ratepayers in the Lone Star State have benefitted from the increased competition. A 2017 report from the Public Utility Commission of Texas found that the average retail rates across the state have decreased 63 percent since 2001.
If the Virginia Senate makes electric choice legislation a priority, consumers could soon see the benefits of clean energy development in a newly competitive state energy economy. Virginia voters should contact their state senators immediately.