At a time when power bills are skyrocketing in Southwest and Southside Virginia, our state’s major electric utilities are potentially leaving hundreds of millions of dollars of federal funding on the table.
More than a year ago, federal legislation earmarked $370 billion for investments in energy infrastructure. This includes tax credits for solar, wind, energy storage and other renewable projects as well as funding to help distribute an additional $300 billion in low-interest loans.
Virginia is eligible for a significant portion of these funding opportunities, but as of recent reporting the state had only utilized $67 million. Virginia is missing out on hundreds of millions of dollars that could be used to offset costs for families and businesses as utilities invest in infrastructure to meet growing energy demand.
Other parts of the country are already seeing benefits from this funding. In the year since its passage, this legislation has created over 170,000 well-paying jobs in clean energy manufacturing. These include jobs at new renewable energy project sites and in construction and mechanics. However, Virginia only accounts for 370 of those jobs (compared to 4,800 in West Virginia and 4,100 in North Carolina). Again, just a fraction of our potential opportunity. Virginia, especially Southwest and Southside Virginia, deserves its fair share of that growth.
Taking full advantage of this opportunity starts with knowing how much funding Virginia utilities can access, which is why we are sponsoring HB809 asking the Virginia State Corporation Commission and Virginia Energy to calculate the full amount of federal funding available for Virginia’s electric utilities. With a holistic assessment of what is available, our utilities can begin investing in projects to spur economic growth, provide substantial cost-savings and create high-quality jobs.
This past year, many Virginians endured significant increases in their electric bills. These increases, accounting for over $400 in additional annual service cost for an average customer, make the case for aggressive utilization of federal programs that can ease our collective energy burden.
Rising bills are especially impactful in Southwest Virginia, where many households are struggling to make ends meet. For these families, high utility bills often force tough choices between keeping the lights on and paying for food, medicine, child care and housing.
To cut costs for families and businesses, utilities should take full advantage of the tax credits and federal funding available to invest in new development in Southwest and Southside Virginia. Fully utilized, this funding will benefit every Virginian by lowering bills, creating jobs and incentivizing new economic development.
