Each year, as Virginia’s General Assembly convenes, lawmakers are confronted with hundreds of proposals running the gamut from education to energy. Many involve complicated issues, and many are distorted by corporate interests and political posturing.
This year the legislature is grappling with a key renewable energy law, known as the Renewable Portfolio Standard (RPS), which it passed in 2007. An RPS sets a certain percentage of a utility’s power that comes from renewable sources; the intent is to spur modern technologies such as wind turbines or solar panels.
Twenty-nine states and the District of Columbia have a mandatory RPS with strict standards. In those states, thousands of megawatts of wind and solar energy is powering homes and businesses, and the renewable energy industry is producing thousands of new jobs every year.
In Virginia, the RPS is voluntary – and has not led to the construction of a single wind turbine or solar panel in the commonwealth. The RPS law provides significant financial rewards – paid for by ratepayers – as a way to encourage utilities to use renewables. It also has a very loose definition of what constitutes renewable energy, making it easier for utilities to meet the goal, and get their reward. Which they’ve done handily. Dominion Virginia Power has received $77 million in RPS bonuses, and Appalachian Power Company has received $15 million. They relied almost entirely on existing hydro-power dams, most built before WWII, and credits purchased from renewable facilities in other states, to meet the goal.
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