Low-income consumers could very well be hurt the most by a competitive market for electricity. Electricity is a necessity in today's modern world but the tendency of markets is to allocate their goods on the basis of who can best pay, rather than on the need for the goods and services. We all need electricity, but everyone may not be able to afford it.
Home affordability is already a critical issue for low-income consumers and we must certainly institute safeguards that will prevent this situation from being intensified due to the process of deregulation. Health and Human Services statistics show that a low-income family, on average, will pay 15 to 20% of their disposable income towards their home energy bill and that a family of median income will only pay approximately 3% towards the same necessary expense.
Saving energy and reducing home energy consumption has a direct and positive impact on home affordability. An existing resource in the Commonwealth is the Weatherization program which is a cost-effective, valuable program that due to sophisticated building science expertise, is able to provide low-income citizens with services that save energy and money, identify health and safety issues, and reduce carbon emissions. Weatherization is not a public relations program set up to appease certain mandates or simply help consumers solve an immediate need or crisis situation, but rather it is a program that identifies the underlying causes of energy hardship and then provides long term solutions to those problems. Weatherization is a down and dirty, roll your sleeves up, experienced effort that has been on the leading edge of energy conservation technology for over twenty years. Weatherization is the only Public Benefit program in Virginia that offers a true solution to home affordability.
Therefore it is essential that restructuring legislation enhance and promote existing energy efficiency programs as well as researching opportunities for the development and implementation of new energy conservation programs that will involve effective partnerships between utilities, the private sector, and Public benefit programs such as Weatherization.
But we are obviously concerned that a deregulated industry will create a competitive arena that will eliminate the support and enhancement of energy efficiency efforts and that existing Public Benefit programs will become standed benefits. If Virginia chooses to deregulate, then a Public Benefit Fund must be established and financed through a non-bypassable wires charge, so that all citizens of the Commonwealth will have an assurance that existing energy efficiency programs will continue to be supported and improved and that there will be opportunities for the development of new and creative energy conservation programs.
Please keep in mind that over 90% of all energy is created by the burning of fossil fuels, which are non-renewable resources, and that these resources are limited. So it is not arguable but just good common sense to make every effort to conserve these resources so that there will be plenty of clean, affordable energy now and in the future.
This effort must originate from a serious commitment and sincere belief that saving energy is important and that the reduction of high energy bills and wasteful energy use, and protecting our natural resources and our environment, are not just low-income issues but rather should concern and involve all members of society.
The General Assembly has an obligation and a responsibility to provide leadership in this area and there is certainly ample opportunity within the deregulation process to provide necessary solutions. But whether deregulation occurs or not, it is still imperative that energy efficiency and conservation efforts be given full attention and support from our legislators.
For further information please contact Billy Weitzenfeld at 540-382-1975.