Bill regulating utility shutoffs is necessary because of Virginia’s growing energy affordability gap

As families battle high, inescapable energy costs, Virginia took a strong step this year toward protecting our most vulnerable residents against unsafe utility shutoffs. On behalf of affordable energy advocates, we want to thank the General Assembly and the governor for passing legislation to protect Virginians’ access to essential utility services when it matters most. Del. Irene Shin’s HB 906 and Sen. Lashrecse Aird’s SB 480 ensure that Virginians will no longer have to worry about going without power or water during unsafe times, such as the hottest or coldest days of the year or during public health emergencies. Gone will be the days of shutoffs on a Friday or before a holiday, which used to leave customers without power for over 48 hours with little hope of being quickly reconnected.

Beyond these common-sense protections, this legislation also lays the groundwork for addressing broader issues affecting utility access. Utilities will now have to do a better job communicating with customers who cannot afford their bills, and they’ll have to maintain a list of local assistance options to share with them. As we celebrate these steps to shield Virginians from unsafe shutoffs, we also look to the work ahead of us.

One in every four households in Virginia is energy insecure. They experience the fear of having their heat and lights cut off while having to make the tough decision between paying their electricity bill or buying food or medication. Meanwhile, energy assistance programs do not reach everyone in need. The assistance available in the commonwealth serves just 25% of eligible families (around 200,000 families), and only covers 29% of heating costs. As energy costs continue to rise, more and more Virginians are at risk of being shut off. Shockingly, in 2022 alone, there were more than 300,000 gas and electricity shutoffs due to nonpayment. We can only assume that number will grow. According to regulators, Dominion Energy bills are set to double in the next 12 years; and from 2022 to 2023, Appalachian Power’s typical monthly residential bill increased by $35.37.

Unfortunately, families who struggle to afford these high energy bills are paying much more to power their homes than families who don’t, spending $1.24 per square foot on energy compared to the 98 cents spent by households who are not energy insecure. And it’s not because they’re wasting energy — in fact, most of these families do everything they can to save energy. According to a 2023 Department of Social Services survey, “[a]lmost all households had taken one or more preventative measures to reduce heating costs, such as closing off rooms, turning down thermostats, covering windows with plastic, and wearing additional layers of clothing.” These cost disparities are a product of inequitable access to affordable and energy efficient housing.

Such disparities become even more apparent when looking at the energy use of households across races. Black households pay close to 20 cents more per square foot to power their homes than white households. This holds true across income levels where residents of Black neighborhoods pay more for energy than families earning the same income but living in white neighborhoods. Decades of disinvestment in Black communities and housing discrimination have left these communities disproportionately impacted by the shutoffs crisis, perpetuating a continued cycle of economic inequality.

All Virginians deserve access to essential and lifesaving utilities; and against this backdrop of energy injustice, the need for protections from utility shutoffs for non-payment becomes even more obvious. Virginia has taken the necessary first steps by passing these protections, but the work must continue to truly address Virginia’s growing energy affordability gap. Policies to increase the energy efficiency of low-income households and reduce the energy affordability gap they face must be a priority. As we continue the critical transition to a clean energy future, lawmakers must ensure that no family gets left behind. All Virginians deserve access to safe, healthy and affordable homes. Virginia must keep moving forward so that all our neighbors across the Commonwealth can keep the lights on.

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