Bacon's Rebellion

Clean Virginia Win is Bad News for Gas Consumers

By Steve Haner

Renewable energy donor Clean Virginia Fund was the biggest winner in Tuesday’s Democratic primaries, going head to head against Dominion Energy Virginia in several nomination contests and often winning.  Senior incumbent Democrats with strong Green New Deal voting records went down to defeat, because good wasn’t good enough.

Come Election Day in November, the contrast between Democrats and Republicans on Virginia’s energy future will be as stark as possible.  Quite simply, the use of natural gas within the Commonwealth is on the ballot.  Dominion’s recent announcement that it plans a new gas generation facility in Chesterfield County to bolster electricity reliability only poured fuel on the fire (pardon the pun).

The Charlottesville based Clean Virginia, which now also engages in lobbying and intervenes in State Corporation Commission regulatory matters, is funded by Michael Bills.  He and his wife, Sonjia Smith, form quite a power couple (a second pun.)  So far in this election cycle, with the fall elections still to come, Clean Virginia Fund and Smith combined have donated $7.3 million, more than 99% of it to Democrats.

Dominion is not far behind at $6.9 million donated so far in this cycle, but only $3.2 million of it has been to Democrats.  Many of them lost Tuesday to opponents backed by Clean Virginia.  They included Fairfax Senator George Barker ($230,000) and Richmond’s Joe Morrissey ($140,000.)  A late donation to a House of Delegates challenger in Virginia Beach, Susan Hippen ($110,000), also apparently was in vain.

One major Democrat incumbent who lost Tuesday, Senator Chap Peterson of Fairfax, received substantial support from Clean Virginia and no funding from Dominion this cycle.   But Smith covered that bet with a $30,000 donation of her own to Petersen’s opponent, Saddam Salim, and any question who had the greener credentials was settled by $1,000 to Salim from Jane Fonda.  Smith was Salim’s biggest donor.

In a Prince William County senate district with no incumbent and little chance for a Republican, Clean Virginia and Smith donated $783,000 to winner Jennifer Carroll Foy, who had served in the house.  Dominion’s $225,000 made it the largest donor to her failed opponent, Hala Ayala, also a former house member.

The ongoing fight between Dominion and Clean Virginia is not good news for energy consumers.  Dominion and Clean Virginia are not always on opposite sides. When they do agree, consumers usually lose.

Dominion remains deeply committed to (and committed to making its ratepayers pay for) massive offshore wind installations and thousands more Virginia acres covered with solar panels.  It was a shock to the wind and solar industrial complex when Dominion changed direction in its latest integrated resource plan and called for decades of continued reliance on natural gas to back up those intermittent energy sources. But the big bucks are still going to wind and solar.

The utility and the activist group are further apart on regulatory matters, and Clean Virginia was a key player in forcing Dominion into a compromise during the 2023 session that included several pro-consumer elements.  But the biggest regulatory problem in Virginia remains the General Assembly’s demand that Virginia charge toward an energy future with absolutely no use of any fossil fuels.

Neither Clean Virginia nor Dominion would favor those decisions now being made somewhere else, outside of the General Assembly’s tight grip.  That is why both are spending millions, with millions more to come, to buy influence over the men and women who will vote in the next session in January 2024.

What issues might that General Assembly address?

Should Clean Virginia’s favored folks control at least one chamber, forget about the past efforts to:

Should Clean Virginia help Democrats take full control in both chambers, what is likely to happen?

The Dominion versus Clean Virginia contest over the loyalty of Democrats is a fascinating cage match.  Neither is fighting for the average Virginia consumer who wants inexpensive, reliable energy from a broad variety of sources and totally independent regulation.

First published this morning by the Thomas Jefferson Institute of Public Policy.

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