Promotes energy efficiency for a cleaner environment, a more prosperous economy, and a higher quality of life.
State Energy Efficiency Policy Database
Virginia
Related Publications & Documents
(Research Report - 3/5/2013)
(Research Report - 3/26/2012)
Related Items
(Press Release - 10/3/2012)
(Blog Article - 3/26/2012)
Related External Links
Virginia Utility Policies
In March 2007, Virginia set a legislative goal of reducing electricity consumption by 10% (from 2006 levels) by 2022. In 2008, the legislature mandated that utilities submit integrated resource plans that lay out demand-side resources. In March 2010, the SCC approved five energy efficiency programs for Dominion Power.
Although Virginia has made legislative progress in energy efficiency and demand-side management during 2008-2010, the process has been difficult.
The enacted legislation included Senate Bill 348, which set goals of reducing peak demand for electric utilities by 2015 to a percentage less than the utilities’ peak demand in 2010. The target for 2020 is also below the peak demand in 2010. House Bill 2531, passed in March 2009, directed the State Corporation Commission (SCC) to conduct a proceeding to determine achievable, cost-effective energy conservation and demand response targets through demand-side management portfolios of generating electric utilities. This process would include a cost-benefit analysis.
Repeated attempts to introduce energy efficiency goals and resource standards have not been successful yet. The governor vetoed an energy efficiency resource standard in 2009 (SB 1248). In 2008, legislators rejected an earlier goal of 19% savings by 2025 (SB 1296). SB 111, which would have introduced innovative rate structures, did not pass. Revenue recovery has also been questioned on the basis of consumer affordability (SB 150).
The SCC approved natural gas decoupling and has opened a docket to consider reward mechanisms for energy efficiency. It is also currently developing a consumer education program designed to strengthen awareness of electricity efficiency and conservation in Virginia.
For further reading, in September 2008, as part of the State Clean Energy Resource Project, ACEEE completed the report Energizing Virginia: Efficiency First.
Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.
Links:
↑ Top of Page
March 28, 2013
Dominion Power now offers a small set of programs for its residential and commercial customers.
Dominion Power customers may qualify for their opt-out program by having average demands between 500 kW and 10 MW. Customers over 10 MW do not participate in the state's energy efficiency programming by law. Once customers opt-out, they cannot take advantage of existing programming nor be charged for it. Customers must show that they have already made energy efficiency investments or plan to in the future. Customers must submit measurement and verification reports yearly in support of their opting out of programs funded by a cost-recovery mechanism (CRM). More information on large customer self-direct programs can be found in the ACEEE report, Follow the Leaders: Improving Large Customer Self-Direct Programs.
Reported budgets for energy efficiency programs for 2011, and electricity savings for 2010, are in the State Spending and Savings Tables.
Links:
↑ Top of Page
October 12, 2012
HB 2506, enacted April 8th, 2009, authorized investor-owned electric utilities to recover the costs of designing, implementing, and operating energy efficiency programs by adjusting their rates, if such programs are found to be in the public interest. The Virginia State Corporation Commission may allow utilities to recover reductions in revenue related to energy efficiency programs, to the extent the revenue is not recovered through off-system sales. In 2010, legislators did not pass a bill that removed cost recovery as an option unless it was cost-effective for consumers (SB 150). Certain large customers are exempt from paying for the costs of new energy efficiency programs. According to the Energy Information Administration, utility spending on energy efficiency in 2007 was minimal. This was the same in 2008, with a few cooperatives spending a few thousand dollars on programs. The Tennessee Valley Authority does have some operations in Virginia.
According to the TVA, it budgeted $833,000 for fiscal year 2010. Reported budgets for energy efficiency programs for 2011 are in the State Spending and Savings Tables.
Links:
↑ Top of Page
October 12, 2012
In March 2007, the Virginia legislature passed a bill amending Virginia’s earlier electric industry restructuring law. The governor approved the bill conditionally, requiring the addition of a section on energy conservation, including a goal of 10% electricity savings by 2022 (calculated relative to 2006 sales). The legislature accepted this condition. Under this provision, the State Corporation Commission (SCC) was directed to conduct a proceeding to consider whether the 10% goal could be met cost-effectively, determine the mix of programs that should be implemented and their cost, and develop a plan for development and implementation of these programs, including who should deploy and administer these programs.
On December 14, 2007, the SCC provided a report to the governor and the General Assembly to satisfy these directives and verify the achievability of the 10% standard (Senate Document No. 17, 2007; Case No. PUE-2007-00049). To aid in determining the appropriate mix of programs, the SCC issued an Order on January 17, 2008 approving nine pilot projects proposed by Dominion Virginia Power (Case No. PUE-2007-00089).
The nine pilots were: (i) Standard Residential In-Home Energy Audits, (ii) ENERGY STAR® Qualified Homes Energy Audits, (iii) Energy Efficiency Welcome Kits, (iv) a PowerCost Monitor pilot, and (v) Small Commercial On-Site Energy Audits; and four demand response/load management Pilots: (i) Direct Load Control — Outdoor Air-Conditioning Control Device, (ii) Programmable Thermostats — Indoor Air-Conditioning Control Device, (iii) Programmable Thermostats with Advanced Metering Infrastructure and Critical Peak Pricing, and (iv) Distributed Generation/Load Curtailment Pilot.
Subsequently, Dominion filed an integrated resource plan that included 12 programs. In March 2010, the SCC approved five of Dominion’s programs, rejecting the rest either because they either did not result in energy savings (they were load management programs) or because of their impacts on electric rates (considering both the Ratepayer Impact Measure test and the Total Resource Cost test) (Case No. PUE-2009-00081).These programs were not approved with specific savings targets attached. These five programs are now available to utility customers and are described above.
↑ Top of Page
September 9, 2010
Virginia allows natural gas utilities, but not electric utilities, to decouple their profits from their sales. In December 2008, Virginia Gas received approval to implement a three-year conservation and ratemaking efficiency plan. The plan has two main components: an Energy Conservation Plan (ECP) to promote conservation and efficiency and a Revenue Normalization Adjustment, Rider D ("RNA Rider" or "Rider"), which is a natural gas decoupling mechanism that provides for a sales adjustment to customers’ monthly bills. The ECP and RNA Rider became effective on January 1, 2009 (Docket No. PUE-2008-00060; December 23, 2008).
Virginia Code Section 56-585.1 provides for the recovery of revenue reductions related to energy efficiency programs. Dominion Virginia Power applied for recovery of lost revenues in a regular rate case as part of its application to continue its DSM riders. The Commission denied Dominion’s lost revenue recovery request because it determined that the company did not meet its “burden to establish that its proposed revenue reductions ‘occur[red] due to measured and verified decreased consumption of electricity caused by energy efficiency programs approved by the Commission…’” (emphasis in order). The Commission held that Dominion failed to provide “sufficient evidence for the Commission to measure and to verify that a specific amount of decreased consumption of electricity was directly caused by the CFL program.”
Revenue recovery is limited by any offsetting sales and subject to industry standard measurement and verification. (Case No. PUE-2010-00084)
Links:
- Virginia State Corporation Commission docket search
↑ Top of Page
March 28, 2013
The 2007 legislation amending the state's earlier restructuring law called for the Virginia State Corporation Commission (SCC) to open a proceeding to initiate the development and implementation of efficiency programs with incentives and alternative means of compliance to achieve such goals. The legislation also states that an electric utility may recover projected and actual costs of energy efficiency programs, including a margin recoverable on operating expenses, which is equal to the general rate of return on common equity. The SCC can only approve such recovery if it finds that the program is in the public interest (See Virginia Code Section 56-585.1).
Virginia does not have incentives in place for natural gas.
Links:
- Virginia State Corporation Commission docket search
↑ Top of Page
October 12, 2012
In 2008, the legislature required Integrated Resource Plans (IRPs) for Virginia’s utilities. The IRPs will forecast electric utilities' expected loads (projected over a 15-year period) and the utilities' plans to meet these obligations by using supply-side and demand-side resources. Utilities began filing IRPs in 2009.
↑ Top of Page
September 9, 2010
- Cost-effectiveness test(s) used: RIM, TRC, UCT, PCT
- Uses a deemed savings database: no
The evaluation of ratepayer-funded energy efficiency programs in Virginia relies on legislative mandates (VA Code Section 56-585.1 a5). Evaluations are mainly administered by the Virginia State Corporation Commission. Virginia has formal requirements for evaluation articulated in 20 VAC 5-304-10. Evaluations for each of the utilities are conducted. Virginia uses four of the five classic benefit-cost tests identified in the California Standard Practice Manual. These are the Total Resource Cost (TRC), Utility/Programs Administrator (UCT), Participant (PCT), and Ratepayer Impact Measure (RIM). Virginia specifies the RIM to be its primary test for decision making. The benefit-cost tests are required for overall portfolio, total program, customer project, and individual measure level programs screening. The rules for benefit-cost tests are stated in 20 VAC 5-304-10.
Links:
- Authority: VA Code Section 56-585.1 a5
- Authority:20 VAC 5-304-10
↑ Top of Page
March 27, 2013