NOTE: HB 1053 enacted on March 2016 directs the State Corporation Commission (SCC) to evaluate the establishment of uniform measurement and verification protocols of energy efficiency measures implemented by the electric utilities in the State. On March 2016, the SCC established docket PUE-2016-00022 as directed by the bill. SCC is required to submit its recommendations by December 2016. 

Origin and Electric Sales Reduction Goal

In March 2007, the Virginia legislature passed SB 1416 thereby amending Virginia’s earlier electric industry restructuring law, including a energy efficiency goal of 10% electricity savings by 2022 relative to 2006 base sales.

With SB 1416, the State Corporation Commission (SCC) was directed to conduct a series of proceedings 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.

The SCC completed a report verifying the energy efficiency goal of 10% by 2022 was achievable (Case No. PUE-2007-00049) and issued an Order in January of 2008 approving five conservation and energy efficiency pilot projects and four demand response/load management pilots proposed projects proposed by Dominion Virginia Power (Case No. PUE-2007-00089).

More information on Dominion's Energy Conservation Programs can be found on the utility's web site.

Cost Effectiveness and Program Evaluation

Virginia does not use a single cost effectiveness test as its primary test, and instead requires utilities looking to approve programs to submit Participant Cost Test (PCT), Ratepayer Impact Measure (RIM) test, Utility Cost Test (UCT) and the Total Resource Cost (TRC) Test scores from the California Standard Practice Manual.

Utility Cost Recovery Provisions

Virginia permits its electric utilities to recover the program costs and any lost revenues net of opportunities to increase "off-system" sales of electricity resulting from efficiency programs.

Special Provisions

Virginia law allows customers with observed demand of 10 MW at a single meter to opt out of paying for energy efficiency program charges.