SCC opens docket to set energy efficiency savings targets for electric utilities

On January 5, the Virginia State Corporation Commission (“SCC”) published a procedural order establishing a new docket to set energy efficiency savings targets for Virginia’s two largest electric utilities, Dominion Energy Virginia and Appalachian Power Company.  

The proceeding will be conducted pursuant to provisions of the 2020 Virginia Clean Economy Act (“VCEA”). The VCEA established annual savings targets for Dominion and Appalachian Power through 2025. The targets are based on the utility’s 2019 energy sales. For example, Code § 56-596.(B)(2) states that in 2024 Dominion “shall implement efficiency programs and measures” that are designed to achieve annual savings of “at least 3.75 percent of the average annual energy jurisdictional retail sales by that utility in 2019.” The statute also provides that “[a]t least 15 percent of the program costs shall be allocated to programs designed to benefit low-income, elderly, or disabled individuals or veterans.”

While the law establishes the savings targets through 2025, the SCC must set the targets thereafter. The statute, at Va. Code § 56-596.2(B)(3), states that “[f]or the time period 2026 through 2028, and for every successive three-year period thereafter, the [SCC] shall establish new energy efficiency savings targets.” The statute also provides that “[i]n advance of the effective date of such targets, the Commission shall, after notice and opportunity for hearing, initiate proceedings to establish such targets.”

The SCC’s procedural order directs Dominion and Appalachian Power to file energy savings proposals on or before March 12. The order also states that interested parties may file comments regarding the utilities’ proposals, and/or request an evidentiary hearing, on or before April 30.

This case is docketed as Case No. PUR-2023-00227.

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