The State Corporation Commission (SCC) has approved a package of 11 new energy efficiency and demand response programs requested by Dominion Energy Virginia to run for a five-year period beginning July 1, 2019. In another order, the Commission approved an updated rate adjustment clause to cover the costs of Appalachian Power’s current energy efficiency and demand response programs for the rate year July 1, 2019, through June 30, 2020.
The Dominion package of programs includes six residential and five non-residential programs with an estimated cost of $225.8 million. In the Appalachian Power case, the SCC approved a revenue requirement of $5.68 million for the company’s energy efficiency and demand response portfolio for the 2019 rate year. The company was not requesting the SCC’s approval of any new programs in this case.
The Commission directed both companies to file in every future energy efficiency and demand side management (DSM) rate adjustment clause proceeding evidence of the actual energy savings achieved as a result of each specific program for which cost recovery is sought, along with revised cost-benefit tests that incorporate actual Virginia energy savings and cost data.
The SCC stated that the information will be relevant to at least two foreseeable issues. The first issue is identifying the true cost-effectiveness of DSM programs, which will enable the SCC to determine which programs should be expanded in scope and budget to maximize the reductions in energy usage, which ones are least effective and should have their budgets shifted to more effective programs; and which ones are not cost-effective and should be discontinued. The second issue is evaluating any claim by Dominion and Appalachian to cost recovery for lost revenues.