The Virginia State Corporation Commission, in a final order handed down last week, found that Dominion failed to comply with the energy-efficiency standards established by the Virginia Clean Economy Act.
The final order, dated July 26, was entered in a case evaluating the amount of savings Dominion’s programs achieved in 2022.
The power company wasn’t far off.
“Using the net impacts figures from the 2022 EM&V Report, the Commission finds that Dominion fell short of the 2022 Savings Target, achieving 1.23 percent savings, which is below the 1.25 percent savings requirement,” the SCC found, as was noted on Page 16 of the July 26 final order. “According to the record established in this proceeding. Dominion’s target for 2022 was 852,892 MWh, it achieved 780,489 MWh from its programs and measures and had 58,754 MWh of energy savings associated with Large General Service customers that opted-out of paying for the Company’s energy efficiency programs because they have installed their own energy efficiency measures.”
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Under the law, Dominion and Appalachian Power must achieve a certain level of energy savings each year.
For several years, Dominion has been trying to take credit for a category of savings, called “free rider” savings, that by definition are not achieved by the utility’s programs.
In this year’s proceeding, Dominion requested that customers be required to pay the utility a bonus of more than $6 million, a request only made possible by including “free rider” savings.
“The SCC has unequivocally rejected Dominion’s position that the utility should get credit for energy savings it was not responsible for,” said Peter Anderson, Director of State Energy Policy at Appalachian Voices. “Energy-efficiency programs are so beneficial, and with Dominion already falling short in the first year of compliance, I hope this ruling serves as a wakeup call. Dominion customers deserve better.”
Dominion’s failure to comply with the energy efficiency requirements could have a spillover effect in terms of the company’s proposed gas plant project in Chesterfield County. Under the law, the SCC “shall not approve” a carbon-emitting power plant if the utility has not met the energy-savings standard, and may only do so if the utility establishes a specific reliability or security threat, and that the power plant is a cheaper solution than other options, including energy efficiency and demand response programs, or energy storage options.
“The law establishes a clear requirement that Dominion maximize cheap, non-polluting energy efficiency programs before pursuing a project like the proposed Chesterfield gas plant,” said Rachel James, staff attorney in the Southern Environmental Law Center’s Virginia office. “They have failed to do that. I hope Dominion rethinks its polluting proposal and starts to listen to the community members who will be most negatively impacted by this harmful project.”
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Chris Graham
