Author: VAEEC Admin

VAEEC Applauds Energy Efficiency Job Growth

The Virginia Energy Efficiency Council (VAEEC) applauds E4TheFuture and Building Performance Association’s 2024 Energy Efficiency Jobs in America report, highlighting the significant role of energy efficiency in Virginia’s energy landscape. With 76,685 jobs, energy efficiency stands as the largest energy sector in the Commonwealth. Energy efficiency jobs encompass a wide range of activities, including the manufacturing and installation of high-efficiency systems, design and construction of high-performance buildings, and the upgrading of HVAC and water heating equipment. Notably, 94.5% of Virginia’s energy efficiency businesses are small enterprises with fewer than 100 employees, emphasizing the sector’s contribution to local economies. 

The report reveals that energy efficiency jobs are distributed across all counties in Virginia, with significant concentrations in metropolitan areas such as Richmond, Virginia Beach-Norfolk-Newport News, and the Virginia-Arlington-Alexandria region. This widespread presence shows the sector’s importance to the state’s economy and its potential for further growth. 

However, the report highlights areas requiring attention. While energy efficiency workers constitute 22% of Virginia’s construction workforce, there is a need to enhance diversity within the industry. The data indicates that minorities and women are underrepresented. VAEEC’s Energy Efficiency Workforce Initiative aims to improve this by advocating for targeted training and support to ensure the workforce reflects the communities it serves. Read more about the initiative here

VAEEC remains committed to advancing energy efficiency across the Commonwealth. We are celebrating the achievements to date and are dedicated to addressing the challenges identified in the report. By advocating for a more inclusive workforce and supporting small businesses, we aim to amplify the benefits of energy efficiency for all. 

The 2024 Election Results and the Future of Federal Funding Opportunities

The federal elections cast a long shadow over many of the energy efficiency, climate, and financing programs that were established under the Inflation Reduction Act and Bipartisan Infrastructure Law. While there is a lot of uncertainty, here’s what we currently know. 

 

The Good: 

  • The Climate Pollution Reduction Grant Priority Climate Action Plan projects have been selected and money is in hand. The Comprehensive Climate Action Planning process is underway. The DEQ received one-time CCAP funds to create the plan, but there was never a goal to provide additional funds to states to implement. Instead, the goal is to drive policy decisions down the line at the state and local levels. DEQ is collecting public feedback via this survey through January 15th. 
  • The Energy Efficiency Conservation Block Grant funds that are allocated via formula funding to localities have been secured and will be dispersed as planned. Applications closed on October 31st, and the DOE announced $18M in awards this week. 
    • Virginia Energy received the state allocation and is utilizing a portion of it to administer subgrants to localities that were not eligible for formula funding. Applications for awards of between $10,000 to $100,000 are open through November 29th. Learn more on the VA E website
    • An additional allocation of EECBG funds is being used to establish the One-Stop Shop for consumers and contractors to more easily access energy efficiency, solar, EV, and battery storage upgrades.  This program is expected to launch in Q1 of 2025.
  • The Environmental Justice Thriving Communities Grants for Region 3 via the Green and Healthy Homes Initiative are open through the end of the year. As these funds are being passed through GHHI, they are considered secure. We encourage our members to apply!
  • The Rural Energy Assistance Program (REAP) announced over $256M in investments across 41 states, with many projects in Virginia (start at page 188). The REAP program predates the IRA and BIL and benefits many constituencies that are represented by incoming federal lawmakers, so we predict that these funds will be safe. 
  • Virginia Energy is awaiting the formula award for the Revolving Loan Fund. The funds are anticipated to be received later this year. 
  • While not strictly EE-focused, the state’s award for the Solar For All program and the National Electric Vehicle Infrastructure program are both secure.  

 

The Bad: 

  • The consensus among many policy analysts is that, if the ink on a contract is not dry and/or money for a climate-related program is not in hand, those funds will not be dispersed. Many incoming federal lawmakers campaigned on promises to repeal or strip the IRA, so the future of unsecured funding is uncertain at best. 

 

The Big Question-mark- What does this mean for Virginia? 

  • The biggest uncertainty is around the Home Energy Rebate Programs. While Virginia is further along in the application process than many other states, its plan has not been submitted or approved by DOE. A recent article in the Washington Post states that “Any states without an accepted plan and a signed contract could lose out on that funding under a new administration. Congress could rescind the unspent funds, or the Trump administration could slow the process of evaluating applications.” Virginia Energy has selected its implementation vendor and intends to submit applications by next month. Hopefully, DOE will expedite the approval process before the inauguration so that more states can launch these valuable programs. 
  • The Training Residential Energy Contractor funds were approved by the DOE but have not been received. Likewise, the state was notified that they would be awarded Residential Energy Auditor Funds via the competitive grants under the BIL, but are still in negotiations on that award and are uncertain when the funds will be received. 
  • The tax credits for heat pumps, heat pump hot water heaters, EV chargers, and rooftop solar are predicted to be first on the administration’s chopping block. “The parts most vulnerable are consumer-facing: Tax credits for electric-vehicle purchases, tax credits for rooftop solar, for heat pumps,” Ben Cahill, director of energy markets and policy at the Cockrell School of Engineering at the University of Texas at Austin, said. However, analysis from Power Brief and Crux anticipates that changes to the IRA will be “more surgical in nature” as many of the tax credits and domestic manufacturing goals align with the administration’s policy claims. 

 

Energy efficiency will continue to be the cheapest, easiest, and most accessible way to a cleaner and greener future. As the co-founder and President of VAEEC Member AnnDyl Policy Group stated in the Washington Post, “Energy efficiency has always been bipartisan. Wanting to breathe clean air and have a home that’s comfortable are nonpartisan issues.” While the clouds of change over DC may look daunting, we will persevere and keep working towards our collective mission – to advance energy efficiency across Virginia. 

2024 Energy Efficiency Forum Recap

The Commonwealth’s energy efficiency community gathered on October 2nd and 3rd for the VAEEC’s annual Energy Efficiency Forum. Thank you to our sponsors, speakers, award winners, and attendees for making this event a great success!

Day one was fully virtual in an effort to make the event more accessible and to provide a diverse array of speakers from across the country. It consisted of a keynote address and four breakout sessions:

Keynote Address: Congresswoman Jennifer McLellan offered some insight into the energy efficiency wins from the Inflation Reduction Act and Bipartisan Infrastructure Law. We appreciate her ongoing support of our organization and recognition of the foundational importance of energy efficiency. 

Our Manager of Research and Strategic Partnerships (and resident federal funding lead), Rebecca Hui, then gave a few more updates on state programs facilitated by the IRA and led the audience through a live poll to get feedback on Virginia Energy’s proposed One Stop Shop program. The link is live through October 8th, so please participate if you were not able to attend the event. 

 

As in previous years, we held concurrent breakout sessions. 

Data Center Demand – How Do We Respond? The panelists in this session discussed energy efficiency, electrification, and demand response solutions to the rising energy demand from Virginia’s data center industry. Over 70% of the world’s internet traffic runs through the state, making data centers a huge economic driver – but also a massive energy consumer. The expert panelists helped separate fact from fiction on this hot topic. Speakers included Richard Anderson (Siemens), Haneepha Degarmo (Voltus), Keith Dennis (Beneficial Electrification League), Robert Lazaro (Northern Virginia Regional Commission), and John Morrill (Fairfax County, Moderator). 

Best Practices for Workforce Success: Workforce development is a key tenet of many programs funded by the Inflation Reduction Act and Bipartisan Infrastructure Law. This year’s panel gave updates on the VAEEC’s workforce initiative, as well as discussed opportunities for registered apprenticeships, on the job training, and success stories from other states. VAEEC Workforce Development Director, Erika Reel, moderated the panel, which included Roxana Ayala (ACEEE), Sherie Fulcher (Southern Air), and Dan Taylor (BlueGreen Alliance).

 Inclusive Decarbonization : Decarbonization plays a critical role in stabilizing our climate, but how do we ensure that it is available to all? The panelists discussed insights and opportunities for decarbonization plans that center equity and uplift disadvantaged communities. Speakers included Erin Cosgrove (NEEP), McKenna Dunbar (Sierra Club, Moderator), Maggie Kelley Riggins (SEEA), and Jamal Lewis (Rewiring America). 

How Are We Talking About Energy Efficiency? This unique, interactive session walked speakers and participants through the process of planning and executing a green building plan for the city of Fiction, VA. Using the framework of federal grants and real-world processes, our panelists discussed how to overcome many of the communication barriers between different stakeholders to getting a project across the finish line. The session was moderated by Rebecca Hui, and speakers included Andrew McKinley (VIA design architects), Michele Mitch-Peterson (Siemens), Dawn Oleksy (City of Richmond), and Blair St. Ledger-Olson. 

 

Attendees gathered in person for day two at the University of Richmond Jepson Alumni Center in Richmond. The day began with an opening presentation from Executive Director, Chelsea Harnish. Attendees were provided with updates and a brief overview of the Commonwealth’s energy efficiency industry, as well as a second round of live polling. This poll is also open for seven days, so please sound off! 

The day also included a keynote address, a plenary panel, the ninth annual Virginia Energy Efficiency Leadership Awards ceremony, and an on-site reception.

Keynote Address: Long-time energy efficiency ally and former SCC commissioner Angela Navarro served as our keynote speaker. Her address gave crucial context to the state’s legislative and regulatory landscape. 

“It’s no secret that energy efficiency policy in Virginia has a long and somewhat frustrating history… but there is so much momentum today.”  

Multifamily Multiverse – Navigating the Funding Maze Beyond Weatherization: After a break for networking and snacks, attendees came back together for the plenary session focused on the complexities of serving and funding multifamily housing. There are dozens of state and federal programs focused on low-income and multifamily housing, and navigating the processes can be daunting. Our expert panelists took a deep dive into the opportunities, challenges, and new programs on the horizon, tying it all together with a case study from Piedmont Housing Alliance. Speakers included KC Bleile (VEIC), Stephen Evanko (Dominion Due Diligence Group), Phil Cunningham (Virginia Housing), Sunshine Mathon (Piedmont Housing Alliance), and Rebecca Hui as the moderator. The panelists, along with the audience, answered a last round of poll questions focused on multifamily challenges. 

Energizing Efficiency Campaign & Virginia Energy Efficiency Leadership Awards Ceremony: Next, we had the honor of hosting our ninth annual Virginia Energy Efficiency Leadership Awards ceremony. We started off by highlighting the submissions to our Energizing Efficiency Campaign. From these submissions, three were chosen by the VAEEC’s Education & Events Committee to receive a 2024 Virginia Energy Efficiency Leadership Award for their incredible energy efficiency contributions. For information on each winning project or program, visit our 2024 Awards page. 

 

The event concluded with an on-site networking reception. It is always a pleasure to connect with many of our members and others in the industry face-to-face, and this was no exception. 

Thank you to our sponsors, speakers, award winners, and event attendees for making this one of our best events to date. View photos of the event below. Additional event information, including speaker biographies and sponsor features, can be found in the event program.

Best Practices for Workforce Success

Data Center Demand – How Do We Respond?

How Are We Talking About Energy Efficiency?

Inclusive Decarbonization

Multifamily Multiverse

Event attendees will receive recordings for each of the four breakout sessions in the post-event email. Presentation PDFs can be viewed at the links above.

 

Updates from the VAEEC!

2024 has been a busy year for the VAEEC and the industry. The recently released US Energy and Employment Report states that the energy efficiency sector saw a 3.4% growth rate, adding over 75,000 jobs nationwide in the highest jump since 2018. Federal incentives are also pushing energy efficiency measures faster than ever before. Our staff has been hard at work to be part of that progress. 

 

Utility Programs

During the General Assembly Session, the VAEEC was instrumental in the passage of both the Savings Achieved Via Efficiency Act (SAVE) and the updates to the High Performance Building Act. The SAVE Act creates a single cost/benefit test for utility energy efficiency programs that is based on the National Standards Practice Manual. Stakeholder proceedings to design the new test kick off in September, with expert technical assistance from Energy Futures Group and E4TheFuture. This updated test will allow for deeper energy savings and align Virginia with best practices across the country. 

There are also two open proceedings to set the energy savings targets for Dominion Energy and Appalachian Power Company, as codified in the Virginia Clean Economy Act (VCEA). Stay tuned for our September blog post for a deeper dive into these hearings and other info on utility programs – it’s an exciting time!

 

Programs

In late June, we welcomed our new Workforce Director onboard and have been working hard to launch the Energy Efficiency Workforce Initiative. This program focuses on training and placement of HVAC and weatherization workers in the Hampton Roads area. It is already garnering a lot of interest from the community, and we are excited to see the progress. We also added a workforce page on our website to track the success. 

We have also been deeply engaged with Virginia Energy and other partners around the federal funds coming from the Inflation Reduction Act and Bipartisan Infrastructure Law. These complex laws have a lot of components and shifting deadlines, so we have worked to act as a resource for members and advocates to ensure that these funds are put to their best possible use. 

 

Events

In May, we welcomed three new Board members and over 100 attendees at our Spring 2024 Forum. Guests braved high humidity and blustery storms to network and learn from our expert speakers, then moved to Capital Ale House for a fun happy hour. Thanks to everyone who came out! 

Looking forward, we hope to see all of you in a few short weeks at the Energy Efficiency Forum on October 2nd and 3rd. Registration is open and we are still accepting sponsors to help make the event a success. 

We also are excited about the Virginia Clean Energy Summit on October 16th and 17th in Richmond, and are looking forward to the Southeast Energy Efficiency Alliance Summit and Virginia Governor’s Housing Conference coming up in November. Fall is a busy time for energy efficiency professionals! 

 

EE is all around! 

Conferences aren’t the only reasons for VAEEC staff to travel. Over the year, we’ve been lucky enough to catch some examples of energy efficiency in the wild. Rebecca visited the LEED certified National Building Museum with friends and family, and learned more about all the ways that buildings affect people and the environment. Jessica spotted the energy efficiency grades in New York City building windows. One of the VAEEC kids even started at a local LEED certified high school! 

On the flip side, Chelsea had the opportunity to educate an AirBnB owner on what not to do when an overloaded outlet took out their hot water on vacation! 

With Q4 just around the corner, we’re excited to finish 2024 with the same progress and momentum that we’ve seen so far. 

Overview of the Updates to the High-Performance Buildings Act

The High Performance Buildings Act of 2021 was enacted to drive more efficient, resilient, and future proof buildings. It updated the building performance standards for state and public buildings and created new building performance standards for local governments. During the 2024 General Assembly Session, the VAEEC and other stakeholders worked with the bill patron to update the law to better suit the localities’ needs and clarify unanswered questions. 

The major changes to the law, which takes effect July 1st, include: 

  • Clarification of the definition of “appropriate resilience features”. The bill language allows localities to identify potential hazards and determine what measures are effective to mitigate those risks to their specific buildings. This allows for more flexibility, as a coastal locality may have very different needs from one in the Piedmont or Southwest Virginia.  
  • Removal of the Virginia Energy Conservation and Environmental Standards (VEES) as a high performance building certification program, and inclusion of Earthcraft Light Commercial certification for buildings under 50,000 square feet. The VEES is not consistently updated, so removing it as a potential certification ensures deeper energy savings and higher standards in line with LEED, Earthcraft, and Green Globes
  • Specifying that the term “locality” is inclusive of school systems. In many Virginia cities and counties, the school system is a separate entity from the local government, which led to confusion about which buildings were included under the law. 
  • Closing loopholes in the definition of Zero Emission Vehicle (ZEV) charging infrastructure and the timeline for the design phase of a building. Both sections of the 2021 law included language that confused the intent of the law and made it easy to seek exemption from the requirements. The 2024 update strikes language around the number of charging stations and types of chargers required, and plainly states what types of equipment should be considered in the design phase of the building. It also adds a timeline for localities to enter the design phase after budgeting and contracting for the work. 
  • Clarification on how to adapt buildings that don’t qualify for high performance building standards, such as firehouses. The 2024 law now states that, if a building type is under 20,000 square feet and not eligible for certification, that the locality must model energy savings equivalent to the ENERGY STAR Target Finder value for the building type, or equivalent standards. 

The 2024 update also includes sections that added definitions for “commissioning” and “major disruption” to further ensure that new and renovated public buildings are achieving maximum comfort, health, and energy savings, while also allowing the localities the flexibility to do what is best for their community. 

For a deeper dive into the nuts and bolts of the High-Performance Buildings Act, register for our upcoming webinar on July 9th.

Spring 2024 Forum Recap

Virginia’s energy efficiency industry gathered together on May 5th to learn and connect at the VAEEC’s annual Spring Forum. With over 100 energy efficiency professionals in attendance, this was our largest Spring Forum since the pandemic. Thanks to our sponsors, speakers, and attendees for making the event a great success! A special thank you to Henrico County for providing the venue.

The Spring Forum kicked off with an opening presentation from Executive Director, Chelsea Harnish, who provided an update about Virginia’s energy efficiency industry and the organization’s accomplishments throughout the past year. We also conducted a live audience poll to get real-time feedback from attendees about what benefits and topics they’d like to see more of.

    • In light of recent federal and state funds and legislation, what are the top three technologies you feel the VAEEC should focus on?
      • #1 Heat pumps 
      • #2 Data center efficiency technologies 
      • #3 (tie) Heat pump hot water heaters 
      • #3 (tie) Solar-ready/EV-ready construction 
      • #3 (tie) Commercial/Industrial decarbonization strategies 
    • The VAEEC has a strategic goal to diversify membership to better reflect the racial and geographic diversity of the state. What are the top three outreach strategies you feel the membership committee should focus on? 
      • #1 Community events 
      • #2 Workforce development outreach 
      • #3 Locality engagement 
    • The VAEEC hosts two biannual forums per year, in addition to webinars, round tables, and workshops. What are the top benefits you’re like to see more of? 
      • #1 Networking 
      • #2 Icebreakers and/or opportunities to get to know other members
      • #3 More interactivity

Next was a keynote address from Paula Glover, President of the Alliance to Save Energy (ASE). With ASE’s focus on advancing federal energy efficiency policy, Paula provided an inspirational message about the importance of working as a team. She used the metaphor of running as a team and creating winning strategies for this long and complex race we are all running to advance energy efficiency forward. Paula encouraged us to team up and use our strengths towards a greater goal. 

Next, VAEEC Board Chair Leigh Anne Ratliff led the business meeting, which started off with our 2024 Board of Directors election.

VAEEC members re-elected one board member:

    • Michael Hubbard, Dominion Energy (3rd full term)

Members then voted to elect three new directors to the Board:

    • Raye Elliott, FLIPP Inc.
    • Megan McMillen, Community Housing Partners
    • Nam Nguyen, Virginia Tech

We are thrilled to add new voices to our leadership and to continue working with our current Board members. 

Attendees were next treated to a round-robin of updates and successes from our members before moving into a networking break. After reconvening, the plenary session began. Over the last few years, we have seen many changes to the energy efficiency industry – energy efficiency legislation, new State Corporation Commission (SCC) commissioners, unprecedented funding from federal and state programs, new model building codes, the ongoing fight over Virginia’s participation in the Regional Greenhouse Gas Initiative, and more. This panel, Exploring the Energy Efficiency Landscape in 2024 & Beyond, explored how these changes affect Virginia and strived to answer the question: what’s next?

Speakers included:

    • Chelsea Harnish, Virginia Energy Efficiency Council: Along with moderating the session, Chelsea provided applicable policy updates from the 2024 General Assembly session. 
    • Will Cleveland, Lighthouse Policy & Law: Will discussed the Commonwealth’s regulatory landscape and changes to the State Corporation Commission.
    • Hadja Doumbouya, Virginia Energy: With ample federal programs providing funding to the Commonwealth, Hadja provided an overview of the Home Energy Rebate Programs (HOMES and HEAR) guidelines, updates, and eligibility. 
    • Sean Shanley, Viridiant: Sean provided an update on Virginia’s residential building code policy, including changes from the past year and what we can expect moving forward. 
    • Meghan McMillen, Community Housing Partners: As the Director of Weatherization with CHP and Board President of the Association of Energy Conservation Professionals, Meghan discussed the current status of weatherization across Virginia and what we can expect in the near future.

Once the event wrapped up, nearly 50 people joined us for an off-site happy hour where the networking continued well into the evening. Networking opportunities are still one of the key benefits our members value, and we are happy to provide these opportunities for connection and collaboration.

As always, this event would not have been possible without our sponsors, speakers, and attendees. We would also like to thank the VAEEC Education & Events Committee for helping staff plan such a successful event.

Be sure to save the date for our fall Energy Efficiency Forum– October 2nd (virtual) and October 3rd (in-person, University of Richmond). We hope to see you there.

Additional event information, including speaker biographies and sponsor features, can be found in the event program. Event attendees received a PDF of the event’s presentation in the post-event email. Contact info@vaeec.org if you did not receive it. Events photos can be viewed in the photo gallery below.

Dominion Phase XII DSM Filing Updates

Last December, Dominion Energy filed their latest DSM application (Phase XII) with the State Corporation Commission. The company is proposing four new programs and seeks to modify two current programs. The VAEEC is a respondent in the case, with our Executive Director, Chelsea Harnish, providing expert testimony..  

The four new programs are: Residential New Construction (EE), Residential Smart Thermostat Purchase (EE), Residential Smart Thermostat (DR), and Non-residential New Construction (EE). They also requested to update the eligibility criteria for the Phase VIII Small Business Improvement Enhanced Program to allow for businesses with more than five locations to participate, and to change the Phase VIII Non-residential Energy Efficiency Midstream Program to offer more up-to-date program measures, such as ice makers and dishwashers.  

We fully support Dominion’s application. However, we identified several areas for continued improvement

 

Support for the Phase XII Filing as Necessary but not Sufficient to Meet VCEA targets

The programs and alterations proposed are necessary steps for Dominion to achieve their energy efficiency goals. However, it is still very unlikely that they will go far enough to meet the VCEA EERS targets. Chelsea said in her testimony, “Since this filing is the last opportunity for the Company to propose new programs before the end of 2025, it will need to deploy other resources including: increasing participation rates, utilizing Commission approved, portfolio level marketing funds to increase consumer awareness, and do more to leverage the functionalities of Advanced Metering Infrastructure or AMI.” 

Dominion will also need to launch all of its previously approved programs to start accumulating the energy savings needed to meet the VCEA targets, as well as continuing to utilize the stakeholder group to build out implementation plans for the four key recommendations from the Hearing Examiner’s Report. As it currently stands, and depending on the metric used, Dominion will only achieve 3.2% savings in 2024 and 3.7% in 2025, which are significantly short of the mandated 3.75% and 5%, respectively. However, it is critical that the SCC does not address this shortfall by reducing the EE targets – meeting the targets that were adopted in the VCEA, and continuing to mandate stronger goals, are critical to promoting an energy-efficient economy, combating climate change, and providing a safe and healthy environment for all Virginians. 

In regards to the New Residential Home Construction Program, we raised concerns about the version being utilized in the program. The Dominion program only requires that new homes are built to Energy STAR 3.1 standards, however, the standard was recently updated to 3.2, which is required for home builders to receive the federal 45L tax credit. Since it has been confirmed by EPA that homes built to 3.2 do meet the standards in 3.1, we asked the Commission to ensure that Dominion allows homebuilders building to version 3.2 can also participate in their program. 

 

Analysis of the Long-Term Plan, Project Management Report

In late 2022. Dominion released a long-term plan (LTP) outlining how the company would meet the energy savings goals in the VCEA. In last year’s filing, the company did not provide specific metrics or quantifiable data on tracking this progress so the Commission recommended they include an LTP Progress Report with this year’s filing. Unfortunately, the report in the current filing continues to be vague while also reporting that the company is making “considerable progress” on the recommendations set forth in the LTP. We provided examples of metrics the company issued in interrogatories, as well as the EE stakeholder group, and asked the Commission to explicitly require quantifiable metrics in future filings so that stakeholders can better assess the true progress that is being made towards the VCEA goals. 

 

Review of Cost-Effectiveness Test Results

Virginia law requires proposed utility EE programs to pass three out of a possible four cost-effectiveness tests in order to be approved by the SCC. These four tests are:

  • Participant Cost Test
  • Utility Cost
  • Total Resource Cost and
  • Ratepayer Impact Measure (“RIM”) 

 These tests were designed in the 1980s and do not take into account any of the technologies or modernizations of the intervening decades. Moreover, the tests vary widely from state-to-state or even program-to-program, with the inputs heavily weighted towards the costs to the utility without considering many of the benefits. 

As our members are likely aware, the VAEEC formally supported the SAVE Act in the 2024 General Assembly Session, which requires the Commission to develop a single cost-benefit test following the guiding principles of the National Standard Practice Manual (NSPM). The Governor added an amendment, which will also require the utilities to perform the TRC test in addition to the new test. While this amendment is not perfect, there are opportunities to address the issues this could raise before the new test is implemented in 2029. On April 17th, the General Assembly reconvened for “veto session,” and formally accepted this amendment. 

Adopting a new cost-effectiveness test following the guiding principles of the NSPM would ensure that all investor-owned utilities in Virginia are using the same inputs in a transparent and balanced analysis that is forward-looking and aligns with the energy policy goals of the Commonwealth.

 

Discussion of Net/Gross Savings Metrics 

The VCEA codifies “total annual energy savings” as the method-of-choice for determining energy savings, which includes savings from both new measures installed in a given program year, as well as measures installed in previous years that are still actively providing energy savings. 

However, there has been an ongoing debate on whether the utilities can use net or gross savings to meet the VCEA targets. Dominion and SCC staff say the utilities should be able to use gross savings while environmental experts state that only net savings should be counted. While the VAEEC does not have a position on this issue, we felt compelled to weigh in this year when the company provided definitions for the two terms that do not align with industry standards. 

Gross savings are the difference in energy consumption based on the savings from a particular measure or project vs the baseline consumption without that measure in place – and net savings, is essentially gross savings minus “free riders,”- or customers who would have installed the measure without participation in a utility program, per the EPA Guidebook for Energy Efficiency Evaluation, Measurement, and Verification.  

In simpler terms, gross savings are calculated as the energy savings attributable to a particular measure—for instance, by comparing the energy usage of a high-efficiency dishwasher to the energy usage of the ordinary dishwasher it replaced. 

In Dominion’s Legal Memorandum on the matter, the company stated the difference was related to whether or not the savings were from a program or specific measure. 

“Simply stated, gross savings are the savings from the energy efficiency measure (e.g., savings from a high efficiency light bulb or air conditioner upgrade) while net savings are the savings from the energy efficiency program (e.g., the Residential Home Energy Assessment Program or Non-residential Heating and Cooling Efficiency Program).” Not only is this not an industry-recognized definition, but it is also contradictory to the technical reference materials used in Dominion’s own 2023 EM&V report. 

When considering whether to use gross or net savings to calculate progress towards the VCEA goals, the SCC will need to rely on correct definitions cited in industry standard manuals.  

 

Celebrating Black History Month in Energy Efficiency

Black history is American history, and while we celebrate this every February, the contributions of the Black community shine year round. This is particularly clear in the energy efficiency industry, where innovators, entrepreneurs, and leaders have paved the way for adoption and advancement for centuries. Lewis Lattimer revolutionized indoor lighting in the 1800s by refining the filament used in light bulbs, turning them from an expensive luxury to an everyday necessity. David Crosthwaite filed more than 43 patents for heating and air conditioning equipment in the 1920s and 30s, and was the first Black man to become a fellow in the American Society of Heating, Refrigeration, and Air Conditioning Engineers. And even more recently, Lisa P. Jackson served as the first Black administrator of the Environmental Protection Agency in 2009, prioritizing indoor air quality and climate change. 

As a broad coalition of industry leaders, the VAEEC sees the amazing work our Black colleagues do on a regular basis. To highlight their insights and voices, we asked four members to share their experiences in the energy efficiency field.   

Royce Brooks is a Member Service Specialist at Old Dominion Electric Cooperative (ODEC) where she has been employed for the past 25 years. She manages the PJM Demand Response Program for ODEC’s member-owner distribution cooperatives to ensure they are properly registered in the PJM program. She also works with Demand Response and Energy Efficiency (DR/EE) and Strategic Electrification (SE) teams ensuring the successful implementation and verification of programs, supports ODEC’s 11 member-owner distribution cooperatives Load Research program, and helps plan, coordinate and facilitate member education efforts. Royce is a member of the Generation & Transmission (G&T) Distributed Energy Resources (DER) Systems Working Group.  She has a BS Degree in Business Administration from Virginia Union University.

McKenna Dunbar is a steadfast advocate for equitable clean energy transitions in frontline and rural communities, with a focus on the intricate intersections of environmental justice, green workforce development, and net-zero building policy initiatives. As the Building Electrification Staffer at Sierra Club Virginia Chapter, McKenna leads a team dedicated to advancing building electrification and reducing fossil fuel dependence. They are also a member of the VAEEC Board of Directors. 

Maggie Kelley Riggins is the Senior Program Manage at Southeast Energy Efficiency Alliance (SEEA) and has devoted her career to developing innovative and holistic approaches to understanding and solving gnarly problems faced in the South around climate and energy. Maggie currently manages the building portfolio as SEEA, where she is laying the landscape for equity through climate and workforce in energy efficiency. She manages SEEA’s energy efficient building code and standards work and the building-oriented pilot project models for local governments to increase energy efficiency as a solution for residential, commercial, and municipal buildings. Maggie is leading the nation’s work in drawing direct connections from building energy codes and standards to racial justice, opening new pathways to achieve affordable, healthy, and sustainable housing for everyone.

Anitra Watson is the Energy Conservation Program Manager at Dominion Energy. In her role she oversees the implementation of the Income and Age Qualifying Programs for Virginia and North Carolina, the residential Manufactured Housing Program, and the residential and commercial Multifamily Programs for Virginia. She monitors program progress, quality controls, and financial oversight. Anitra assists with testimony prep, discovery development and provides strategic recommendations. She works closely with Implementation Vendors, the Weatherization Service Providers, and Independent Contractors to ensure successful program implementation. 

 

Why are you passionate about energy efficiency? 

Royce:  I am passionate about energy efficiency because it helps us save money. And who doesn’t like to save money, especially energy, the one thing we can’t live without! It’s a growing industry from lighting, appliances, renewable energy, beneficial electrification, and weatherization. Having efficient homes and buildings is the key to improving lifestyles.

Maggie: To me, energy efficiency is a way to support people in having a higher quality of life. Improving the energy efficiency of someone’s home or business directly relates to their economic opportunity, their health, and the resilience of their structures – all things that are very important in the Southeast. Getting to work in the energy efficiency and buildings sector affords me the opportunity to have a direct impact on the day to day lives of people and communities.

Anitra: Our health and our living conditions are intimately intertwined. If living conditions are not standard, it can weigh on the physical and mental stability of the individual. By providing energy efficiency we are improving living conditions, changing lives, and so much more. I am passionate because it provides a healthy environment for our customers and a sustainable approach in our industry. 

McKenna: My passion for energy efficiency stems from its unique position at the intersection of innovation, equity, and environmental stewardship. This sector represents a fertile ground for technological advancement, where creative solutions can significantly reduce energy consumption, lower utility bills, and contribute to a more sustainable planet. 

But beyond the technology, what really does excite me is the potential for energy efficiency to democratize access to clean, affordable energy. By focusing on how to make energy efficiency more accessible and affordable, we can ensure that the benefits of renewable energy and modernized infrastructure reach all communities, not just the affluent ones. This focus on equity ensures that our efforts in energy efficiency can help bridge the gap between different socioeconomic groups, making it a powerful tool for social change.

 

What brought you to the energy efficiency industry? 

Maggie: I am fortunate to have gone to school in the time where energy policy was a degree pathway. I have been interested in sustainability, climate change, and the role of communities since I was in high school and was able to study this further in college at Georgia Tech. The impact keeps me in the energy efficiency sector. Being able to directly support and empower communities, uplift community perspective and voice, and be a champion for better outcomes for folks in the Southeast is a privilege I get to experience every day in this sector.

Royce: When I came to work at Old Dominion Electric Cooperatives(ODEC), I started in IT. When an opportunity came available in Member Services to work with our member-owner distribution cooperatives and facilitate the Energy Efficiency programs, I thought it was a great opportunity to learn about the energy side of the business.

McKenna: My journey into the energy efficiency industry was sparked by my work in building electrification and workforce development in the solar industry. Initially, I was fascinated by the technical aspects of how buildings could be transformed to use energy more cleanly and efficiently. This work opened my eyes to the broader implications of energy use in our daily lives and the potential for systemic change through smarter energy practices. As I delved deeper into this field, I became increasingly aware of the critical role that energy efficiency plays in combating climate change, reducing reliance on fossil fuels, and promoting a healthier environment.

The more I learned, the more I recognized the interdisciplinary nature of the challenge. It was not just about engineering and advocating for better systems but also about understanding the economic incentives for adoption, the regulatory environment, and the social impact of energy policies. This complexity made the field incredibly appealing to me, as it offered the chance to engage with a variety of stakeholders, from policymakers and business leaders to community organizers and homeowners.

Furthermore, the equity aspect of energy efficiency deeply resonated with me. I saw how targeted efficiency improvements could make a significant difference in low-income communities, often the most affected by high energy costs and pollution. This realization solidified my commitment to the sector, as I wanted to contribute to making energy efficiency solutions accessible and beneficial to all, regardless of their economic status. It’s a sector where I believe my efforts can contribute to meaningful, positive changes in the world, making it an endlessly inspiring field to be a part of.

Anitra: In my former role working with Home Revitalization Programs, I would refer my clients to the Energy Conservation Program once the Home Revitalization was completed. This became part of my program process. So, when the opportunity became available, I embraced it. I saw the impacts of energy efficiency and how small changes made a difference. 

 

What do you think the biggest challenges and opportunities are for Black workers entering the field? 

McKenna: For Black professionals entering the energy efficiency field, navigating the landscape comes with its own set of unique challenges and opportunities. A significant challenge many face, including myself, is overcoming systemic barriers. One of the most pressing issues is underrepresentation, which complicates finding mentorship and role models. This lack of representation can make it harder to navigate the industry and find the support needed to thrive.

On the other hand, the energy efficiency (EE) industry is brimming with potential, particularly as it begins to prioritize diversity, equity, and environmental justice. This shift is opening up avenues for Black professionals to take the lead and drive innovation. There’s a real chance here to develop sustainable energy solutions, policies, and businesses that not only improve the state as a whole but also specifically uplift communities that are disproportionately affected by energy challenges—like rural, BIPOC, and low-income areas (comprised of leaders who encompass these identities). The industry’s push towards embracing new technologies and tackling climate issues also creates a rich environment for entrepreneurial ventures and innovative projects.

What’s encouraging is the emergence of a support network dedicated to breaking down these systemic barriers and enhancing the representation of Black professionals in the field. However, it’s important to recognize that not all support efforts are created equal. Just because something looks like a bird and sounds like a bird, does not a bird make. True, justice-oriented support will be the key in providing meaningful mentorship, specialized training, and broader career opportunities for Black professionals in the EE industry.

Royce: The biggest challenge is identity. We need to see more African Americans working and operating in their own communities. 

Anitra: I think the biggest challenge for any worker entering the field is transparency on how to get started, and where to go for resources. 

Maggie: One of the largest challenges I faced was being able to see myself in a role. There are some incredible Black trailblazers in this industry, many of which are now being celebrated, honored, and valued at the federal level. When I came into the industry though, there were fewer individuals who were championing this space, and getting the recognition they deserved in doing so. I’m grateful to have the platforms I have, and to elevate voices of other Black leaders, so that younger Black folks and those who may want to transition to this space see that there is room for them here.

 

What is one thing about the industry you would like to see change? How can other groups help make that change? 

Anitra: I would like to see workforce development opportunities for General Contractors in Energy Efficiency. By providing the opportunity to bridge the gap with licensed and insured contractors, we are paving the way for more experts working in the industry. Other groups can help make the change by design thinking, creating a seamless way to ensure opportunities through education and certification are met and General Contractors are incentivized with work opportunities upon certification completion.

Royce:  I would like the industry to recruit from HBCUs, community colleges, and high schools to inform and educate people about the opportunities in the industry.  It’s an evolving industry with never ending opportunities and there is so much to learn. 

Maggie: I love the shift that is happening for investing in and working alongside communities who have been historically intentionally discriminated against, whether that is through the Justice40 lens or from other equity commitments or companies and organizations. There is so much further to go to meaningfully engage and support communities across the country to realize a clean energy and energy efficient future, though. One thing organizations and companies could do that I would love to see improved is paying people for their time. Community expertise is just as important, if not more important at times, as technical expertise. To do this work well, we need to ensure that when we write community groups, organizations, or representatives into our plans, that we also include them in our budgets.

McKenna: A pivotal shift I envision for the industry revolves around enhancing the inclusivity and justice orientation of entities within the energy efficiency (EE) workforce, ensuring they genuinely reflect the communities they serve. The challenge lies in the distribution of statewide formula funding from federal initiatives, which historically has favored organizations that, intentionally or not, have maintained a monopoly, sidelining partners from disinvested and historically disenfranchised communities. To foster a more equitable distribution, a concerted effort from all stakeholders is imperative. Federal and state agencies could revise funding criteria to prioritize inclusivity and collaboration. Meanwhile, industry leaders and funding bodies should facilitate platforms for dialogue and partnership, ensuring environmental justice and DEIJ-rooted community-based organizations are not just participants but leaders in shaping and implementing EE initiatives. This approach not only democratizes energy efficiency efforts but also amplifies their impact across the commonwealth, fostering a more inclusive and just energy transition.

 

What’s your favorite EE tip? 

McKenna: One of the most effective EE tips I can offer is to consider installing a heat pump in your home. Heat pumps are a versatile and efficient solution for both heating and cooling, operating on the principle of transferring heat rather than generating it, which makes them incredibly energy-efficient. This means they can really help lower your energy bills and cut down on your carbon footprint. They’re good for both heating and cooling, adapting well to different climates, so you stay comfortable all year round. I encourage people to  get an energy audit done to assess whether this technology is a right fit for their home! 

Anitra: Change your filters, so your HVAC system does not work harder to keep you comfortable.

Maggie: My favorite EE tip is that small things add up. Weather stripping, changing out light bulbs, making sure your attic insulation is up to par, etc. can make huge differences in not just energy bills, but also the comfort and health of your space!

Royce: Cooking on the grill on warm days!! Good food and fun!!

 

What advice would you give to another member of the Black community when entering the field? 

Maggie: I advise everyone to reach out to people in the industry that inspire you. Shoot your shot, as they say. There are so many incredible people who would be more than willing to connect with you, serve as mentors, and see you shine in this industry. This doesn’t have to be a lonely experience – we want to help you!

Royce: The industry is evolving so quickly and there is so much to learn, and the industry provides job security and stability. I have worked in the industry for 25 years and I continue to grow and develop.

McKenna: Keep believing in the heart of the mission, no matter what fluff you see surrounding you. The mission can be personal. For me, I believe energy efficiency is an important tool in the clean energy transition toolbox. It means that this tool has the collective power of alleviating and mitigating the suffering of millions across the country, much less hundreds of thousands in the Commonwealth. 

It means that in your own unique way, the work you are engaged in means something to someone out there. Stay motivated by the difference your contributions make, however big or small, knowing that each step forward is a stride towards a justice-oriented world. Believe in your voice and ask yourself and your collaborators, what is our vision if we cease to believe in the mission?

Anitra: The work in this field changes lives, the assistance you provide will have an impact on the lives of others.

 

What’s the weirdest job you’ve ever had? 

Anitra: When I was working in the field, I spent the day with my Energy Auditor. We visited a home that applied for the Department of Social Services Crisis program, they had no heat. When we arrived at the home, the father replaced the flue on the wood stove with a dryer vent hose. He created a fire in the wood stove using gasoline. The gas containers were between the wall and the back of the wood stove.  Due to age, the entire unit was glowing. I am so glad we were able to prevent a bad situation escalating to something worse.

McKenna: Reflecting on the most unconventional role I’ve had, working as a mortician’s assistant stands out. This role, while initially seeming “weird,” offered profound insights into the cycles of life and death, teaching me invaluable lessons about authenticity and purpose. The experiences gained in this position- observing the finality of life and the importance of living with intention—have profoundly influenced my approach to social impact work, especially in areas like energy justice and climate mental health. It underscored the significance of embracing each day with purpose and has guided my career trajectory in meaningful ways.

Royce: The weirdest job I ever did was to go out in the field to probe a meter.

Maggie: I thankfully haven’t had many weird jobs, but in high school I volunteered in school collecting people’s old shoes for recycling. Very smelly work!

VAEEC Goes to the General Assembly!

On Thursday, February 8th, the Virginia Energy Efficiency Council Board and staff were invited to be recognized on the House of Delegates floor in support of the House Joint Resolution to designate October 4th as Energy Efficiency Day! While Chelsea has been camped out at the GA to help with legislator education, Jessica and Rebecca took their first field trip to the new building. We were excited to meet so many legislators and staffers throughout the day. 

Four Board members joined us at the House chamber gallery during the Morning Hour, which is the first hour of the Session, while Delegate Sullivan, a long-time champion for energy efficiency, introduced the VAEEC. We appreciate his ongoing support of our organization. You can view the video of our recognition below! 

VAEEC GA Recognition  

We later learned that the HJ6, the resolution to designate EE day, passed on an 83-7 vote. Now Virginia has joined dozens of other states in recognizing the value and importance of energy efficiency, not just on one day, but every day. 

Check out our photo gallery below. 

Dominion Phase XI DSM Hearing Observations

Last December, Dominion filed an application with the State Corporation Commission (SCC) for its proposed Phase XI DSM programs. This filing included three new energy efficiency programs, four new EE program “bundles,” one demand response program, and one EV telematics pilot program. The company requested a $149M budget cap with a 15% variance. In addition to the new programs, Dominion asked to permanently close its appliance recycling program and expand its agricultural program to residential customers who run small, family farms. The Company requested to close an additional seven other programs whose measures were being rolled into the proposed program bundles. 

Our Executive Director, Chelsea Harnish, filed testimony on behalf of the Virginia Energy Efficiency Council (VAEEC) in support of the Phase XI programs with a few concerns and suggestions for improvement. 

Here is a summary of other highlights from our testimony:

  1. Leveraging functionalities of AMI to enhance the effectiveness of DSM programs
  2. Expanding program offerings to dual-fuel customers (those with gas heat and electric AC)
  3. Quantifying whether funding from the Inflation Reduction Act could lower program costs
  4. Including Non-Energy Benefits (e.g., Social Cost of Carbon) in cost/benefit test scores
  5. Requiring BPI certification for the Residential Home Retrofit Program Bundle

On May 17, 2023, the case was heard before the Hearing Examiner assigned to oversee the case. The Examiner was very supportive of the stakeholder process and stated several times that parties were “on notice” to vet new program ideas and areas of concern through the stakeholder process. This is the first time that a Hearing Examiner has put such an emphasis on the value of the stakeholder process. We hope the Commission’s Final Order reflects this same sentiment.

Meeting the Goals of the Virginia Clean Economy Act

As part of the application, company witnesses shared the progress towards meeting the Energy Efficiency Resource Standard (EERS) goals of the Virginia Clean Economy Act (VCEA). According to Dominion, the Commission has not made it clear whether they should calculate Gross savings (all savings achieved in a given year) or Net savings (all savings achieved in a given year minus free riders), so they provided calculated savings for both. As seen in the table below, provided by company witness Nate Frost, the company has met the 2022 goal either way but is only able to achieve the 2023 goal with gross savings calculations. For the 2024 and 2025 goals, the company is projected to not meet either goal under either scenario.

 

Year VCEA Target % MWh savings Projected/ Actual Gross Savings Projected/ Actual Net Savings
2022 1.25% 852,892 MWh 1.9% 1.4%
2023 2.5% 1,705,783 MWh 2.6% 2.1%
2024 3.75% 2,558,675 MWh 3.1% 2.4%
2025 5% 3,411,567 MWh 3.6% 2.9%

 

In pre-filed testimony, SCC staff witness Andrew Boehnlein noted that Dominion will have a projected shortfall of 1180 GWh in meeting the 2025 energy-savings goal. Mr. Boehnlein also calculated that the proposed Phase XI programs would only cover 5% of the shortfall in 2024 and 7% in 2025. Given that there are no further opportunities for new programs in 2024, the company must prioritize implementing recommendations from its long-term plan filed as part of last year’s filing (Phase X) to bridge the gap in 2024.

Company witnesses identified several market barriers they believe are impeding the company’s success in meeting its goals. These challenges include declining potential and updated building codes. The VAEEC questioned the extent to which these were barriers during the proceeding. For instance, current building codes should only be used as the baseline for determining the savings potential for new construction programs since it is unlikely that homes constructed prior to the last 3-5 years would meet more stringent energy codes. In interrogatories, company witnesses confirmed they only use current building codes for new construction programs. Since the company only has one residential new construction program, current energy-efficient building codes are unlikely to severely affect the company’s ability to meet its EERS goals.

All utilities experience declining potential, the continual reduction of savings opportunities out in the market, especially for lighting products as federal regulations have required more efficient product manufacturing. However, declining potential is not the same for every utility. Utilities that have been implementing programs over several decades find that declining potential can severely affect new program opportunities. However, for Dominion, who only began offering energy efficiency programs in 2009, and has low participation numbers in most of their programs, there is still a lot of potential energy savings to be captured.

As mentioned, Dominion’s participation numbers are low. SCC staff witness Mr. Boehnlein summarized data from the Company’s 2022 EM&V report. In 2021, the average residential program achieved approximately 45% of expected participation and 57% of estimated energy savings. For the non-residential programs, the average was 43% of expected participation and 32% of estimated 2021 savings. Staff surmised that based on previous program performance, the Company’s projected participation rates for the proposed Phase XI programs are higher than any program that has been implemented to date. In other words, the proposed programs will cover less than 5% of the estimated shortfall in 2024 and 7% in 2025.

Mr. Boehnlein also noted that the 2022 EM&V report stated portfolio bill savings for customers were approximately $26.6M while program costs were more than double at about $59.8M with 43% of those costs being administrative in nature.

Hearing Examiner’s Report and Recommendations

On June 16, 2023, the Examiner issued his recommendations to the Commission, which included approval of all programs, with the $149M budget cap and 15% variance, with no program expiration date. While the budget variance request and not having a predetermined closure date are standard in other states, in Virginia, these requests were typically denied by the SCC up until last year. 

The Hearing Examiner was thorough in his review of the case and analyzed all of the remaining issues one by one. In most instances, the Examiner validated suggestions and concerns brought up by the VAEEC and recommended the SCC direct the company to address each one via the stakeholder group and require the company to report on these issues in their next DSM filing. These issues include:

  • Cost-effectiveness testing: VAEEC recommended analyzing non-energy benefits, such as the societal cost of carbon and health benefits
  • Allowing dual-fuel customers to participate in most programs: VAEEC recommended allowing customers who use gas furnaces to heat their homes and electric AC to keep their homes cool should be allowed to participate in most, if not all, programs. The Examiner not only recommended this become a stakeholder discussion but also noted that if the company is projected to miss their 2024 and 2025 VCEA goals, then expanding customer eligibility could have an “immediate and measurable impact on achieving those savings targets….”
  • Accelerating program consolidation: In last year’s filing, VAEEC expressed concern with the Company’s plan to not begin bundling programs until existing contracts with implementation vendors end (i.e. 2025 at the earliest). The company took this feedback and offered four new bundled programs in this year’s filing. Other respondents expressed the need to continue bundling programs into the seven overarching programs laid out in the long-term plan, which the company agreed to discuss where practical. The Hearing Examiner agreed that acceleration was critical in order to pursue, “immediate and measurable impact on achieving those savings targets….” in 2024 and 2025.
  • Exploring and incorporating full AMI functionality into DSM programs: VAEEC recommended the company leverage AMI functionality in DSM programs. The company is committed to exploring these functionalities via its grid modernization applications. The Examiner noted what little time is left to increase participation levels and savings in the company’s DSM programs to achieve their 2024 and 2025 goals, stating, “I believe the Company does not have the time to sit back and address the issue as part of its grid transformation program, and for that reason, I am recommending that the issue be referred to the Stakeholder Group for consideration and analysis over the upcoming year.” The Examiner also went on to recommend a pilot program to deploy in areas with high concentrations of AMI deployment.

Additionally, the Hearing Examiner made recommendations on the following key issues as well:

  • BPI certification- The Hearing Examiner provided an alternative recommendation to what the VAEEC, the environmental respondents, and public witnesses recommended. He recommends that BPI certification should not be required for HVAC measures, but appears to require this certification for contractors performing ductwork in addition to continuing to require BPI certification for thermal envelope measures. In terms of the VA Residential Energy Building Analyst License, the examiner stated that the statute is clear that this license is required for any type of residential energy assessment and suggested the company consult with the VA Department of Professional and Occupational Regulation in regards to whether such license would be required for contractors performing assessments as part of the Residential Home Retrofit Bundle. 
  • Implementation plan- the environmental respondent witness, Jim Grevatt, recommended the Commission require Dominion to demonstrate how it could meet its EERS goals by filing an implementation plan within 90 days of the release of the Commission’s Final Order. The Hearing Examiner largely agreed with Mr. Grevatt but provided an alternative recommendation suggesting the Commission require Dominion to prepare a Project Management Plan and Risk Management Strategy consistent with the Commission’s Final Order in the 2020 DSM Case detailing completed tasks, tasks to be completed within the next twelve months, and tasks that remain to be completed in order to fully implement the LTP.
  • Net vs. Gross calculated savings- Environmental Respondents and Dominion argued over how the EERS goals in the VCEA should be calculated- as either “gross” or “net” savings. In Mr. Grevatt’s testimony, on behalf of the environmental respondents, he argued that the Commission provided direction on this in the Final Order last year stating that, “specific savings that can be reasonably identified, and that were not achieved as a result of Dominion’s programs and measures,” should not be counted towards the EERS goals (i.e. the savings should be calculated as “net”). Dominion disagreed, arguing that the ruling was not clear and that the analysis of “gross” and “net” savings is complex and should be deferred until the first EERS compliance case next year. While the Hearing Examiner agreed with environmental respondents that the Commission explicitly state that the EERS savings should be calculated as “net” savings, he also agreed with the Company that in light of the complexity of the issue, the decision should be deferred until next year, “in a case where the issues are fully developed in an evidentiary record.”  

In summary, the Hearing Examiner’s report details a lot of issues and opportunities for Dominion to meet its EERS goals in 2024 and 2025. The VAEEC and our members have worked diligently to provide feedback and support through the stakeholder process and the DSM proceeding and applaud the Examiner for recognizing the importance of stakeholder engagement.

We anticipate the Commission’s Final Order sometime in August. We hope to see most of these recommendations included and we will be ready to get to work.

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