The Virginia Clean Economy Act set Dominion energy savings targets through 2025. “It seems very probable they won’t hit any of the targets,” said Nate Benforado, senior attorney at SELC.
Published July 31, 2024 Robert Walton Senior Reporter
Dominion did not immediately respond to a request for comment about its energy savings targets, or how the SCC’s decision might impact its ability to construct four 250-MW combined cycle turbines in Chesterfield County, Virginia.
The miss hinged on whether energy savings targets were determined based on “gross” or “net” savings, Benforado said. Dominion proposed using a gross measurement, which includes so-called “free rider” savings not directly attributable to the utility’s efficiency programs. The SCC ultimately detemined that net savings were the appropriate measure.
Gross savings could include savings associated with a customer who decides to upgrade to a more efficient appliance and subsequently applies for rebates provided by the utility.
“Dominion marketing didn’t actually drive those savings, so it’s a well-accepted process to back out those effects to understand what the utility program is actually achieving,” Benforado said.
Dominion failing to meet the savings target “narrows its approval pathway” for the proposed Chesterfield turbines, he said. Under the Virginia Clean Economy Act, the SCC may only authorize new carbon-emitting resources for a utility that failed to meet its savings targets if the utility establishes a specific reliability or security threat, and the power plant must be cheaper than other options.
Looking ahead, the statute set Dominion cumulative energy savings targets at 2.5% in 2023, 3.75% in 2024 and 5% in 2025 .
Dominion has not yet come up with a streamlined process for customers to access energy efficiency programs, including weatherization, home assessments and appliance rebates, Benforado said.
“We think if the company were really able to improve how they do their efficiency programs, they could unlock a lot more svaings for cusyomers,” Benforado said. Dominion will likely file their next batch of energy efficiency programs in December, he added.
