Energy Efficiency Resource Goal
Virginia's energy efficiency standard requires utilities to reduce electricity consumption, which means your utility (Dominion Energy or Appalachian Power) must invest in conservation programs to help you save energy. Check your utility's website for available rebates, audits, or efficiency upgrades—these are funded by the mandated savings requirements and may reduce your energy bills at little or no cost to you.
Virginia's energy efficiency resource standard creates ongoing demand for efficiency upgrades as utilities must meet mandatory savings targets (Dominion: 5% by 2025, Appalachian Power: 2% by 2025). Utilities recover program costs and lost revenues through rates, ensuring stable funding for contractor participation in approved conservation and demand-response projects; contact your utility to become an approved program vendor.
Virginia requires investor-owned utilities to achieve specific electricity savings by 2025, with revised targets every three years thereafter. Utilities must submit programs using four cost-effectiveness tests (PCT, RIM, UCT, TRC per California standards) and recover all program costs plus lost revenues from ratepayers, except large industrial customers (≥10 MW demand) may opt out of efficiency charges. The State Corporation Commission oversees compliance and periodic target updates.
Program details
- Program ID
- 5056
- Last updated
- 10/11/2024
Eligibility
- Sectors
- investor-owned utility
Program summary
Current Requirements
The Virginia Clean Economy Act of 2020 established a mandatory energy efficiency resource standard for investor-owned utilities. Dominion Energy must attain electricity savings of at least 5% relative to a 2019 baseline by 2025. Appalachian Power Company must attain 2% savings by 2025. After 2025, the State Corporation Commission will update targets every three years.
Origin and Electric Sales Reduction Goal
In March 2007, the Virginia legislature passed SB 1416 thereby amending Virginia’s earlier electric industry restructuring law, including a energy efficiency goal of 10% electricity savings by 2022 relative to 2006 base sales.
With SB 1416, the State Corporation Commission (SCC) was directed to conduct a series of proceedings to consider whether the 10% goal could be met cost-effectively, determine the mix of programs that should be implemented and their cost, and develop a plan for development and implementation of these programs.
The SCC completed a report verifying the energy efficiency goal of 10% by 2022 was achievable (Case No. PUE-2007-00049) and issued an Order in January of 2008 approving five conservation and energy efficiency pilot projects and four demand response/load management pilots proposed projects proposed by Dominion Virginia Power (Case No. PUE-2007-00089).
More information on Dominion's Energy Conservation Programs can be found on the utility's web site.
Cost Effectiveness and Program Evaluation
Virginia does not use a single cost effectiveness test as its primary test, and instead requires utilities looking to approve programs to submit Participant Cost Test (PCT), Ratepayer Impact Measure (RIM) test, Utility Cost Test (UCT) and the Total Resource Cost (TRC) Test scores from the California Standard Practice Manual.
Utility Cost Recovery Provisions
Virginia permits its electric utilities to recover the program costs and any lost revenues net of opportunities to increase "off-system" sales of electricity resulting from efficiency programs.
Special Provisions
Virginia law allows customers with observed demand of 10 MW at a single meter to opt out of paying for energy efficiency program charges.
Contact & resources
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
