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2009 SESSION

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SB 1348 Electricity; SCC to conduct proceeding to determine appropriate energy conservation, etc.

Introduced by: Frank W. Wagner | all patrons    ...    notes | add to my profiles | history

SUMMARY AS ENACTED WITH GOVERNOR'S RECOMMENDATION:

Demand-side management, energy conservation, energy efficiency, and demand reduction. Directs the State Corporation Commission (SCC) to conduct a proceeding to determine achievable, cost-effective energy conservation and demand response targets that can be accomplished through demand-side management portfolios administered by generating electric utilities. The SCC is required to report to the Governor and the General Assembly by November 15, 2009. The measure also requires the SCC to approve a demand-side management program that is proposed by a certain generating electric utility or a qualified nonutility provider if certain conditions are satisfied. The Air Pollution Control Board, in consultation with the SCC and Department of Mines, Minerals and Energy, is required to adopt a general permit for certain generation facilities that participate in voluntary demand response programs. The measure also directs the Air Pollution Control Board to adopt a general permit or permits for the use of back-up generation, in order to allow emergency generation sources to operate during periods that the independent system operator has notified electric utilities that an emergency exists or may occur. HB 2531 is identical.

SUMMARY AS PASSED:

Demand-side management, energy conservation, energy efficiency, and demand reduction. Directs the State Corporation Commission (SCC) to conduct a proceeding to determine achievable, cost-effective energy conservation and demand response targets that can be accomplished through demand-side management portfolios administered by generating electric utilities. The SCC is required to report to the Governor and the General Assembly by November 15, 2009. The measure also requires the SCC to approve a demand-side management program that is proposed by a certain generating electric utility or a qualified nonutility provider if certain conditions are satisfied. The Air Pollution Control Board, in consultation with the SCC and Department of Mines, Minerals and Energy, is required to adopt a general permit for certain generation facilities that participate in voluntary demand response programs. The measure also directs the Air Pollution Control Board to adopt a general permit or permits for the use of back-up generation, in order to allow emergency generation sources to operate during periods that the independent system operator has notified electric utilities that an emergency exists or may occur.

SUMMARY AS PASSED SENATE:

Demand-side management, energy conservation, energy efficiency, and demand reduction. Directs the State Corporation Commission (SCC) to conduct a proceeding to determine achievable, cost-effective energy conservation and demand response targets that can be accomplished through demand-side management portfolios administered by generating electric utilities. The measure directs the SCC's cost-benefit analysis to take into consideration certain data on program costs and avoided costs and to consider standard industry-recognized tests. The SCC is required to report to the Governor and the General Assembly by November 15, 2009. The measure also requires the SCC to approve a demand-side management program that is proposed by a certain generating electric utility or a qualified nonutility provider if certain conditions are satisfied. The Department of Environmental Quality, in consultation with the SCC and Department of Mines, Minerals and Energy, is required to adopt regulations that exempt certain customers from the major and minor new source review regulations during verifiable peak shaving periods, to create a class or classes of general permits that would create the same exemptions, or both. The measure also directs the Air Pollution Control Board to adopt a general permit or permits for the use of back-up generation, in order to allow emergency generation sources to operate during periods that the independent system operator has notified electric utilities that an emergency exists or may occur. HB 2531 is identical.

SUMMARY AS INTRODUCED:

Electricity; demand response programs.  Establishes a goal of reducing each electric utility's peak demand by 2015 to an amount that is 5.4 percent less than the utility's peak demand during 2010, and by 2020 to an amount that is 10.8 percent less than the utility's peak demand during 2010 through the implementation, by the utility or curtailment service providers, of programs that induce users to curtail electricity usage as a result of congestion and higher prices in the electrical grid.  Electric utilities are required to submit plans for meeting the goal and reports on efforts to meet the goal.  Each electric utility is required to implement a demand response tariff.  Electric utilities are authorized to earn an enhanced rate of return on the reasonable costs of designing and operating demand response programs.  The measure authorizes any member of an Independent System Operator (ISO) to deliver to retail customers products and services directly related to the implementation of an ISO program in accordance with the ISO's policies and procedures.  The workgroup convened by the SCC in its 2007 proceeding on energy efficiency and conservation is continued as the Virginia Energy Collaborative.  The SCC is directed to establish a procedure for the certification of clean demand response, in order that it may count towards the goals of the voluntary renewable energy portfolio standard program. The Air Pollution Control Board is directed to amend its existing regulations governing the issuance of general permits for the use of back-up generation to authorize the construction, installation, reconstruction, modification, and operation of emergency generation sources during ISO-declared emergencies.  The SCC is directed to conduct a proceeding to evaluate the cost effectiveness of demand response and energy efficiency programs offered by electric utilities to retail customers, and to study the deployment of smart meter technologies.