Dominion Energy Efficiency 2013
|Company||Dominion Resources, Inc.|
|Subject(s)||Energy Efficiency (utilities)|
|Resolved Clause Summary||Energy efficiency report and goals|
WHEREAS, Dominion Virginia Power is the largest vertically integrated energy company in the Commonwealth of Virginia providing a full array of energy-related operations and services, such as the generation, transmission, distribution and marketing of electricity.
The Commonwealth has set a goal of improving energy efficiency to the equivalent of “reducing the consumption of electric energy by retail customers… by the year 2022 by an amount equal to ten percent of the amount of electric energy consumed by retail customers in 2006.” Improving energy efficiency has numerous benefits for the Commonwealth of Virginia and for Dominion Virginia Power, including facilitating the provision of more reliable electricity service. Programs that encourage customers to curtail demand help reduce the likelihood of brown-outs during summer peak air-conditioning season.
Improving energy efficiency reduces use of fossil fuel resources that cause substantial environmental harm, and therefore affect Dominion’s reputation as an environmentally responsible corporation. Energy efficiency reduces the need for constructing new fossil fuel generation facilities. These facilities will likely become more controversial in the future, with increasing chances for adoption of a tax on carbon dioxide emissions.
While Dominion Virginia Power has implemented several good programs for encouraging and assisting customers to achieve efficient use and conservation of electricity, information it has submitted to the Virginia State Corporation Commission (VSSC) indicates these programs will achieve only about half of Virginia’s goal of 10% efficiency by 2022 . It is in the company’s interest to demonstrate that it will arrive at the 10% goal by 2022. To close this gap, Dominion Virginia Power faces the challenge of developing additional efficiency programs which meet the VSCC’s standards for equity among customers. Recent guidance from the VSCC suggests that Dominion Virginia Power should consider how alternate rate designs could influence electricity demand and the plans to generate electricity to meet that demand. Rate design is now designated to be an important part of the strategy to meet the Commonwealth’s 10% energy reduction goal.
RESOLVED: Shareholders request that Dominion Resources publish a report at reasonable cost and omitting proprietary information, by December 31, 2013, on policies and best practices for the company’s service territory within the Commonwealth of Virginia to achieve the goal established by the state of Virginia of a 10% increase in efficiency by 2022 relative to the amount consumed in 2006. The report should include strategies to maintain shareholder returns as energy efficiency increases.