Virginia Law

A. Through 2028, utility applicants shall analyze a proposed program from a multi-perspective approach using, at a minimum, the Participants Test, the Utility Cost Test, the Ratepayer Impact Measure Test, and the Total Resource Cost Test. Utilities may file for approval of programs individually or as a package. However, any application that includes a package of DSM programs shall also provide an analysis of the cost/benefit of each program individually.

B. Beginning with efficiency plans for 2029 and any subsequent years, investor-owned electric utilities shall analyze cost-effectiveness using a Virginia jurisdiction specific test (JST) and the total resource cost test. The JST shall be conducted on a program and portfolio level. The JST includes all utility system impacts as shown in subsection C of this section. The JST includes the non-utility system impacts shown in subsection D of this section. All estimates of costs or benefits may be used on Virginia-specific studies when available, studies from other jurisdictions when applicable to Virginia or adapted to address differences between Virginia and other states, or proxy adders to avoided costs , as determined by the commission in the course of a DSM proceeding.

C. Table 1: JST utility system impacts.

1. Energy impacts:

a. Energy generation;

b. Capacity;

c. Renewable portfolio standard or clean energy compliance (for energy efficiency only); and

d. Market price effects using PJM Interconnection LLC base residual auction market clearing prices to evaluate avoided demand benefits.

2. Transmission impacts:

a. Transmission capacity; and

b. Transmission system losses.

3. Distribution impacts:

a. Distribution capacity;

b. Distribution system losses; and

c. Distribution operation and maintenance.

4. General impacts:

a. Financial incentives;

b. Program administration; and

c. Risk, accomplished by running cost-benefit sensitivities for (i) high load sensitivity, (ii) low load sensitivity, (iii) high fuel sensitivity, (iv) low fuel sensitivity, (v) high transmission and distribution sensitivity, and (vi) low transmission and distribution sensitivity.

D. Table 2: JST non-utility system impacts.

1. Other fuels impacts:

a. Fuel and related operation and maintenance costs of other fuels; and

b. Delivery costs, including other fuel transmission and distribution, for energy efficiency only.

2. Societal impacts:

a. Greenhouse gas emissions; and

b. Other environmental impacts.