Administrative Code

Creating a Report: Check the sections you'd like to appear in the report, then use the "Create Report" button at the bottom of the page to generate your report. Once the report is generated you'll then have the option to download it as a pdf, print or email the report.

Virginia Administrative Code
Title 20. Public Utilities and Telecommunications
Agency 5. State Corporation Commission
Chapter 306. Standards for Integrated Resource Planning and Investments in Conservation and Demand Management for Natural Gas
1/26/2020

20VAC5-306-40. Conclusion.

In sum, adoption of a formal IRP process as envisioned by § 115 of EPACT does not appear to promote and indeed may be detrimental to the public interest. This standard does not appear to offer sufficient flexibility, and may increase regulatory costs to the participants in the IRP approval process, without substantive countervailing benefits. We encourage Virginia natural gas utilities to continue to develop and employ comprehensive planning strategies. Virginia LDCs should use existing CLM procedures to seek approval for CLM programs which they can demonstrate to be in the public interest. As part of Virginia LDCs' planning strategies, we expect LDCs to maintain continuing dialogues with their customers in an effort to better ascertain these customers' energy needs and to respond to those needs. Staff should continue to work with and develop data with respect to LDC planning processes and LDC customer needs to monitor more comprehensively these utilities' planning processes and service performance.

While we do not adopt the investments in conservation and demand management standard set out at § 115 of the Act, we remain sensitive to the need for development of conservation and load management programs that are in the public interest. Because we have not adopted § 115's integrated resource planning or conservation and demand management standards, we find it unnecessary to address the impact of implementation of such standards on small businesses.

Further, the Commission remains committed to the goal of promoting cost-effective conservation programs. We believe conservation programs can promote the public interest in Virginia and can contribute to the realization of a proper balance of demand-side and supply-side resources. Conservation programs are particularly attractive because of the environmental benefits they offer. The environmental benefits of conservation programs, while often difficult to measure, are nevertheless, very real. We encourage utilities to develop conservation programs that are not only economically sound but also contribute to the protection of the environment that we all must share. We also encourage utilities to focus on energy efficiency when developing their long-term strategic plans. Energy efficiency is one of the more important factors considered by consumers in making choices between electric, gas, and oil appliances and equipment. Electric and gas utilities should compete for customers by providing accurate information about the efficiencies and features of various types of HVAC equipment. A healthy competition can be facilitated by integrated resource planning techniques. However, integrated resource planning should not be used as a tool simply to market increased use of gas or electricity or indiscriminately gain market share at the expense of a competitor.

Accordingly, for the reasons set out herein, it is ordered that the standards set out at § 115 of EPACT be rejected; and that this matter be dismissed. The papers filed herein shall be placed in the Commission's files for ended causes.

Statutory Authority

Chapter 3 (§ 12.1-12 et seq.) of Title 12.1, Chapter 10 (§ 56-232 et seq.) and Chapter 10.1 (§ 56-265.1 et seq.) of Title 10.1 of the Code of Virginia and 15 USCA § 3202.

Historical Notes

Derived from Case No. PUE940030 §IV, eff. October 14, 1994.

Website addresses provided in the Virginia Administrative Code to documents incorporated by reference are for the reader's convenience only, may not necessarily be active or current, and should not be relied upon. To ensure the information incorporated by reference is accurate, the reader is encouraged to use the source document described in the regulation.

As a service to the public, the Virginia Administrative Code is provided online by the Virginia General Assembly. We are unable to answer legal questions or respond to requests for legal advice, including application of law to specific fact. To understand and protect your legal rights, you should consult an attorney.