Administrative Code

Virginia Administrative Code
Title 20. Public Utilities and Telecommunications
Agency 5. State Corporation Commission
9/23/2020

Chapter 318. Rules Governing the Evaluation, Measurement, and Verification of the Effects of Utility-Sponsored Demand-Side Management Programs

20VAC5-318-10. Purpose and applicability.

A. This chapter sets forth minimum requirements for Virginia's electric and natural gas utilities related to evaluating, measuring, and verifying the effects of utility-sponsored demand-side management (DSM) programs consisting of demand response and energy efficiency measures. This chapter should not be construed as limiting the ability of the commission or its staff to evaluate information in addition to or beyond that identified in this chapter or to use evaluation processes and procedures beyond those contained in this chapter.

B. Effective January 1, 2018, this chapter shall apply to all electric and natural gas public utilities seeking commission approval to implement or renew a DSM program or measure.

Statutory Authority

§§ 12.1-13 and 56-585.1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 34, Issue 8, eff. January 1, 2018.

20VAC5-318-20. Definitions.

The following words and terms when used in this chapter shall have the following meanings unless the context clearly indicates otherwise:

"Average rate schedule usage" means an average calculated using all customers taking service under a rate schedule that are eligible to participate in a program or measure.

"Commission" means the Virginia State Corporation Commission.

"DSM" means demand-side management.

"Eligible customer" means a representative customer of the utility that is eligible by rate schedule or rate class to participate in a given program or measure and is capable of participating in that program or measure.

"EM&V" means evaluation, measurement, and verification.

"Emerging technologies" means technologies including automated measurement and verification software, advanced metering, building management systems, data analytics, and load monitoring systems.

"Free-ridership" means a program participant that would have implemented the program measure or practice in the absence of the program.

Statutory Authority

§§ 12.1-13 and 56-585.1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 34, Issue 8, eff. January 1, 2018.

20VAC5-318-30. Administrative procedures for evaluation, measurement, and verification planning and reporting.

A. A utility filing for approval to implement new or continue existing DSM measures or programs shall file a preliminary plan for the EM&V of the proposed measures or programs as part of its application that outlines how a utility intends to comply with the requirements of 20VAC5-318-40.

B. A utility reporting the results of EM&V of DSM measures or programs subject to subsection A of this section shall comply with the standard requirements for EM&V reporting contained in 20VAC5-318-50.

Statutory Authority

§§ 12.1-13 and 56-585.1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 34, Issue 8, eff. January 1, 2018.

20VAC5-318-40. Minimum requirements for collection of evaluation, measurement, and verification data.

A. In all filings required by 20VAC5-318-30, the sources of all data or estimates used as inputs for proposed DSM measures or programs, in descending order of preference, shall be:

1. Utility-specific data;

2. Virginia-specific data if utility-specific data is unavailable or impracticable. When Virginia-specific data is used, the utility shall provide an explanation as to why utility-specific data is unavailable or impracticable;

3. Data from non-Virginia jurisdictions or sources, if neither utility-specific data nor Virginia-specific data is available or practicable:

a. When data from non-Virginia jurisdictions or sources is used, the utility shall provide an explanation as to why utility-specific data is unavailable or impracticable.

b. When data from non-Virginia jurisdictions or sources is used, the utility shall provide an explanation as to why Virginia-specific data is unavailable or impracticable as well as the sources of all data, to include:

(1) Titles, version numbers, publication dates, and page numbers of all source documents, as appropriate; and

(2) An explanation as to why, in the utility's assessment, use of this data is appropriate.

B. EM&V reports shall include relevant workpapers, support documents, assumptions, and equations used in developing the measurement and verification methodologies of measures or programs reported.

C. EM&V reports shall include measure-level estimates of kilowatt, kilowatt-hour, dekatherm, and pipeline capacity savings as appropriate. An estimate that has been adjusted for free-ridership as well as an estimate that has not been adjusted for free-ridership should be included as appropriate.

D. Generally, EM&V of DSM programs or measures should comply, as appropriate, with Options A, B, C, or D from the International Performance Measurement and Verification Protocol (January 2012). However, the commission recognizes that each utility has unique characteristics, and new or modified DSM measures are constantly being developed. As such, alternative methodologies may be considered with sufficient supporting documentation and explanation of appropriateness.

E. Utilities are encouraged to consider use of emerging technologies, including "advanced measurement and verification" or "evaluation, measurement and verification 2.0" when appropriate and cost effective.

Statutory Authority

§§ 12.1-13 and 56-585.1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 34, Issue 8, eff. January 1, 2018.

20VAC5-318-50. Standard requirements for evaluation, measurement, and verification reporting.

A. EM&V of approved DSM measures or programs should be consistent with and contrasted to the preliminary EM&V plan set forth in the filings for approval of such measures or programs or as otherwise specified in a commission order approving such measures or programs. The commission recognizes that each utility has unique characteristics, and new or modified energy efficiency measures are constantly being developed. As such, alternative methodologies may be included in reporting provided that sufficient supporting documentation and explanation of appropriateness of alternative methodologies is provided.

B. EM&V reports of existing measures or programs shall utilize utility-specific data or other data in conformance with 20VAC5-318-40 A when updating the analysis of the cost effectiveness of each measure, program, or portfolio as appropriate and practicable. EM&V reports of existing measures or programs shall include the information required by 20VAC5-318-40 B and C.

C. Any changes to or variances from originally approved measure-level inputs and assumptions shall be documented and explained, and the impact of such changes on original cost/benefit estimates for DSM programs or measures shall be quantified.

D. EM&V reports shall describe the methodologies by which the measured data was collected, including at a minimum:

1. The sampling plan; and

2. Statistical calculations upon which the reported data is based when applicable.

E. EM&V reports for ongoing DSM measures or programs shall include an explanation of eligibility requirements for each rate schedule to which the measures or programs are being offered.

F. EM&V reports for ongoing DSM measures or programs shall include a comparison of the measured annual measure or program savings estimates to the annual usage of the average rate schedule usage and eligible customer in each rate schedule to which the measures or programs is being offered. A comparison to originally approved estimated savings for the measures or programs that were approved by the commission shall also be provided. This will include a calculation of the expected savings as a percentage of the annual usage of the average rate schedule usage and eligible customer as appropriate and practicable.

G. EM&V reports for ongoing DSM measures or programs shall include a description of the controls undertaken by the utility to verify proper installation of the measures or programs, as appropriate. Additionally, utilities shall require the contractors and subcontractors that will be implementing the measures or programs, if applicable and practicable, to record details of serviced or replaced equipment, to include at a minimum:

1. Nameplate efficiency ratings;

2. Serial numbers; and

3. Model numbers.

This information will be made available to commission staff upon request.

H. EM&V reports should include actual costs incurred by the utility and each EM&V contractor for (i) the development of the most recent EM&V plan and (ii) the administration of EM&V activities for the reporting period.

Statutory Authority

§§ 12.1-13 and 56-585.1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 34, Issue 8, eff. January 1, 2018.

20VAC5-318-60. Waiver.

The commission may waive any or all parts of this chapter for good cause shown.

Statutory Authority

§§ 12.1-13 and 56-585.1 of the Code of Virginia.

Historical Notes

Derived from Virginia Register Volume 34, Issue 8, eff. January 1, 2018.



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.