Virginia Senate Bill SB1323

Virginia 2023 Regular Session

• Introduced: 1/10/23
• Refer: 1/10/23
• Report Pass: 1/30/23
• Engrossed: 2/2/23
• Refer: 2/10/23
• Report Pass: 2/16/23
• Enrolled: 2/24/23
• Chaptered: 3/27/23
• Passed: 3/27/23

Caption

Electric utilities; energy efficiency savings targets.

Impact

The legislation is expected to have a substantial impact on state laws relating to energy efficiency and utility management. It mandates the State Corporation Commission to set specific annual targets that will not only drive the utilities toward achieving higher energy savings but also ensure that program benefits are equitably distributed among those who are often underrepresented in energy efficiency initiatives. This approach may restrict utilities' operational freedom slightly but aligns their goals with broader social equity outcomes.

Summary

SB1323 establishes annual energy efficiency savings targets for Phase II utilities in Virginia, specifically focusing on low-income customers, the elderly, disabled individuals, and military veterans. The targets are set to ensure that these programs deliver significant energy savings, aiming at a minimum of one percent of average annual energy retail sales for these vulnerable demographic groups. The bill emphasizes optimizing not only energy efficiency but also health and safety benefits through collaborative utility programs.

Sentiment

The sentiment around SB1323 appears generally positive among advocates for social equity and energy savings, who view it as a necessary measure to address the energy needs of the most vulnerable populations. However, some utility companies may express concerns over the feasibility of meeting strict saving targets while managing ongoing operational costs. The bill reflects a growing recognition of the social responsibilities of utility companies, suggesting that support for low-income families is becoming increasingly critical in energy policy discussions.

Contention

Notable points of contention regarding SB1323 may arise from the expectations placed on utilities to meet these energy savings targets. Critics may argue the challenges faced by utilities in balancing service delivery with mandatory efficiency measures could lead to increased costs for all consumers or may limit the resources available for other essential services. The legislation includes a review period between 2028 and 2030, indicating that future adjustments might be necessary to address operational realities and effectiveness.