Electric utility regulation; energy efficiency standard.

Electric utility regulation; energy efficiency standard.Requires Dominion Energy Virginia (DEV) and American Electric Power (AEP) toachieve incremental net annual savings in accordance with a schedule that startsin 2021, when savings are required to be at least 0.35 percent of the averageannual energy retail sales by that utility in the three preceding calendaryears, and increases the level of required savings until 2027 and thereafter,when savings are required to be at least two percent of the utility's averageannual energy retail sales in the three preceding calendar years. The measurerequires the utilities to retain an independent, qualified third-partyevaluator to determine the utility's incremental net annual savings and otherbenefits of the program. The measure requires the State Corporation Commission,for any year that a utility meets the annual energy efficiency standard, toallow for the additional recovery of a margin on its program's operatingexpenses through a rate adjustment clause that provides the utility with amargin equal to the general rate of return on common equity. The Commission isdirected to award an additional 20 basis points for each 0.1 percent of annualsavings in excess of the required amount of savings, with a cap on totalperformance incentive awards in any year of 10 percent of the utility's totalenergy efficiency spending in that year. The measure also (i) increases theportion of the approved costs of certain utility energy efficiency programsthat are required to be allocated to programs designed to benefit low-income,elderly, and disabled individuals from five percent to 15 percent of theapproved costs of such programs and adds veterans to be benefited from such programs;(ii) requires the energy efficiency stakeholder process established for thepurpose of providing input and feedback on the development of electricutilities' energy efficiency programs to include the participation of certainCommission personnel who participate in approval and oversight of utilityefficiency programs; (iii) directs the Commission to increase the utility'srates to recover for revenue reductions related to energy efficiency programsif the revenue reductions have caused the utility, during the test period orperiods under review, to earn more than 50 basis points below a fair combinedrate of return on its generation and distribution services or, for any testperiod commencing after December 31, 2012, for DEV and after December 31, 2013,for AEP, more than 70 basis points below a fair combined rate of return on itsgeneration and distribution services; (iv) allows certain large general servicecustomers to avoid participation in energy efficiency programs and to avoidpaying for the costs of such programs through a rate adjustment clause uponreceiving an exemption from the Commission; and (v) provides that certainenergy efficiency pilot programs may be deemed to be in the public interest.