Energy diversification requirement. (HB2155)

Introduced By

Del. Mark Sickles (D-Alexandria)

Description

Energy diversification requirement. Establishes a schedule by which Virginia's two largest investor-owned electric utilities are required to achieve certain percentages of quantified energy diversification (QED). QED consists of energy generated at new zero-emitting energy facilities and energy savings achieved through demand-side efficiency. The required amounts of QED start at 0.25 percent of a utility's retail sales in calendar year 2016 and ramp up in ensuing years to 35 percent of its retail sales in 2030 and thereafter. The measure requires that not less than 40 percent of the required amount of QED that a utility is required to achieve be from demand-side efficiency, which consists of distributed generation, demand response, and energy efficiency programs. If a utility fails to meet the required percentage of sales in a calendar year from these sources, it is required to make a noncompliance payment of $200 per megawatt hour short of the requirement. The measure provides for the issuance of certain credits by the Department of Mines, Minerals and Energy or its appointee. A utility establishes that it has met a requirement by submitting credits that evidence compliance. Noncompliance payments will be deposited in the Deployment Investment Fund created by the bill. A utility is entitled to recover its costs of compliance with the requirements, including noncompliance payments if they are less than the cost of available credits, through a rate adjustment clause. Read the Bill »

Outcome

History