This document contains the combined reports ("Report") of the Virginia State Corporation Commission ("Commission") pursuant to Chapter 1193 of the 2020 Virginia Acts of Assembly.(*1)

The key highlights of this report include:

• In its third DSM application pursuant to the VCEA, Dominion filed for, and received approval of, five new energy efficiency programs. In addition, Dominion received approval of four program bundles. In its application, Dominion also presented its progress towards achieving the energy efficiency savings goals of the VCEA and the required proposed investment levels of the GTSA.(*2)

• In calendar year 2022, APCo did not make an energy efficiency program filing.(*3) An APCo energy efficiency filing is expected in the fall of 2023.

• Calendar year 2022 was the first year in which the VCEA energy efficiency targets were in effect pursuant to Code § 56-596.2. The Commission received data related to the utilities' achievement of such targets in Dominion's third DSM application, as noted above, and in each utility's evaluation, measurement, and verification ("EM&V") reports.(*4)

• According to its 2023 EM&V Report, Dominion anticipates having fallen short of the energy efficiency targets (1.23% achieved compared to the 1.25% target) in 2022 as measured on a "net"(*5) basis. (*6) This is a change from Dominion's projections presented in its third DSM proceeding, where it expected to meet the target in 2022 if measured on a "net" basis.

• Based on APCo's filings with the Commission, it expects to have met the energy savings targets in 2022 on a net basis and projects that it will be able to meet the 2023 goal on a net basis.(*7)

• These results have not yet been subject to Commission review. The Commission will review these EM&V results as a part of each utility's upcoming energy efficiency filings and will provide additional data related to the feasibility of achieving these energy efficiency goals in future reports.

A glossary of terms is provided in Appendix 2.

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(*1) Virginia Clean Economy Act ("VCEA"), 2020 Va. Acts chs. 1193, 1194. The VCEA explicitly references Phase I and Phase II utilities. For purposes of this report, the Commission will focus on Appalachian Power Company ("APCo") as a Phase I utility and Dominion Energy Virginia ("DEV" or "Dominion") as a Phase II utility. The Commission further notes that it has approved a requirement for Kentucky Utilities d/b/a Old Dominion Power Company ("KU/ODP") to file a comprehensive Demand-Side Management ("DSM") plan and surcharge by June 1, 2023. Kentucky Utilities Company d/b/a Old Dominion Power Company - For an Adjustment of Electric Base Rates, Case No. PUR-2021-00171, Doc. Con. Cen. No. 220540073, Final Order at 4 (May 5, 2022) ("2022 KU Final Order"). KU/ODP's plan is required to target at least a 0.02% decrease in total jurisdictional sales. Id. KU/ODP made the required filing on June 1, 2023, which was subsequently docketed as Case No. PUR-2023-00096. Application of Kentucky Utilities Company d/b/a Old Dominion Power Company for Implementation of a Demand-Side Management Program and Cost-Recovery Adjustment Clause, Case No. PUR-2023-00096, Doc. Con. Cen. No. 23030102, Order for Notice and Hearing (June 16, 2023).
(*2) Petition of Virginia Electric and Power Company, For approval of its 2022 DSM Update pursuant to § 56-585.1 A 5 of the Code of Virginia, Case No. PUR-2022-00210, Doc. Con. Cen. No. 230810132, Final Order (August 4, 2023) ("2022 DSM Update Final Order").
(*3) In its most recent DSM filing in 2021 ("2021 EE-RAC Proceeding"), APCo requested and received approval to move to a biennial filing cadence for its energy efficiency program activities Application of Appalachian Power Company, For approval to continue rate adjustment clause, the EE-RAC, and for approval of a new energy efficiency program pursuant to §§ 56-585.1 A 5 c and 56-596.2 of the Code of Virginia, Case No. PUR-2021-00236, Doc. Con. Cen. No. 220720034, Final Order at 5 (July 15, 2022).
(*4) APCo filed its most recent EM&V Report on May 1, 2023 in Case No. PUE-2014-00039 ("APCo's 2023 EM&V Report"). Dominion filed its most recent EM&V Report ("DEV's 2023 EM&V Report") on June 15, 2023 in Case No. PUR-2021-00247. The public version of documents filed with the Commission may be located on the Commission's website, scc.virginia.gov/pages/Case Information, by clicking "Docket Search," then clicking "Search by Case Information," and entering the appropriate case number in the appropriate box.
(*5) "Net" generally refers to changes in energy use that are induced by a particular energy efficiency program, i.e., exclusive of free riders. A "free rider" is someone who would have installed an energy-efficiency measure absent any program incentive but receives the incentive anyway.
(*6) DEV'S 2023 EM&V Report at vii.
(*7) See, e.g., APCo witness Diebel's direct testimony, Schedule 2, filed in APCo's 2021 EE-RAC Proceeding with its Petition. Note, however, the Commission has not made any determinations regarding APCo's "achieved" savings at this time. Petition of Appalachian Power Company, For approval to continue rate adjustment clause, the EE-RAC, and for approval of new energy efficiency programs pursuant to §§ 56-585.1 A 5 c and 56-596.2 of the Code of Virginia, Case No. PUR-2021-00236, Doc. Con. Cen. No. 211180097, Petition (filed November 30, 2021).