RD336 - The 2025 Report of the Independent Monitor on the Status of the Virginia Energy Efficiency Stakeholder Process
Executive Summary: During the 2018 General Assembly session, legislation was passed requiring Appalachian Power (APCo) and Dominion Energy Virginia (DEV) to use a stakeholder process to develop energy efficiency programs. This process aims to gather input and feedback from energy efficiency stakeholders to inform petitions submitted to the State Corporation Commission (SCC) for approval, supporting state energy conservation goals. Chapter 397 of the 2019 Virginia Acts mandates that this process be facilitated by an independent monitor to ensure stakeholder representation, track progress, and report on objectives, recommendations, and petition statuses. This report covers the stakeholder process from July 2024 to June 2025, as required by Chapter 397. Stakeholder Objectives and Priorities For the 2025 filing year, the independent monitor asked stakeholders to identify what objectives they wanted to accomplish over the next three years to reach the Virginia’s energy efficiency goals and what would constitute “success" for them for the process for the upcoming year. Category: Climate Goals & Compliance Category: Program Design & Cost Efficiency Category: Education & Awareness Category: Equity & Access Category: Utility & Process Accountability 2025 Stakeholder Program Recommendations In preparation for the 2025 filings, the stakeholders provided input on program design ideas for the utilities’ consideration. The input was developed during stakeholder meetings and using program design templates that could be submitted to the independent monitor and utilities after the meetings. At the time of writing of the report, each utility is finalizing the list of program idea categories that will be issued for bid using a request for proposal (RFP) process. In 2024, APCo received 43 recommendations through the stakeholder process. Of the recommendations received, APCo is forwarding 13 through its RFP process. These proposed and pilot energy efficiency programs reflect a diverse portfolio spanning multiple market segments, delivery approaches, and program types. The 13 programs are: Program: Agriculture Program Program: Commercial Midstream (Instant Discount) Program Program: Compressed Air Program with Audit Program: Residential Behavior Program Program: Kit Program 2.0 - Semi-Custom, Custom and/or Subscription Kits Program: Expansion of Efficient Products to include Commercial Products Program: New Construction Program: Small Business Thermostat DR (bundled with Residential DR) Program: Business Energy Solutions Program: Small Business Direct Install Program: Custom C&I Program: Virtual Commissioning Program: C&I Engagement/Benchmarking For the 2025 petition filing year, DEV received 21 program recommendations through the stakeholder process. Of the recommendations received, DEV anticipates including eight in its RFP. These program areas are: Program: Enhancement to DSM Phase IX Res. Virtual Audit Program: Enhancement to DSM Phase VIII Multifamily Program Program: Small Business Demand Response Program Program: Virtual Commissioning for Small and Medium Sized Customers Program: Non-residential Strategic Energy Management Program: Non-Residential Building Controls Program Program: DSM Phase 9 No-res. Customer Engagement Program Program: Industrial Energy Service Program Status of Previous Year Petition Filings Between 2019 and 2024, the Virginia Energy Efficiency Stakeholder Process has contributed to the development of 70 energy efficiency programs. Programs petitioned in 2024 have not yet been approved at the time of writing this report, which is why 2024 shows zero approved. (See graphic on page iii) Of the 72 programs proposed by both utilities through 2024, 50 are in active status, 11 have ended or expired, and eight are pending approval by the SCC. (See graphic on page iii) With the approval of the pending programs, both utilities have exceeded the initial legislative spending goal of the Grid Transformation and Security Act. Utility: Phase I Utility (APCo) Utility: Phase II Utility (DEV) COMBINED TOTAL - Legislative Goal ($): $1.01 Billion Virginia Energy Efficiency Stakeholder Process Progress and Impact In 2024, Virginia’s two regulated electric utilities continued to expand participation in energy efficiency programs and deliver measurable energy savings. For the 2024 program year, APCo programs enrolled 309,345 customers and had gross verified savings of 53,278,342 kilowatt-hours (kWh). For the 2024 program year, Dominion Energy Virginia reported 696,045 customers enrolled and gross verified savings of 161,505,089 kWh. The adjoining table provides the cumulative numbers to date. Together, these figures provide a high-level view of progress toward scaling program impact and meeting long-term energy reduction goals. Utility: Phase I Utility (APCo) Utility: Phase II Utility (DEV) TOTAL Cumulative # of Customers Enrolled: 2,304,761 Currently, the Independent Monitor is not required to report on progress toward the Virginia Clean Economy Act (VCEA) Goals. However, given the strong viewpoint expressed by stakeholders to connect the programs developed and implemented process to the VCEA, the Independent Monitor is including VCEA goals in the annual report for the first time. Based upon net savings as a percentage of 2019 retail sales, APCo has consistently exceeded targets, achieving 1.52 percent in 2022 and 2.41 percent in 2023, and 2.63 percent in 2024. Dominion slightly missed its target for 2022 and did not meet the target in 2023. Data for 2024 is pending EM&V report submission and review and projections indicate APCo will meet its target, and Dominion will not meet its 2024 target. Utility: APCo Utility: APCo Utility: APCo Utility: DEV Utility: DEV Utility: DEV Virginia Energy Efficiency Stakeholder Process Progress Information Each utility’s stakeholder group represents over 20 different types of organizations, including the utilities, SCC, Virginia Department of Energy, local governments, energy conservation organizations, energy efficiency organizations, program implementers, and low-income advocacy and assistance organizations. Each utility realized a small increase in the number of stakeholders from the previous year. Appalachian Power: Dominion Energy: Stakeholder meetings are used to inform stakeholders of the status of program recommendations from previous years, develop program recommendations for the utilities’ next filing, and to discuss topics of interest raised by the stakeholders, including customer awareness and outreach and program performance highlighted in EM&V reports. Between July 1, 2024, and June 30, 2025, the stakeholder group for Appalachian Power (Phase I Utility) have met once. Since APCo is on a two-year filing cycle, two additional meetings are planned prior to its petition filing in March, 2026. During the same period, the Dominion Energy Virginia (Phase II Utility) stakeholder group has met twice. Additionally, three subgroups have met during the reporting period, these were the EM&V subgroup, the Non-Residential Subgroup, and the Agenda and Process Improvement subgroup. Stakeholder Feedback About the Process The stakeholder process is widely recognized for its strengths in inclusive collaboration, bringing together diverse voices from across sectors to align programs with customer needs. It fosters open communication and transparency, supported by accessible meeting formats and a user-friendly technical platform. As a forum for constructive discussion, it enables dialogue among utilities, stakeholders, and regulators outside of formal proceedings. The process also provides a meaningful opportunity to be heard, allowing stakeholders to share input directly with utilities and the State Corporation Commission (SCC). In addition, the process supports information sharing, offering regular updates on utility plans and state-level developments, and has seen improved engagement through the active participation of SCC staff—further enhancing trust and credibility. Findings from the 2025 stakeholder process survey, conducted by the independent monitor, indicated: 78.9% of stakeholder respondents are satisfied with the opportunity to provide direct input to the utilities for energy efficiency program recommendations. Stakeholders identified several opportunities to enhance the effectiveness of the process. They emphasized the need for a clearer focus on achieving VCEA goals, with meetings structured around meaningful performance metrics—such as customer participation, marketing effectiveness, and estimated energy savings. Stakeholders seek a shift in meeting agendas to focus more on problem-solving-oriented discussions, rather than status updates, and request greater inclusion of diverse voices, with dedicated time for organizations to present their ideas and findings. Specifically related to the Phase II utility, stakeholder respondents advocated for a more visible commitment by Dominion Energy to sustainability, efficiency, and climate action. Other opportunities for improvement include more frequent and interactive meetings, including a return to at least two inperson meetings per year, and the ability for smaller stakeholder groups to collaborate with utilities on program design before RFPs are finalized. Some stakeholders voiced a need to make the online collaboration tool more user-friendly. Finally, stakeholders called for increased educational exchanges between the business community and utilities, and confidential pathways for implementers to share proprietary ideas without compromising competitive interests. Recommendations and Next Steps To build on the strengths of the stakeholder process—its inclusivity, transparency, and collaborative spirit—stakeholders recommend the following priority actions for the coming year: Align with VCEA Goals: Center discussions and decisions around achieving Virginia Clean Economy Act (VCEA) targets using clear metrics for energy savings, participation, and cost-effectiveness. Increase Meeting Impact: Hold quarterly meetings with a mix of in-person and virtual formats and dedicate time to problem-solving sessions focused on underperforming programs or emerging needs. Strengthen Stakeholder Influence: Create design workgroups to shape programs before RFPs are issued and implement a transparent system to track and respond to stakeholder input. Revitalize Subgroups: Require regular subgroup meetings, assign facilitators, and connect their outputs to program planning and decision-making. Improve Communication Tools: Upgrade or replace Basecamp with a more intuitive collaboration platform and provide a clear dashboard of key meetings, decisions, and program status. Broaden Participation and Equity: Support engagement from underrepresented stakeholders through stipends, travel support, and dedicated space for frontline voices. Increase Visibility of Outcomes: Publish a public-facing tracker showing how stakeholder input influences program filings, pilot launches, and performance improvements. Deepen Utility and SCC Engagement: Encourage more active participation from utilities and the State Corporation Commission in discussions, subgroups, and joint planning efforts. These actions aim to make the stakeholder process more effective, inclusive, and results-driven—helping ensure energy efficiency programs in Virginia deliver meaningful, measurable progress for all. |
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