August 24, 2018
Director Al Christopher
Energy Division
Virginia Department of Mines, Minerals and Energy
1100 Bank St #817
Richmond, VA 23219
Director Christopher:
Re: Business Support for Energy Efficiency as Part of the 2018 Virginia Energy Plan
As a group of diverse businesses including manufacturers, service providers, trade associations, and companies with significant Virginia presence, investments, and interests, we support the consideration of energy efficiency as part of ongoing energy planning discussions in the Commonwealth.
Our companies have a successful history of doing business in the Commonwealth and understand firsthand how Virginia’s energy policies affect the cost of doing business and the state’s economic competitiveness.
All Virginia consumers and businesses benefit when we eliminate energy waste. By investing in energy efficiency, we can reduce total energy costs for all customers; mitigate the impact of fuel and electricity price increases; alleviate stress on the electricity grid; and build a more affordable, reliable energy system for the businesses and people of the Commonwealth.
The Commonwealth’s energy efficiency industry generates more than $1.5 billion in revenue and supports about 75,000 in-state jobs.[1] However, there are several indicators that suggest that significant potential to reduce costs, create jobs, and strengthen our economy through energy efficiency investment remains untapped. For example, in 2016 Virginia invested nearly zero percent of statewide utility revenues on electric energy efficiency programs compared with an average 1.20% invested nationally.[2] Virginia also placed 29th in the country on the most recent national rankings for energy efficiency, receiving 15.5 out of 50 possible points. Additionally, the state received 0 out of 20 possible points for its utility policies and programs.[3]
While we anticipate that the energy efficiency provisions of the Grid Transformation and Security Act of 2018 (SB 966) will help to drive new energy efficiency investment in the state, we believe that significant additional potential for energy efficiency investment exists. To that end, as the Northam Administration continues to develop a sound energy plan for the state, we encourage you to consider the following opportunities:
We welcome further discussion on how we can support your efforts to advance energy efficiency policy for the state. We stand ready to work with you and would welcome the opportunity to meet with you and your staff. We would also be happy to provide additional information about the benefits that energy efficiency could deliver for the Commonwealth in the future.
Sincerely,
The National Association of Energy Service Companies (NAESCO)
Schneider Electric
Cree, Inc.
Ameresco, Inc.
The National Electrical Manufacturers Association (NEMA)
[1] “Why Energy Efficiency is a Smart Investment for Virginia,” Virginia Energy Efficiency Council, May 2017
[2] “The 2017 State Energy Efficiency Scorecard,” American Council for an Energy Efficient Economy, September 2017: http://aceee.org/research-report/u1710
[3] Ibid.