Energy-Efficiency Funds and Demand Response Programs, Virginia

Updated April 2007

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What public-purpose-funded energy efficiency programs are available in my state?

Virginia has no public-purpose-funded energy efficiency programs.

What utility energy efficiency programs are available to me?

No utility energy efficiency programs are currently available to federal customers.

What load management/demand response options are available to me?

The PJM Interconnection (PJM), a regional transmission organization (RTO), offers two demand response programs that may be attractive to federal facilities:

The Emergency Load Response Program provides participants with a payment representing the marginal cost of power at the nearest hub on the PJM system (the locational marginal price, or "LMP") or $0.50/kWh, whichever is greater, for providing load reductions when notified by PJM of a system emergency. Compliance with any load reduction request is voluntary; no penalties are assessed if a participant decides not to provide a load reduction. Retail electricity customers may participate through any PJM Member (for example, their electricity provider) or directly, by registering as a Special Member with PJM.
The Economic Load Response Program allows electricity users to provide load reductions in exchange for a payment based on hourly wholesale electricity prices. As with the PJM emergency program, participation is fully voluntary. Program participants have the choice of two options: the Day-Ahead or Real-Time Option. In the Day-Ahead Option, participants submit load reduction bids (of at least 100 kW) into the day-ahead energy market. Participants whose bids are accepted are paid for their load reductions based upon the day-ahead, hourly electricity market prices. In the Real-Time Option, participants can decide at any time to provide load curtailments (with one hour notice to PJM), and receive payment based on the real-time electricity price. Retail electricity customers can participate in the program through any existing PJM Member, such as their utility, a third-party electricity supplier, or a specialty "curtailment service provider" (CSP). Regardless of which type of firm it is, the CSP will generally offer to split the revenues with the customer at a pre-determined percentage.

In both the emergency and economic programs, participants can provide load reductions either through curtailing electricity use or operating on-site generation.

The Potomac Edison Company (Allegheny Power) offers the Economic Generation Buy-Back Rider (PDF 11 KB, 2 pp), wherein the utility may declare curtailment events on a day-of or day-ahead basis and offer to pay for load reductions at a fixed price per kWh. Interested participants respond with a commitment to curtail a customer-specified amount for at least one hour (though the opportunity to profit from the buy-back option will continue until Allegheny rescinds it, typically at the end of the peak period). Participants' baselines are determined by averaging the six 30-minute integrated kW demands preceding the curtailment event (for intra-day calls) or the average of the 30-minute integrated kW demands for the same hours as the proposed deal on the previous three peak days (day-ahead program). Eligibility is limited to customers with a maximum demand of at least 300 kW.

What distributed energy resource options are available to me?

The Database of State Incentives for Renewable Energy (DSIRE) provides information on programs that offer incentives for renewable distributed generation. The following program may be of interest to federal customers:

Through the Green Power Switch Generation Partners Program, TVA will purchase the output of a solar photovoltaic installation of up to 50 kW (though larger systems may be approved on a case-by-case basis) for ten years at $0.20/kWh. Purchases must be brokered by a participating power distributor (generally, utilities that purchase TVA power). Current (mid-2007) participants are Appalachian Electric Cooperative; Cleveland Utilities; Florence Utilities; Johnson City Power Board; Memphis Light, Gas and Water; Murfreesboro Electric Department; Nashville Electric Service, and Powell Valley Electric Cooperative.

Are there energy efficiency programs sponsored by state government?

The Virginia Division of Energy administers a variety of energy efficiency and renewable energy programs. No programs are currently available to federal customers.

What additional opportunities are available to me?

Federal customers also have energy efficiency opportunities available with utilities that have area-wide contracts with GSA (e.g., AGL Resources, Columbia Gas of VA, Consolidated Natural Gas, Delmarva Power & Light, Northern VA Electric Co-op, Virginia Natural Gas, Virginia Power, and Washington Gas Light Co.) and, by extension, all other federal agencies. Federal facilities should contact their account executive to determine the level of participation by their local utility.