Dominion wins OK for energy-efficiency rebate programs

State regulators have approved five of 11 energy-efficiency programs that Dominion Virginia Power has proposed, allowing additional charges to customers' monthly bills to cover the costs of the new measures.

Starting May 1, residential customers using 1,000 kilowatt hours per month will pay about 52 cents more. The extra charges will help the company pay $28.1 million for the efficiency efforts. For all 11 programs, Dominion projected spending $48 million and collecting an extra 91 cents per month from customers.

The programs approved by the State Corporation Commission provide rebates for residential customers who buy energy-efficient lighting; energy audits and home improvements for low-income customers; and incentives for commercial customers to upgrade heating and air-conditioning systems and retrofit inefficient lighting. Dominion also will grant incentives to customers who allow the company to cycle their air conditioners or heat pumps off and on during peak-usage periods.

The remaining six programs "have not been proven to be in the public interest at this time," the commission wrote in its order.

Cale Jaffe, a senior attorney for the Southern Environmental Law Center, applauded the commission's decision and said the approved programs show the greatest potential for achieving energy savings. Jaffe spoke last month on behalf of various environmental groups at the commission's hearings on Dominion's proposal.

"We think it's a good first step," Jaffe said Wednesday. "The commission has picked the most promising programs out of the box."

The commission set the programs to expire in 2013. In the interim, Dominion must submit reports for review and feedback on the programs.

The 11 programs the commission considered didn't include Dominion's original proposal to add "smart meters" across its system. The company decided to drop that program after the attorney general's office - which represents Virginia consumers - and the commission staff questioned the effectiveness of the technology and its high cost.

Carolyn Shapiro, (757) 446-2270, carolyn.shapiro@pilotonline.com