The Honorable Chairman and Members of The Restructuring Transition Task Force
Dear Senator Norment and Members of the Task Force:
At its last meeting, the Restructuring Transition Task Force asked us to prepare specific legislative provisions we think are needed to help ensure that the many benefits energy efficiency and renewable energy offer are not lost during restructuring, and to present this language to the Consumer Advisory Board. We did. The Board has now asked us to present this draft language to the Task Force at your meeting tomorrow. Unfortunately, I have an unavoidable conflict and will not be able to attend that meeting. However, I wanted to share the attached draft with you, which was developed by SELC and several other interested parties.
Am you know the Virginia Electric Utility restructuring Act expressly left consideration of several environmental and consumer issues to a later date. The attached language would address one of the most important of these issues by providing funding to promote energy efficiency and renewable energy.
Although details differ, most states that have moved to restructure their electric industry have provided such funding. Among other things, increasing energy efficiency helps consumers control their electric bills, energy efficiency and renewable energy are among the most cost effective ways to address air pollution from power plants, and investments in these resources helps foster development of clean industries which would create jobs and strengthen our economy.
The attached language would amend the Act to create a public benefits fund, funded by a nonbypassable, competitively neutral charge of one-twentieth of a cent per kilowatt hour on all users of the retail electric system. This modest investment can provide significant public benefits, We recommend that 40% of this fund be used for low income energy efficiency programs to help electricity remain affordable to the most vulnerable customers. The remainder of the fund could support programs such as a solar schools initiative or financing assistance for energy efficient or renewable energy equipment purchases.
We also support, although we are not proposing draft language on this point, amending the Act by adopting a renewable portfolio standard in order to reduce the environmental impact of power production and to stimulate the development and commercialization of renewable energy.
These provisions would help ensure that the significant public benefits provided energy efficiency and renewable energy investments are not lost due to restructuring. I look forward to discussing them with you further.