August 16, 1999
Good morning, Mr. Chairman and members of the task force.
My name is Eva Teig, and I am senior vice president -External Affairs and Corporate Communications for Virginia Power and Dominion Resources, Inc. Thank you for the opportunity to share some thoughts with you this morning.
I'd first like to congratulate the members of the Consumer Advisory Board, which held its first meeting last week. The CAB is a very distinguished group. We are sure they will provide the task force with invaluable assistance as you consider the best ways to protect - and advance - the interests of customers during the move to competition.
During the past few months a group has met bringing together representatives from a variety of organizations interested in the protection of consumers and the environment during electric utility restructuring. Earlier this month we discussed the issues you will take up today. I'd like to take a few moments to discuss some ideas that emerged from the meeting. While I am not speaking for this group, I believe we shared similar thoughts and concerns about many issues we believe the task force and the CAB should review.
Energy is an indispensable part of modern life. Reliable supplies of energy are critically important to the safety and health of each household.
Today, both public and private sector programs help low-income Virginians meet their energy bills. But these programs face some serious limits.
One step toward dealing with these problems would be recognition in state policy that energy is a fundamental requirement of the Commonwealth's citizens. Many states that have gone through restructuring have adopted or strengthened such policies. They provide a firm foundation for the programs that ensure all households have the basic energy services required for health and safety.
We hope the Legislative Transition Task Force and the CAB will consider recommending language strengthening the Commonwealth's policy of assuring all citizens have access to affordable basic energy services.
There are several related issues that the task force and the CAB also should consider.
One of these is "weatherization" - programs designed to reduce home energy usage. These programs serve two purposes.
First, they help reduce energy bills. This links them closely to the low-income assistance issue, although they are useful for all customers.
The programs also help conserve overall energy usage. Experience has shown these initiatives yield major returns; homes receiving assistance see their energy consumption drop by as much as one-fourth.
And education is, and should remain, an important component of weatherization and other conservation initiatives.
However, government support for weatherization programs has decreased in recent years. At present, between $5 million and $6 million are spent on weatherization programs each year in the Commonwealth. That contrasts with spending of $6 million to $10 million per year during the late 1980s.
Given the downward trend in funding - and the impressive returns on these investments - the task force and the CAB should consider how to strengthen the Commonwealth's programs to help citizens make their homes more energy efficient.
As I noted earlier, various energy assistance programs are now scattered among several state agencies - and even several cabinet secretaries. I'd like to suggest that the task force and the CAB review the possibility of placing all state energy assistance programs together in the same secretariat. This would help bring about consumer-friendly "one stop shopping" for energy services and energy policies. A single point of contact would make it easier for many Virginians to understand what help may be available, and to get that help if and when they need it.
The regulatory structure in place for most of this century in Virginia demanded that a highly trained and skilled workforce be in place to ensure reliable electric energy service. Many states have adopted policies to help utility workers' transition to new occupations as a result of restructuring.
The task force and the CAB should examine the creation of programs to assist such workers by providing education and retraining services.
Also, as generation is deregulated, there must be a focus on assuring that new entrants who own generation in Virginia have a well-trained workforce that operates the plants safely.
Beyond weatherization assistance, there are many options for state-supported renewable energy and energy efficiency programs. In many other states that have restructured their electric utility industries, funds are being set aside for research, development and demonstration initiatives in these areas. The task force, with the CAB's assistance, should continue to explore the needed level of funding or incentives for meaningful energy efficiency and renewable energy programs, as well as options for funding these initiatives.
The task force and the Consumer Advisory Board will make possible further study of some issues put aside for additional review by the 1999 General Assembly.
These should include:
We'll be delighted to work with you and the CAB as you review these most important topics. I'll be happy to answer any questions.