August 18, 1998
COMMENTS PREPARED FOR THE JOINT SUBCOMMITTEE EXAMINING ELECTRIC UTILITY RESTRUCTURING IN THE COMMONWEALTH (SJR 91)
The Association of Energy Conservation Professionals (AECP) is a statewide organization comprised of weatherization service providers, energy conservation advocates, and private contractors. Our organization fully endorses and supports the Virginia Residential Electric Consumer Bill of Rights.
We are very concerned that as Virginia moves toward deregulation and restructuring, and as competitiveness is increased and profit motive is encouraged that we will lose even greater perspective on the true value and ideal that is represented by weatherization and other energy efficiency programs. We must not let this happen. It is imperative that we improve and enhance these programs to insure that energy efficiency and conservation remain a priority.
We must work towards seeking a healthy balance between energy use and energy conservation and perhaps within the process that is now taking place we can find solutions and create answers that will insure that there will be plenty of clean, safe energy now and in the future and that our children can live in a clean and healthy environment. It is necessary and prudent that we maintain these ideals as we tackle the difficult decisions that lie ahead.
The Virginia Weatherization Program (WAP) is a valuable public benefit program that provides cost-effective energy conservation services to low-income citizens across the Commonwealth, specifically the elderly, the disabled, and families with children. These services reduce heating and cooling costs, make homes more comfortable and affordable, and identify and correct potential health and safety issues which often are life-threatening. In 97-98 2,200 homes were weatherized and using metrics provided by DOE this resulted in 38,000 Mbtu of energy saved and 1500 tons of carbon reduction.
Services provide by WAP include heating system safety and efficiency diagnostics, heating system repair and replacement, insulation, duct system diagnostics and repair, blower door directed air-sealing, and indoor air quality testing. WAP is a highly sophisticated and technical building science program that sets the industry standard nationwide.
Weatherization reduces home energy consumption and in doing so creates several valuable societal benefits. (1) Energy bills are lessened and disposable income is increased. This allows a low-income family additional monthly funds to purchase food clothing, transportation, and other important household needs. (2) WAP reduces health costs by identifying and correcting dangerous problems such as carbon monoxide in the living space, unsafe heating systems and unhealthy duct systems, cold, drafty homes, and other indoor air quality problems that can lead to heart and respiratory illness. (3) WAP helps solve arrearage problems for the consumer and the utility. (4) WAP impacts the environment by reducing carbon emissions and by saving on our natural resources. (5) WAP provides an opportunity to live in a safe, comfortable, and affordable home.
WAP is funded primarily with federal dollars but these funds have been cut dramatically over the last few years and funding sources such as DOE and LIHEAP are in danger of being targeted for elimination by Congress. In FY 97-98 WAP received 1.5 million from DOE and 1.4 million from LIHEAP. An additional $800,000 was utilized from remaining Oil Overcharge funds. When DOE funds were cut by 50% over two years ago, it became necessary for the General Assembly to mandate that a percentage of LIHEAP funds be allocated to Weatherization.
The future of Weatherization is very unclear and it is time for the State of Virginia to assume more responsibility in providing a stable funding source for a program that does so much for the citizens of the Commonwealth. The process of electrical restructuring provides the General Assembly a perfect opportunity to explore methods of improving and enhancing this and other energy efficiency efforts.
The Clinton Administration Restructuring Proposal encourages continued support and funding for Public Benefit Programs and has proposed to "create a $3 billion Public Benefit Fund to provide matching funds to States for Low-income assistance, energy efficiency programs, renewable energy and consumer education". A systems benefit charge is another method by which funding could be secured to support energy efficiency programs. Other States are doing this quite successfully.
The General Assembly must examine the potential for a more effective partnership between Weatherization and utilities. We have the technical expertise, the experience, and a statewide delivery network that is dedicated to the principles of energy conservation. A partnership with the utilities and a more centralized statewide effort in providing energy efficiency services would be of benefit to everyone. Weatherization has a tremendous effect on the lives of low-income individuals but it also impacts all segments of society because reducing the wasteful use of energy is everyone's business.
But in order for any energy conservation effort to be successful there must be a commitment and a sincere belief that saving on our natural resources and preserving the environment are priorities that must not be undermined by the pursuit of profit or the promotion of competition. It is our obligation to pursue these goals.
For further information contact Billy Weitzenfeld at 540-382-1975.