Bill > SB251

This bill directs the State Corporation Commission (SCC), an independent state agency that regulates utilities, to study and propose a new system for overseeing electric companies, known as a performance-based regulatory framework. This framework would aim to improve how electric utilities perform and how they control costs by setting specific goals and offering incentives for meeting them, rather than solely relying on traditional methods of rate setting. The SCC is tasked with evaluating various aspects, including consolidating existing cost recovery mechanisms, exploring shared risk policies for fuel costs, enhancing incentives for energy efficiency and renewable energy targets, developing performance-incentive mechanisms for key outcomes, and assessing competitive procurement frameworks. The SCC must consider input from consumer advocates, experts, and electric utilities, and by July 1, 2027, it will submit its findings and legislative recommendations to relevant legislative committees and make them publicly available. This initiative stems from a recommendation by the Commission on Electric Utility Regulation and is identical to another bill, HB 903.

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https://lis.virginia.gov/bill-details/20261/SB251