Bill > HB1075

This bill directs the State Corporation Commission (the Commission) to follow specific requirements when reviewing the rates, terms, and conditions for electricity generation and distribution services provided by Appalachian Power, a "Phase I Utility" (a utility defined by state law). In its 2026 review, the Commission must examine Appalachian Power's decision to use a "fixed resource requirement alternative" with the regional transmission entity, requiring the utility to explain its reasoning and compare historical costs with market prices. The Commission is also mandated to review Appalachian Power's efforts to improve system efficiency, resilience, and reliability in response to increasing costs from severe weather events, considering factors like increased weather risks, best practices, energy efficiency programs, and the need for state resources to offset federal funding changes. The Commission will then report its findings and recommendations to the Governor and the Commission on Electric Utility Regulation by September 1, 2027, and this report can be included in the Commission's annual report. Furthermore, the bill prohibits the Commission from approving a higher rate of return on common equity for Appalachian Power than in its previous review unless the utility proves this increase is the most cost-effective way to maintain access to capital for customers.

Business and Industry

https://lis.virginia.gov/bill-details/20261/HB1075