Bill > HB1256

This bill requires the State Corporation Commission (the Commission) to establish a new system for how electric companies like Appalachian Power Company and Dominion Energy Virginia handle the costs of fuel and purchased power, which are the electricity they buy from other sources. Currently, all these costs are directly passed on to customers. However, this bill mandates the Commission to create a "cost-sharing adjustment mechanism" where the electric companies and their customers would share the financial risk associated with fluctuations in these fuel and purchased power costs. The Commission must conduct a formal review to set up this mechanism, considering ways to lessen the impact of unpredictable price changes on customer bills and to align the companies' financial interests with those of their customers. The bill also directs the Commission to look at how renewable energy sources owned or contracted by these companies reduce fuel and purchased power expenses and to assess if it has enough authority to regulate these costs and implement new risk-reduction strategies. Finally, the Commission must report its findings and any necessary legislative recommendations to the General Assembly and the Commission on Electric Utility Regulation by September 1, 2027.

Business and Industry

https://lis.virginia.gov/bill-details/20261/HB1256