Bill > SB551

This bill directs the State Corporation Commission (SCC), Virginia's primary regulatory body for utilities, to establish a work group to study and propose improvements for "energy load flexibility protocols" for "high electric demand customers." A high electric demand customer is defined as any customer with an average electricity usage exceeding 50 megawatts, which typically includes large commercial or industrial facilities like data centers. The work group, composed of various stakeholders including government agencies, utilities, customer representatives, and advocacy groups, will analyze the current rules and regulations in Virginia concerning these large energy users, identify barriers and opportunities for them to adjust their electricity consumption during peak demand periods (known as load flexibility), and develop recommendations. These recommendations will focus on improving demand response management programs, which are systems designed to reduce electricity usage when the grid is under stress, and may include policies for electric load curtailment, where customers agree to reduce their power usage under certain conditions. The work group must also consider factors like grid reliability, fairness to all customers, and the Commonwealth's clean energy goals, and will examine how other states handle similar issues, including the potential for new clean energy projects and energy storage. The bill specifies a detailed list of areas the work group must assess, such as participation requirements for demand response programs, the role of technology like energy storage, how to handle grid emergencies, and potential incentives for customers, including data centers, to invest in load flexibility and community benefit programs. Finally, the work group is required to submit a report of its findings and recommendations to the SCC and relevant legislative committees by November 1, 2026.

Business and Industry

https://lis.virginia.gov/bill-details/20261/SB551