Bill > SB505

This bill requires the State Corporation Commission (the Commission) to establish a new system for how Appalachian Power Company and Dominion Energy Virginia handle the costs of fuel and purchased electricity, which are the expenses utilities incur to generate power or buy it from other sources. Currently, all these costs are passed directly to customers. However, this bill mandates that the Commission create a "cost-sharing adjustment mechanism" where the utility and its customers would share the financial risk associated with fluctuations in these fuel and purchased power costs. The Commission must conduct a review, considering national best practices and specific reports, to design this mechanism. This review will also assess how renewable energy sources owned or contracted by the utilities reduce these costs and whether the Commission has enough authority to regulate procurement methods and implement new risk-mitigation strategies. The Commission is directed to submit a report with any necessary legislative recommendations to the General Assembly and the Commission on Electric Utility Regulation by September 1, 2027.

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https://lis.virginia.gov/bill-details/20261/SB505