Bill > HB1360

This bill establishes a policy for investor-owned electric utilities in Virginia, directing the State Corporation Commission (SCC) to investigate and address practices that distort wholesale energy markets. Specifically, for fuel factor proceedings initiated after January 1, 2026, the bill creates a presumption that certain costs are unreasonable and imprudent if an investor-owned electric utility operates a power plant when its operating costs are higher than the market price for electricity set by the regional transmission entity. The bill requires these utilities to provide detailed information to the SCC in their applications, including when their coal or oil-fueled power plants were designated as "must-run" units (meaning they must operate regardless of demand), the costs associated with that operation, the reasons for the must-run designation, and the market clearing price for electricity during those hours. The SCC will then determine on a case-by-case basis if these must-run decisions were reasonable and prudent, and will deny cost recovery for any found to be unreasonable or imprudent.

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https://lis.virginia.gov/bill-details/20261/HB1360