VirginiaHB2842026 Regular SessionHouseWALLET

Electric utilities; electric demand flexibility programs, high energy demand customers, report.

Sponsored By: Michael B. Feggans (Democratic)

Became Law

Summary

Electric utilities; high energy demand customers; demand flexibility programs; reports. Directs Dominion Energy and Appalachian Power to file a petition with the State Corporation Commission by January 15, 2027, for approval of voluntary demand flexibility programs that apply to high energy demand customers, as defined in the bill. The bill requires the Commission to consider all forms of demand flexibility and other specific factors in approving each such program. The bill directs each cooperative that serves one or more high energy demand customers to establish a voluntary demand flexibility program for such customers by January 1, 2029. Under the bill, Dominion Energy and Appalachian Power are required to file status reports on their demand flexibility programs with the Commission three years after initial program approval and every three years thereafter. Additionally, in 2028 and annually thereafter, the Commission is required to submit information summarizing the status and performance of such programs as part of an existing report. This bill is identical to SB 371.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 0 benefits, 0 costs, 4 mixed.

Clean, verified demand cuts and credits

Programs must consider many ways to cut or shift peak load, such as spatial load shifting, dynamic voltage or frequency changes, and energy storage. Programs may use capacity reduction credits, which are standard, measured, and verified units approved by the Commission. Carbon-emitting generators cannot participate in these programs. The Commission sets the measurement and verification rules for credits and program savings.

Co-ops must create large-user programs

Each electric cooperative that serves one or more high energy demand customers must set up a voluntary demand flexibility program by January 1, 2029. Each co-op must form a technical work group with big users, other customers, and environmental voices and send a report by September 30, 2027. After public comment, if the Commission accepts the report, the co-op may implement programs with a board vote and fewer extra filings. Co-ops must propose a demand flexibility standard and may use different standards for customers that began service before July 1, 2026.

Incentives for big users, no cost shift

A high energy demand customer uses 25 megawatts or more and has a 75% or higher average annual load factor. Contracted defense facilities are not included. Programs may offer incentives to get these customers to join, including faster interconnections when reliability is protected. Incentives must not unreasonably shift program or admin costs onto other customers. Any incentive must be backed by measured and verified cuts in peak demand or verified load reductions bought from other customers.

Utility plans for big-user demand cuts

Phase I and Phase II utilities must file plans for voluntary demand flexibility programs by January 15, 2027. The Commission must issue final orders by November 30, 2027 and sets yearly demand flexibility standards. Utilities must make best, reasonable efforts to meet or beat the standard each year. Three years after a program is approved, and every three years after, utilities file performance reports. Starting September 1, 2028, the Commission includes statewide program results in its annual report. The Commission may set different standards for customers that began service before July 1, 2026. These programs are designed to maximize system savings and reliability.

Sponsors & Cosponsors

Sponsor

  • Michael B. Feggans

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 295 • No: 24

House vote 3/2/2026

Senate substitute agreed to by House

Yes: 98 • No: 1

Senate vote 2/26/2026

Commerce and Labor Substitute agreed to

Yes: 0 • No: 0

Senate vote 2/26/2026

Passed Senate with substitute

Yes: 24 • No: 16

Senate vote 2/25/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote 2/25/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/23/2026

Reported from Commerce and Labor with substitute

Yes: 8 • No: 6

House vote 2/17/2026

Read third time and passed House Block Vote

Yes: 97 • No: 0

House vote 2/12/2026

Reported from Labor and Commerce with substitute

Yes: 20 • No: 0

House vote 2/10/2026

Subcommittee recommends reporting with substitute

Yes: 8 • No: 1

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0377)

    4/8/2026Governor
  2. Approved by Governor-Chapter 377 (effective 7/1/2026)

    4/8/2026Governor
  3. Fiscal Impact Statement from State Corporation Commission (HB284)

    3/12/2026House
  4. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/10/2026Governor
  5. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026House
  6. Bill text as passed House and Senate (HB284ER)

    3/5/2026House
  7. Enrolled

    3/5/2026House
  8. Signed by President

    3/5/2026Senate
  9. Signed by Speaker

    3/5/2026House
  10. Fiscal Impact Statement from State Corporation Commission (HB284)

    3/2/2026House
  11. Senate substitute agreed to by House (98-Y 1-N 0-A)

    3/2/2026House
  12. Passed Senate with substitute (24-Y 16-N 0-A)

    2/26/2026Senate
  13. Commerce and Labor Substitute agreed to

    2/26/2026Senate
  14. Engrossed by Senate - committee substitute

    2/26/2026Senate
  15. Read third time

    2/26/2026Senate
  16. Passed by for the day Block Vote (Voice Vote)

    2/25/2026Senate
  17. Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

    2/25/2026Senate
  18. Rules suspended

    2/25/2026Senate
  19. Committee substitute printed 26108365D-S1

    2/24/2026Senate
  20. Senate committee offered

    2/23/2026Senate
  21. Reported from Commerce and Labor with substitute (8-Y 6-N)

    2/23/2026Senate
  22. Fiscal Impact Statement from State Corporation Commission (HB284)

    2/19/2026House
  23. Referred to Committee on Commerce and Labor

    2/18/2026Senate
  24. Constitutional reading dispensed (on 1st reading)

    2/18/2026Senate
  25. Read third time and passed House Block Vote (97-Y 0-N 0-A)

    2/17/2026House

Bill Text

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