VirginiaSB2532026 Regular SessionSenateWALLET

Electric utilities; pilot programs for energy assistance and weatherization for certain individuals.

Sponsored By: L. Louise Lucas (Democratic)

Signed by Governor

Summary

Electric utilities; pilot programs for energy assistance and weatherization for certain individuals. Amends annual funding commitments for the purposes of the annual pilot program for energy assistance and weatherization for low-income, elderly, and disabled individuals conducted by Dominion Energy Virginia and Appalachian Power Company. Under the bill, Appalachian Power Company is required to continue its pilot program at no less than $1 million and no greater than $1.5 million annually. Dominion Energy Virginia is required to continue its pilot program at no less than $156 million and no greater than $204 million for the time period beginning July 1, 2026, and ending July 1, 2038. The bill extends the sunset date of such pilot programs from July 1, 2028, to July 1, 2038.The bill also provides that Dominion Energy Virginia may recover costs associated with certain electrical facilities that have been approved by the State Corporation Commission as of December 1, 2033, provided that certain requirements are met and notwithstanding any limitations on such cost recovery in current law. The bill directs Dominion Energy Virginia to propose to the Commission, in any proceeding to determine rates for generation and distribution services commencing after January 1, 2027, and before July 1, 2033, that certain costs related to capacity procurement requirements and distribution infrastructure investments are allocated to the utility's customer class approved to serve customers with a contracted or measured electric demand of 25 megawatts or greater and an anticipated or measured average annual electric load factor of 75 percent or greater. The bill provides that certain customers in manufacturing, industrial, or consumer goods warehousing and distribution activities other than data storage may elect to remain on their existing rate schedule. The bill requires Dominion Energy Virginia, in connection with its first proceeding to determine rates for generation and distribution services commencing after July 1, 2026, to include in its petition to the Commission a proposal to revise its tariff for supplementary, maintenance, or standby service for customers with power plants, effective as of January 1, 2028. The bill provides that the Commission shall only approve such proposal if it determines that such tariff will not adversely affect other retail customers or the utility in a manner contrary to the public interest, and any revised tariff terms shall include protections against stranded cost risks to the utility customer base. Additionally, the bill authorizes Dominion Energy Virginia to file a petition for the securitization of certain deferred fuel costs.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 4 benefits, 0 costs, 1 mixed.

Energy help for vulnerable households

Each Phase I and Phase II utility must fund energy help and home weatherization for eligible people in its service area. Eligible people are low-income, elderly, or disabled. Phase I utilities must provide $1 million to $1.5 million yearly; the law retains the September 1, 2015 start date. Phase II utilities must provide $156 million to $204 million total from July 1, 2026, through July 1, 2038. Their yearly minimum is $13 million for each year of service. The pilots continue through July 1, 2038, but the law sets no individual household benefit amount. Utilities must report yearly on people served and spending to the Governor, State Corporation Commission, legislative committee chairs, and Commission on Electric Utility Regulation.

Protecting customers from large users' costs

During each two-year Phase II utility rate review, the State Corporation Commission must take reasonable steps to protect other customers. Other customers must not subsidize qualifying large power users or have their approved rates harmed by serving them. Qualifying users have contracted or measured demand of at least 25 megawatts. They also have an anticipated or measured average annual load factor of at least 75%, meaning sustained high power use. The law does not set a specific household bill reduction.

Caps on costs charged to power customers

The law limits certain Phase II utility requests to recover power-line conversion costs from customers. It covers qualifying requests filed from July 1, 2026, through March 1, 2033, and approved by December 1, 2033. Approved tap-line conversion costs cannot average more than $900,000 per mile, excluding financing costs. Requests cannot seek annual added investment above 4% of the utility's distribution rate base. That base is measured using the latest completed 12-month test period in the most recent two-year review before filing. These caps limit recoverable costs but do not guarantee lower household bills.

Rate choices for qualifying large employers

Qualifying Phase II business customers can avoid moving to the utility's main high-load rate schedule. They can keep their existing default schedule or choose an applicable voluntary schedule. Eligible activities are manufacturing, industrial work, and consumer-goods warehousing and distribution; data storage businesses are excluded. As of January 1, 2026, customers must have maintained at least 200 full-time equivalent workers in those activities. Facilities must be at a single or contiguous customer account location in the utility's service area. That location must be subject to migration to the high-load schedule as of January 1, 2027. Customers must notify the utility by July 1, 2026; this one-time choice cannot be revoked before December 31, 2033. After that date, customers can keep their existing default schedule or choose another qualifying schedule.

Fuel financing can spread customer payments

Phase II utilities can request permission to finance deferred fuel costs by July 15, 2026. The law applies specified 2023 financing rules despite their earlier time limits. The State Corporation Commission must provide notice and an opportunity for a hearing. It alone decides whether financing serves the public interest and approves or rejects the request. For requests filed May 1 through July 15, 2026, its final order is due within four months after filing. Approved financing can spread past fuel costs over time, easing near-term bills but potentially extending customer payments. The law sets no financing amount or resulting customer charge.

Sponsors & Cosponsors

Sponsor

  • L. Louise Lucas

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 448 • No: 162

House vote • 4/22/2026

Governor's amendments nos. 7, 9, and 10 agreed to

Yes: 73 • No: 25

Senate vote • 4/22/2026

Governor's recommendation Nos. 1, 2, 3, 4, 5, 6, 8, and 11 passed by (Voice Vote)

Yes: 0 • No: 0

Senate vote • 4/22/2026

Senate concurred in Governor's recommendation Nos. 7, 9, and 10

Yes: 37 • No: 2

Senate vote • 3/14/2026

Conference report agreed to by Senate

Yes: 21 • No: 18

House vote • 3/14/2026

Conference report agreed to by House

Yes: 73 • No: 23

Senate vote • 3/10/2026

Senate acceded to request Block Vote

Yes: 40 • No: 0

Senate vote • 3/5/2026

House substitute rejected by Senate

Yes: 0 • No: 39

House vote • 3/3/2026

Passed House with substitute

Yes: 66 • No: 32

House vote • 2/26/2026

Reported from Labor and Commerce with substitute

Yes: 18 • No: 3

Senate vote • 2/17/2026

Read third time and passed Senate

Yes: 39 • No: 0

Senate vote • 2/16/2026

Senator McDougle Amendment rejected

Yes: 19 • No: 20

Senate vote • 2/16/2026

Reading of amendment waived (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/16/2026

Finance and Appropriations Amendment agreed to (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/16/2026

Commerce and Labor Substitute agreed to (Voice Vote)

Yes: 0 • No: 0

Senate vote • 2/13/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 35 • No: 0

Senate vote • 2/12/2026

Reported from Finance and Appropriations with amendments

Yes: 14 • No: 0 • Other: 1

Senate vote • 2/9/2026

Reported from Commerce and Labor with substitute and rereferred to Finance and Appropriations

Yes: 13 • No: 0 • Other: 1

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP1124)

    5/14/2026Governor
  2. Approved by Governor-Chapter 1124 (effective 7/1/2026)

    5/14/2026Governor
  3. Governor's amendments nos. 7, 9, and 10 agreed to (73-Y 25-N 0-A)

    4/22/2026House
  4. Governor's recommendation Nos. 1, 2, 3, 4, 5, 6, 8, and 11 passed by (Voice Vote)

    4/22/2026Senate
  5. Senate concurred in Governor's recommendation Nos. 7, 9, and 10 (37-Y 2-N 0-A)

    4/22/2026Senate
  6. Reenrolled bill text (SB253ER2)

    4/22/2026Senate
  7. Reenrolled

    4/22/2026Senate
  8. Governor's Action Deadline 11:59 p.m., May 23, 2026

    4/22/2026Governor
  9. Communicated to Governor

    4/22/2026Senate
  10. Signed by President

    4/22/2026Senate
  11. Signed by Speaker

    4/22/2026House
  12. Governor's recommendation adopted

    4/22/2026Governor
  13. Governor's recommendation received by Senate

    4/13/2026Governor
  14. Fiscal Impact Statement from State Corporation Commission (SB253)

    4/6/2026Senate
  15. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/31/2026Governor
  16. Enrolled Bill communicated to Governor on March 31, 2026

    3/31/2026Senate
  17. Signed by Speaker

    3/31/2026House
  18. Bill text as passed Senate and House (SB253ER)

    3/30/2026Senate
  19. Enrolled

    3/30/2026Senate
  20. Signed by President

    3/30/2026Senate
  21. Conference report agreed to by Senate (21-Y 18-N 0-A)

    3/14/2026Senate
  22. Conference report agreed to by House (73-Y 23-N 0-A)

    3/14/2026House
  23. Conference Report released

    3/14/2026
  24. House Conferees: LeVere Bolling, Torian, Kilgore

    3/12/2026House
  25. Conferees appointed by House

    3/12/2026House

Bill Text

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