VirginiaSB3772026 Regular SessionSenateWALLET

Electric substation construction agreements; "electric cooperatives" or "cooperative", definitions.

Sponsored By: Scott A. Surovell (Democratic)

Became Law

Summary

Utility consumer services cooperatives; substation construction agreements. Permits an electric cooperative to enter into an agreement to construct a substation with a member receiving regulated electric service, with an electric demand of at least 20 megawatts during the most recent calendar year, that requires a point of interconnection with a transmission line system of 230 kilovolts or more. The bill provides that, upon final completion of a substation constructed under such an agreement, the member shall transfer ownership of such substation to the cooperative for the cooperative to operate and maintain at the member's sole expense. Under the bill, the costs of acquisition, operation, or maintenance of such a substation shall be excluded from the cooperative's general and base rates and shall not be recovered from any other ratepayer. This bill is identical to HB 1191.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 1 benefits, 0 costs, 2 mixed.

Member-only substations for high-demand businesses

Electric cooperatives can agree to build a substation that serves only one member if the member gets regulated service, used at least 20 megawatts last year, and needs a 230 kV or higher interconnection. The agreement is filed with the State Corporation Commission and can be kept confidential if requested. The member pays all construction costs and must meet laws, reliability standards, and the cooperative’s specs. When it is finally done, the member transfers the substation to the cooperative; the cooperative then runs and maintains it, and the member pays those ongoing costs under the cooperative’s rates and terms. After the member gives written notice of substantial completion, the cooperative inspects within 60 days and issues any final change orders within 30 days after the inspection.

Other cooperative customers avoid substation costs

The State Corporation Commission keeps substation costs from these member-only deals out of a cooperative’s general and base rates. No customer pays for that substation except the member that signed the agreement.

Deadlines and dispute help for substation deals

Members and cooperatives must negotiate in good faith. If the cooperative does not negotiate or offer a draft within 120 days after a written request, the member can ask state regulators to order talks and require a draft. Regulators hear the petition if needed within three months and issue an order within six months. The member pays a fee set by the Commission for handling that petition. Either side can also use the Commission’s informal and formal dispute processes during negotiation, construction, or transfer.

Sponsors & Cosponsors

Sponsor

  • Scott A. Surovell

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 209 • No: 0

House vote 2/27/2026

Passed House Block Vote

Yes: 96 • No: 0

House vote 2/24/2026

Reported from Labor and Commerce

Yes: 22 • No: 0

Senate vote 2/13/2026

Read third time and passed Senate

Yes: 39 • No: 0

Senate vote 2/12/2026

Committee substitute rejected (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/12/2026

Senator Surovell Substitute agreed to

Yes: 0 • No: 0

Senate vote 2/11/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/11/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote 2/9/2026

Reported from Commerce and Labor with substitute

Yes: 12 • No: 0 • Other: 2

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0022)

    3/31/2026Governor
  2. Approved by Governor-Chapter 22 (effective 7/1/2026)

    3/31/2026Governor
  3. Governor's Action Deadline 11:59 p.m., April 13, 2026

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

    3/10/2026Senate
  5. Fiscal Impact Statement from State Corporation Commission (SB377)

    3/9/2026Senate
  6. Bill text as passed Senate and House (SB377ER)

    3/4/2026Senate
  7. Enrolled

    3/4/2026Senate
  8. Signed by President

    3/4/2026Senate
  9. Signed by Speaker

    3/4/2026House
  10. Passed House Block Vote (96-Y 0-N 0-A)

    2/27/2026House
  11. Read third time

    2/27/2026House
  12. Read second time

    2/26/2026House
  13. Reported from Labor and Commerce (22-Y 0-N)

    2/24/2026House
  14. Referred to Committee on Labor and Commerce

    2/18/2026House
  15. Read first time

    2/18/2026House
  16. Placed on Calendar

    2/18/2026House
  17. Fiscal Impact Statement from State Corporation Commission (SB377)

    2/16/2026Senate
  18. Read third time and passed Senate (39-Y 0-N 0-A)

    2/13/2026Senate
  19. Senator Surovell Substitute agreed to

    2/12/2026Senate
  20. Committee substitute rejected (Voice Vote)

    2/12/2026Senate
  21. Floor Offered

    2/12/2026Senate
  22. Floor substitute printed 26107668D-S2 (Surovell)

    2/12/2026Senate
  23. Engrossed by Senate - floor substitute (Voice Vote)

    2/12/2026Senate
  24. Reading of substitute waived (Voice Vote)

    2/12/2026Senate
  25. Read second time

    2/12/2026Senate

Bill Text

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