VirginiaSB5152026 Regular SessionSenateWALLET

Electric Utility Regulation, Commission on; scope and name changes to Energy Commission of Virginia.

Sponsored By: R. Creigh Deeds (Democratic)

Became Law

Summary

Commission on Electric Utility Regulation; name change. Renames the Commission on Electric Utility Regulation as the Energy Commission of Virginia. As introduced, this bill was a recommendation of the Commission on Electric Utility Regulation.

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Bill Overview

Analyzed Economic Effects

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

Clearer bills and fair energy marketing

The Commission sets rules to stop unauthorized supplier switches and charges. Suppliers must give clear prices, key contract terms, fuel mix and emissions info when feasible, cancellation rights, and a toll‑free help number. Bills must use a standard format that separates regulated from unregulated charges and show fuel mix and emissions at least yearly. The Commission runs a complaint bureau to investigate and enforce, and it sets reasonable limits on customer deposits for competitive services.

Lower fuel charges for Phase II customers

The law blocks Phase II utilities from charging customers for 50% of any deferred fuel balance that was still on the books on December 31, 2014. The State Corporation Commission lowers the fuel factor to reflect this cut. It also adjusts for forecasted over‑recoveries in the 2014–2015 and 2015–2016 fuel years. This reduces what affected customers pay for fuel on their bills.

More utility solar, wind, and storage

The law sets goals for 5,000 MW of new utility‑owned solar and wind by July 1, 2028 and 2,700 MW of storage by July 1, 2030. Building or buying up to 5,000 MW of solar or wind in Virginia or offshore is declared in the public interest, and rooftop solar of at least 50 kW can count toward 50 MW of that total. Utilities must use goods or services from Virginia businesses on these qualifying projects. Utilities may use market‑indexed rate clauses or sign solar power contracts before buying a plant, which can change how project costs or savings flow into rates over time.

Rate reviews paused, oversight continues

The law creates a Transitional Rate Period. Regular biennial rate reviews pause for Phase I test years starting January 1, 2014 and for Phase II test years starting January 1, 2015, and utilities could not file biennial reviews in 2016–2019. Most tariff changes are limited during this time, with narrow exceptions in state law. The Commission keeps full inspection powers, and a utility cannot permanently retire a plant without Commission approval (except retirements listed in plans filed by September 1, 2014). The Commission also runs biennial cases to set the fair return on equity for Phase I (2016, 2018) and Phase II (2017, 2019), with final orders due within eight months.

Energy Commission oversight and planning updates

The law renames and continues the Energy Commission of Virginia to watch how utility rules are carried out. The Commission exists until July 1, 2029 and gets a yearly status report by September 1. The State Energy Plan must be updated every four years, with an interim update in the third year of each Governor’s term. The Plan must include policy on cutting carbon from coal and gas plants and consider flexible compliance. In all related cases, the Commission must consider economic development impacts.

Utility plans with public input

Utilities must file or update their integrated resource plans by October 15 on a set schedule. Plans must review supply, market buys, energy efficiency, demand response, storage, grid‑enhancing technologies, and long‑term help for low‑income customers. Utilities must study retirements of in‑state CO2‑emitting plants and disclose expected retirement years to local and state groups. They must hold stakeholder meetings and report their outreach. The Commission decides within nine months if each plan is reasonable and also sends a yearly December 1 report on grid reliability, renewable integration, needed investments, and security.

Energy education to help lower bills

The Commission runs an energy education program for customers. It covers conservation, efficiency, demand response, renewables, and programs for homes, businesses, industry, and government. The Commission consults with consumer groups and others, reports on the program’s scope, length, and funding, and provides periodic updates. Funding comes from special regulatory taxes, which utilities may pass through in rates. The goal is to help you make informed choices and cut energy use.

Pilot to put some power lines underground

The law creates a pilot for up to two transmission projects (over 69 kV and up to 230 kV) to be built partly or fully underground. One pre‑designated project (about 5.3 miles, with about 3.1 miles underground) qualifies after need is affirmed, and one more project must be picked from applications filed July 1, 2018 to October 1, 2020 to convert an existing 230 kV overhead line. To qualify, a project must meet tests for engineering feasibility, local government support, timely filing, and added cost (no more than $40 million or 2.5× the overhead cost unless agreed), and be needed for reliability, resiliency, or economic development. Qualified pilots are deemed to meet need and their approval counts as meeting local zoning. The Commission reports progress by December 1 each year and issues a final report when the program ends.

Rules to join regional grid operators

Each utility that owns or controls transmission in Virginia must join or create a regional transmission entity and transfer management of its lines to it, subject to Commission approval. Any transfer request must include a cost‑benefit study that reviews consumer impacts, including congestion costs. The Commission takes part in federal proceedings on regional entities and reports each year on practices and how transfer requests could affect customers.

Sponsors & Cosponsors

Sponsor

  • R. Creigh Deeds

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 303 • No: 125

Senate vote 3/14/2026

Conference report agreed to by Senate

Yes: 22 • No: 17

House vote 3/14/2026

Conference report agreed to by House

Yes: 73 • No: 24

Senate vote 3/12/2026

Senate acceded to request Block Vote

Yes: 40 • No: 0

Senate vote 3/12/2026

House substitute rejected by Senate

Yes: 0 • No: 40

House vote 3/11/2026

Passed House with substitute

Yes: 73 • No: 25

House vote 3/6/2026

Reported from Rules with substitute

Yes: 18 • No: 0

House vote 3/2/2026

Subcommittee recommends reporting with substitute

Yes: 5 • No: 0

Senate vote 2/11/2026

Read third time and passed Senate

Yes: 21 • No: 19

Senate vote 2/10/2026

Rules Substitute agreed to

Yes: 0 • No: 0

Senate vote 2/9/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/9/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 40 • No: 0

Senate vote 2/6/2026

Reported from Rules with substitute

Yes: 11 • No: 0 • Other: 4

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0949)

    4/13/2026Governor
  2. Approved by Governor-Chapter 949 (effective 7/1/2026)

    4/13/2026Governor
  3. Fiscal Impact Statement from Department of Planning and Budget (SB515)

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

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

    3/31/2026Senate
  6. Signed by Speaker

    3/31/2026House
  7. Bill text as passed Senate and House (SB515ER)

    3/30/2026Senate
  8. Enrolled

    3/30/2026Senate
  9. Signed by President

    3/30/2026Senate
  10. Conference report agreed to by Senate (22-Y 17-N 0-A)

    3/14/2026Senate
  11. Conference report agreed to by House (73-Y 24-N 0-A)

    3/14/2026House
  12. Conference Report released

    3/13/2026
  13. House Conferees: Sullivan, Herring, Kilgore

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

    3/12/2026House
  15. Senate acceded to request Block Vote (40-Y 0-N 0-A)

    3/12/2026Senate
  16. House requested conference committee

    3/12/2026House
  17. House insisted on substitute

    3/12/2026House
  18. House substitute rejected by Senate (0-Y 40-N 0-A)

    3/12/2026Senate
  19. Senate acceded to request

    3/12/2026Senate
  20. Conferees appointed by Senate

    3/12/2026Senate
  21. Senate Conferees: Deeds, Surovell, Obenshain

    3/12/2026Senate
  22. Passed House with substitute (73-Y 25-N 0-A)

    3/11/2026House
  23. Engrossed by House - committee substitute

    3/11/2026House
  24. committee substitute agreed to

    3/11/2026House
  25. Read third time

    3/11/2026House

Bill Text

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