VirginiaSB8182026 Regular SessionSenateWALLET

Electric utilities; licensed retail suppliers, renewable portfolio standard requirements.

Sponsored By: David R. Suetterlein (Republican)

Became Law

Summary

Electric utilities; licensed retail suppliers; notice period for return to service. Permits an individual nonresidential retail customer of electric energy of Appalachian Power or Dominion Energy Virginia whose noncoincident peak demand exceeded five megawatts during the most recent calendar year to purchase electric energy from a licensed supplier within the Commonwealth. Currently, such a customer may only purchase electric energy from a licensed supplier if the customer's peak demand did not exceed one percent of the incumbent electric utility's peak load during the most recent calendar year unless the customer had a noncoincident peak demand of more than 90 megawatts. The bill changes from five years to eighteen months the advance notice period required for such a customer to return to service by an incumbent electric utility. This bill is identical to HB 921.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 2 benefits, 2 costs, 3 mixed.

No supplier choice for homes and small businesses

Residential customers cannot buy from licensed suppliers under this law. Nonresidential customers with a peak of 150 kW or less also cannot switch. These limits apply to Phase I and Phase II utility customers.

More ways to buy 100% renewable power

You can buy 100% renewable electricity from any licensed supplier if your incumbent utility has no approved 100% renewable tariff. If you already have a power purchase agreement when the incumbent files such a tariff, you may keep it until it ends. A cooperative’s undifferentiated tariff counts as 100% renewable if it retires RECs equal to all energy sold. For residential classes, this applies to tariffs filed on or after July 1, 2010; for nonresidential, on or after July 1, 2012.

Utilities must join regional grid operator

Electric utilities that own or control transmission in Virginia must join or form a regional transmission group. They transfer control of transmission operations to that group. This changes who runs the grid and supports reliability and regional coordination.

After switching, still pay capacity and transmission

If your incumbent utility elected the Fixed Resource Requirement as of February 1, 2019 and still uses it, you must keep paying that utility for non-fuel generation capacity and transmission while you buy energy from a licensed supplier. Your notice to return is three years. Customers with supplier deals before Feb 1, 2019 or aggregation petitions pending before Jan 1, 2019 are excluded until they return and receive energy from the incumbent.

Supplier choice rules for large businesses

Nonresidential customers of Phase I or II utilities can buy from a licensed supplier only if their peak last year was over 5 MW and not more than 1% of the utility’s peak, or if they ever exceeded 90 MW in 2006 or later. You cannot combine separate sites to qualify; each noncontiguous site counts on its own. Two or more customers, each under 5 MW last year, may ask the Commission to combine loads. The Commission may approve after a hearing if there is no harm to the utility or other customers and it is in the public interest, and it can require reporting or revoke approval.

Switching back requires long notice and stay

If you qualify but do not sign with a licensed supplier, you must buy from your incumbent utility. If you later want to return to incumbent service, you must give 18 months written notice. The Commission can exempt you after a hearing if the supplier failed or is about to fail through no fault of yours. If exempted, you buy from the incumbent at market-based costs for the rest of the notice period. Those costs include market energy, transmission, losses, ancillary services, administrative costs, and a reasonable margin, set so other customers are not harmed. After you return, you must stay with the incumbent at least 12 months.

Utilities can reassign costs after big shifts

Phase I and Phase II utilities can ask the Commission to change generation and distribution rates to reassign costs tied to customer moves. This applies only when customer switching causes a net loss or gain of 100 MW or more on or after July 1, 2026. Petitions only reallocate costs within generation and distribution rates.

Sponsors & Cosponsors

Sponsor

  • David R. Suetterlein

    Republican • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 243 • No: 3

House vote 3/3/2026

Passed House

Yes: 97 • No: 0

House vote 2/26/2026

Reported from Labor and Commerce

Yes: 18 • No: 3

Senate vote 2/16/2026

Read third time and passed Senate Block Vote

Yes: 39 • No: 0

Senate vote 2/16/2026

Constitutional reading dispensed Block Vote (on 3rd reading)

Yes: 39 • No: 0

Senate vote 2/16/2026

Commerce and Labor Substitute agreed to

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 Commerce and Labor with substitute

Yes: 15 • No: 0

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0708)

    4/13/2026Governor
  2. Approved by Governor-Chapter 708 (effective 7/1/2026)

    4/13/2026Governor
  3. Fiscal Impact Statement from State Corporation Commission (SB818)

    3/12/2026Senate
  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

    3/10/2026Senate
  6. Bill text as passed Senate and House (SB818ER)

    3/9/2026Senate
  7. Enrolled

    3/9/2026Senate
  8. Signed by President

    3/9/2026Senate
  9. Signed by Speaker

    3/9/2026House
  10. Passed House (97-Y 0-N 0-A)

    3/3/2026House
  11. Read third time

    3/3/2026House
  12. Read second time

    3/2/2026House
  13. Reported from Labor and Commerce (18-Y 3-N)

    2/26/2026House
  14. Referred to Committee on Labor and Commerce

    2/24/2026House
  15. Read first time

    2/24/2026House
  16. Placed on Calendar

    2/24/2026House
  17. Fiscal Impact Statement from State Corporation Commission (SB818)

    2/17/2026Senate
  18. Read third time and passed Senate Block Vote (39-Y 0-N 0-A)

    2/16/2026Senate
  19. Constitutional reading dispensed Block Vote (on 3rd reading) (39-Y 0-N 0-A)

    2/16/2026Senate
  20. Commerce and Labor Substitute agreed to

    2/16/2026Senate
  21. Blank Action

    2/16/2026Senate
  22. Rules suspended

    2/16/2026Senate
  23. Engrossed by Senate - committee substitute Block Vote (Voice Vote)

    2/16/2026Senate
  24. Read second time

    2/16/2026Senate
  25. Constitutional reading dispensed Block Vote (on 1st reading) (35-Y 0-N 0-A)

    2/13/2026Senate

Bill Text

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