State Corporation Commission; Phase I Utility biennial rate review, reports.

Plain English Breakdown

The bill does not provide details on penalties for non-compliance or how additional Commonwealth resources will be managed.

State Corporation Commission; Phase I Utility Rate Review

This bill directs the State Corporation Commission to review and consider specific requirements for Appalachian Power's rates, terms, and conditions in their biennial rate review process.

What This Bill Does

• Requires the State Corporation Commission (SCC) to review Appalachian Power’s decision on how it meets its capacity obligations with a regional transmission entity through a fixed resource requirement alternative.
• Asks Appalachian Power to file a report explaining why they chose this method and comparing costs with other options.
• Directs the SCC to look at how Appalachian Power is improving system efficiency, resilience, and reliability in response to severe weather events.
• Requires the SCC to submit a detailed report by September 1, 2027, summarizing their review and offering recommendations.

Who It Names or Affects

• The State Corporation Commission
• Appalachian Power Company

Terms To Know

Phase I Utility

A utility company that is part of a specific phase in the regulatory process.

Regional Transmission Entity (RTE)

An organization responsible for managing and maintaining transmission systems within a defined region.

Limits and Unknowns

• The bill does not specify what happens if Appalachian Power fails to comply with the requirements.
• It is unclear how additional resources from the Commonwealth will be provided or managed.
• The exact impact on customers' rates and terms remains uncertain until the SCC completes its review.

Official Summary Text

State Corporation Commission; Phase I Utility; 2026 biennial rate review; report.
Directs the State Corporation Commission to consider certain requirements in the 2026 review of the rates, terms, and conditions for the provision of generation and distribution services by Appalachian Power. The bill directs the Commission to review the decision by Appalachian Power to satisfy its capacity obligations with the regional transmission entity through a fixed resource requirement alternative. The bill also directs the Commission to conduct a review of Appalachian Power's efforts to improve system efficiency, resilience, and reliability to address rising costs of responding to severe weather events. The bill requires the Commission to submit a report summarizing its review and providing recommendations by September 1, 2027, or to include such report as part of an existing annual report.

Current Bill Text

HOUSE BILL NO. 1075

AMENDMENT IN THE NATURE OF A SUBSTITUTE

(Proposed by the House Committee on Labor and Commerce

on February 12, 2026)

(Patron Prior to Substitute--Delegate Rasoul)

A BILL to direct the State Corporation Commission to consider certain requirements in the biennial rate review for a Phase I Utility; report.

Be it enacted by the General Assembly of Virginia:

1.
§ 1.
A.

That
in conducting its 2026 review of the rates, terms, and conditions for the provision of generation and distribution services by a Phase I Utility (the utility), as that term is defined in subdivision A 1 of §
56-585.1
of the Code of Virginia, pursuant to §
56-585.8
of the Code of Virginia, the State Corporation Commission (the Commission) shall consider the requirements described in this act.

B
.
T
he Commission shall review the decision of the utility or its parent company to satisfy its capacity obligations with the regional transmission entity through a fixed resource requirement alternative. The utility shall file a report explaining the basis for such decision and comparing the historical costs of the fixed resour
ce requirement alternative with comparable capacity and energy market prices of the regional transmission entity.

C.
The Commission may direct the utility to file any supplemental information that the Commission determines is necessary to comply with the provisions of this act as part of its rate review proceeding.

D
.
To ensure the lowest reasonable costs for customers and identify opportunities for cost savings, the Commission shall conduct a review of the utility's efforts to improve system efficiency, resilience, and reliability to address rising costs of severe weather events. Such review shall (i) evaluate the increased risk of severe weather events; (ii) identify best practices employed by electric utilities operating in geographically similar regions; (iii) identify options for the expansion of energy efficiency programs administered by the utility to enhance system resilience; and (iv) determine whether additional resources from the Commonwealth are necessary to offset reductions in federal funding, financing, or tax incentives for electric grid resilience investments. The Commission shall provide opportunity for public comment as part of such review. By September 1, 2027, the Commission shall provide a report to the Governor and the Commission on Electric Utility Regulation summarizing its review and providing any recommendations for actions by the utility, the Commission, and the General Assembly to reduce the costs of severe weather events.

E. The Commission may provide the report required by subsection D as part of an annual report prepared by the Commission pursuant to §
56-596
of the Code of Virginia.