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HB1256 • 2026

Electric utilities, certain; purchased power cost risk mitigation practices.

An Act to direct the State Corporation Commission to examine the efficacy and sufficiency of fuel and purchased power cost risk mitigation practices by certain electric utilities.

Energy
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Shin
Last action
2026-04-06
Official status
Acts of Assembly Chapter
Effective date
Not listed

Plain English Breakdown

The bill does not specify a particular effective date or provide details on what specific legislative recommendations might be included.

Electric Utility Cost Risk Review

This act requires the State Corporation Commission to review how Dominion Energy and Appalachian Power manage risks related to fuel and power costs in their annual reports.

What This Bill Does

  • Tells the State Corporation Commission to examine the effectiveness of risk management practices for fuel and purchased power costs by Dominion Energy and Appalachian Power in their annual filings.
  • Requires the Commission to consider national best practices for managing these risks, including hedging strategies and renewable generation offsets.
  • Asks the Commission to include any legislative recommendations needed to effectively regulate these cost risks while maintaining reliable electric service.

Who It Names or Affects

  • Dominion Energy and Appalachian Power
  • The State Corporation Commission

Terms To Know

Phase I and Phase II Utility
Electric utilities that are reviewed by the State Corporation Commission for their cost recovery practices.
State Corporation Commission (SCC)
The agency responsible for regulating public utilities in Virginia, including electric companies.

Limits and Unknowns

  • Does not specify what changes to laws or rules the SCC might recommend.
  • Only applies to Dominion Energy and Appalachian Power, not all electric utilities in Virginia.

Bill History

  1. 2026-04-06 Governor

    Approved by Governor-Chapter 280 (effective 7/1/2026)

  2. 2026-04-06 Governor

    Approved by Governor-Chapter 280 (effective 7/1/2026)

  3. 2026-04-06 Governor

    Acts of Assembly Chapter text (CHAP0280)

  4. 2026-04-06 House

    Fiscal Impact Statement from State Corporation Commission (HB1256)

  5. 2026-03-31 House

    Enrolled Bill communicated to Governor on March 31, 2026

  6. 2026-03-31 Governor

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

  7. 2026-03-31 House

    Enrolled Bill communicated to Governor on March 31, 2026

  8. 2026-03-31 Governor

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

  9. 2026-03-31 House

    Signed by Speaker

  10. 2026-03-31 House

    Enrolled Bill communicated to Governor on March 31, 2026

  11. 2026-03-31 Governor

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

  12. 2026-03-30 Senate

    Signed by President

  13. 2026-03-30 House

    Enrolled

  14. 2026-03-30 House

    Bill text as passed House and Senate (HB1256ER)

  15. 2026-03-11 Senate

    Read third time

  16. 2026-03-11 Senate

    Passed Senate

  17. 2026-03-11 Senate

    Passed Senate

  18. 2026-03-11 Senate

    Passed Senate Block Vote (39-Y 0-N 0-A)

  19. 2026-03-11 Senate

    Reconsideration of Senate passage agreed to by Senate Block Vote (40-Y 0-N 0-A)

  20. 2026-03-11 Senate

    Passed Senate Block Vote (40-Y 0-N 0-A)

  21. 2026-03-10 Senate

    Rules suspended

  22. 2026-03-10 Senate

    Passed by for the day

  23. 2026-03-10 Senate

    Constitutional reading dispensed Block Vote (on 2nd reading) (37-Y 0-N 0-A)

  24. 2026-03-10 Senate

    Passed by for the day Block Vote (Voice Vote)

  25. 2026-03-09 Commerce and Labor

    Reported from Commerce and Labor (15-Y 0-N)

  26. 2026-02-19 Labor and Commerce

    Fiscal Impact Statement from State Corporation Commission (HB1256)

  27. 2026-02-18 Senate

    Constitutional reading dispensed (on 1st reading)

  28. 2026-02-18 Commerce and Labor

    Referred to Committee on Commerce and Labor

  29. 2026-02-17 House

    Read third time and passed House Block Vote (97-Y 0-N 0-A)

  30. 2026-02-16 House

    Read second time

  31. 2026-02-16 House

    committee substitute agreed to

  32. 2026-02-16 House

    Engrossed by House - committee substitute

  33. 2026-02-15 House

    Read first time

  34. 2026-02-13 Labor and Commerce

    Committee substitute printed 26107686D-H1

  35. 2026-02-12 Labor and Commerce

    Reported from Labor and Commerce with substitute (20-Y 0-N)

  36. 2026-02-10 Subcommittee #3

    Subcommittee recommends reporting with substitute (8-Y 0-N)

  37. 2026-02-10 Subcommittee #3

    House subcommittee offered

  38. 2026-02-01 House

    Fiscal Impact Statement from State Corporation Commission (HB1256)

  39. 2026-01-27 Subcommittee #3

    Assigned HCL sub: Subcommittee #3

  40. 2026-01-14 House

    Prefiled and ordered printed; Offered 01-14-2026 26101578D

  41. 2026-01-14 Labor and Commerce

    Referred to Committee on Labor and Commerce

Official Summary Text

State Corporation Commission; electric utilities; fuel and purchased power cost risk mitigation practices.
Directs the State Corporation Commission, in certain cost recovery proceedings and other annual filings as determined by the Commission, to examine the efficacy and sufficiency of fuel and purchased power cost risk mitigation practices by Dominion Energy and Appalachian Power. Under the bill, the Commission is required to include legislative recommendations related to effectively regulating fuel and purchased power cost risk in an existing report. This bill is identical to SB 505.

Current Bill Text

Read the full stored bill text 
An Act to direct the State Corporation Commission to examine the efficacy and sufficiency of fuel and purchased power cost risk mitigation practices by certain electric utilities.
Be it enacted by the General Assembly of Virginia:
1.
§ 1. That in the next annual applications of a Phase I and Phase II Utility, as those terms are defined in subsection A 1 of §
56-585.1
of the Code of Virginia, filed pursuant to §
56-249.6
of the Code of Virginia on or after July 1, 2026, and in such annual filings thereafter as determined by the State Corporation Commission (the Commission), the Commission shall examine the efficacy and sufficiency of fuel and purchased power cost risk mitigation practices by the Phase I or Phase II Utility. As part of such examination, the Commission shall also consider national best practices for fuel cost management, including fuel cost-sharing mechanisms and hedging strategies, the consultant's report on Opportunities for Performance-Based and Alternative Regulatory Tools in Virginia in Case No. PUR 2024-00152, and other information it deems appropriate to promote such mitigation while maintaining reliable electric service. The Commission shall also examine and quantify the extent to which renewable generation owned or contracted by the Phase I or Phase II Utility offsets fuel and purchased power costs. The Commission shall consider whether it has sufficient authority to regulate the reasonableness and prudence of fuel and purchased power procurement methods and to establish new risk-mitigation strategies. The Commission shall include any legislative recommendations it finds necessary to effectively regulate fuel and purchased power cost risk, while maintaining electric service reliability, in the applicable annual report required pursuant to subsection B of §
56-596
of the Code of Virginia.