HB903 • 2026

Electric utilities; performance-based regulatory framework.

An Act to direct the State Corporation Commission to evaluate electric utility performance in the Commonwealth; report.

Energy

Enacted

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

Sponsor: Sullivan
Last action: 2026-04-13
Official status: Acts of Assembly Chapter
Effective date: Not listed

Plain English Breakdown

The bill summary does not provide details on how the Commission will implement its recommendations or what specific changes might come from this report, leaving these points uncertain.

Electric Utilities Performance Evaluation

This act directs the State Corporation Commission to assess whether a performance-based regulatory framework for evaluating and potentially improving electric utility performance is in the public interest.

What This Bill Does

Requires the State Corporation Commission to study if elements of a performance-based regulatory framework can help improve how electric utilities work and control costs.
Asks the commission to evaluate existing rules, costs, and benefits of changing them.
Tells the commission to consider ways to share risks with customers for managing fuel costs.
Instructs the commission to find out if there are better ways to encourage energy efficiency and use more renewable energy.

Who It Names or Affects

Electric utilities in Virginia
The State Corporation Commission

Terms To Know

performance-based regulatory framework: A system that rewards electric companies for meeting specific goals instead of just following rules.

Limits and Unknowns

The bill does not specify how the Commission will implement its recommendations.
It is unclear what specific changes might come from this report.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HB903AS1

2026-03-09 • Committee

Finance and Appropriations Amendment

Plain English: The amendment changes the deadline from March to July for a report related to electric utility performance.

Changes the reporting deadline from March to July.

The exact nature and content of the report are not specified in this amendment text.

HB903EDOC

2026-03-10 • Senate

Senate Amendment

Plain English: The amendment changes the deadline from March to July for a report related to electric utility performance.

Changes the reporting deadline from March to July.

The exact nature and content of the report are not specified in the amendment text, so details about what is being reported or why the change was made are unknown.

Bill History

2026-04-13 Governor
Approved by Governor-Chapter 701 (effective 7/1/2026)
2026-04-13 Governor
Acts of Assembly Chapter text (CHAP0701)
2026-04-06 House
Fiscal Impact Statement from State Corporation Commission (HB903)
2026-03-31 House
Enrolled Bill communicated to Governor on March 31, 2026
2026-03-31 Governor
Governor's Action Deadline 11:59 p.m., April 13, 2026
2026-03-31 House
Enrolled Bill communicated to Governor on March 31, 2026
2026-03-31 Governor
Governor's Action Deadline 11:59 p.m., April 13, 2026
2026-03-31 House
Signed by Speaker
2026-03-31 House
Enrolled Bill communicated to Governor on March 31, 2026
2026-03-31 Governor
Governor's Action Deadline 11:59 p.m., April 13, 2026
2026-03-30 Senate
Signed by President
2026-03-30 House
Enrolled
2026-03-30 House
Bill text as passed House and Senate (HB903ER)
2026-03-12 House
Fiscal Impact Statement from State Corporation Commission (HB903)
2026-03-11 House
Senate substitute with amendment agreed to by House (84-Y 13-N 0-A)
2026-03-10 Senate
Read third time
2026-03-10 Senate
Read third time
2026-03-10 Senate
Engrossed by Senate - committee substitute as amended
2026-03-10 Senate
Engrossed by Senate - committee substitute as amended
2026-03-10 Rules
Rules Substitute agreed to
2026-03-10 Finance and Appropriations
Finance and Appropriations Amendment agreed to
2026-03-10 Senate
Passed Senate with substitute with amendment (23-Y 17-N 0-A)
2026-03-09 Senate
Rules suspended
2026-03-09 Senate
Passed by for the day
2026-03-09 Senate
Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)
2026-03-09 Senate
Passed by for the day Block Vote (Voice Vote)
2026-03-06 Finance and Appropriations
Reported from Finance and Appropriations with amendment (10-Y 5-N)
2026-02-27 Rules
Reported from Rules with substitute and rereferred to Finance and Appropriations (12-Y 3-N)
2026-02-27 Rules
Committee substitute printed 26108813D-S1
2026-02-18 Senate
Constitutional reading dispensed (on 1st reading)
2026-02-18 Rules
Referred to Committee on Rules
2026-02-17 House
Read third time and passed House Block Vote (97-Y 0-N 0-A)
2026-02-16 House
Read second time and engrossed
2026-02-13 House
Read first time
2026-02-11 Appropriations
Reported from Appropriations (22-Y 0-N)
2026-02-11 Commerce Agriculture & Natural Resources
Subcommittee recommends reporting (7-Y 0-N)
2026-02-06 Commerce Agriculture & Natural Resources
Assigned HAPP sub: Commerce Agriculture & Natural Resources
2026-02-06 Rules
Reported from Rules and referred to Appropriations (16-Y 0-N)
2026-02-02 Studies Subcommittee
Subcommittee recommends reporting and referring to Appropriations (5-Y 0-N)
2026-02-01 House
Fiscal Impact Statement from State Corporation Commission (HB903)
2026-01-30 Studies Subcommittee
Assigned HRUL sub: Studies Subcommittee
2026-01-13 House
Prefiled and ordered printed; Offered 01-14-2026 26104384D
2026-01-13 Rules
Referred to Committee on Rules

Official Summary Text

Electric utilities; performance-based regulation; work group; report.
Directs the State Corporation Commission to independently consider whether elements of an effective performance-based regulatory framework to evaluate and potentially improve electric utility performance and cost control incentives in the Commonwealth are in the public interest and to develop related legislative recommendations. The bill requires the Commission to include its findings and recommendations in a report required by existing law by July 1, 2027. As introduced, this bill was a recommendation of the Commission on Electric Utility Regulation. This bill is identical to SB 251.

Current Bill Text

Read the full stored bill text

An Act to direct the State Corporation Commission to evaluate electric utility performance in the Commonwealth; report.
Be it enacted by the General Assembly of Virginia:
1.
§ 1. That the State Corporation Commission (the Commission) shall independently consider whether elements of an effective performance-based regulatory framework to evaluate and potentially improve electric utility performance and cost control incentives in the Commonwealth are in the public interest and develop related legislative recommendations. In conducting its work, the Commission shall consider (i) the existing regulatory framework and performance of electric utilities in the Commonwealth and (ii) the recommendations of the report on Opportunities for Performance-Based and Alternative Regulatory Tools in Virginia and shall:
1. Evaluate the feasibility, effectiveness, and customer benefit of (i) consolidating existing rate adjustment clauses, including those authorized under §
56-585.1
of the Code of Virginia, while retaining sufficient transparency and (ii) transitioning costs currently recovered through rate adjustment clauses to recovery through base rates, considering such factors as the utility's ability to accurately forecast and control such costs and transfer of investment risk to ratepayers;
2. Evaluate feasibility, effectiveness, and benefits of developing shared risk policies for fuel cost management by investor-owned electric utilities and, if appropriate, develop related legislative recommendations;
3. Evaluate feasibility, effectiveness, and necessity to improve incentives, including shared risk policies for investor-owned electric utilities to comply with the energy efficiency targets and renewable energy portfolio standards established under §
56-596.2
of the Code of Virginia and subsection C of §
56-585.5
of the Code of Virginia;
4. Evaluate, identify, and recommend, if deemed necessary and appropriate, a set of performance-incentive mechanisms with incentives for reasonably challenging but achievable priority performance-based outcomes such as those identified in the Commission's Case No. PUR-2023-00210;
5. Evaluate the feasibility, effectiveness, and necessity of an all-source competitive procurement framework and other potential improvements to solicitations conducted by investor-owned electric utilities to make additional progress toward desired outcomes, including peak demand reduction and cost efficiency; and
6. Identify other components of a potential performance-based regulation framework based on principles proposed by the Commission and develop related legislative recommendations as necessary and appropriate.
§ 2. The Commission shall, by
July
1, 2027, (i) submit its findings and recommendations in the report required pursuant to subsection B of §
56-596
of the Code of Virginia to the Commission on Electrical Utility Regulation and the Chairs of the House Committee on Labor and Commerce and the Senate Committee on Commerce and Labor and (ii) make a copy of such report publicly available on the Commission's website upon such submission.
§ 3. The Commission shall allow for public comments and conduct participatory technical conferences or stakeholder processes to inform its recommendations. Each electric utility shall provide any information requested by the Commission in conducting the analyses required by § 1 of this act. The Commission may engage experts to assist in its evaluations. The Commission shall ensure participation by consumer advocates, national and state experts on utility regulation, electric utilities, other pertinent stakeholders, and the Department of Law's Division of Consumer Counsel.