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HB906 • 2026

Energy load flexibility protocols; SCC et al., to evaluate high electric demand customers, report.

<p class=ldtitle>A BILL to direct the State Corporation Commission to convene a work group to evaluate and assess electric load flexibility protocols for high electric demand customers; report.</p>

Energy
Enacted

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

Sponsor
Sullivan
Last action
2026-02-06
Official status
Continued
Effective date
Not listed

Plain English Breakdown

The official source material does not explicitly mention that the work group is required to examine practices from other states, although it may be implied by evaluating regulatory frameworks and examples of implementation in other jurisdictions.

Energy Load Flexibility Protocols for High Demand Customers

This bill directs the State Corporation Commission to form a work group that will study ways to make electricity use more flexible and efficient for customers who use a lot of power.

What This Bill Does

  • Creates a work group to look at how high electric demand customers can better manage their energy use.
  • Includes members from different government agencies, utilities, businesses, and advocacy groups in the work group.
  • Requires the work group to study current rules and suggest ways to improve them for better energy management by high-demand users.

Who It Names or Affects

  • High electric demand customers, such as large businesses or industrial facilities that use more than 50 megawatts of electricity.
  • Electric utilities and regional transmission entities.
  • The State Corporation Commission and the Commission on Electric Utility Regulation.

Terms To Know

High electric demand customer
A business or industrial facility that uses more than 50 megawatts of electricity.
Electric load flexibility protocols
Rules and programs to help high-demand customers manage their energy use in a way that benefits the overall power grid.

Limits and Unknowns

  • The bill does not specify how much funding will be provided for this work group.
  • It is unclear what specific changes or recommendations the work group will make until they submit their report by November 1, 2026.

Bill History

  1. 2026-02-06 Rules

    Continued to 2027 in Rules (Voice Vote)

  2. 2026-02-02 Studies Subcommittee

    Subcommittee recommends continuing to 2027 (Voice Vote)

  3. 2026-02-01 House

    Fiscal Impact Statement from State Corporation Commission (HB906)

  4. 2026-01-30 Studies Subcommittee

    Assigned HRUL sub: Studies Subcommittee

  5. 2026-01-13 House

    Prefiled and ordered printed; Offered 01-14-2026 26102101D

  6. 2026-01-13 Rules

    Referred to Committee on Rules

Official Summary Text

State Corporation Commission; work group; energy load flexibility protocols; high electric demand customers; report.
Directs the State Corporation Commission to convene a work group to evaluate and assess energy load flexibility protocols for high electric demand customers, including any commercial or industrial customer located in the Commonwealth with an electricity demand of greater than 50 megawatts. In conducting its assessment, the work group shall consider factors as outlined in the bill, provide an analysis of the current regulatory framework in the Commonwealth regarding high electric demand customers, and develop recommendations for improving load flexibility protocols and demand response management programs by electric utilities or the regional transmission entity. The work group shall include members as outlined in the bill and shall submit a report of its findings and recommendations by November 1, 2026. This bill is a recommendation of the Commission on Electric Utility Regulation.

Current Bill Text

Read the full stored bill text
A BILL to direct the State Corporation Commission to convene a work group to evaluate and assess electric load flexibility protocols for high electric demand customers; report.

Be it enacted by the General Assembly of Virginia:

1.
§ 1.
The State Corporation Commission
(the Commission)
shall convene a work group to evaluate and assess the opportunities, benefits, barriers, and regulatory frameworks for implementing
electric
load flexibility protoc
ols for
high

electric

demand
customers
.
The work group shall include State Corporation Commission staff, Commission on Electric
Utility Regulation staff, and representatives from the Office of the Attorney General, the Department of Energy, the Department of Environmental Quality, electric utili
ties
, including electric cooperatives
,
high

electric

demand
customers, clean or advanced energy business associations, environmental advocacy groups, environmental justice organizations, and consumer advocates, as well as any other stakeholders
as determined by the Commission.
For the purposes of this act, "high electric demand customer" means
any customer within an electric utility's existing or proposed classification of service for high electric demand customers and a
ny other retail or industrial electric service customer with an average electric demand of greater than 50 megawatts
.

The work group shall complete an evaluation of regulatory frameworks and develop recommendations
that can be implemented under the Commission's existing regulatory authority, legislative and policy recommendations, and improvements
for
current or proposed electric load flexibility protocols
, such as
electric load curtailment policies
,
and demand response
management
programs by electric utilities to improve efficiency, functionality, and participation by high electric demand customers.

R
ecommendations of the work group related to
electric load curtailment policies
shall be implemented in
any
applicable
evaluation of an electric load curtailment policy
conducted by the Commission
and in any related regulations promulgated by the Commission until 2030
.

In evaluating regulatory frameworks, the work group shall consider grid reliability, mitigating the risk of stranded assets, ensuring fairness and reasonableness for current and future
retail
electric service customers, and support
ing
the Commonwealth's c
lean and renewable energy goals. The work group shall provide an analysis of the current regulatory framework
s
in the Commonwealth regarding
high

electric

demand
customers, including any incentives and penalties
for
such
customers
associated with
participat
ion
in e
lectric
load flexibility protocols
, such as
electric load curtailment

policies
,
and utilize existing demand response
management
programs by electric utilit
ies
, including electric cooperativ
es,
or the regional transmission entity.
The work group shall
also
evaluate regulatory frameworks and examples of imp
lementation in other states and jurisdictions of e
lectric
load flexibility protocols
designed to accommodate electric service to
high electric demand
customers, which may include procurement or development of new clean energy generating resources and energy storage resources.

In
developing recommendations
, the work group shall
assess
(
i
) participation requirements for existing demand response
management
programs, including parameters such as
minimum and maximums on percentage of time or the number of hours per year of
electric
load reduction, the duration
and frequency
of such load reduction periods
, notification procedures, and any applicable penalties for noncompliance; (
ii
) the feasibility of physical and digital technologies
, including energy storage resources and backup generation resources,
to assist with load flexibility and
demand response management, as well as any regulatory measures
recommended
to incentivize the use of such technologies
,
ensure reliability and security of the electric grid
,
and
mitigate
any impacts of such technologies
on public health
; (
iii
)
the necessary scope for demand response management programs to
appropriately respond to stress and emergency events of the electric grid, including the efficacy of mandatory versus voluntary demand response management programs
in achieving demand response management targets; (
iv)
the feasibility of participation for different types of
high

electric

demand
customers, including data centers, as defined in
subdivision

A 43 of §
58.1-3506
of the Code of Virginia; (
v
)
opportunities for beneficial use of waste heat from data centers; (vi)
environmental considerations such as impacts on air quality, water quality and usage, and noise
and the application of such considerations in
incentivizing
load flexibility and demand response management; (
v
i
i
) any app
licable incentives and compensation methods for
high

electric demand customers
that participate in load flexibility protocols or demand response management programs
based on such customers' level of participation in such protocols or programs and
e
valuations of impacts on the electric grid based on such customers
'
geographic location
s; (
v
ii
i
) options
for high electric demand
customers to fund or construct infrastructure upgrades for transmission and distribution assets
that serve
such
customers
; and (
ix
) the feasibility and structure of financial investments from data centers directed toward the development of
load flexibility protocols, including virtual power plants, and demand response management programs designed to benefit communities that neighbor data centers and low-
income residential households.

The work group shall
submit a
report
of
its
evaluation
and recommendations to the
State Corporation Commission,
Commission on Electric Utility Regulation, House Committee on Labor and Commerce, and Senate Committee on Commerce and Labor by November 1, 2026.