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SB251 • 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
Surovell
Last action
2026-04-13
Official status
Acts of Assembly Chapter
Effective date
Not listed

Plain English Breakdown

The official source material does not provide specific details on the exact mechanisms for decision-making by the Commission, nor does it specify potential changes that may result from the report.

Electric Utility Performance Evaluation

This act directs the State Corporation Commission to assess whether performance-based regulations could improve electric utility services in Virginia and submit a report by July 1, 2027.

What This Bill Does

  • The State Corporation Commission must consider if elements of a performance-based regulatory framework would be beneficial for evaluating and improving electric utility performance and cost control incentives in the Commonwealth.
  • They need to evaluate the feasibility and effectiveness of consolidating existing rate adjustment clauses while retaining transparency, transitioning costs from rate adjustment clauses to base rates, and developing shared risk policies for fuel cost management by investor-owned utilities.
  • The Commission should assess whether improvements are needed to incentivize compliance with energy efficiency targets and renewable energy portfolio standards.
  • They must evaluate the feasibility of performance-incentive mechanisms that encourage challenging but achievable outcomes in priority areas such as peak demand reduction and cost efficiency.

Who It Names or Affects

  • Electric utility companies in Virginia
  • The State Corporation Commission

Terms To Know

performance-based regulation
A system where rules for electric companies are based on how well they perform their job, not just what they charge customers.
rate adjustment clauses
Rules that allow utilities to change rates when costs fluctuate.

Limits and Unknowns

  • The bill does not specify exactly how the Commission will make its decisions.
  • It is unclear what specific changes might result from this report.

Amendments

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

SB251AHC1

2026-03-02 • Committee

Studies Subcommittee Subcommittee Amendment

Plain English: The amendment changes the deadline from March to July for a specific action in the bill.

  • Changes the date from 'March' to 'July' for when an action by electric utilities or the State Corporation Commission is due.
  • The exact nature and significance of changing this deadline are not specified in the amendment text.
SB251AH1

2026-03-06 • Committee

Rules Amendment

Plain English: The amendment changes the deadline from March to July for a specific action in the bill.

  • Changes the date from March to July for an unspecified action or report required by the original bill.
  • The exact nature of the action or report being moved from March to July is not specified in the amendment text.
SB251EDOC

2026-03-11 • House

House Amendment

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

  • Changes the date from 'March' to 'July' in the bill.
  • The exact context and significance of changing this date are not provided, so further details about why March was originally chosen or what specific action is delayed until July are unknown.

Bill History

  1. 2026-04-13 Governor

    Approved by Governor-Chapter 702 (effective 7/1/2026)

  2. 2026-04-13 Governor

    Acts of Assembly Chapter text (CHAP0702)

  3. 2026-04-06 Senate

    Fiscal Impact Statement from State Corporation Commission (SB251)

  4. 2026-03-31 Senate

    Enrolled Bill communicated to Governor on March 31, 2026

  5. 2026-03-31 Governor

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

  6. 2026-03-31 House

    Signed by Speaker

  7. 2026-03-31 Senate

    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. 2026-03-30 Senate

    Signed by President

  10. 2026-03-30 Senate

    Enrolled

  11. 2026-03-30 Senate

    Bill text as passed Senate and House (SB251ER)

  12. 2026-03-12 Senate

    House amendment agreed to by Senate (23-Y 17-N 0-A)

  13. 2026-03-11 House

    Moved from Uncontested Calendar to Regular Calendar

  14. 2026-03-11 House

    Read third time

  15. 2026-03-11 House

    committee amendment agreed to

  16. 2026-03-11 House

    Engrossed by House as amended

  17. 2026-03-11 House

    Passed House with amendment (62-Y 33-N 0-A)

  18. 2026-03-10 House

    Read second time

  19. 2026-03-06 Rules

    Reported from Rules with amendment(s) (18-Y 0-N)

  20. 2026-03-02 Studies Subcommittee

    Subcommittee recommends reporting with amendment(s) (5-Y 0-N)

  21. 2026-03-01 Studies Subcommittee

    Assigned HRUL sub: Studies Subcommittee

  22. 2026-02-18 House

    Placed on Calendar

  23. 2026-02-18 House

    Read first time

  24. 2026-02-18 Rules

    Referred to Committee on Rules

  25. 2026-02-13 Senate

    Read third time and passed Senate (23-Y 16-N 0-A)

  26. 2026-02-12 Senate

    Read second time

  27. 2026-02-12 Senate

    Engrossed by Senate - committee substitute (Voice Vote)

  28. 2026-02-12 Commerce and Labor

    Fiscal Impact Statement from State Corporation Commission (SB251)

  29. 2026-02-12 Commerce and Labor

    Committee substitute agreed to (Voice Vote)

  30. 2026-02-12 Senate

    Engrossed by Senate (Voice Vote)

  31. 2026-02-11 Senate

    Rules suspended

  32. 2026-02-11 Senate

    Passed by for the day

  33. 2026-02-11 Senate

    Constitutional reading dispensed Block Vote (on 1st reading) (40-Y 0-N 0-A)

  34. 2026-02-11 Senate

    Passed by for the day Block Vote (Voice Vote)

  35. 2026-02-10 Commerce and Labor

    Committee substitute printed 26107513D-S1

  36. 2026-02-09 Commerce and Labor

    Reported from Commerce and Labor with substitute (9-Y 4-N)

  37. 2026-02-09 Senate

    Senate committee offered

  38. 2026-02-03 Senate

    Fiscal Impact Statement from State Corporation Commission (SB251)

  39. 2026-01-12 Senate

    Prefiled and ordered printed; Offered 01-14-2026 26104615D

  40. 2026-01-12 Commerce and Labor

    Referred to Committee on Commerce and Labor

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 HB 903.

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.