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SB505 • 2026

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

An Act to direct the 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
Deeds
Last action
2026-03-31
Official status
Acts of Assembly Chapter
Effective date
Not listed

Plain English Breakdown

The bill does not specify an exact start date for the review process.

Electric Utilities Risk Management Review

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

What This Bill Does

  • Requires 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 starting July 1, 2026.
  • Includes a review of national best practices for managing these costs, such as sharing costs and using hedging strategies.
  • Examines how renewable energy owned or contracted by the utilities affects cost management.
  • Considers whether the Commission has sufficient authority to regulate fuel and power procurement methods.

Who It Names or Affects

  • Dominion Energy
  • Appalachian Power

Terms To Know

Phase I and Phase II Utility
Electric utilities that are reviewed by the State Corporation Commission in different phases based on their size or complexity.
State Corporation Commission (SCC)
The agency responsible for regulating public utilities, including electric companies, to ensure fair rates and services.

Limits and Unknowns

  • Does not specify the exact date when the review must start.
  • Only applies to Dominion Energy and Appalachian Power as named in the bill.

Bill History

  1. 2026-03-31 Governor

    Approved by Governor-Chapter 30 (effective 7/1/2026)

  2. 2026-03-31 Governor

    Acts of Assembly Chapter text (CHAP0030)

  3. 2026-03-12 Senate

    Fiscal Impact Statement from State Corporation Commission (SB505)

  4. 2026-03-10 Senate

    Enrolled Bill communicated to Governor on March 10, 2026

  5. 2026-03-10 Governor

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

  6. 2026-03-04 House

    Signed by Speaker

  7. 2026-03-04 Senate

    Signed by President

  8. 2026-03-04 Senate

    Enrolled

  9. 2026-03-04 Senate

    Bill text as passed Senate and House (SB505ER)

  10. 2026-02-27 House

    Read third time

  11. 2026-02-27 House

    Passed House (96-Y 0-N 0-A)

  12. 2026-02-26 House

    Read second time

  13. 2026-02-24 Labor and Commerce

    Reported from Labor and Commerce (21-Y 1-N)

  14. 2026-02-18 House

    Placed on Calendar

  15. 2026-02-18 House

    Read first time

  16. 2026-02-18 Labor and Commerce

    Referred to Committee on Labor and Commerce

  17. 2026-02-16 Commerce and Labor

    Fiscal Impact Statement from State Corporation Commission (SB505)

  18. 2026-02-13 Senate

    Read third time and passed Senate Block Vote (39-Y 0-N 0-A)

  19. 2026-02-12 Senate

    Read second time

  20. 2026-02-12 Senate

    Engrossed by Senate - committee substitute Block Vote (Voice Vote)

  21. 2026-02-12 Commerce and Labor

    Commerce and Labor Substitute agreed to

  22. 2026-02-12 Senate

    Engrossed by Senate Block Vote (Voice Vote)

  23. 2026-02-11 Senate

    Rules suspended

  24. 2026-02-11 Senate

    Passed by for the day

  25. 2026-02-11 Senate

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

  26. 2026-02-11 Senate

    Passed by for the day Block Vote (Voice Vote)

  27. 2026-02-10 Commerce and Labor

    Committee substitute printed 26107572D-S1

  28. 2026-02-09 Commerce and Labor

    Reported from Commerce and Labor with substitute (14-Y 0-N)

  29. 2026-02-09 Senate

    Senate committee offered

  30. 2026-02-05 Senate

    Fiscal Impact Statement from State Corporation Commission (SB505)

  31. 2026-01-13 Senate

    Prefiled and ordered printed; Offered 01-14-2026 26104695D

  32. 2026-01-13 Commerce and Labor

    Referred to Committee on Commerce and Labor

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 HB 1256.

Current Bill Text

Read the full stored bill text
An Act to direct the 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.