Electric utilities; rates for generation and distribution services, notice of energy rationing.

Plain English Breakdown

The candidate explanation included claims that were not supported by the official source material, such as limiting the retirement of large power plants without specific conditions. These unsupported claims have been removed.

Electric Utility Rates and Energy Rationing

This bill sets rules for electric utility rate increases and energy rationing during shortages.

What This Bill Does

• It stops the State Corporation Commission from approving a rate increase by Dominion Energy or Appalachian Power unless they show an increase in electricity generation capacity within the previous rate period.
• If there's an emergency that causes utilities to limit energy use, like turning off some lights or cutting power to certain areas, they must tell their customers within 10 days after such rationing occurs.
• It stops large power plants from being shut down if the state doesn't have enough electricity to meet its needs.
• If Virginia rejoins a program called the Regional Greenhouse Gas Initiative and utilities spend more than $10 million on it, those costs can't be passed onto customers.

Who It Names or Affects

• Electric utility companies like Dominion Energy and Appalachian Power
• Customers of electric utility companies

Terms To Know

Regional Greenhouse Gas Initiative (RGGI)

A program where states work together to reduce greenhouse gas emissions from power plants.

Electric generation capacity

The total amount of electricity a power plant can produce at any given time.

Limits and Unknowns

• It's not clear how the bill will affect smaller electric utilities or those outside Virginia.
• The bill does not specify what happens if a utility fails to provide timely notice about energy rationing.

Official Summary Text

Electric utilities; rates for generation and distribution services; notice of energy rationing.
Prohibits the State Corporation Commission from approving a rate increase proposed by Dominion Energy or Appalachian Power Company unless the utility demonstrates a net increase in total electric generating capacity within the previous rate period. The bill requires any electric utility that, due to an emergency or other energy shortage, rations energy to avoid power outages, including by conducting fuel rationing, load shedding, or disconnections or imposing surcharges, to provide written notice of such rationing to such utility's customers within 10 days after such rationing occurs.
The bill also prohibits the retirement or full decommissioning of an electric generation facility with a capacity of more than 20 megawatts unless the Commission determines that sufficient electric generation capacity located in the Commonwealth exists to meet at least 90 percent of all current and forecasted electric demand in the Commonwealth. The bill also provides that if the Commonwealth rejoins the Regional Greenhouse Gas Initiative and resumes participation therein, no electric utility that incurs an expense of more than $10 million as a result of such participation shall recover any portion of such expense from its customers.

Current Bill Text

SB 512

COMMERCE AND LABOR

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