Virginia House Bill HB839

Virginia 2022 Regular Session

• Introduced: 1/12/22
• Refer: 1/12/22

Caption

Electric utilities; recovery of costs, rate adjustment clause proceedings, etc.

Impact

This legislation is significant as it aligns state utilities with the broader goals of renewable energy expansion and sustainability. By allowing utilities to recover costs through rate adjustments, it provides a financial structure that can support the development of new energy facilities. The bill also specifies requirements on utilities for meeting energy savings goals and managing customer impacts, thus incorporating proactive measures against potential spikes in rates associated with energy generation from non-renewable sources. This structure aims to promote transparency in utility pricing and operations, ensuring that customers are not unfairly burdened by costs related to energy transitions.

Summary

House Bill 839 focuses on the operations within the electric utility sector, particularly concerning the recovery of costs associated with renewable energy generation and related infrastructure through rate adjustment clauses. The bill encapsulates a framework for how utilities can account for costs incurred in developing renewable energy generating facilities, including those powered by solar and onshore or offshore wind. Specifically, it mandates that utilities recover costs through established mechanisms that ensure they can maintain fair rates of return while incentivizing investments in sustainable energy sources.

Contention

One notable point of contention surrounding HB 839 relates to the balance between ensuring utilities can recover necessary costs versus preventing excessive rate increases for consumers. Critics of the bill argue that while the intention is to support renewable energy, the mechanisms for cost recovery might lead to substantial increases in utility rates, ultimately impacting customers negatively. Proponents contend that the long-term benefits of investing in renewable energy will offset any short-term costs, promoting a cleaner environment and energy independence. Additionally, there are concerns regarding the equitable distribution of costs among different customer classes as utilities navigate these new recovery processes.