Virginia Senate Bill SB1419

Virginia 2023 Regular Session

• Introduced: 1/11/23
• Refer: 1/11/23

Caption

Electric utilities; retail competition, renewable energy.

Impact

The bill is expected to significantly impact state laws related to electric utilities and consumer rights in Virginia. By promoting retail competition, SB1419 is designed to foster a more dynamic energy market, where customers have options beyond their incumbent utility providers. It aims to enhance the accessibility of renewable energy sources by allowing customers to purchase 100% renewable energy from licensed suppliers, which could lead to an increase in the use of such energy in the Commonwealth. However, the bill also establishes market-based costs that customers would need to pay, which may raise concerns regarding energy affordability for some consumers.

Summary

SB1419 proposes to amend the regulation of electric utilities in Virginia by introducing provisions for retail competition in the purchase and sale of electric energy. The bill primarily addresses the management of transmission assets by requiring incumbent electric utilities to join or establish a regional transmission entity. This mechanism aims to enhance competition and allow retail customers greater flexibility in choosing their electric energy suppliers. The bill stipulates specific conditions under which retail customers can source their energy from licensed suppliers, particularly if their demand exceeds certain thresholds.

Contention

Notably, the bill has generated a discussion regarding its implications for existing utility customers and non-residential customers who may want to aggregate their demand to meet purchasing qualifications. Some legislators and stakeholders worry about potential adverse effects on the market and on customers who do not transition to alternative suppliers easily. Critics argue that while the bill promotes competition, it may inadequately address the risks of market fluctuations that could impact service reliability and costs. Additionally, the five-year notice requirement for returning to an incumbent utility after choosing a supplier can be a point of contention, raising concerns about customer freedom and the true accessibility of competitive markets.