Electric utilities; SCC to ensure energy policy at lowest reasonable cost.
Impact
The implications of SB137 are significant, as it compels the SCC to exercise strict oversight over electric utilities and their energy proposals. This includes considering alternative solutions such as demand-side management, energy storage, and evaluating associated costs of transmission and distribution. By focusing on these areas, the bill aims to enhance the security and reliability of energy for consumers while minimizing their costs. Furthermore, if a utility abandons any construction of an electric generating facility, the Commission is empowered to prevent the recovery of associated costs from customers, protecting them from potential financial burdens.
Summary
SB137 is a legislative proposal aimed at regulating the energy policy of Virginia to ensure that electric utilities operate at the lowest reasonable cost. This bill introduces a new section to the Code of Virginia that mandates the Virginia State Corporation Commission (SCC) to prioritize cost-efficiency when implementing energy policies. It specifies that any plans or proposals from electric utilities must demonstrate they are in the public interest by ensuring energy implementation at the lowest reasonable cost. The bill establishes a rebuttable presumption against proposals that do not meet this cost-efficiency criterion.
Contention
Discussion around SB137 may involve differing opinions on the appropriate balance between utility profitability and consumer protection. Supporters argue that the bill is necessary to control costs and protect ratepayers from excessive spending on energy generation facilities. Opponents may contend that stringent regulations could disincentivize investment in new energy projects, potentially stalling innovation and advancements within the energy sector. The bill is seen as a critical measure for promoting accountability among electric utilities while ensuring a reliable and cost-effective energy supply for the population.