Virginia Senate Bill SB137

Virginia 2025 Regular Session

• Introduced: 1/5/24
• Refer: 1/5/24

Caption

Electric utilities; SCC to ensure energy policy at lowest reasonable cost.

Impact

The bill will significantly shape state laws concerning how electric utilities manage their operations and how costs are allocated among consumers. By prioritizing cost-effectiveness and the security of the electric grid, SB137 seeks to reduce the financial burden on consumers while ensuring reliable energy provision. It also places limitations on utilities regarding cost recovery for projects that have not yet been authorized, thereby protecting customers against potential financial risks associated with unregulated project developments.

Summary

SB137 aims to amend the Code of Virginia by adding a new section concerning the responsibilities of the State Corporation Commission regarding the energy policies of the Commonwealth. The primary goal of this legislation is to ensure that energy policies are implemented at the lowest reasonable cost to ratepayers. This includes a clear directive for the Commission to evaluate plans from electric utilities critically, establishing a rebuttable presumption against proposals that do not fulfill this mandate.

Contention

Key points of contention surrounding SB137 likely revolve around the balance of regulatory authority between the state and electric utilities. Proponents of the bill emphasize its focus on consumer protection and cost-effectiveness, arguing that it aligns with the changing landscape of energy production and management, particularly the shift towards renewable energy sources. Conversely, opponents may express concerns about the implications for utility operations and investments in the energy sector, fearing that stringent regulations could stifle innovation and lead to energy supply vulnerabilities.