Below is our firm’s summary of notable energy regulatory activity at the Virginia State Corporation Commission (“SCC” or “Commission”) during August 2026. Please contact attorneys Will Reisinger or Matt Gooch should you have any questions about these cases or Virginia’s energy market. ReisingerGooch PLC provides regulatory and transactional counsel to clean energy businesses, associations, and public interest organizations. The following is presented for informational purposes only and does not constitute legal advice.
Rate cases, oversight, and resource planning:
- Governor Spanberger intervenes in Dominion Energy-NextEra merger proceeding – Case No. PUR-2026-00112
On July 15, 2026, Dominion Energy (“Dominion”), NextEra, and their affiliated companies filed a joint merger petition at the SCC. NextEra, a large utility holding company based in Florida, proposes to acquire Dominion and its subsidiaries. The combined companies would be the world’s largest utility holding company by market capitalization. NextEra proposes to acquire Dominion through a transaction valued at approximately $77 billion. This acquisition would include all of Dominion’s assets and debt. Under the proposal, Dominion would become a subsidiary of NextEra, but remain a Virginia electric utility regulated by the SCC. Dominion shareholders would own about 25.5% of the combined company if the merger is approved.
The SCC is required to review the proposed transaction under the Utility Transfers Act (Chapter 5 of Title 56, Sections 56-88.1 – 56-90 of the Code of Virginia). In particular, Code Section 56-88.1 provides that any “acquisition or disposition of control of a public utility” is subject to SCC review and approval. Because NextEra proposes to acquire Dominion, SCC approval is required. The Transfers Act, at Section 56-90, requires the SCC to determine whether the proposed transaction will “impair or jeopardize” Dominion’s ability to provide adequate electric service in Virginia at just and reasonable rates. The SCC also has broad general authority under Title 56 of the Code and the Virginia Constitution to regulate and control all companies providing retail utility service in Virginia. The SCC may choose to do a broader public interest analysis of the proposed merger.
Several parties, including environmental and consumer advocates, trade associations, and large-load customers have intervened in the proceeding. Virginia Governor Spanberger and the Governor’s Chief Energy Officer Josephus Allmond formally intervened in the proceeding by filing a notice of participation on August 17. The Governor’s notice of participation states that the Dominion-NextEra petition, “if granted, would bring unparalleled change to Virginia’s economy, labor market, and electric utility regulation in general, and as proposed, risks saddling all businesses and consumers in the Commonwealth with unaffordable rates that are not in the public interest.”
The SCC published a procedural order on July 21. The SCC will hold an evidentiary hearing beginning on November 17.
- Microsoft appeals SCC’s July 31 order finding that large-load customers should pay for transmission facility costs – Case No. PUR-2026-00056
On May 1, 2026, Dominion Energy Virginia (“Dominion”) filed an application to increase its transmission rider revenue requirement. Under Va. Code § 56-585.1(A)(4), Dominion is allowed to recover the costs of transmission services provided by PJM, including administrative expenses and new facility construction costs, through a rate adjustment clause. Dominion’s transmission costs are recovered through a combination of base rates and the utility’s transmission rate adjustment clause, designated Rider T1. Dominion estimated that the Rider T1 increase will add $0.94 to the monthly bill for a residential customer using 1,000 kWh.
The SCC held an evidentiary hearing between July 14 and July 17. The Commission published a final order on July 31. The order approved Dominion’s requested revenue requirement for Rider T1. The order also directed Dominion to file a direct assignment proposal within 90 days. The SCC’s order directed Dominion to develop terms and conditions that would require large-load customers to pay for the “direct connect” facilities that are constructed to serve them. Direct connect facilities would include substations and facilities necessary to connect the customer to the bulk transmission system. The order also stated that the SCC may consider other cost allocation changes, such as mandatory direct assignment for other upstream transmission costs caused by large-load customers. The SCC stated that “[w]hile the current record supports a more rapid approach towards direct assignment of costs through a CIAC for ‘direct connect’ facilities, the Commission finds that the record supports a more deliberate approach to the question of direct assignment of higher-order transmission costs.”
Microsoft filed a notice of appeal of the SCC’s final order on August 28. Under Virginia law, the Virginia Supreme Court hears all appeals of SCC decisions. Microsoft’s filing does not include any legal argument. Virginia law and the Virginia Supreme Court’s rules require appellants to file assignments of error within 120 days of the Commission’s final order.
- Dominion Energy Virginia requests increase to distribution rider to support additional undergrounding – Case No. PUR-2026-00126
On August 12, 2026, Dominion Energy Virginia filed a petition to increase its distribution rate adjustment clause, designated “Rider DIST,” for the rate year beginning June 1, 2027. Rider DIST recovers costs associated with Dominion’s Grid Transformation Plan, Strategic Underground Program (“SUP”), and Rural Broadband Program. Dominion requests approval to recover approximately $463.5 million through the rider, including $196.0 million for grid transformation projects, $230.3 million for the SUP, and $37.1 million for rural broadband projects.
Among other things, Dominion proposes to underground approximately 295 miles of outage-prone distribution lines through the next phase of its SUP, at an estimated cost of $230.1 million. Dominion states that its Grid Transformation Plan is focused on “facilitating the integration of distributed energy resources” and “enhancing grid reliability and security.” If approved as proposed, the revised Rider DIST would increase the monthly bill of a typical residential customer using 1,000 kWh by approximately $3.46. The SCC has not yet established a procedural schedule for this case.
- SCC approves Appalachian Power request to close Glen Lyn coal ash facilities – Case No. PUR-2026-00007
On February 9, 2026, Appalachian Power Company (“APCo”) filed a petition for approval to close four coal combustion residual (“CCR”) units at the former Glen Lyn coal-fired power plant in Giles County, Virginia. The plant operated from 1914 until 2015. Virginia law requires APCo to remove the CCR from the four units for “beneficial reuse” or dispose of it in a permitted landfill.
In its petition, APCo stated that it is not currently seeking recovery of the closure costs. The company estimates, however, that if the costs are allocated between Virginia and West Virginia and recovered over an 11-year period from 2027 through 2037, Virginia’s share would result in an average annual revenue requirement of approximately $14.4 million. APCo estimates that this would increase the monthly bill of a Virginia residential customer using 1,000 kWh by approximately $1.06, or 0.6%. If West Virginia does not approve recovery of its share of the costs, APCo stated that it would seek to assign those costs to Virginia customers, which could increase the estimated residential bill impact to approximately $2.28 per month, or 1.4%.
The SCC issued a final order on August 5 finding that APCo’s closure plan and projected costs are reasonable and prudent. The Commission approved the plan subject to several conditions recommended by the SCC Staff.
- Respondents file expert testimony regarding Appalachian Power Company rate increase request; Attorney General recommends reduction to rate of return – Case No. PUR-2026-00044
On May 29, Appalachian Power Company (“APCo”) filed its 2026 biennial review application pursuant to Va. Code § 56-585.8. Under this Code section, a biennial review is a base rate case in which the SCC reviews the utility’s earnings during the previous two calendar years. The law allows the SCC to increase or decrease the utility’s base rates or modify any of the utility’s terms and conditions of service. The statute directs the SCC to review APCo’s reported earnings for the 2024 and 2025 calendar years and determine whether any adjustments are warranted.
APCo’s application requests an annual base rate increase of approximately $61.4 million. The utility stated that a rate increase is necessary due to several factors, including rising costs associated with maintaining and operating the electric system, major storm recovery expenses, inflation, material and labor costs, and “new state-mandated programs.” A portion of the proposed rate increase is attributable to the utility’s request for an increase to its authorized profit level, the rate of return on common equity (“ROE”). APCo requests an ROE of 10.5% to be applied to its base rates and rate adjustment clauses, up from the currently approved 9.75%. APCo’s application, if approved, would result in an average monthly bill increase of $9.10 for a residential customer using 1,000 kWh.
Several intervening parties filed direct testimony on August 26. The Attorney General, representing residential consumers, filed expert witness testimony in several volumes. One of the Attorney General’s witnesses recommends that APCo should receive a rate increase of only $1.4 million and an authorized ROE of 9.325%. The Sierra Club filed expert witness testimony alleging that APCo’s power purchase strategy, including purchases from affiliated companies, is unreasonable. The Virginia Poverty Law Center and Virginia Organizing filed direct testimony recommending certain changes to APCo’s terms and conditions designed to limit service disconnections, including the elimination of “reconnection fees” for customers disconnected for non-payment.
The SCC published a procedural schedule for this case on June 22. The Commission will hold an evidentiary hearing beginning on October 20.
Renewable energy, energy efficiency, and electrification programs:
- SCC opens rulemaking docket to update shared solar regulations – Case No. PUR-2026-00127
On August 25, 2026, the SCC published draft regulations to update the existing shared solar regulations of Dominion Energy Virginia and Appalachian Power Company. The rulemaking is intended to implement amendments enacted during the 2026 General Assembly session. The amendments, codified at Va. Code §§ 56-594.3 and 56-594.4, address expanded shared solar program capacity, low-income participation requirements, net crediting, and renewable energy credit treatment. The 2026 legislation significantly expands the amount of shared solar capacity available under both utilities’ programs.
Interested parties may file comments on the proposed regulations on or before October 9. The order directs the SCC Staff to file a response to any comments received by October 30.
- SCC approves Dominion Energy Virginia energy efficiency and Virtual Power Plant proposals – Case Nos. PUR-2025-00210 and PUR-2025-00211
On December 1, 2025, Dominion Energy Virginia (“Dominion”) filed an application seeking approval of an update to its demand-side management program. Dominion seeks approval of a new portfolio of energy efficiency and demand response programs and extensions of existing low-income program bundles. Dominion proposes a cost cap of approximately $220.6 million for the new programs. The utility projects a small cost impact for residential customers.
Also on December 1, Dominion filed a separate application seeking approval of a Virtual Power Plant (“VPP”) pilot program pursuant to recently enacted legislation. This legislation, codified at Va. Code § 56-585.1:16, directs the utility to evaluate the aggregation of distributed energy resources to optimize system demand. The proposed pilot would aggregate certain demand-side and customer-owned resources using a distributed energy resource management system. The pilot would evaluate operational performance and potential system benefits associated with a VPP program.
The SCC published an order for notice and hearing on January 16. The Commission granted Dominion’s request to consolidate the two proceedings for procedural and hearing purposes.
The SCC held an evidentiary hearing on May 18. The Commission approved Dominion’s applications in a consolidated final order published on August 3. The order also directs Dominion to work with local governments regarding the design of future efficiency programs available to localities.
- SCC approves Dominion’s updated renewable portfolio standard rider – Case No. PUR-2025-00221
On December 8, 2025, Dominion Energy Virginia filed a petition to update its renewable portfolio standard (“RPS”) cost recovery rider, designated “Rider RPS.” Dominion is authorized to seek recovery of RPS expenses, including the costs of renewable energy certificates (“RECs”), under Va. Code § 56-585.1(A)(5)(d). This Code section authorizes the company to recover projected and actual costs associated with compliance with the RPS requirements of the Virginia Clean Economy Act. Dominion’s petition states that it expects to need approximately 17.3 million RECs during the September 2026 through August 2027 rate year.
On August 5, the SCC published a final order approving Dominion’s updated Rider RPS. The SCC approved a total Rider RPS revenue requirement of approximately $442.1 million. Dominion estimates that the updated rider will decrease the monthly bill of a residential customer using 1,000 kWh by approximately $2.16 compared with the current Rider RPS.
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