On May 6, 2024, the Virginia State Corporation Commission (“SCC” or “Commission”) published an order in Case No. PUR-2024-00047 directing Appalachian Power Company (“APCo) and Dominion Energy Virginia to file net metering proposals. Virginia law, at Va. Code § 56-594(E), requires the SCC to conduct hearings to evaluate the net metering credit rates for each utility. The law requires the SCC to establish appropriate billing rates for net metering customers and to “make all reasonable efforts to ensure that the net energy metering program does not result in unreasonable cost-shifting to nonparticipating electric utility customers.” The SCC’s order directed APCo to file its net metering proposal by September 2, 2024. Dominion was directed to file its proposal on or before May 1, 2025.
APCo filed its net metering proposal on August 30, 2024. APCo proposed to close its current net metering tariff and to implement a new program for all future customers. APCo’s current tariff is designated Rider N.M.S. The new proposal, designated Rider N.M.S. II, would provide credits to net metering customers based on the energy produced by a customer-generator’s system. However, while Rider N.M.S. provides a monthly credit equal to the utility’s full retail rate, the new program would compensate customers based on a lower “avoided cost rate.” APCo states that the new structure “will ensure appropriate crediting to customer-generators for the energy delivered to the grid while minimizing cost-shifting to non-participating electric utility customers.”
The SCC held an evidentiary hearing between May 20 and May 22, 2025. Several intervening parties, representing consumer, environmental, and renewable energy advocates, opposed APCo’s proposal. The SCC Staff also argued that no changes to APCo’s net metering program are warranted at this time.
The SCC published a final order on August 29. The SCC approved a lower credit rate for excess net metered generation – i.e., generation that exceeds the customer’s usage – that is fed back to the electric grid. The order, however, denied APCo’s request to implement “real-time netting.” The Commission’s order confirmed that “the amount of generation that is produced by an eligible customer-generator “over the [12-month] net metering period” and which is not “fed back to the electric grid” is to be effectively compensated at the applicable retail rate. Any net excess generation that is “fed back to the electric grid” as measured over the course of the 12-month net metering period shall be compensated at the avoided cost rate [as proposed by APCo].”
APCo was directed to file revised tariff sheets to comply with the final order. The Commission’s order and all related filings are available in the SCC’s online docket for Case No. PUR-2024-00161.