Below is our firm’s summary of notable energy regulatory activity at the Virginia State Corporation Commission (“SCC” or “Commission”) during April, 2025. 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:
- SCC schedules hearing regarding Dominion Energy Virginia 2025 biennial review application; utility requests $631 million rate increase – Case No. PUR-2025-00058
On March 31, Dominion Energy Virginia (“Dominion”) filed an application for a biennial review of its rates and terms and conditions of service. Dominion requests a $631 million rate increase. Dominion proposes for the revenue increase to be staggered, with a $458 million annual revenue increase starting 1/1/2026 and an additional $173 million annual revenue increase starting on 1/1/2027. Dominion estimates that this would add about $10.50/month to a 1,000kWh residential bill. The utility claims that it will need to invest $40 billion in capital projects over the next 5 years. The application cites the need to upgrade gas generation plants and new distribution facilities to accommodate load growth.
Dominion requests an increase to its current authorized rate of return. The utility’s current authorized return is 9.7%. The application requests an increase to 10.4%.
Dominion also proposes a new rate schedule for “high load” customers, including data centers. The proposed terms and conditions include minimum contract demand provisions and collateral requirements for customers with 25MW+ of demand.
In a separate application filed on March 31, Dominion requested an increase to its fuel recovery rider. The requested fuel cost increase, if granted, would add an additional $10.92 to the monthly bill for a 1,000kWh residential customer. The SCC will hold an evidentiary hearing regarding Dominion’s biennial review application on September 2.
- Appalachian Power proposes new rate schedule for large energy users, including data centers – Case No. PUR-2025-00057
On March 24, 2025, Appalachian Power Company (“APCo”) filed a petition for approval of new terms and conditions for certain large energy users, including data centers. The petition would modify the terms of APCo’s Large Power Service tariff (designated Rate Schedule L.P.S.”). The revised Schedule L.P.S. would apply to new large load additions “greater than or equal to 150 MW on an aggregated basis or 100 MW at an individual site.” APCo’s petition proposes new requirements for these large customers, including a minimum contract term of twelve years; a minimum five-year notice to discontinue or modify service; an 80 percent monthly minimum billing demand; and an increased minimum amount of collateral to be provided by the customer. The petition explains that potential large load additions impose new risks for the utility and its other customers: “[i]f a large customer ceases or curtails operations after contracting with Appalachian for electric service, that could have the potential adverse effect of stranding the significant investment necessary to provide service to the customer. This risk is greater for new large load customers given the significant investment necessary to connect them to the system.”
- Rappahannock Electric Cooperative files application to implement rate schedule for “large power dedicated facilities” – Case No. PUR-2025-00048
On March 12, Rappahannock Electric Cooperative (“REC”) filed a petition seeking approval to implement a Large Power Dedicated Facilities Rate Schedule (“Schedule LP-DF”). The rate schedule would apply to customers with contracted billing demand greater than 25MW, including data centers. REC states that “providing service to these large load customers requires substantial grid infrastructure upgrades and dedicated power procurement, and without a specialized rate these costs could be shifted onto existing REC members, putting upward pressure on rates.” REC states that Schedule LP-DF “will allow the Cooperative to recover the full cost of providing service to these customers, including the costs associated with providing distribution service as well as the costs associated with obtaining the power supply needed to serve these customers.” The rate schedule would also require customers to provide collateral before beginning service. Interested parties may file comments on the application or request a hearing on or before May 30.
Renewable energy, energy efficiency, and, electrification programs:
- Appalachian Power Company proposes minimum bill for shared solar program – Case No. PUR-2025-00028
On April 1, Appalachian Power Company filed a petition for approval of a minimum bill for its shared solar program. The petition is filed pursuant to Va. Code § 56-594.4, which requires the SCC to establish a shared solar program for APCo. The statute, at Code § 56-594.4(D), requires the SCC to establish a minimum bill for the shared solar program. The statute provides that the minimum bill shall “include the costs of all utility infrastructure and services used to provide electric service and administrative costs of the shared solar program.” The minimum bill must ensure that shared solar customers pay their “fair share” of the utility’s costs.
APCo’s petition proposes a minimum bill of $48.66 for a 1,000kWh/month residential shared solar customer. The petition includes a calculation that is intended to quantify the value provided by the shared solar generation facilities. The SCC will hold an evidentiary hearing on June 9.
- SCC Staff files witness testimony opposing Appalachian Power net metering proposal – Case No. PUR-2024-00161
On May 6, the SCC published an order in Case No. PUR-2024-00047 directing Appalachian Power Company and Dominion Energy Virginia to file net metering proposals. Virginia law, at Va. Code § 56-594(E), requires the SCC to conduct hearings to establish 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 proposes 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 program, designated Rider N.M.S. II, would provide credits to net metering customers based on the energy produced each month. 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.”
On March 11, several parties filed expert witness testimony opposing APCo’s proposal. Testimony was filed by Appalachian Voices, Advanced Energy United, and a coalition of public interest organizations. These parties all objected to APCo’s methodologies and recommended that the Commission reject APCo’s proposal. The SCC Staff filed witness testimony in several volumes on April 8. The Staff testimony objects to APCo’s methodologies and the utility’s evaluation of the costs and benefits provided by net metering customers. The Staff recommends that the Commission reject APCo’s proposal and maintain current net metering rates. The SCC will hold an evidentiary hearing on May 20.
- SCC approves Dominion Energy’s 2024 VCEA RPS Development plan; orders new study requirements – Case No. PUR-2024-00147
On October 15, Dominion Energy Virginia filed a petition for approval of its 2024 renewable portfolio standard (“RPS”) Development Plan. Dominion also requests approval of new solar and storage projects. The petition is filed pursuant to the 2020 Virginia Clean Economy Act (“VCEA”). The VCEA, at Va. Code § 56-585.5, requires Dominion to supply an increasing percentage of its electricity sales from clean energy resources. The law also requires Dominion to petition the SCC for approval of minimum quantities of solar and storage resources, located in Virginia, between 2020 and 2035.
Dominion’s 2024 RPS Development Plan describes the Company’s progress towards the VCEA RPS targets. The plan also explains how the company intends to obtain the additional renewable energy certificates necessary to comply with future RPS targets. Dominion’s petition requests approval to construct two new utility-scale solar projects and to enter into agreements to purchase the output from 24 solar and storage facilities. Finally, Dominion seeks to recover the costs of the new projects through an updated rate adjustment clause.
The SCC held an evidentiary hearing regarding the petition on February 18. The SCC approved the petition in an April 15 final order. The order included several requirements for future RPS filings. Among other things, the order directed Dominion to model compliance with new energy efficiency targets and other VCEA requirements in future RPS plans.
- SCC publishes draft regulations regarding solar generation facility interconnection – Case No. PUR-2023-00069
On April 15, the SCC published an order for notice and comment regarding draft regulations governing the interconnection of small generating facilities. The order includes draft regulations developed by the Commission Staff. The Commission’s interconnection regulations, found in Section 20VAC5-314 of the Virginia Administrative Code, apply when small generators, including solar and storage facilities, wish to interconnect with a utility’s distribution system. The rules are promulgated pursuant to Va. Code § 56-578(C), which provides that “[t]he Commission shall establish interconnection standards to ensure transmission and distribution safety and reliability, which standards shall not be inconsistent with nationally recognized standards acceptable to the Commission.” The statute also provides that, “[i]n adopting standards pursuant to this subsection, the Commission shall seek to prevent barriers to new technology and shall not make compliance unduly burdensome and expensive.”
Interested parties can file comments regarding the draft regulations on or before June 9.
- Dominion Energy files new Grid Transformation Plan – Case No. PUR-2025-00051
On March 24, 2025, Dominion Energy Virginia filed a new Grid Transformation Plan pursuant to § 56-585.1(A)(6) of the Code of Virginia. Dominion requests approval of “Phase IIIB” of its ten-year plan to transform its electric distribution grid. Dominion’s petition proposes to continue the implementation of two previously approved projects, a mainfeeder hardening program and the new outage management system. Dominion states that the total proposed investment associated with Phase IIIB is “approximately $278.3 million in capital investment and $4.5 million in operations and maintenance investments.” The SCC will hold an evidentiary hearing on the application on July 14.
Transmission and new energy infrastructure:
- SCC schedules hearing regarding Dominion Energy Virginia application to construct $1.5 billion gas-fired power plant – Case No. PUR-2025-00037
On March 3, 2025, Dominion Energy Virginia (“Dominion”) filed an application for approval to construct and operate a new gas-fired power plant in Chesterfield County, Virginia. Dominion seeks a certificate of public convenience and necessity (“CPCN”) to construct and operate the proposed Chesterfield Energy Reliability Center (“CERC”). The facility would be located at the site of recently retired coal units. Dominion states that the CERC would be an approximately 944MW “flexible fuel” generating facility. The application states that the facility “will be hydrogen-natural gas blend capable should that fuel become available at scale in the future.” Dominion estimates that the facility will be operational by June 1, 2029.
The application also seeks approval to recover the costs of the facility through a rate adjustment clause (“RAC”). Dominion estimates construction costs for the facility to be $1.47 billion, not including financing costs. The application estimates that the CERC revenue requirement would be approximately $35.7 million in the initial 2026 rate year. Under Dominion’s proposed amortization schedule, the CERC revenue requirement would peak in 2030 at approximately $163.4 million per year.
The SCC will hold an evidentiary hearing on September 23. Interested parties may intervene in this case by filing a notice of participation on or before June 20. Under Va. Code § 56-585.1(A)(6), the SCC must complete its review of all generation RAC applications within 9 months from the filing date.
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