Below is our firm’s summary of notable energy regulatory activity at the Virginia State Corporation Commission (“SCC” or “Commission”) during August, 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 and resource planning:
- SCC authorizes increase to Dominion Energy’s transmission rates – Case No. PUR-2025-00076
On May 1, Dominion Energy Virginia filed an application for an increase in its transmission rates recovered through § 56-585.1(A)(4) of the Code of Virginia. This Code Section allows utilities to recover all costs billed by PJM for transmission services through a combination of base rates and a transmission rider. Dominion’s application requested approval of a transmission revenue requirement of roughly $1.34 billion during the next rate year. Dominion asserted that the required increase is due primarily to higher network integration charges assessed by PJM.
The Commission published an order approving Dominion’s application on August 1. The increased transmission rates will increase the monthly bill for a residential customer using 1,000 kWh by $2.10.
Renewable energy, energy efficiency, and electrification programs:
- SCC approves revised rates for Appalachian Power Company net metering program – Case No. PUR-2024-00161
On May 6, 2024, the SCC 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 program, 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. 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].”
- SCC schedules hearing regarding Appalachian Power grid transformation proposal – Case No. PUR-2025-00098
On July 15, Appalachian Power Company (“APCo”) filed a grid transformation proposal pursuant to § 56-585.1(A)(6) of the Virginia Code. The Code allows utilities to request SCC approval of “grid transformation projects.” The statute provides that “any plan for electric distribution grid transformation projects shall include both measures to facilitate integration of distributed energy resources and measures to enhance physical electric distribution grid reliability and security.”
APCo’s grid transformation proposal includes, among other things, investments in “grid automation” and new substations and transformers. APCo claims that such investments will support grid resiliency while supporting the integration of distributed generation. APCo projects that the first phase of its grid distribution plan will cost $135 million. APCo is not seeking cost recovery as part of this request, but requests approval to defer all approved costs for future recovery.
The SCC published an order for notice and hearing on August 7. The Commission will hold an evidentiary hearing on October 28. Pursuant to the statute, the SCC must publish a final order within six months of the filing, or by January 15, 2026.
New energy infrastructure:
- SCC approves controversial data center transmission project in Fairfax County; commissioner files concurring opinion stating that the “time is ripe” to consider transmission cost allocation – Case No. PUR-2024-00135
On July 26, 2024, Dominion Energy Virginia (“Dominion”) filed an application for a certificate of public convenience and necessity (“CPCN”) to undertake a transmission and distribution project necessary to interconnect a prospective hyperscale data center customer at a site in eastern Fairfax County, on the border with the City of Alexandria. Dominion proposed to construct a new substation and approximately 1-mile of high-voltage transmission towers in order to serve the data center’s requested 176MW of load. To approve the project, the SCC must determine that the project is required by the “public convenience and necessity” and that the transmission route would “avoid” or “reasonably minimize” adverse impacts.
Several homeowners’ associations filed direct testimony urging the Commission to deny the CPCN due to adverse impacts to residents. The associations also filed expert witness testimony of a former SCC Staff member who argued that the Project is only needed to serve the data center and, accordingly, the Project costs should be assigned to the customer requesting service.
The SCC held an evidentiary hearing before a hearing examiner on January 21. The SCC approved the application in a final order published on August 8. The Commission rejected all arguments of the homeowners who would live in close proximity to the data center and transmission lines. Commissioner Bagot filed a separate opinion noting her concurrence with the SCC’s final order but stating that “the time is ripe for a thorough examination of the prevailing approach to transmission cost allocation.”
- SCC Staff files expert witness testimony regarding Dominion gas plant proposal; expresses concerns with utility’s economic analysis and solicitation process – 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 and gas units. Dominion states that the CERC would be an approximately 944MW “flexible fuel” generating facility. 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.
Intervening parties filed expert witness testimony on July 25. Several environmental and clean energy advocates filed testimony opposing Dominion’s application. The SCC Staff filed witness testimony in several volumes on August 19. The Staff “does not oppose approval” of the CERC project, but notes a number of flaws in Dominion’s request for proposal process and the company’s economic analyses. The SCC will hold an evidentiary hearing on September 23. 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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