Below is our firm’s summary of notable energy regulatory activity at the Virginia State Corporation Commission (“SCC” or “Commission”) during January, 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.
Renewable energy, energy efficiency, and electrification programs:
- SCC schedules evidentiary hearing regarding Dominion Energy demand-side management program update – Case No. PUR-2024-00222
On December 13, 2024, Dominion Energy Virginia (“Dominion”) filed an application for approval of new energy efficiency and demand-side management programs. The application also requests approval to continue several previously approved programs. Dominion proposes a total cost cap for the new and existing programs of approximately $222.3 million for the next rate year. Dominion also requests the ability to exceed the spending cap by no more than 15%. Dominion states that the application, if approved, would result in a bill increase of four cents per month for a typical residential customer using 1,000 kWh.
The SCC published a scheduling order on January 27. The SCC will hold an evidentiary hearing on May 19. Interested parties may intervene in the case by filing a notice of participation on or before March 17.
- SCC Staff files direct testimony regarding Dominion Energy’s 2024 VCEA RPS Development plan; cites concerns with utility’s proposed natural gas additions – 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 Staff filed direct testimony in several volumes on January 21. The Staff cited concerns with Dominion’s RPS Development Plan, including the utility’s proposal to add 5.9GW of natural gas resources and to delay the retirement of other fossil units. The Staff witness testified that Virginia law, at Code § 56-585.1(A)(5)(c) “generally precludes the construction of new utility-owned generation that emits carbon or carbon dioxide as a byproduct of the generation of electricity, subject to limited exceptions.” The Staff witness recommended that Dominion should be directed to model future scenarios without any natural gas additions. The SCC will hold an evidentiary hearing on February 18.
- SCC schedules evidentiary hearing regarding interconnection standards for distributed energy resources – Case No. PUR-2024-00211
On January 22, the SCC scheduled a hearing process to consider standards for interconnecting distributed energy resources in Dominion’s service territory. The order for notice and hearing explained that the hearing will examine, among other things, when the utility may require certain fiber technology called “direct transfer trip” or “DTT.” The hearing will evaluate Dominion’s proposed methodology for determining when DTT is required for a particular generation facility. The order references Dominion’s November 15, 2024, proposal, which argues that DTT is “the fastest and most reliable way to isolate a fault and remove all sources.” Dominion’s filing also describes certain alternatives to DTT, which could be less costly for distributed resource owners.
The SCC will hold an evidentiary hearing on September 30. Interested parties may file a notice of participation on or before April 15.
Transmission and new energy infrastructure:
- SCC holds evidentiary hearing regarding hyperscale data center project; Fairfax homeowners ask SCC to reject transmission line and substation proposals – Case No. PUR-2024-00135
On July 26, 2024, 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 proposes 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.
On December 13, several homeowners’ associations filed direct testimony urging the Commission to deny the CPCN. The associations cited the SCC’s duty to avoid or “reasonably minimize” adverse impacts to residents and the environment when siting transmission lines. The associations noted that, unlike other transmission projects, this one would be sited within 60 to 80 feet of residential communities. 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. There is no statutory deadline for the SCC to complete its review of the project.
- SCC schedules hearing regarding Dominion Energy Virginia petition for small modular nuclear reactor rate rider – PUR-2024-00205
On November 1, Dominion Energy Virginia (“Dominion”) filed a petition requesting authority to begin recovering costs associated with small modular nuclear reactor (“SMR”) development. The petition was filed pursuant to 2024 legislation, codified at Code § 56-585.1:14, that allows Dominion to petition the Commission for approval of a rate adjustment clause to recover “SMR project development costs.” Dominion requests approval to recover costs incurred between July 1, 2024, and August 31, 2026. Dominion calls this “Phase I” of its SMR project development. Dominion states that Phase I includes preliminary activities necessary to determine the feasibility of deploying an SMR at the utility’s existing North Anna nuclear site. Dominion seeks to recover approximately $17.2 million of such costs through Rider SMR between September 1, 2025, through August 31, 2026. Dominion states that the initial phase of the rate adjustment clause (designated “Rider SMR”), if approved, would increase the monthly bill of a residential customer using 1,000 kilowatt-hours per month by $0.29.
The SCC will hold an evidentiary hearing on May 27, 2025. Interested parties may intervene in this case by filing a notice of participation on or before February 21.
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