Below is our firm’s summary of notable energy regulatory activity at the Virginia State Corporation Commission (“SCC” or “Commission”) during June, 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:
- SCC schedules evidentiary hearing regarding Appalachian Power Company rate increase request – 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.
The SCC published a procedural schedule for this case on June 22. The Commission will hold an evidentiary hearing beginning on October 20.
- SCC schedules hearing regarding Dominion Energy request to securitize unrecovered fuel costs – Case No. PUR-2026-00078
On May 29, 2026, Dominion Energy Virginia (“Dominion”) filed a petition, pursuant to § 56-249.6:2 of the Code of Virginia, for authority to refinance certain unrecovered (or “deferred”) fuel cost balances by issuing “deferred fuel cost bonds.” Dominion’s petition cites 2026 legislation that authorizes the utility to request SCC approval to securitize a portion of its deferred fuel costs by filing a petition on or before July 15, 2026.
Dominion is authorized to recover all prudently incurred fuel costs through its fuel recovery rider, called the “fuel factor.” Dominion, however, projects that it will have an unrecovered fuel balance of approximately $1.1 billion by June 30, 2026. This large balance is due to multiple factors, including higher fuel prices and extreme winter temperatures. Dominion states that if its deferred fuel costs were recovered over a one-year period through the fuel factor, a typical residential customer using 1,000 kWh per month would experience an average bill increase of approximately $21.79. Dominion states that proceeds from the bond issuance would be used to satisfy its unrecovered fuel balance at a lower cost to consumers. The actual costs to consumers, however, would depend on the interest rates on the bonds at the time of issuance and the final maturity date of the bonds.
The SCC published a procedural schedule on June 12. The SCC will hold an evidentiary hearing on August 12. The statute directs the SCC to issue a final order within four months of the filing, or by September 29, 2026.
- SCC approves new rate schedule for Appalachian Power large energy users, including data centers – Case No. PUR-2025-00057
On March 24, 2025, Appalachian Power Company 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.”
APCo and certain other parties representing commercial and industrial users filed a stipulation on November 10, 2025, to resolve the issues in dispute. Among other things, the stipulation recommended 14-year initial contract terms with a load ramp period of up to four years. The SCC published a final order approving the rate schedule on June 1, 2026. The SCC’s final order generally approved Schedule L.P.S. as proposed by the parties to the November 10 stipulation, with certain modifications to the terms regarding collateral requirements and exit fees.
- SCC Schedules hearing regarding Dominion Energy update to Percentage of Income Payment Program – Case No. PUR-2026-00057
On May 1, Dominion Energy Virginia filed an application to update the Universal Service Fee to fund its Percentage of Income Payment Plan (“PIPP”). The SCC has previously explained that the PIPP was established “as part of the 2020 Virginia Clean Economy Act as a mechanism designed to limit the electric utility payments of persons or households participating in certain, specified public assistance programs, based upon a percentage of their income, for customers of Dominion and Appalachian Power Company.” The Code defines a PIPP-eligible utility customer as, “any person or household whose income does not exceed 150 percent of the federal poverty level.”
The law allows Dominion to charge a Universal Service Fee to all customers to fund the PIPP. Dominion proposes to set its Universal Service Fee at $0.000158 per kWh effective November 1, 2026, through October 31, 2027. In other words, the proposed fee would increase the monthly bill of a residential customer using 1,000 kWh per month by approximately $0.16. Dominion requests approval for a total annual revenue requirement of $14.8 million and the ability to recover administrative costs of approximately $1.6 million between April 2025 and March 2026.
The SCC published an order for notice and comment on June 1. The order states that parties may intervene in the case and request a hearing on or before July 15. Interested parties may file comments on Dominion’s application on or before July 15.
- Dominion Energy files rebuttal testimony in transmission rider case; defends current cost recovery methods – Case No. PUR-2026-00056
On May 1, 2026, Dominion Energy Virginia filed an application to increase its transmission cost rider revenue requirement by $124.7 million. 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’s application, as originally filed, proposed an increase that would add $2.90 to the monthly bill for a residential customer using 1,000 kWh.
On June 11, several intervening parties, including data centers and consumer and environmental advocates, filed expert witness testimony. The parties addressed several issues, including whether Dominion should change the way it allocates costs among its commercial, industrial, and residential customer classes. The Piedmont Environmental Council filed expert testimony urging the SCC to require data centers to pay for all transmission costs that the utility incurs specifically to serve such customers. Amazon Data Services filed testimony suggesting that data centers should not be required to pay for such costs, but should have the option to make voluntary payments. The Amazon witness cited potential negative economic impacts, arguing that “mandatory direct cost allocation could discourage beneficial projects, create uncertainty, or incentivize inefficient siting and planning decisions.”
Dominion filed rebuttal testimony in several volumes on June 30. Dominion states that, based on updated cost allocation forecasts, the requested Rider T1 increase is only expected to add $0.94 per month to a typical residential customer bill. Dominion’s witnesses also defend the utility’s current methodologies for allocating transmission costs. Dominion, however, offers two alternatives that would allocate certain transmission costs to data centers, in the event the SCC wants to make a change in this case.
The SCC will hold an evidentiary hearing on July 14, 2026. Pursuant to the statute, the SCC must publish a final order within three months of the filing, or by August 1, 2026.
- Dominion files request to reinstate RGGI cost recovery rider – Case No. PUR-2026-00085
On June 5, 2026, Dominion Energy Virginia filed a petition seeking approval to reinstate its “Rider RGGI.” Rider RGGI is intended to recover the costs of Dominion’s participation in the regional carbon reduction agreement called the Regional Greenhouse Gas Initiative. Dominion states that it is entitled to recover environmental compliance costs, including the costs of carbon allowances purchased under RGGI, pursuant to Va. Code § 56-585.1(A)(5)(e). Former Governor Youngkin’s administration and the Virginia Air Pollution Control Board took regulatory steps to remove the Commonwealth from RGGI in 2023. The SCC approved Dominion’s petition to withdraw its initial Rider RGGI in a June 3, 2024, order. Dominion’s petition states that Governor Spanberger recently signed legislation to re-enroll Virginia in RGGI, effective July 1, 2026.
Dominion requests approval to recover approximately $1.18 billion of RGGI compliance costs that it projects to incur during a 20-month period between July 1, 2026 and February 29, 2028. The petition estimates that reinstating the RGGI Rider will increase average monthly bills for a typical residential customer using 1,000 kWh by approximately $13. Dominion also offers a “mitigation proposal” that would reduce the monthly bill impact by spreading a portion of the projected costs over a two-year period. The SCC has not established a procedural schedule for this case.
Renewable energy, energy efficiency, and electrification programs:
- SCC publishes regulations regarding solar generation facility interconnection – Case No. PUR-2023-00069
On April 15, 2025, 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.”
Several utilities, environmental groups, and solar and storage advocates filed comments on the draft regulations. The SCC published an order adopting regulations on June 30, 2026. The regulations incorporate several recommendations from solar and storage advocates designed to encourage additional energy storage adoption.
- SCC schedules hearing regarding Appalachian Power VCEA RPS plan – Case No. PUR-2026-00065
On May 15, 2026, Appalachian Power Company filed a petition for approval of its 2026 renewable portfolio standard (“RPS”) development plan. APCo also requested approval of new solar and wind energy projects. The petition was filed pursuant to the 2020 Virginia Clean Economy Act (“VCEA”). The VCEA, at Va. Code § 56-585.5, requires APCo to supply an increasing percentage of its electricity sales from clean energy resources. The law also requires APCo to petition the SCC for approval of minimum quantities of solar and storage resources located in Virginia between 2020 and 2035.
APCo’s 2026 RPS 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. APCo’s petition, among other things, requests approval to extend two existing PPAs for wind energy and to purchase two solar facilities located in Indiana. APCo states that its petition, if approved, would require a revenue requirement of approximately $115 million in the next rate year. This would increase the average monthly bill for a residential customer using 1,000 kWh/month by approximately $3.99.
The SCC published a procedural order on June 11. The SCC will hold an evidentiary hearing on August 5.
Transmission and new energy infrastructure:
- SCC approves overhead route for Dominion Energy’s Golden-Mars transmission project – Case No. PUR-2025-00056
On March 28, 2025, Dominion Energy Virginia filed an application for approval of a major transmission project in Loudoun County, in the vicinity of the Dulles International Airport. Dominion requested approval to construct a proposed 8.3-mile 230-500kV transmission line running from the company’s existing Golden to Mars substations. The company proposed five alternative routes in total, ranging from 8.3 to 9.8 miles in length. Dominion stated that the transmission line would be located almost entirely in a new right-of-way of between 100 and 150 feet. Dominion stated that the project is needed to serve projected load growth in Loudoun County, including data center development in “Data Center Alley.” The application does not include an estimated customer bill impact.
Under Virginia Code Sections 56-265.2 and 56-46.1, the Commission must determine whether the project is needed and whether it is designed to avoid or “reasonably minimize” adverse impacts to the environment. Several intervening parties, including Loudoun County, filed expert witness testimony on October 11, 2025. The County’s testimony recommended, among other things, that Dominion should be directed to bury a section of the proposed 8-mile Golden-Mars transmission line. The SCC Staff filed a Staff Report on November 12, 2025. The Staff Report found that the project is “needed” and recommended that the Commission approve an overhead route for the transmission line.
The SCC held an evidentiary hearing between January 8 and January 15, 2026. The SCC approved an overhead route for the project in a final order published on June 29, 2026. In a prior interim order, the SCC found that the underground proposal advanced by Loudoun County would not be “practicable,” based on engineering challenges, increased costs, and the extended timeline for project completion. The SCC found that the proposed alternative Route 4 would be “least impactful of the potential overhead routes” and “best serves the total public interest.” The final order, however, approved Route 3A due to the fact that Route 4 would cross property owned by Loudoun County Public Schools, which as of the date of the final order had not yet consented to the crossing.
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