Below is our firm’s summary of notable energy regulatory activity at the Virginia State Corporation Commission (“SCC” or “Commission”) during March, 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, individuals, and public interest organizations. The following is presented for informational purposes only and does not constitute legal advice.
Rate cases, oversight, and resource planning:
- Dominion Energy files 2025 biennial review application; 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 recover 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.
Renewable energy, energy efficiency, and, electrification programs:
- Environmental advocates seek ruling that Kentucky Utilities is subject to the VCEA energy efficiency provisions – Case No. PUR-2025-00047
On March 12, Appalachian Voices filed a petition for a declaratory judgment that Kentucky Utilities Company, doing business as Old Dominion Power (“KU/ODP”), is subject to the energy efficiency requirements of the Virginia Clean Economy Act (“VCEA”). The VCEA, at Code Section 56-596.2(B)(3), requires the SCC to conduct a proceeding to establish energy savings targets for electric utilities for the 2026-2028 time period. Appalachian Voices asserts that this Code section applies to each “investor-owned incumbent electric utility” operating in the Commonwealth and that KU/ODP qualifies as an “investor-owned incumbent electric utility.” KU/ODP provides electric service in the City of Norton and in Dickenson, Lee, Russell, Scott, and Wise Counties.
- Dominion Energy files annual update on Grid Transformation Plan investments – Case No. PUR-2023-00051
On March 31, 2023, Dominion Energy Virginia filed a petition for approval of a new phase of its Grid Transformation Plan pursuant to § 56-585.1(A)(6) of the Code of Virginia. Dominion requested approval of “Phase III” of a ten-year plan to transform its electric distribution grid. Phase III consists of approximately $1 billion of capital investments to be completed in 2024, 2025 and 2026. The largest Phase III investments are associated with “grid hardening” projects that Dominion claims are necessary to reduce customer outages. The SCC approved Dominion’s plan in a final order published on September 18, 2023. Dominion filed its annual update on Grid Transformation Plan investments on March 24, 2025. The annual update includes data on project costs incurred and effects on outage times.
- 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 has not yet published a procedural schedule for this case.
- Solar advocates file expert 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. 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 will hold an evidentiary hearing on May 20. Interested parties can file written comments on or before May 13.
Transmission and new energy infrastructure:
- Dominion Energy Virginia files application to construct $1.5 billion gas-fired power plant – Case No. PUR-2025-00037
On March 3, 2025, Dominion Energy Virginia 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. 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.
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.
- Dominion Energy requests approval for major transmission project near Dulles Airport – 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 requests approval to construct a proposed 8.3-mile 230-500kV transmission line running from the company’s existing Golden to Mars substations. The company proposes five alternative routes in total, ranging from 8.3 to 9.8 miles in length. Dominion states that the transmission line would be located almost entirely in a new right-of-way of between 100 and 150 feet. Dominion states that the project is needed to serve projected load growth in Loudoun County, including data center development in “Data Center Alley.” Dominion’s proposed route, if approved, would cost approximately $402 million. The application does not include an estimated 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.
- 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 published a procedural order on December 2. 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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