Below is our firm’s summary of notable energy regulatory activity at the Virginia State Corporation Commission (“SCC” or “Commission”) during May, 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 publishes draft regulations regarding a single cost effectiveness test for future energy efficiency programs – Case No. PUR-2024-00120
On July 17, 2024, the SCC published an order opening a docket for the purpose of “establishing a single, consistent cost-effectiveness test for use in evaluating proposed energy efficiency programs.” Virginia’s two largest electric utilities, Dominion Energy Virginia and Appalachian Power Company, are required to implement energy efficiency programs to achieve increasing energy savings targets. 2024 legislation requires the SCC to initiate a proceeding to develop a single cost effectiveness test to evaluate new programs and “to further the Commonwealth’s energy policy requirements and goals.”
On May 13, 2025, the Commission published an order including draft regulations. The regulations state that, beginning in 2029, utilities “shall analyze cost effectiveness primarily using a Virginia jurisdiction-specific test (JST),” which shall include “all utility system impacts that are material to energy efficiency and/or demand response measures … as well as other fuel impacts, greenhouse gas emission impacts, and other environmental impacts.” Interested parties may file comments on the draft regulations on or before June 17.
- Virginia Department of Energy publishes report regarding performance-based ratemaking measures – Case No. PUR-2024-00152
On September 24, 2024, the SCC published a scheduling order initiating a proceeding to study performance-based ratemaking (“PBR”) measures. The SCC’s order was in response to 2024 legislation directing the Commission to conduct a study of potential PBR measures for investor-owned electric utilities. The legislation directed the study to be conducted in conjunction with the Virginia Department of Energy (“DOE”) and to incorporate input from interested stakeholders.
DOE published the stakeholder group report, filed in multiple volumes, on May 19. The report compares the regulatory structure in Virginia with those of other jurisdictions. The report identifies potential policy changes through which the General Assembly and/or the Commission could encourage utilities to operate more efficiently and reduce emissions. The Commission’s original scheduling order provided that interested parties will have an opportunity to file comments on the stakeholder group report.
Renewable energy, energy efficiency, and, electrification programs:
- SCC holds evidentiary hearing regarding Appalachian Power Company net metering proposal – 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 (“Dominion”) 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 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 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. Several intervening parties, representing environmental organizations and the solar industry, opposed APCo’s petition. The SCC Staff also urged the Commission to deny APCo’s petition based on various errors and omissions. The parties will file post-hearing briefs on June 30.
- Dominion Energy files quarterly update regarding offshore wind project; cites cost overruns due to tariff impacts – Case No. PUR-2024-00206
On May 1, Dominion Energy Virginia (“Dominion”) filed a six-month status report regarding the construction of the Coastal Virginia Offshore Wind (“CVOW”) project. Dominion reports that the project is approximately 55% complete. The company still projects the facility to be completed by the end of 2026. Dominion reports that the total estimated project budget has increased from $9.8 billion to approximately $10.8 billion. The majority of the projected cost overruns are attributable to higher interconnection costs and fees assessed by PJM and higher costs for materials impacted by recent tariffs. The filing notes that if current tariffs remain in effect through 2026, “the expected project costs for offshore wind and onshore electrical interconnection equipment could increase by an additional approximately $387 million.” Dominion argues that any additional tariff-related costs should be deemed to be “reasonable and prudent” as they are “outside of the Project’s control.”
The SCC approved the CVOW project in 2022. The 2022 order approving the project also approved a settlement agreement regarding cost overruns. The agreement was signed by Dominion, the Attorney General, and several customer advocates. Under that agreement, Dominion’s customers are required to pay for any CVOW project cost overruns between $9.8 billion and $10.3 billion. Overruns between $10.3 billion and $11.3 billion are to be shared 50-50 between Dominion and customers, while overruns between $11.3 billion and $13.7 billion are to be borne by Dominion alone. Pursuant to the agreement, if the CVOW costs ultimately exceed $13.7 billion, the SCC is empowered to determine cost recovery for any such amounts above $13.7 billion.
- Dominion Energy files petition for approval of amendments to net energy metering program – Case No. PUR-2025-00079
On May 1, Dominion Energy Virginia filed a petition to revise its net metering program. Recent amendments to Va. Code § 56-594(E) requires the SCC to conduct hearings to establish the net metering credit rates for both Dominion and Appalachian Power. 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.”
In its petition, Dominion proposes to maintain its current net metering program for current customers. Dominion, however, proposes several changes to the program for what it calls “NEM 2.0.” The NEM 2.0 proposal would transition customers from an annual “netting period” to “real-time netting.” Dominion’s current program allows customer usage to be offset by the energy exported to the grid over the course of an annual period. Under “real-time netting,” Dominion would “net the inflow and outflow from a customer’s meter every half-hour, the outcome being that each half-hour interval will be a net consumption or net production interval.” The customer’s meter would measure energy consumed and energy exported. “Energy is netted each half-hour to be charged or credited accordingly.”
Dominion’s NEM 2.0 proposal would also base credit rates on the per-MWh rates for the Company’s current distributed solar PPAs approved pursuant to recent Virginia Clean Economy Act filings. Finally, Dominion proposes new application and account maintenance fees for all net metering customers.
The SCC has not yet established a procedural schedule for this case.
- Dominion Energy proposes minimum bill for shared solar program – Case No. PUR-2025-00031
On May 1, Dominion Energy Virginia filed an application for approval of a minimum bill for its shared solar program. The application is filed pursuant to Va. Code § 56-594.3. The statute 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.
Dominion describes the minimum bill as “the least amount that Program participants must pay on their monthly bill, even after bill credits are applied.” The application proposes a minimum bill of $70.26 for a residential customer with a 1,000 kWh shared solar subscription. The proposed minimum bill is based on Dominion’s calculation of a residential customers fixed monthly charges, shared solar administrative charges, and several non-bypassable rider charges. The application also includes a calculation that is intended to quantify the benefits provided by the shared solar generation facilities.
The SCC has not yet established a procedural schedule for this case.
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