Below is our firm’s summary of notable energy regulatory activity at the Virginia State Corporation Commission (“SCC” or “Commission”) during November, 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 businesses, government agencies, trade associations, and public interest organizations. The following is presented for informational purposes only and does not constitute legal advice.
General rate proceedings and resource planning:
- SCC approves $775 million rate increase for Dominion Energy – 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 requested 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 increase starting on 1/1/2027. Dominion estimates that this would add about $10.50/month to a 1,000 kWh 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 data center load growth. Dominion also proposed 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.
The SCC published a final order on November 25. The SCC authorized a $775 million rate increase to be phased in over two years. The rate increase will result in a 7.5% monthly bill increase for residential customers effective January 1, 2026, followed by an additional 1.5% increase effective January 1, 2027. The SCC estimates that the rate increase will add $13.60 to the monthly bill for a residential customer using 1,000 kWh. The SCC’s order also approves a new rate class for data center customers with demand above 25MW. The new rate class includes minimum demand charges and other terms and conditions designed to protect non-data-center customers from stranded cost risks. The SCC also directed Dominion to begin the process of changing the way it allocates generation costs among customer classes. Dominion is directed to file a revised cost allocation proposal as part of its next biennial rate review.
- SCC approves Appalachian Power Company request to issue bonds to refinance unrecovered generation plant investments and storm recovery expenses – Case No. PUR-2025-00116
On July 10, 2025, Appalachian Power Company (“APCo”) filed a petition for approval to issue bonds in order to refinance certain unrecovered costs. In particular, APCo seeks a Commission order allowing it to issue approximately $1.38 billion in “securitized asset cost bonds.” The securitized asset bonds would refinance the Virginia jurisdictional share of APCo’s Amos and Mountaineer coal facilities located in West Virginia. APCo states that the unrecovered plant balances for the Amos and Mountaineer facilities total approximately $1.2 billion. The securitized asset bonds would also refinance approximately $141 million in storm recovery expenses that APCo has not yet recovered from customers.
APCo asserts that refinancing these unrecovered amounts will result in bill savings for customers. APCo estimates that its petition, if approved, would result in “savings of approximately $175.5 million or $11.44 per month for a residential customer using 1000 kWh, as compared to typical rate recovery.” However, the petition states that the interest rates on the bonds will not be known until the bonds are issued. The petition is filed pursuant to 2025 legislation that was recently codified at Va. Code § 56-249.8. The legislation allows APCo to request SCC approval to issue bonds to recover unrecovered costs associated with “storm recovery,” “natural disasters,” and “undepreciated generation utility plant balances.”
The Commission approved APCo’s petition in a financing order published on November 24.
- Appalachian Power and certain customers propose settlement agreement regarding new rate schedule for large energy users – 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.”
The SCC held an evidentiary hearing on November 12. Prior to the hearing, APCo and certain customers filed a motion to accept a stipulation that would resolve all issues in the case. The stipulation contains proposed terms and conditions regarding eligibility, collateral requirements, load ramp requirements, and billing demand calculations. The stipulation was signed by Walmart, Google, and the Virginia Committee for Fair Utility Rates representing industrial energy users.
Renewable energy, energy efficiency, and electrification programs:
- SCC approves Dominion Energy gas plant proposal – 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. 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 the testimony notes a number of flaws in Dominion’s request for proposal process and the company’s economic analyses.
The SCC held evidentiary hearing beginning September 23. The SCC published a final order approving the gas plant on November 25. The SCC found the gas plant to be needed, citing actual and projected demand growth in PJM and increases in PJM capacity prices.
- SCC approves Dominion Energy’s proposed 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 was 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 customer’s fixed monthly charges, shared solar administrative costs, and several non-bypassable rider charges.
Several solar and environmental advocates filed expert witness testimony on September 3. Appalachian Voices filed expert witness testimony on September 3. The witness called Dominion’s proposed minimum bill unreasonable and “confiscatory.” The Coalition for Community Solar Access filed expert witness testimony arguing that, when considering the value to the system provided by shared solar projects, the minimum bill should be set at $0.00.
The SCC published a final order approving Dominion’s proposed minimum bill components on November 24. The Commission directed Dominion to incorporate a “shared solar benefit” of $0.014/kWh associated with avoided transmission costs. The Commission rejected other benefits cited by shared solar advocates, including generation and capacity-related benefits and REC-related benefits.
- SCC schedules hearing regarding Appalachian Power transportation electrification plan – Case No. PUR-2025-00159
On August 29, 2025, Appalachian Power filed a transportation electrification plan. APCo states that the objectives of the plan are to increase access and affordability, encourage off-peak charging, support customer education, and develop pilot programs to study EV impacts to the grid. The plan includes short-term and long-term strategies. APCo estimates that there are approximately 7,800 EVs currently in operation in the utility’s service territory as of July 1, 2025. The plan includes a base case forecast for approximately 25,000 EVs by 2030. APCo estimates that there are approximately 60 sites providing level 2 charging services and 27 sites providing direct current fast charging.
The SCC published a procedural order on November 25. The SCC will hold an evidentiary hearing on March 24, 2026. Interested parties may intervene in this case by filing a notice of participation on or before January 20, 2026.
- SCC authorizes Appalachian Power Company to incur development costs for small modular nuclear reactor in Campbell County, Virginia – Case No. PUR-2025-00085
On May 16, Appalachian Power 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 § 56-585.1:15, that allows APCo to petition the Commission for approval to incur “SMR project development costs.” The petition states that APCo has identified a property located in Campbell County, along the James River, as the site for a potential reactor. APCo states that due to technical, engineering, and regulatory requirements, developing an SMR could take between 7 and 12 years. The petition states that APCo expects to incur approximately $122 million in “early project development costs.” APCo does not seek cost recovery in its petition but states that the utility will seek to recover development costs as part of a future rider filing.
The SCC held an evidentiary hearing on the petition on October 9. No party opposed APCo’s petition. The Commission published a final order approving the petition on November 10. The SCC order directed APCo to “use every reasonable effort” to secure federal grant opportunities to mitigate future project costs.
- SCC schedules hearing to review Dominion Energy VCEA RPS Development plan, requests for approval of new solar and storage projects – Case No. PUR-2025-00148
On October 15, Dominion Energy Virginia filed a petition for approval of its 2025 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 2025 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 6 new solar projects, totaling 845 MW, two new storage projects totaling 155 MW, and to enter into agreements to purchase the output from 10 solar facilities totaling 439 MW. Dominion seeks to recover the costs of the new projects through an updated rate adjustment clause. The new project costs, if approved, would increase a monthly bill for a residential customer using 1,000 kWh by $3.20.
The SCC will hold an evidentiary hearing on February 18, 2026. Interested parties may intervene in this case by filing a notice of participation on or before December 19.
- SCC approves portions of Appalachian Power 2025 RPS development plan, denies proposed battery storage investment – Case No. PUR-2025-00049
On May 14, Appalachian Power Company filed a petition for approval of its annual renewable portfolio standard development plan as directed by prior Commission order and the Virginia Clean Economy Act (“VCEA”). The petition requests approval of new solar, wind, and battery storage projects. Among other things, APCo requests approval to acquire a wind energy facility located in Illinois. APCo also requests approval to purchase solar energy from a facility located in Wise County, Virginia, and to construct and operate battery storage facilities located in Wythe County, Virginia. The petition requests approval of a $68 million revenue requirement for the next rate year. The petition also describes the company’s plan to comply with the VCEA’s renewable portfolio standard in the coming years. APCo states that the petition, if approved, would result in a monthly bill increase of $4.36 for a residential customer using 1,000 kWh.
The SCC held an evidentiary hearing beginning on August 12. On November 21, the SCC published a final order approving APCo’s petition. The SCC found APCo’s RPS development plan to be “generally reasonable” as a planning document. The SCC, however, denied APCo’s request to construct and operate the Wythe County battery storage facility, finding it would not provide sufficient ratepayer value. The order also states that APCo’s acquisition of the Illinois wind facility is only prudent to the extent the utility can secure the projected levels of federal investment tax credits.
- SCC Staff files analysis regarding Dominion Energy transmission proposal 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 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. The County’s testimony recommends, among other things, that Dominion should be directed to bury an 8-mile section of the proposed Golden-Mars transmission line. The SCC Staff filed a Staff Report on November 12. The Staff Report found that the project is “needed” and recommends that the Commission approve an overhead route for the transmission line.
The SCC will hold an evidentiary hearing on December 15.
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