Below is our firm’s summary of notable energy regulatory activity at the Virginia State Corporation Commission (“SCC” or “Commission”) during September, 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:
- Dominion Energy and NextEra request leave to amend merger petition; Attorney General and respondents argue that proposed amendments should restart the statutory review period – Case No. PUR-2026-00112
On July 15, 2026, Dominion Energy (“Dominion”), NextEra, and their affiliated companies filed a joint merger petition at the SCC. NextEra, a large utility holding company based in Florida, proposes to acquire Dominion and its subsidiaries through a transaction valued at approximately $77 billion. The combined companies would be the world’s largest utility holding company by market capitalization. Under the proposal, Dominion would become a subsidiary of NextEra but remain a Virginia electric utility regulated by the SCC. Dominion shareholders would own approximately 25.5% of the combined company. The petition includes a list of “merger commitments,” including customer rate credits and commitments to maintain current Virginia staffing levels and Dominion’s Richmond headquarters.
The SCC must review the proposed transaction under the Utility Transfers Act (Chapter 5 of Title 56 of the Code of Virginia). In particular, Code Section 56-88.1 provides that any “acquisition or disposition of control of a public utility” is subject to SCC review and approval. The Transfers Act, at Section 56-90, requires the SCC to determine whether the proposed transaction will “impair or jeopardize” Dominion’s ability to provide adequate electric service at just and reasonable rates. Virginia Code Section 56-88.1 allows the Commission a maximum of 180 days to review merger proposals after the filing of a completed petition.
On September 14, the utilities filed a motion for leave to amend their July 15 petition by offering additional merger commitments. The new commitments would include additional bill credits for residential customers; $100 million to support low-income assistance programs; a $100 million workforce development fund; a commitment to build a new office tower in downtown Richmond; and a commitment to establish a “Virginia Supplier Program” with spending commitments of up to $1 billion annually for five years.
On September 18, the Attorney General filed a response arguing that the SCC should not approve the proposed amendments without extending the procedural schedule and postponing the evidentiary hearing by two months. Thirteen other respondents also filed a response on September 18. These respondents argue that the amendments materially change the utilities’ proposal and that the Commission should treat the amended filing as a new petition that restarts the statutory review period.
- SCC approves increase to Dominion Energy fuel recovery rider; separately approves securitization of unrecovered fuel balance – Case No. PUR-2026-00058
On May 1, 2026, Dominion Energy Virginia filed an application to increase its fuel recovery rider, called the “fuel factor.” Dominion’s fuel factor consists of a current period recovery factor and a prior period recovery factor. For the current period, Dominion projects fuel expenses of approximately $2.69 billion during the next rate year. For the prior period recovery factor, Dominion reports an unrecovered balance of approximately $1.1 billion. Dominion states that approximately $567 million of the unrecovered fuel balance was incurred during January 2026 as a result of extremely cold winter weather.
Dominion presented two options for the Commission’s consideration. Dominion’s “Standard Recovery Option” would recover all current and prior period fuel charges over the next rate year, increasing the monthly bill of a typical residential customer using 1,000 kWh by approximately $21.79. Dominion also presented a “Securitization Option,” under which the utility would recover a portion of its unrecovered fuel balance through bonds issued by a special purpose entity. Dominion estimated that the Securitization Option would initially increase the monthly bill of a typical residential customer by approximately $7.97, with an additional securitization charge of approximately $1.80 per month beginning in January 2027.
Dominion filed a separate securitization petition on May 29 in Case No. PUR-2026-00078. On September 29, the SCC published a final order approving Dominion’s Securitization Option fuel factor of 3.7648 cents per kWh, consisting of a 3.6749-cent current period factor and a 0.0899-cent prior period factor. In a separate financing order issued the same day, the SCC approved approximately $931.85 million in deferred fuel costs and fees for securitization and recovery through a separate customer charge over approximately seven years.
- SCC Staff recommends decrease to Appalachian Power Company base rates in biennial review proceeding – 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 states 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 increase is attributable to the utility’s request for a higher authorized 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, an increase from the currently approved 9.75%. APCo estimates that its proposal would increase the monthly bill of a residential customer using 1,000 kWh by approximately $9.10.
The SCC Staff filed direct testimony on September 16 recommending a $5.5 million decrease to APCo’s base rates. Staff’s proposed decrease is based on several factors, including a recommended ROE of 9.65%. Staff also recommends that approximately $36 million in projected vegetation management expenses should not be recovered through base rates.
The Commission will hold an evidentiary hearing beginning on October 20.
- Dominion Energy Virginia requests increase to distribution rider to support additional grid enhancements and undergrounding projects – Case No. PUR-2026-00126
On August 12, 2026, Dominion Energy Virginia filed a petition to increase its distribution rate adjustment clause, designated “Rider DIST,” for the rate year beginning June 1, 2027. Rider DIST recovers costs associated with Dominion’s Grid Transformation Plan, Strategic Underground Program (“SUP”), and Rural Broadband Program. Dominion requests approval to recover approximately $463.5 million through the rider, including $196.0 million for grid transformation projects, $230.3 million for the SUP, and $37.1 million for rural broadband projects.
Among other things, Dominion proposes to underground approximately 295 miles of outage-prone distribution lines through the next phase of its SUP, at an estimated cost of $230.1 million. Dominion states that its Grid Transformation Plan is focused on “facilitating the integration of distributed energy resources” and “enhancing grid reliability and security.” If approved as proposed, the revised Rider DIST would increase the monthly bill of a typical residential customer using 1,000 kWh by approximately $3.46.
The SCC published a procedural order for this case on September 11. Interested parties may intervene in the case by filing a notice of participation on or before November 9. The SCC will hold an evidentiary hearing on February 17, 2027.
- SCC approves decrease to Appalachian Power fuel rider – Case No. PUR-2025-00147
On September 12, 2025, Appalachian Power Company filed an application to reduce its fuel recovery rider, called the “fuel factor.” Virginia Code § 56-249.6 allows utilities to recover prudently incurred fuel costs, including purchased power expenses, through a separate rider. In supporting testimony, APCo states that the higher fuel rates in effect since 2023 have allowed the company to significantly reduce its unrecovered fuel balance. APCo also states that natural gas prices have decreased somewhat from 2022–2023 market highs.
APCo estimates that the decrease will reduce the monthly bill of a residential customer using 1,000 kWh by approximately $10. The SCC previously allowed the reduced fuel factor to take effect on an interim basis beginning November 1, 2025.
The SCC approved APCo’s application in a final order published on September 9, 2026.
Renewable energy, energy efficiency, and electrification programs:
- SCC opens rulemaking to implement increased energy storage requirements – Case No. PUR-2026-00141
On September 29, the SCC published an order opening a rulemaking to amend its regulations governing the deployment of energy storage. The rulemaking implements 2026 legislation that substantially increased Virginia’s statutory energy storage requirements and extended the deadlines for meeting those requirements.
Under the proposed regulations, Dominion Energy Virginia, a Phase II utility, would be required to petition for approval to construct or acquire 4,000 MW of short-duration energy storage by 2030, 7,500 MW by 2035, 11,000 MW by 2040, and 16,000 MW by 2045. The proposed regulations define “short-duration energy storage” as storage with less than 10 hours of generation capacity. Appalachian Power, a Phase I utility, would be required to construct, acquire, or procure 780 MW by 2040.
The proposed regulations would also extend the requirement that each utility conduct at least one competitive solicitation for energy storage projects annually through 2045 or until its storage target is met. The proposed regulations generally track the 2026 legislation but also include new interim storage targets for Dominion and certain changes to the existing storage procurement rules.
Comments on the proposed amendments are due November 2, 2026, and the SCC Staff must respond by December 2, 2026.
- SCC resets bill credit rates for Dominion Energy and Kentucky Utilities shared solar programs – Case No. PUR-2020-00124 and PUR-2020-00125
In 2020, the General Assembly passed legislation requiring the SCC to promulgate regulations for a shared solar program specifically designed for Dominion Energy Virginia and Kentucky Utilities customers living in multifamily housing facilities. Under a shared solar program, customers are permitted to purchase—or “subscribe to”—a portion of a qualifying solar facility. The customer thereafter receives a bill credit corresponding to the output from the facility. The multifamily shared solar program requirements are codified in Va. Code § 56-585.1:12. A separate statute, Va. Code § 56-594.3, implements a general shared solar program for Dominion customers that is not limited to customers living in multifamily housing facilities.
The SCC reviews bill credit rates annually. On September 3, 2026, the SCC published an order increasing the bill credit rates for the Dominion and Kentucky Utilities multifamily shared solar programs to 13.528 cents and 15.316 cents per kWh, respectively.
On September 4, the Commission published a separate order in Case No. PUR-2020-00125 resetting bill credit rates for Dominion’s general shared solar program. The revised rates are 13.528 cents per kWh for residential customers, 8.758 cents per kWh for commercial customers, and 7.722 cents per kWh for industrial customers. The revised credit rates became effective October 1, 2026.
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