On June 29, 2020, the Virginia State Corporation Commission (“SCC” or “Commission”) established a new energy storage rulemaking proceeding for the purpose of implementing the requirements of the Virginia Clean Economy Act (“VCEA”). The VCEA, 2020 House Bill 1526, requires Virginia’s two largest utilities, Dominion Energy Virginia (“Dominion”) and Appalachian Power Company (“APCo”), to construct or acquire a total of 3,100 MW of new storage resources between 2020 and 2035. The law requires Dominion to construct or acquire 2,700 MW of new storage resources, while APCo must construct or acquire 400 MW.
Section 56-585.5 E of the VCEA directs the Commission to “adopt regulations [necessary] to achieve the deployment of energy storage for the Commonwealth required in [the VCEA], including regulations that set interim targets and update existing utility planning and procurement rules.” The VCEA also directs the SCC to evaluate “programs and mechanisms to deploy energy storage, including competitive solicitations, behind-the-meter incentives, non-wires alternatives programs, and peak demand reduction programs.”
The Commission’s order requests comments from interested parties, including utilities and storage developers, regarding how to implement the VCEA’s storage requirements. The SCC asked commenters to address several questions, including what interim targets should be established; whether the SCC should update its competitive procurement regulations; and whether the regulations should mandate or limit any particular type of storage facility or technology. The SCC also asked if the regulations should address non-utility-owned facilities.
Comments must be filed on or before July 29. The rulemaking is docketed as Case No. PUR-2020-00120.
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