SB 371: Electric utilities; electric demand flexibility programs, high energy demand customers, report. - Virginia

Subcommittee #3 Subcommittee Substitute → Chaptered · 5 edits

MODERATE

The bill was finalized into law, changing the header from a House substitute to an approved Senate chapter. The substantive policy text remains largely the same, with only minor formatting adjustments to section citations and a slight rewording of the definition for 'High energy demand customer' to improve clarity.

Scope change

The bill's scope remains focused on regulating electric demand flexibility programs for high-energy customers in Virginia, with no changes to which entities are covered.

TECHNICAL

Updated the document header from 'HOUSE SUBSTITUTE' to 'CHAPTER 378' and added the approval date, indicating the bill has passed into law.

Added a bill identifier '[S 371]' to the act title.

DEFINITION

Adjusted the citation for the defense facility exemption from '§ 18.2-121.3' to '§ 18.2-121.3' (adding a space) and updated the citation for Phase Utility definitions to include a space before the section number.

Rephrased the definition of 'High energy demand customer' to change 'and an anticipated or measured' to 'and an anticipated or measured average annual electric load factor of 75 percent or greater and that is not a contracted defense facility', clarifying the structure of the criteria.

REQUIREMENT

Updated the reporting requirement in subsection F to cite '§ 56-596' with a space before the section number for consistency.

Enrolled → Commerce and Labor Substitute · 5 edits

MODERATE

The bill was converted from an enacted law into a Senate substitute version, which involved significant changes to deadlines, definitions, and program requirements. The most critical change is the shift of the deadline for utilities to file petitions from January 15, 2027, to January 1, 2027, and the final order deadline from November 30, 2027, to December 31, 2027. Additionally, the definition of a 'high energy demand customer' was simplified by removing specific exclusions for defense facilities and changing the load factor criteria from 'anticipated or measured' to 'actual or expected.' The text also removed detailed requirements for utilities to analyze specific forms of demand flexibility in their petitions, instead placing that analysis responsibility on a technical work group for cooperatives.

Scope change

The bill's scope regarding which entities must act and by when has been modified, specifically tightening the timeline for utilities to propose programs and altering the criteria for customer eligibility.

TIMELINE

The deadline for utilities to file petitions for demand flexibility programs was moved from January 15, 2027, to January 1, 2027, and the deadline for the Commission to issue a final order was extended from November 30, 2027, to December 31, 2027.

ELIGIBILITY

The definition of a 'high energy demand customer' was simplified by removing the exclusion for contracted defense facilities and changing the load factor requirement from 'anticipated or measured' to 'actual or expected.'

REQUIREMENT

The requirement for utilities to provide detailed analysis of all demand flexibility forms in their petitions was removed; this analysis is now primarily the responsibility of a technical work group convened by cooperatives.

DEFINITION

The definition of 'demand flexibility' was slightly shortened by removing the specific phrase 'lowering electric grid system load requirements' and consolidating the description.

TECHNICAL

The bill text was reformatted from an 'Enrolled' version (final law) to a 'Commerce and Labor Substitute' draft, which includes different header information and line numbering.

Introduced → Enrolled · 5 edits · Apr 8, 2026

MODERATE

The bill was finalized as law, shifting responsibility from the State Corporation Commission to create programs to requiring utilities to file their own voluntary program proposals. The definition of 'high energy demand customer' was expanded to exclude specific defense facilities, and the timeline for program implementation was accelerated, moving the start date from 2028 to 2027.

Scope change

The bill's scope was modified to include a specific exemption for contracted defense facilities from the new demand flexibility requirements.

TIMELINE

The deadline for Phase I and Phase II utilities to file program proposals was moved from January 1, 2028, to January 15, 2027, accelerating the implementation schedule.

DEFINITION

The definition of 'high energy demand customer' was updated to explicitly exclude contracted defense facilities as defined in state law.

A new definition for 'capacity reduction credit' was added to clarify the unit of measurement for demand flexibility.

REQUIREMENT

Utilities must now file petitions for voluntary demand flexibility programs rather than waiting for the Commission to establish them by regulation.

The requirement for cooperatives to establish programs was changed from a Commission-regulated process to a utility-initiated process with Commission approval.

Labor and Commerce Substitute → Subcommittee #3 Subcommittee Substitute · 1 edit

MINOR

The document primarily reflects formatting and layout adjustments rather than substantive policy changes. The text of the bill itself, including definitions, deadlines, and requirements for utilities and cooperatives, remains identical to the original version. The main differences are the removal of the 'Labor and Commerce Substitute' header and the addition of 'HOUSE SUBSTITUTE' branding, along with significant whitespace and alignment changes.

TECHNICAL

The header identifying the bill as a 'Labor and Commerce Substitute' was removed and replaced with 'HOUSE SUBSTITUTE' branding and additional spacing.

Commerce and Labor Substitute → Labor and Commerce Substitute · 5 edits

MODERATE

The bill was amended to shift control from the Senate to the House, changing the committee name and proposal date. Substantive changes include expanding the definition of 'high energy demand customer' to exclude specific defense facilities, adjusting petition and order deadlines to earlier dates in 2027, and clarifying that utilities must propose capacity reduction credits rather than the Commission establishing them unilaterally.

Scope change

The bill's scope was slightly narrowed by adding an exemption for contracted defense facilities from the 'high energy demand customer' definition, while the overall applicability to utilities and cooperatives remains the same.

DEFINITION

Added a new definition for 'capacity reduction credit' and expanded the definition of 'high energy demand customer' to explicitly exclude contracted defense facilities.

TIMELINE

Changed the deadline for utilities to file petitions from January 1, 2027, to January 15, 2027, and the deadline for the Commission to issue final orders from December 31, 2027, to November 30, 2027.

REQUIREMENT

Shifted the responsibility for proposing capacity reduction credit mechanisms from the Commission to the utilities in their petitions, requiring the Commission to approve these proposals.

ENFORCEMENT

Modified the language regarding carbon-emitting resources from a prohibition on using them to meet standards to a rule making them ineligible for participation in the program.

TECHNICAL

Changed the bill header from 'Commerce and Labor Substitute' to 'Labor and Commerce Substitute' and updated the proposing committee to the House Committee on Labor and Commerce.

Electric utilities; electric demand flexibility programs, high energy demand customers, report.

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