SB 691 Virginia Senate · 2026 Regular Session

State Corporation Commission; Phase I Utility biennial rate review, reports.

Summary

State Corporation Commission; Phase I Utility; biennial rate review; reports. Directs the State Corporation Commission to adhere to certain requirements and consider certain enumerated factors in its 2026 review of the rates, terms, and conditions for the provision of generation and distribution services by Appalachian Power. The bill prohibits the Commission from approving a rate of return on common equity that is greater than the rate of return approved by the Commission as part of Appalachian Power's preceding biennial rate review unless Appalachian Power demonstrates that such increase is the approach to maintaining reasonable access to capital that results in the lowest cost to customers. The bill directs the Commission to conduct reviews of Appalachian Power's terms of service and rates for electric transmission and efforts to address rising costs of severe weather events. The bill also directs the Office of the Attorney General to conduct a study of the methods used to determine the cost of equity capital for investor-owned utilities.

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2026

Committee Review

Floor Vote

Governor

Introduced Jan 14, 2026 Last action Feb 12, 2026

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What changed between versions

Introduced → Commerce and Labor Substitute · 6 edits

MODERATE

The bill was amended from an original introduction to a Commerce and Labor Committee substitute version. The substitute version significantly softens the language around rate of return determinations, shifting from mandatory requirements to discretionary authority for the Commission. It also changes the burden of proof for certain cost recovery issues and modifies the scope of certain review requirements.

Scope change

The bill's scope remains focused on State Corporation Commission oversight of Phase I Utility rate reviews, but the specific requirements and enforcement mechanisms have been substantially modified.

REQUIREMENT

Changed from mandatory 'shall adhere to' requirements to discretionary 'shall consider' language, giving the Commission more flexibility in implementing rate review requirements.

Replaced strict prohibitions on rate of return increases with language allowing the Commission to adopt the lowest fair and reasonable rate of return within an approved range.

Modified capacity procurement review from Commission directing utilities to lowest-cost methods to requiring utility staff to file comparative cost reports.

Modified transmission review language from 'ensure lowest reasonable costs' to 'ensure lowest reasonable costs and identify opportunities for cost savings'.

ENFORCEMENT

Changed from requiring utilities to demonstrate cost of capital approaches to allowing the Commission to disallow recovery of costs associated with expert testimony using previously found unreasonable methodologies.

Changed cost recovery prohibitions from Commission determinations to creating a rebuttable presumption that certain costs are unreasonable.

Floor votes

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Full legislative history

Actions timeline

Total actions

Key actions

Committee

Feb 12, 2026

Upper · Passed

Senate committee offered

upper

Jan 14, 2026

Committee

Referred to Committee on Commerce and Labor

upper

1 primary · 3 co-sponsors