SB 1281 Virginia Senate · 2025 Regular Session

Electric utilities; retail competition.

Summary

Electric utilities; retail competition. Authorizes a customer who is a customer of a Phase I Utility that had a typical residential customer bill for a residential customer using 1,000 kWh per month that exceeded 125 percent of the statewide average during the most recent calendar year to purchase electric energy from any supplier of electric energy licensed to sell retail electric energy within the Commonwealth. The bill also decreases the period that such a customer who switches from an investor-owned electric utility to a competing supplier is barred from returning as a customer of its utility from five years to 90 days.

Issues: ✓ Energy

Bill status in committee 1 of 4 stages cleared

Introduction

Jan 2025

Committee Review

Floor Vote

Governor

Introduced Jan 8, 2025 Last action Jan 27, 2025

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What changed between versions

Introduced → Commerce and Labor Substitute · 7 edits

MODERATE

The bill was converted from an original introduction to a substitute version with a completely new focus. The original bill amended existing electric utility competition rules, while the substitute version creates an entirely new pilot program for municipal aggregation of electricity purchases. This represents a significant policy shift from individual customer competition to government-led bulk purchasing negotiations.

Scope change

The bill's scope changed from amending existing retail competition provisions (§ 56-577) to creating a new municipal aggregation pilot program (§ 56-589.2) that allows local governments to negotiate electricity purchases on behalf of residents and businesses.

SCOPE

New section 56-589.2 establishes a municipal aggregation pilot program allowing counties, cities, and towns to aggregate electricity demand for bulk purchasing negotiations with licensed suppliers.

TIMELINE

The pilot program has a specific timeline with Phase I Utility implementation beginning December 1, 2025, and the program expiring December 31, 2028.

REQUIREMENT

New requirement that participating municipalities must provide terms and conditions of agreements to the Commission, which must report on program effectiveness by December 1, 2027.

New 90-day advance notice requirement for customers returning to Phase I Utility after participating in the municipal aggregation pilot.

ELIGIBILITY

Original provisions regarding individual customer eligibility thresholds (1,000 kWh usage, 125% of average bills, 5 megawatt demand limits) were removed entirely.

Customer eligibility changed from individual customers meeting specific usage thresholds to all residential, commercial, and industrial customers within municipality boundaries not already served by licensed suppliers.

TECHNICAL

Added provisions ensuring incumbent utilities cannot improperly incorporate aggregated customer loads into their resource planning forecasts.

Floor votes

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Full legislative history

Actions timeline

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Key actions

Committee

Jan 8, 2025

Committee

Referred to Committee on Commerce and Labor

upper

1 primary · 2 co-sponsors