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Bill

HB 284

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

2026 Regular Session Introduced by Katrina Callsen and 5 co-sponsors

Virginia requires its utility regulator to create demand flexibility programs letting utilities incentivize customers to reduce peak electricity consumption for grid stability and cost management.

Governor's Action Deadline 11:59 p.m., April 13, 2026
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Bill Summary · HB 284

Legislative bill overview

HB 284 directs Virginia's State Corporation Commission (SCC) to establish electric demand flexibility programs that allow utilities to manage electricity consumption patterns during peak demand periods. The bill creates a regulatory framework for utilities to incentivize or compensate customers who reduce or shift their electricity usage in response to grid conditions.

Why is this important

Demand flexibility programs can reduce strain on the electrical grid during peak hours, potentially lowering infrastructure costs and improving grid reliability. This becomes increasingly critical as Virginia's electricity demand grows and renewable energy sources (which fluctuate based on weather) become more prevalent in the state's energy mix.

Potential points of contention

  • Program costs and rate impacts: Utility expenses for incentivizing demand reduction may ultimately be passed to ratepayers through higher electricity bills, raising equity concerns about who bears the costs
  • Consumer participation and fairness: Lower-income households and renters may have less ability to participate (e.g., adjusting thermostats, shifting appliance use), creating questions about equitable program design
  • Regulatory scope and utility accountability: The bill delegates substantial authority to the SCC without specifying detailed program requirements, leaving questions about performance standards, customer protections, and mandatory participation thresholds

Compiled from official sources — confirm details with the bill’s official record.

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