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SB 371

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

2026 Regular Session Introduced by Jeremy McPike and 1 co-sponsor

Virginia SCC must establish demand flexibility programs incentivizing consumers to shift electricity use during peak periods, improving grid efficiency and potentially reducing costs.

Fiscal Impact Statement from State Corporation Commission (SB371)
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Bill Summary · SB 371

Legislative bill overview

SB 371 directs Virginia's State Corporation Commission (SCC) to establish and oversee electric demand flexibility programs that incentivize consumers and businesses to adjust their electricity consumption during peak demand periods. The bill incorporates provisions from SB 551 and has advanced through the Senate Commerce and Labor Committee with a substitute version.

Why is this important

Demand flexibility programs can reduce strain on the electrical grid during peak hours, potentially lowering electricity costs, reducing the need for expensive infrastructure upgrades, and decreasing reliance on peaking power plants. This approach is increasingly used to integrate renewable energy sources and improve grid stability as Virginia transitions its energy portfolio.

Potential points of contention

  • Regulatory authority and design: The SCC's discretion in program structure, incentive levels, and which consumers/businesses participate could significantly affect program effectiveness and equity of benefits
  • Cost allocation: Determining who bears program costs—whether passed to all ratepayers, only participants, or distributed differently—raises fairness concerns about cross-subsidization
  • Consumer impact and participation: Questions about whether voluntary programs achieve sufficient participation, whether low-income households can access incentives fairly, and whether rate structures adequately protect non-participants

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

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