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HB 898

Electric utilities, certain; SCC to determine maximum amount of fees for disconnection, etc.

2026 Regular Session Introduced by Dan Helmer and 1 co-sponsor

Virginia bill prohibits utilities from disconnecting customers for nonpayment and bans certain collection fees, prioritizing consumer protection over debt enforcement mechanisms.

Approved by Governor-Chapter 697 (effective 7/1/2026)
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Bill Summary · HB 898

Legislative bill overview

HB 898 restricts Virginia utilities from disconnecting customers for nonpayment of electric, gas, water, and wastewater services and prohibits certain fees associated with collection efforts. The bill imposes payment protections that would limit utilities' traditional enforcement mechanisms for unpaid bills.

Why is this important

Utility disconnections create serious public health and safety risks, particularly for vulnerable populations during extreme weather. However, unpaid utility debt ultimately shifts costs to paying customers through rate increases, and disconnection restrictions may incentivize payment avoidance while reducing utilities' ability to maintain financial sustainability.

Potential points of contention

  • Cost burden shift: Restricting disconnections without alternative debt collection mechanisms may increase bad debt write-offs, potentially raising rates for other ratepayers
  • Utility solvency concerns: Water and wastewater utilities operate on thin margins; nonpayment restrictions could strain capital funding for infrastructure maintenance and upgrades
  • Policy specificity unclear: The substitute version's exact language on "certain fees prohibited" and disconnection timelines remains unclear from available information; different interpretations could significantly impact implementation

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

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