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Bill

SB 823

Electric utilities; construction of renewable energy facilities.

2025 Regular Session Introduced by Aaron Rouse

Vetoed Virginia bill would have allowed electric utilities to directly build and operate renewable energy facilities instead of purchasing power from third-party developers.

Senate sustained Governor's veto
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Bill Summary · SB 823

Legislative bill overview

SB 823 would have allowed electric utilities in Virginia to directly construct and operate renewable energy facilities, rather than relying solely on third-party developers or power purchase agreements. The bill was vetoed by the Governor on March 25, 2025, and the Senate sustained that veto on April 2, 2025, preventing it from becoming law.

Why is this important

This bill addresses how Virginia's energy transition occurs and who controls renewable energy development. It affects electricity costs, grid reliability, utility profits, and the pace of decarbonization. The outcome influences whether utilities can vertically integrate renewable generation or must work through market-based mechanisms.

Potential points of contention

  • Utility monopoly concerns: Direct utility construction could reduce competition and market innovation if utilities have advantages over private renewable developers
  • Consumer cost implications: Utilities building their own facilities may increase ratepayer costs through utility profits and capital recovery mechanisms versus competitive procurement
  • Grid management conflicts: Utilities' dual role as grid operators and energy producers could create conflicts of interest in how renewable resources are prioritized or dispatched

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

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