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Bill

HB 2266

Electric utilities; distribution cost sharing program established, etc.

2025 Regular Session Introduced by Kathy Tran and 1 co-sponsor

Virginia establishes electric utility distribution cost sharing program requiring utilities to allocate specified infrastructure expenses to customers or stakeholders, effective April 2025.

Acts of Assembly Chapter text (CHAP0658)
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Bill Summary · HB 2266

Legislative bill overview

HB 2266 establishes a distribution cost sharing program for electric utilities in Virginia, requiring utilities to share certain distribution infrastructure costs with customers or stakeholders. The bill has passed both chambers with strong bipartisan support and received gubernatorial approval, with the final enrolled version adopted on April 2, 2025.

Why is this important

This legislation directly affects how Virginia electric utilities allocate and recover infrastructure costs, which impacts consumer electricity rates and utility financial structures. The program could influence how costs for maintaining and upgrading the electrical grid are distributed across different customer classes or participant groups, affecting affordability and investment incentives.

Potential points of contention

  • Rate impact uncertainty: Without seeing the specific mechanism, it's unclear whether this shifts costs to certain customer groups, potentially raising rates for some while lowering them for others
  • Utility compliance burden: Utilities may face administrative complexity in implementing new cost-sharing frameworks while maintaining service reliability
  • Definition of "distribution costs": Disputes may arise over which infrastructure expenses qualify for cost sharing versus traditional utility cost recovery

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

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