HB 5648 (West Virginia, 2026) — Summary of Regulation, Oversight, and Modernization of Electric Utility Provisions
Purpose and overall intent
- Reforms the regulation and oversight of electrical power provision to consumers in West Virginia.
- Seeks to prioritize customer interests, strengthen consumer protections, expand transparency around rate changes, and modernize the regulatory toolkit to include distributed energy resources and new program models (distributed power plants and community energy facilities).
Key provisions and changes
1) Policy, structure, and hearings
- Revises legislative policy to emphasize customer interests and fair, reasonable rates based on cost of service.
- Expands the public dialogue role of the Public Service Commission (PSC) with hearings requirements for certain rate actions and explicit customer notifications.
- Requires hearings for rate requests affecting large customer portions; strengthens processes for public comment and accessibility.
2) Customer protections and life support registry
- Expands PSC duties to maintain a registry of customers dependent on life-support equipment, with protections and priority for restoration after outages.
- Requires advance outage notice to affected households and prioritizes restoration for registry participants.
- Limits liability for utilities that comply with life-support notification rules.
- Defines life-support devices and coordination with emergency management agencies.
3) Customer notice and low-income protections
- Utilities must notify customers of proposed rate increases (through bill delivery or online methods).
- Article 2A creates expanded low-income rate relief (see below) and requires annual eligibility verification and annual notices of other programs.
4) Terminations for nonpayment and affordability measures
- Reforms termination rules: at least 30 days’ notice, multiple contact attempts, and plain-language information.
- Requires income-based repayment options (minimum 6% of income or $10/month, whichever is greater).
- Restrictions on terminations during winter months for gas/electric and during heat months; protections during emergencies or medical situations.
- Allocates 1% of annual energy sales revenue toward the Dollar Energy Fund and weatherization/energy-use assessments, prioritizing low-to-moderate income customers.
5) Portable solar generation devices
- Defines portable solar devices (≤1,200 watts, plug-in, UL-certified) and exempts them from interconnection agreements or notice requirements.
- Prohibits utilities from requiring PSC or utility approvals, fees, or extra controls for these devices.
6) Distributed power plant (DPP) program
- Establishes a framework for distributed power plants (aggregated behind-the-meter resources such as batteries, solar, EVs, smart devices) to provide grid services.
- Utilities must file DPP program proposals within 120 days; PSC shall approve or modify for immediate implementation.
- Multiple riders/tariffs to enroll battery, non-battery storage, and EV-oriented resources, with aggregators or direct participation.
- Allows measurement/verification at device level; enables upfront and performance-based payments; provides for up-front incentives for certain groups (e.g., low-income, environmental justice areas) using federal/state funds where available.
- Prohibits penalties for non-performance but allows disenrollment mechanisms; preserves ability to participate in other programs and incentives.
7) Utility cost recovery and incentives
- Utilities may recover prudently incurred costs to implement DPP programs, including IT and operations, with separate recovery for payments to participants.
- Allows for a reasonable return on such costs; links performance incentives to targets.
8) Performance targets and annual reporting
- PSC must set annual capacity procurement targets and performance incentives for system peak reduction and other grid services.
- Requires annual reporting on enrollment, services, and recommendations to improve participation.
9) Community energy program (CEP)
- Creates a parallel CEP with subscriber-based community energy facilities (non-utility developers may own/operate facilities; up to 750 MWac statewide cap, 10-year program, renewables mix including agrivoltaics).
- Prohibits up-front costs to subscribers, ensures accessibility for low-income customers, and guarantees bill credits for subscribers for at least 35 years after interconnection.
- Establishes interconnection standards, portability of subscriptions, and consumer protections; authorizes an interconnection working group to streamline processes.
Sunset
- The CEP provisions sunset on December 31, 2036, with grandfathering for projects approved by then.
Who is affected
- Public Service Commission, electric and gas utilities, and their customers.
- Ratepayers, including low-income households and life-support dependent individuals.
- Aggregators and direct-participant customers in the DPP program.
- Community energy facilities, subscriber organizations, and utility customers in CEP.
Timeline and procedural notes
- Various provisions require filings, rulemaking, and rule adoption timelines (e.g., DPP program filings within 120 days; program approval shortly after; interconnection working group within 90 days).
- Temporary rules for low-income rates and associated processes to be adopted within 180 days of effect.
Overall, HB 5648 aims to modernize utility regulation, expand customer protections, broaden the use of distributed energy resources, and create new market mechanisms for community and customer-driven energy solutions.