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SB 651

Underground electric distribution & transmission improvement.; levy on utility customers by ordinance.

2026 Regular Session Introduced by Russet Perry

SB 651 allows Virginia localities to charge utility customers a special levy via local ordinance to fund converting overhead electric lines underground, shifting infrastructure costs to ratepayers.

Senate acceded to request
0
WeVote Research Nonpartisan
Bill Summary · SB 651

Legislative bill overview

SB 651 authorizes Virginia localities to impose a levy on utility customers through local ordinance to fund the undergrounding of electric distribution and transmission lines. The bill enables municipalities to create a dedicated funding mechanism for infrastructure improvement projects that convert overhead power lines to underground systems.

Why is this important

Undergrounding electrical infrastructure reduces outages from weather events, improves aesthetics, and enhances public safety by eliminating overhead hazards. However, it requires substantial capital investment—undergrounding costs 6-10 times more than maintaining overhead lines—making this funding authorization significant for communities pursuing this modernization but lacking resources.

Potential points of contention

  • Cost burden on ratepayers: New levies would increase utility bills for all customers, potentially impacting low-income households disproportionately, regardless of whether they benefit from undergrounding in their area
  • Scope and prioritization ambiguity: The bill doesn't specify which areas qualify for undergrounding or how communities should prioritize projects, potentially creating equity concerns about uneven infrastructure investment
  • Regulatory oversight gaps: The ordinance-based approach grants significant local discretion without clear state standards for levy rates, project timelines, or performance accountability measures

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

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