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SB 377

Electric substation construction agreements; "electric cooperatives" or "cooperative", definitions.

2026 Regular Session Introduced by Lamont Bagby and 3 co-sponsors

SB 377 permits Virginia utility consumer cooperatives to construct and operate electrical substations, potentially enabling local infrastructure development and renewable energy integration outside traditional utility control.

Acts of Assembly Chapter text (CHAP0022)
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Bill Summary · SB 377

Legislative bill overview

SB 377 authorizes utility consumer services cooperatives in Virginia to construct and operate electrical substations. The bill expands the operational scope of these cooperatives beyond their traditional consumer service functions to include physical infrastructure development for electricity distribution.

Why is this important

This change could enable rural and underserved communities to develop local electrical infrastructure without relying solely on traditional utility companies. It may reduce barriers to renewable energy integration and microgrid development, while potentially affecting how electricity is distributed and maintained across Virginia's service territories.

Potential points of contention

  • Regulatory oversight: Unclear whether existing Public Utilities Commission regulations adequately cover cooperative-constructed substations, potentially creating regulatory gaps or conflicts with incumbent utilities
  • Cost allocation and liability: Questions about who bears responsibility for maintenance, grid reliability, and cost overruns if cooperatives lack utility-scale operational experience
  • Market competition: Incumbent utilities may oppose expanded cooperative authority as competitive threat to their infrastructure monopolies and revenue streams

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

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