Virginia’s Grid Transformation and Security Act of 2018 aims to return money to utility customers, unwind an existing rate freeze, reform the oversight process for electric utilities, and establish a path to investing in long-term, sustainable energy technologies and grid modernization. The law prioritizes investment in renewable energy, grid modernization and undergrounding power lines, helping lower costs over the long run.
Specifically, the law increases the amount of capacity of solar and wind generation facilities constructed by a utility that are in the public interest from 50 megawatts to 5,000 megawatts. It determines that electric distribution grid transformation projects, offshore wind generation facilities with a capacity of not more than 16 megawatts, and all onshore wind generation facilities, are in the public interest and that the costs thereof may be recovered either through a rate adjustment clause or through a customer credit reinvestment offset. The law directs the SCC to conduct pilot programs for the deployment of electric power storage batteries. It requires utilities to develop programs of energy conservation measures, with combined budgets over $1B.
Energy efficiency advocates have lauded the legislation for barring utilities from rejecting efficiency investments on the sole basis of a Ratepayer Impact Measure text, and for securing utility commitment to spend $1B million on utility energy efficiency and demand response programs.