HOUSE BILL NO. 892

AMENDMENT IN THE NATURE OF A SUBSTITUTE

(Proposed by the House Committee on Labor and Commerce

on ________________)

(Patron Prior to Substitute—Delegate Shin)

A BILL to amend and reenact § 56-598 of the Code of Virginia, relating to electric utilities; integrated resource plans; State Corporation Commission to investigate electric load forecasts.

Be it enacted by the General Assembly of Virginia:

1. That § 56-598 of the Code of Virginia is amended and reenacted as follows:

§ 56-598. Contents of integrated resource plans.

An IRP should:

1. Integrate, over the planning period, the electric utility's forecast of demand for electric generation supply with recommended plans to meet that forecasted demand and assure adequate and sufficient reliability of service, including:

a. Generating electricity from generation facilities that it currently operates or intends to construct or purchase;

b. Purchasing electricity from affiliates and third parties;

c. Reducing load growth and peak demand growth through cost-effective demand reduction programs; and

d. Utilizing energy storage facilities to help meet forecasted demand and assure adequate and sufficient reliability of service;

2. Identify a portfolio of electric generation supply resources, including purchased and self-generated electric power, that:

a. Consistent with § 56-585.1, is most likely to provide the electric generation supply needed to meet the forecasted demand, net of any reductions from demand side programs, so that the utility will continue to provide reliable service at reasonable prices over the long term; and

b. Will consider low cost energy/capacity available from short-term or spot market transactions, consistent with a reasonable assessment of risk with respect to both price and generation supply availability over the term of the plan;

3. Reflect a diversity of electric generation supply and cost-effective demand reduction contracts and services so as to reduce the risks associated with an over-reliance on any particular fuel or type of generation demand and supply resources and be consistent with the Commonwealth's energy policies as set forth in § 45.2-1706.1; and

4. Provide information related to forecasting the utility's compliance with the renewable energy portfolio standard obligations under § 56-585.5 over the planning period. In forecasting compliance with such obligations, the utility shall not include the compliance requirements associated with (i) accelerated renewable energy buyers under contract with the utility as provided in subsection G of § 56-585.5 or (ii) customers purchasing electric energy from a licensed supplier under § 56-577; and

5. Include such additional information as the Commission requests pertaining to how the electric utility intends to meets its obligation to provide electric generation service for use by its retail customers over the planning period.

2. That no later than March 1, 2027, the State Corporation Commission (the Commission) shall initiate a single proceeding to investigate electric load forecasting practices by (i) each Phase I and Phase II Utility, as such terms are defined in subdivision A 1 of § 56-585.1 of the Code of Virginia, including electric load forecasting services performed on behalf of an electric distribution cooperative organized under Article 1 (§ 56-231.15 et seq.) of Chapter 9.1 of Title 56 of the Code of Virginia, and (ii) each electric distribution cooperative organized under Article 1 (§ 56-231.15 et seq.) of Chapter 9.1 of Title 56 of the Code of Virginia. In conducting such proceeding, the Commission shall evaluate the methodologies, data, and assumptions used by the applicable utilities and cooperatives in developing electric load forecasts submitted to the regional transmission entity, PJM Interconnection, LLC (PJM). In conducting such proceeding, the Commission shall (a) review the materials, data sets, and filings provided to PJM for load forecasting purposes by the applicable utilities and cooperatives; (b) evaluate the accuracy, consistency, and transparency of load forecasting methods and assumptions among the applicable utilities and cooperatives; and (c) determine whether such utilities are incorporating risk minimization terms into the load forecast, including financial commitments, minimum demand obligations, and other terms that may also be provisions of large load customer tariffs or contracts. The Commission may require the parties to provide anonymized data sets sufficient to permit a third party to replicate load forecast results and identify potentially duplicative load data, subject to any confidentiality protections deemed appropriate to protect consumer-specific information. In conducting such proceeding, the Commission shall coordinate with PJM to confirm that the load forecasts provided by the applicable utilities and cooperatives are incorporated in regional planning processes on a fair, accurate, and nonduplicative basis.