SENATE BILL NO. 621

AMENDMENT IN THE NATURE OF A SUBSTITUTE

(Proposed by the Senate Committee on Commerce and Labor

on ________________)

(Patron Prior to Substitute—Senator Srinivasan)

A BILL to direct certain electric utilities to petition the State Corporation Commission for approval of electric grid utilization metrics.

Be it enacted by the General Assembly of Virginia:

1. § 1. No later than October 15, 2026, 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, shall petition the State Corporation Commission (the Commission) for approval of electric grid utilization metrics. Such petition may include a request that the Commission consolidate such petition with the integrated resource plan, if such plan is filed in 2026 pursuant to § 56-599 of the Code of Virginia. Such petition shall include an overview of electric grid utilization metrics, including industry standard metrics. Each Phase I and Phase II Utility shall include in such filing an assessment of current electric distribution and transmission system performance as compared with optimal utilization of existing electric grid assets, including any information necessary for the Commission to evaluate the efficiency and performance of electric distribution and transmission system infrastructure owned and operated by each Phase I and Phase II Utility. Any electric grid utilization metrics proposed by a Phase I or Phase II Utility shall include (i) the ratio of distribution system peak load to total distribution electric grid capacity, (ii) the ratio of current electric load delivered to total potential deliverable electric load over the distribution system, (iii) the percentage of kilowatt-hours of electricity lost during the distribution process or by the distribution system, (iv) an analysis of constrained circuits on the distribution system, and (v) an evaluation of the performance of the distribution system at system peaks. In conducting such proceeding, the Commission shall determine which electric grid utilization metrics shall be approved, how such metrics may be reasonably applied at the feeder and substation level, and how such metrics may be reported in future integrated resource plan filings and shall include, as appropriate, a requirement to submit seasonal assessments of electric grid utilization and implementation of the metrics. In approving any electric grid utilization metrics, the Commission shall include, as appropriate, (a) a timeline for each Phase I and Phase II Utility to increase electric grid utilization in accordance with the approved metrics and (b) a description of the ways in which such metrics may inform the Commission's consideration of future utility requests for approval of cost recovery for capital investments. In subsequent integrated resource plan filings, each Phase I and Phase II Utility shall include an assessment of current system performance relative to each proposed metric and may propose new or modified electric grid utilization metrics for Commission approval.

§ 2. The Commission shall include in its annual report to the Commission on Electric Utility Regulation and the Governor required by § 56-596 of the Code of Virginia its findings on each Phase I and Phase II Utility's assessment of relevant grid utilization metrics and performance against those metrics relative to the requirements of this act, including the timeline established by the Commission for each such utility. In such report, the Commission shall also analyze the potential for each Phase I or Phase II Utility to increase electric grid utilization through the deployment of non-wires alternatives, including (i) energy storage resources; (ii) customer-owned or customer-financed capacity resources; (iii) utility-owned or utility-contracted distributed generation resources; (iv) virtual power plants, including by using the pilot program investments and tariff under § 56-585.1:16 of the Code of Virginia; (v) flexible transmission and transmission static synchronous compensators; (vi) synchronous condensers; and (vii) power quality monitoring equipment installed at the point of interconnection for all customers with a measured or contracted demand of 25 megawatts or greater. In conducting such analysis, the Commission may request any information necessary from each Phase I or Phase II Utility to properly evaluate such utility's deployment of non-wires alternatives or other methods to improve electric grid utilization in the Commonwealth.