A BILL to amend the Code of Virginia by adding a section numbered 56-580.1, relating to electric utilities; certificate of operation for high-load facilities.
HB155 creates a new State Corporation Commission permitting requirement for “high-load facilities,” defined as new facilities, or groups of facilities treated as one, with electricity demand or contracted capacity above 25 megawatts that were not operating before July 1, 2026. Before operating, such a facility would need a certificate of operation issued after notice and hearing, and the Commission would have to find that the facility will not materially harm customer rates, electric reliability, compliance with energy and environmental laws, or the Commonwealth Clean Energy Policy, and is otherwise in the public interest.
In reviewing applications, the Commission must consider environmental and public health impacts, grid capacity, notice to the incumbent utility, public disclosure of energy use and impacts, cumulative effects of multiple facilities in one area, economic development benefits, and whether the project would create an unreasonable cross-subsidy for other utility customers. The bill also allows the Commission to impose conditions to reduce adverse impacts and creates a presumption in favor of approval if the facility secures energy storage or zero-carbon generation contracts, or adopts offsetting measures such as efficiency, demand response, load shedding, or load reassignment. If the new requirements conflict with other laws, including a utility’s duty to serve, this bill would control, and the Commission may adopt rules to implement it.
HB155 would add a new regulatory layer to Virginia utility law by requiring large new electricity users to obtain a certificate of operation from the State Corporation Commission before beginning service. It would affect developers and operators of data centers, industrial facilities, and other large-load projects, while also affecting incumbent electric utilities, ratepayers, and the Commission’s permitting and oversight responsibilities. The bill would effectively subordinate conflicting service-obligation provisions, including § 56-234, to the new high-load facility approval process.
The bill appears aimed at addressing concerns about rapid growth in large electricity loads, grid reliability, customer rate impacts, and environmental consequences, while still allowing such projects to proceed if they can demonstrate mitigation measures or clean-energy support. Because there are no recorded committee transcripts or votes, there is no direct evidence of debate or bipartisan support in the available record. The bill’s referral and final status of being left in the Labor and Commerce Committee suggest it did not advance, but the available materials do not show the specific reasons.
The main points of contention likely involve whether the State Corporation Commission should have authority to approve or block large-load facilities based on broad public-interest criteria, and whether the bill could slow economic development or data center expansion. Opponents may object to the presumption that the new requirements override a utility’s obligation to serve, while supporters would likely emphasize protection of ratepayers, reliability, environmental compliance, and local public health. Another likely dispute is the bill’s treatment of cross-subsidies and the requirement that facilities secure zero-carbon or storage resources, which could increase costs or complicate project development.