An Act 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.
HB892 amends Virginia’s integrated resource planning statute for electric utilities. It updates the list of information that an integrated resource plan (IRP) should include, emphasizing how utilities forecast demand, identify generation and purchased power resources, consider demand reduction and energy storage, and report on compliance with renewable portfolio standard obligations. The bill also clarifies that, when forecasting renewable compliance, utilities should not count certain obligations tied to accelerated renewable energy buyers or customers served by licensed suppliers.
The bill’s most significant new requirement is that the State Corporation Commission must, by March 1, 2027, open a single proceeding to investigate electric load forecasting practices used by Phase I and Phase II utilities and electric distribution cooperatives, including forecasting work done for cooperatives. The Commission must examine the methodologies, data, and assumptions used in forecasts submitted to PJM Interconnection, review the materials provided to PJM, compare accuracy and transparency across utilities, and assess whether utilities are incorporating risk-minimization terms such as financial commitments and minimum demand obligations. The Commission may also require anonymized data sets so a third party can replicate forecast results, subject to confidentiality protections.
HB892 directly affects § 56-598 of the Code of Virginia governing integrated resource plans and adds a new Commission-directed investigation into load forecasting practices. It expands the informational expectations for IRPs and gives the State Corporation Commission a formal role in reviewing how utilities and cooperatives forecast electric load for PJM submissions. The bill affects Phase I and Phase II investor-owned utilities, electric distribution cooperatives, and, indirectly, large-load customers and licensed suppliers whose arrangements may influence forecast assumptions and renewable compliance calculations.
The available record does not include committee transcripts or recorded votes, so there is no detailed public debate to characterize. Based on the bill’s enactment, the overall sentiment appears to have been sufficiently favorable for passage. The structure of the bill suggests a policy interest in improving forecasting accuracy, transparency, and regulatory oversight rather than a partisan or highly controversial change.
The main points of potential contention are likely to be the scope of the Commission’s investigation, the burden on utilities and cooperatives to produce detailed forecasting materials, and the handling of confidential or customer-specific data. Utilities may be concerned about regulatory scrutiny of PJM load forecasts and the possibility that third-party replication could expose methodological weaknesses or impose compliance costs. Large-load customers and parties to special tariffs or contracts may also be affected because the bill specifically directs the Commission to examine whether such commitments are being incorporated into load forecasts.