On June 29, 2020, the Virginia State Corporation Commission (the “Commission”) issued an Order initiating a proceeding to establish rules and regulations related to the deployment of energy storage (the “Order”).
As background, the Virginia Clean Economy Act (the “VCEA”), enacted by the General Assembly in 2020, requires Virginia Electric and Power Company (“Dominion”) and Appalachian Power Company (“APCo”) to petition the Commission for approval to construct or acquire 2,700 MWs and 400 MWs, respectively, of new utility-owned energy storage resources by 2035. Pursuant to Virginia Code § 56-585.5 E 5, “[b]y January 1, 2021, the Commission shall adopt regulations to achieve the deployment of energy storage for the Commonwealth required in subdivisions 1 and 2, including regulations that set interim targets and update existing utility planning and procurement rules. The regulations shall include programs and mechanisms to deploy energy storage, including competitive solicitations, behind-the-meter incentives, non-wires alternatives programs, and peak demand reduction programs.”
By its Order, the Commission directed APCo and Dominion to submit comments within 30 days of the Order, and is permitting other interested parties to submit comments regarding certain issues identified in the Order. In particular, the Commission seeks comments concerning the following questions (among several others identified in the Order):
In addition, commenters may also propose specific regulations.
The proceeding is docketed as Case No. PUR-2020-00120. Comments to the Commission are due by July 29, 2020.
For more information, please contact Brad Nowak, co-Chair of Williams Mullen’s Solar and Renewable Energy team.