SB 621: Virginia General Assembly Passes Landmark Grid Utilization & Ratepayer Affordability Bill

National clean energy advocacy group Deploy Action praises Virginia legislation to improve electricity affordability

RICHMOND – Today, the Virginia General Assembly passed Senate Bill 621/House Bill 434, consponsored by Senator Srinivasan/D-32 and Delegate LeVere Bolling/D-80, respectively, which would require the State Corporation Commission (SCC) to establish standard grid utilization metrics in the Commonwealth of Virginia. When enacted, this legislation will make Virginia the first state in the nation to improve power grid utilization through state action.

SB 621 gives the State Corporation Commission (SCC) tools to measure the utilization of the Commonwealth’s electricity grid. The bill provides a new mechanism for measuring existing grid utilization and assessing the true need to build, or defer building, new electricity transmission and distribution infrastructure, which is the biggest driver of cost increases to ratepayers. As it stands, Virginia utilities and regulators lack consistent, transparent metrics with which to measure available grid capacity. 

The legislation garnered support from Deploy Action and a number of trade, industry, and nonprofit groups, who released a public sign-on letter in support of the measure. Of the potential impact of SB 621, Arnab Pal, Founder and Executive Director of Deploy Action noted, “Virginians deserve to have confidence in the knowledge that they’re paying for a well-utilized energy system when they pay their monthly power bills. SB 621 focuses on outcomes that will put Virginia on a trajectory to lead the nation in harnessing the savings benefits of grid utilization. We look forward to seeing this legislation signed by Governor Spanberger and working with regulators to see through the implementation of this smart, practical approach to increasing affordability for Virginians, while considering the future of clean energy infrastructure statewide.”

Prior to entering office, Governor Spanberger clearly laid out that optimizing grid reliability would be part of her administration’s focus on improving affordability for all Virginians, and her administration spoke in support of the bill throughout the legislative process. The legislation still needs to clear procedural hurdles to formally pass both chambers. Once the governor signs the legislation into law, the measure will head to the SCC for implementation. Covered utilities  will be required to submit the required utilization metrics to the SCC by mid-October, which will be followed by a regulatory proceeding.

Research shows that smarter grid utilization can support substantial new load growth without the immediate need for costly new infrastructure investments. An analysis by Duke University of 22 U.S. regional power systems found that the nation’s electric grid is significantly underutilized, operating at an average of just 53 percent of its available capacity. The research concludes that existing generation, transmission, and distribution assets could accommodate between 76 and 215 gigawatts of new electricity demand while staying below historical peak load levels for nearly all hours of the year. Based on utility company reports to the Federal Energy Regulatory Commission, a 2024 U.S. Department of Energy report from several national labs estimated that, as of 2021, utility investments in distribution systems nationwide exceeded $60 billion annually.

About Deploy Action

Deploy Action is a 501(c)(4) nonprofit dedicated to removing barriers to clean energy deployment at the state level. Our organization champions smart, equitable energy reforms that prioritize grid reliability, regional coordination, and consumer affordability. We’re technology-neutral and results-focused. Deploy Action supports deploying energy technology solutions that lower costs, improve reliability, and strengthen economic competitiveness.  https://www.deploy-action.org/

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jamie@nolanstrategic.com

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