Statement from Arnab Pal, Executive Director of Deploy Action, on Virginia HB 434 / SB 621 Final Passage
- Mar 3
- 2 min read
“Today’s passage of HB 434 / SB 621 is a major step forward for electricity affordability in Virginia. We’re grateful to Governor Abigail Spanberger for making utility affordability a priority, and we thank Del. Destiny LeVere Bolling and Sen. Kannan Srinivasan for their leadership in moving this bipartisan, commonsense bill through the General Assembly. Virginia is showing that states can take practical action right now to get more value from the grid we have, improve reliability, and protect customers from unnecessary rate increases. We look forward to the Governor signing this legislation and to working with stakeholders on strong implementation.”
Background
HB 434 / 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.
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. 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/
###
MEDIA CONTACT:Jamie Nolan
410-463-9869