A. Beginning in 2027 for a Phase II Utility and in 2028 for a Phase I Utility, and triennially thereafter, each electric utility shall file an updated integrated resource plan by October 15. For any year in which a Phase I or Phase II Utility files such updated integrated resource plan, such Phase I or Phase II Utility shall not be required to file a plan pursuant to subdivision D 4 of § 56-585.5 . A copy of each integrated resource plan shall be provided to the Chairs of the House Committee on Labor and Commerce and the Senate Committee on Commerce and Labor and the chair of the Energy Commission of Virginia. Each electric utility shall provide the Commission an annual update to the integrated resource plan by October 15. Each annual update shall include an update to the electric utility's base planning assumptions relative to its most recently accepted integrated resource plan, including energy and demand forecasts, commodity fuel price inputs, energy efficiency and demand-side management forecasts, changes to projected retirement dates of existing units, and other inputs, as determined by the Commission. Such annual update shall describe the impact of the updated base planning assumptions on the most recently approved resource plan. The Commission shall include a summary of each utility's annual update in its report required by subsection B of § 56-596 .
Each integrated resource plan shall (i) identify a single preferred portfolio of generation, transmission, and distribution infrastructure and energy efficiency programs and measures needed to ensure a reliable, affordable, and carbon-free electric grid and (ii) consider options for maintaining and enhancing rate stability, energy independence, economic development including retention and expansion of energy-intensive industries, and service reliability.
B. In preparing an integrated resource plan, each electric utility shall systematically evaluate and may propose:
1. Entering into short-term and long-term electric power purchase contracts;
2. Owning and operating electric power generation facilities;
3. Building new generation facilities;
4. Relying on purchases from the short term or spot markets;
5. Making investments in demand-side resources, including energy efficiency and demand-side management services, and energy storage resources;
6. Taking such other actions, as the Commission may approve, to diversify its generation supply portfolio and ensure that the electric utility is able to implement an approved plan;
7. The methods by which the electric utility proposes to acquire the supply and demand resources identified in its proposed integrated resource plan;
8. The effect of current and pending state and federal environmental regulations upon the continued operation of existing electric generation facilities or options for construction of new electric generation facilities;
9. The most cost effective means of complying with current and pending state and federal environmental regulations, including a single compliance plan that minimizes the effects on customer rates of such regulations;
10. Building new or upgrading existing distribution and transmission infrastructure;
11. Long-term electric distribution and transmission grid planning and proposed electric grid transformation projects that use grid-enhancing technologies in a manner that ensures grid reliability and safeguards cybersecurity and physical security, including advanced conductors, dynamic line ratings, advanced power flow controllers, transmission switching, and any other available technologies that have the potential to improve the efficiency and performance of the electric distribution grid or transmission grid, including virtual power plants or aggregated distributed energy resource management systems, non-wire solutions, and battery energy storage systems. An electric utility that anticipates building new infrastructure in its integrated resource plan shall consider grid-enhancing technologies and shall include a detailed explanation of why such grid-enhancing technologies are not sufficient to eliminate or defer the need for new transmission infrastructure;
12. Developing a long-term plan for energy efficiency measures to accomplish policy goals of reduction in customer bills, particularly for low-income, elderly, and disabled customers; reduction in emissions; and reduction in carbon intensity;
13. Developing a long-term plan to integrate new energy storage resources into existing generation and distribution assets to assist with grid transformation; and
14. Using surplus interconnection service to add new electric generation projects and energy storage resources to the grid, to enable expedited addition of clean electric generation supply to the grid, up to the interconnection service capacity limit at any specific point of interconnection, and to facilitate the maximum use of existing transmission capacity.
C. As part of preparing any integrated resource plan pursuant to this section, each utility shall conduct a facility retirement study for owned facilities located in the Commonwealth that emit carbon dioxide as a byproduct of combusting fuel and shall include the study results in its integrated resource plan. Upon filing the integrated resource plan with the Commission, the utility shall contemporaneously disclose the study results to each planning district commission, county board of supervisors, and city and town council where such electric generation unit is located, the Department of Energy, the Department of Housing and Community Development, the Virginia Employment Commission, and the Virginia Council on Environmental Justice. The disclosure shall include (i) the driving factors of the decision to retire and (ii) the anticipated retirement year of any electric generation unit included in the plan. Any electric generating facility with an anticipated retirement date that meets the criteria of § 45.2-1701.1 shall comply with the public disclosure requirements therein.
D. As part of preparing any integrated resource plan pursuant to this section, each utility shall annually conduct outreach to engage the public in a stakeholder review process and provide opportunities for the public to contribute information, input, and ideas on the utility's integrated resource plan, including the plan's development methodology, modeling inputs, and assumptions, as well as the ability for the public to make relevant inquiries, to the utility when formulating its integrated resource plan. Each utility shall report its public outreach efforts to the Commission. The stakeholder review process shall be facilitated by a third-party facilitator selected by the Commission from a list of potential facilitators submitted by the utility and shall include representatives from multiple interest groups, including residential and industrial classes of ratepayers. Such facilitator shall be compensated by the utility and shall coordinate input from interest groups and ensure the utility provides meaningful responses to questions and recommendations from interest groups. Each utility shall, at the time of the filing of its integrated resource plan, report on any stakeholder meetings that have occurred prior to the filing date.
Prior to being selected by the Commission, any third-party facilitator shall demonstrate, to the satisfaction of the Commission and in a form and manner determined by the Commission, (i) sufficient independence from the utility and its affiliates, which shall include submission of a statement of economic interests that is consistent with the disclosure required by § 2.2-3114 , and (ii) the qualifications, expertise, and experience to perform the functions of a facilitator. After being selected, the facilitator shall notify the Commission of any perceived or actual conflicts that arise during the planning process.
As part of the stakeholder review process, the utility shall provide stakeholders with reasonable access to the same modeling software, modeling assumptions, modeling inputs, and data used by the utility to evaluate supply and demand resources in its integrated resource plan. Such access shall enable stakeholders to create modeling scenarios for the utility's consideration during the development of its integrated resource plan. Any such scenarios, including all inputs, assumptions, results, and a narrative description of the scenario, shall be submitted to the utility no later than June 1. The utility may require a stakeholder to enter into a confidentiality agreement prior to providing the stakeholder with such access. If the utility requires such an agreement, the utility shall not be required to provide such access to any stakeholder who does not enter into the confidentiality agreement.
E. The Commission shall analyze and review an integrated resource plan and, after giving notice and opportunity to be heard, the Commission shall make a determination within nine months after the date of filing as to whether such an integrated resource plan is reasonable and is in the public interest.
F. The Commission shall establish guidelines that ensure that utilities develop comprehensive integrated resource plans, provide meaningful public engagement and maximum transparency during the planning process, and meet the requirements of this chapter. Each electric utility shall comply with any relevant Commission order establishing guidelines for the integrated resource plan planning process and for the format and contents of integrated resource plans.
G. By July 1, 2027, and at least once every five years thereafter, the Commission shall conduct a proceeding to identify and review each of its existing orders relevant to integrated resource plans to determine if such orders remain necessary and effective and are not overly burdensome.
2008, cc. 476 , 603 ; 2015, c. 6 ; 2018, c. 296 ; 2020, c. 1190 ; 2021, Sp. Sess. I, cc. 41 , 42 ; 2023, cc. 753 , 757 , 775 , 793 ; 2024, c. 532 ; 2026, cc. 607 , 608 , 693 , 949 .
