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VIRGINIA

​Community Choice Aggregation is called municipal aggregation in Virginia. Counties, cities, municipalities and other political subdivisions may establish a municipal aggregation for the electricity service. The code allows municipal aggregation since 1999; however, no community choice for resident and businesses programs have been formed.

HISTORY

Municipal aggregation is allowed in Virginia since 1999, when it was introduced in the Electric Utility Restructuring Act (SB 1269). The Act added to the Code of Virginia in Title 56 section 56-589 Municipal and state aggregation, which was amended in several sessions throughout the years as follows:

1999 Session; Chapter 441. Introduces §56-589 Municipal and State Aggregation

“ Counties, cities and towns (hereafter “municipalities”) and other political subdivisions of the Commonwealth may, at their election and upon authorization by majority votes of their governing bodies, aggregate electrical energy and demand requirements for the purpose of negotiating the purchase of electrical energy requirements from any licensed supplier within this Commonwealth.”

  • Residential, commercial and industrial retail customers may on a voluntary, opt-in basis select the municipality or other political subdivision as its aggregator, which may not earn a profit but must recover the actual costs incurred in such aggregation.
  • One or more municipalities may aggregate the consumption of electric energy of their governmental buildings, facilities and any other governmental operations.

2000 Session; Chapter 991§56-588 – Licensing of Aggregators

The aggregation of the governmental buildings, facilities and any other governmental operations of one or more municipalities does not require a license from the State Corporation Commission.

2003 Session; Chapter 795§56-577 – Schedule for transition to retail competition; Commission authority; exemptions; pilot programs

Provides for the State Corporation Commission to develop and implement municipal aggregation pilot programs in an opt-in, opt-out or any other type of municipal aggregation

2004 Session; Chapter 827

Introduces the possibility for an opt-out basis, eliminates the requirement that customers must opt in to select such aggregation, and eliminates the requirement that the municipality or other political subdivision may not earn a profit from the aggregation.

2007 Session; Chapter 888, Chapter 933.

The aggregation is subject to the provisions of subdivision A3 of §56-577.

Provides that one or more municipalities can aggregate the consumption of electric energy of their governmental buildings, facilities and any other governmental operations “for the purpose of negotiating rates and terms, and conditions of service from the electric utility certificated by the Commission to serve the territory in which such buildings, facilities and operations are located,” and “that no such electric energy load shall be aggregated for this purpose unless all such buildings, facilities and operations to be aggregated are served by the same electric utility.”

PILOT PROGRAMS

In 2004 Dominion Virginia Power (DVP) filed an application to implement a Municipal Aggregation Pilot for aggregation of residential and small business customers and a Commercial and Industrial Pilot. The pilots were limited in loads (MW) and in number of customers. In January 2004, 77,491 customers (69,317 residential, 8,104 businesses and 70 churches) volunteered to be part of a buying group selected to receive an offer from an alternative supplier as part of Dominion’s competitive bid supply service pilot, while 1,970 non residential customers volunteered to participate in the commercial and industrial pilot (201 participants were selected for this pilot). Customers could return to Dominion for the electricity supply service at any time at their current rate. The pilots were foreseen to end in July 2007. [1]

RECENT DEVELOPMENTS

On January 19, 2018, Del. Alfonso H. Lopez introduced HB 1590 Utility regulation; community choice aggregation.

The Bill proposed to enlarge the scope of municipal aggregation by adding both electric and natural gas services. The measure also proposed that any locality may specify a minimum percentage of the aggregated electrical energy to be generated from renewable energy sources when it authorizes the aggregation of the electric energy load of the customers within its boundaries or its governmental buildings, facilities, and operations. The aggregator may negotiate the purchase of electrical energy requirements from a licensed supplier. The Bill was voted negatively 6-2 on February 6, 2018.

In June 2018, Virginia Clean Energy, a new nonprofit organization fiscally sponsored by LEAN Energy US, was formed with the mission to accelerate the expansion of, and competitive success of, clean and renewable energy via Community Choice Aggregation (CCA) in Virginia.

LEGISLATION (PARTIAL LIST)
  • §56-589 (1999) established municipal and state aggregation in Virginia
  • HB 2319 (2003) authorized the State Corporation Commission to conduct pilot programs for aggregation

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Updated 10/25/18