Electric Cooperative Substation Construction Agreements
Summary
Virginia enacted HB1191, permitting electric cooperatives to enter construction agreements with large-member customers requiring high-voltage interconnection. The bill allows members with at least 20 MW demand to build substations, which must then transfer to the cooperative for operation and maintenance at the member's sole expense. Costs are excluded from general and base rates.
What changed
Virginia HB1191 enacts new provisions permitting electric cooperatives to construct substations under agreement with qualifying members. The bill applies to members receiving regulated electric service with demand of at least 20 megawatts during the most recent calendar year requiring point of interconnection with a transmission line system of 230 kilovolts or more. Upon completion, ownership transfers to the cooperative for operation and maintenance, with all acquisition, operation, and maintenance costs borne solely by the member and excluded from cooperative's general and base rates.
Electric cooperatives and large industrial members with substantial energy demands should review their current infrastructure agreements and interconnection arrangements. The bill takes effect July 1, 2026. No penalties are specified for non-compliance, and other ratepayers are protected from cost impacts of member-initiated substation construction.
What to do next
- Review existing interconnection agreements with electric cooperatives
- Assess whether large-member customers meet the 20 MW demand threshold
- Evaluate substation construction needs for qualifying members before July 1, 2026 effective date
Source document (simplified)
ChangeBridge / Virginia / HB1191 Enacted HB1191 House Bill Enacted 2026-03-31
Electric substation construction agreements; "electric cooperatives" or "cooperative", definitions.
Utility consumer services cooperatives; substation construction agreements. Permits an electric cooperative to enter into an agreement to construct a substation with a member receiving regulated electric service, with an electric demand of at least 20 megawatts during the most recent calendar year, that requires a point of interconnection with a transmission line system of 230 kilovolts or more. The bill provides that, upon final completion of a substation constructed under such an agreement, the member shall transfer ownership of such substation to the cooperative for the cooperative to operate and maintain at the member's sole expense. Under the bill, the costs of acquisition, operation, or maintenance of such a substation shall be excluded from the cooperative's general and base rates and shall not be recovered from any other ratepayer. This bill is identical to SB 377.
Bill Details
State Virginia
Session 2026 Regular Regular Session
Chamber House
Official Source lis.virginia.gov/bill-details/20261/HB1191
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Sponsors
Irene Shin (Rep - D) Michelle Maldonado (Rep - D) Chris Runion (Rep - R) Michael Webert (Rep - R)
Action History
2026-03-31 Acts of Assembly Chapter text (CHAP0021) 2026-03-31 Approved by Governor-Chapter 21 (effective 7/1/2026) 2026-03-10 Governor's Action Deadline 11:59 p.m., April 13, 2026 2026-03-10 H Enrolled Bill communicated to Governor on March 10, 2026 2026-03-09 H Fiscal Impact Statement from State Corporation Commission (HB1191) 2026-03-03 S Signed by President 2026-03-03 H Signed by Speaker 2026-03-03 H Bill text as passed House and Senate (HB1191ER) 2026-03-03 H Enrolled 2026-02-26 S Passed Senate (40-Y 0-N 0-A) 2026-02-26 S Read third time 2026-02-25 S Passed by for the day Block Vote (Voice Vote) 2026-02-25 S Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A) 2026-02-25 S Rules suspended 2026-02-23 S Reported from Commerce and Labor (15-Y 0-N) 2026-02-19 H Fiscal Impact Statement from State Corporation Commission (HB1191) 2026-02-12 S Referred to Committee on Commerce and Labor 2026-02-12 S Constitutional reading dispensed (on 1st reading) 2026-02-11 H Passed House (98-Y 0-N 0-A) 2026-02-11 H Reconsideration of passage agreed to by House 2026-02-11 H Read third time and passed House (96-Y 0-N 0-A) 2026-02-10 H Engrossed by House - committee substitute 2026-02-10 H committee substitute agreed to 2026-02-10 H Read second time 2026-02-09 H Read first time 2026-02-06 H Committee substitute printed 26106908D-H1 2026-02-05 H Reported from Labor and Commerce with substitute (22-Y 0-N) 2026-02-03 H Subcommittee recommends reporting with substitute (9-Y 0-N) 2026-02-03 H House subcommittee offered 2026-02-02 H Fiscal Impact Statement from State Corporation Commission (HB1191) 2026-01-27 H Assigned HCL sub: Subcommittee #3 2026-01-14 H Referred to Committee on Labor and Commerce 2026-01-14 H Prefiled and ordered printed; Offered 01-14-2026 26105397D
Votes
2026-02-03 Subcommittee recommends reporting with substitute (9-Y 0-N) Yea: 9 Nay: 0 2026-02-05 Reported from Labor and Commerce with substitute (22-Y 0-N) Yea: 22 Nay: 0 2026-02-11 Read third time and passed House (96-Y 0-N 0-A) Yea: 96 Nay: 0 2026-02-11 Passed House (98-Y 0-N 0-A) Yea: 98 Nay: 0 2026-02-23 Reported from Commerce and Labor (15-Y 0-N) Yea: 15 Nay: 0 2026-02-25 Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A) Yea: 40 Nay: 0 2026-02-26 Passed Senate (40-Y 0-N 0-A) Yea: 40 Nay: 0
Committee Referrals
2026-01-14 H Labor and Commerce 2026-01-27 H Labor and Commerce: Subcommittee #3 2026-02-12 S Commerce and Labor
Bill Text Versions
2026-01-14 Introduced 2026-02-03 Comm Sub 2026-02-04 Comm Sub 2026-02-06 Comm Sub 2026-03-03 Enrolled 2026-03-31 Chaptered Legislative data powered by LegiScan (CC BY 4.0)
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