VA SB505

Directs the State Corporation Commission to examine fuel and purchased power cost risk mitigation practices by Phase I and Phase II electric utilities in annual applications filed on or after July 1, 2026

Requires the Commission to consider national best practices for fuel cost management, including cost-sharing mechanisms and hedging strategies

Mandates examination and quantification of how renewable generation owned or contracted by utilities offsets fuel and purchased power costs

Directs the Commission to assess whether it has sufficient authority to regulate the reasonableness and prudence of fuel procurement methods and establish new risk-mitigation strategies

Requires the Commission to include any necessary legislative recommendations for regulating fuel and purchased power cost risk in its annual report to the General Assembly