State Competitiveness: Virginia

Virginia has at least one approved utility green tariff program. Among the state’s five largest utilities by commercial and industrial (C&I) electricity sales, those offering green tariffs account for about 75% of total C&I sales within this top-five group, indicating substantial access for large customers.

Virginia permits municipal ownership of utilities statewide, subject to certain requirements.

Virginia has a state consumer advocate office that represents ratepayers.

Virginia has a state policy allowing for CCA.

Virginia does not have an overall formal requirement for competitive solicitations, but does have a requirement for limited competitive procurement for renewables. About 99% of the state’s customers are in a wholesale market.

Virginia nearly fully participates in one wholesale market, PJM, covering about 99% of the state’s electricity customers. Additional parts of the state participate in bilateral trading through the Southeast Energy Exchange Market (SEEM).

Virginia does not allow PPAs, but allows solar leases.

State policy allows net metering up to an aggregated capacity limit of 1% of the utility’s annual peak demand.

Virginia permits partial residential electricity customers retail provider choice, only if they want 100% renewable energy and the incumbent utility does not offer an approved tariff for that option.

Virginia permits partial commercial electricity customers retail provider choice, electricity customers with annual demands >5MW have option for electricity choice, as well as two or more nonresidential retail customers that aggregate to reach 5MW with regulator approval.

Virginia has statewide interconnection standards for investor-owned utilities, with a maximum size of 20 kW for residential systems, 500kW for agricultural systems, and 1MW for non-residential systems.

Virginia’s electric utility sector, including distribution utilities, is highly concentrated. The state has a customer concentration (HHI) score of 4,475, which exceeds the 1,800 threshold that signals a highly concentrated market. This indicates that a small number of utilities serve customers across the state.

Electricity generation in Virginia is provided by a small number of power producers. The state has a generation concentration (HHI) score of 3,540, which exceeds the 1,800 threshold that indicates a highly concentrated market, indicating that electricity production is controlled by a small number of entities, suggesting limited competition.

Virginia nearly fully participates in one wholesale market (PJM), with non-voting participation available in PJM (about 99% of the state’s customers), a limited level of civil society participation opportunity overall.

Virginia nearly fully participates in one wholesale market (PJM), with advisory state authority in PJM (about 99% of the state’s customers), a limited level of wholesale market state authority.