Virginia Governor Signs Bill to Lower Electric Bills

New law aims to shift some fuel costs away from customers and onto energy companies

Apr. 7, 2026 at 1:05am

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A geometric abstract illustration using bold shapes and primary colors to conceptually represent the issue of rising electricity costs and a new state law intended to shift those costs away from customers and onto utility companies.A new Virginia law aims to ease the burden of rising electricity costs on residents by requiring utility companies to shoulder more of the financial responsibility.Lynchburg Today

Virginia Governor Abigail Spanberger has signed a new law that targets rising energy costs for utilities like Appalachian Power and Dominion Energy. The law allows the State Corporation Commission to review how utilities buy fuel and potentially shift some of those costs away from customers, placing more responsibility on the energy companies instead. Lawmakers say this change could lead to small but real savings on monthly power bills for Virginians who have been struggling with higher electric bills.

Why it matters

Rising electricity costs have been a major concern for many Virginia residents, with lawmakers hearing from constituents frustrated by the steady increases in their monthly power bills. This new law is an attempt to provide some relief by forcing utilities to shoulder more of the burden of rising fuel costs rather than passing them directly to customers.

The details

Senate Bill 505, sponsored by state Sen. Creigh Deeds, allows the State Corporation Commission to review how utilities like Appalachian Power and Dominion Energy purchase fuel. The goal is to potentially shift some of those fuel costs away from customers and onto the energy companies themselves, which lawmakers believe could lead to small but meaningful savings on monthly electric bills for Virginians.

  • The new law was signed by Governor Spanberger in April 2026.

The players

Abigail Spanberger

The Governor of Virginia who signed the new law targeting rising electric costs.

Creigh Deeds

The state senator who sponsored Senate Bill 505, the legislation that led to the new law.

Appalachian Power

A major utility company in Virginia that will be impacted by the new law requiring it to potentially shoulder more of the burden of rising fuel costs.

Dominion Energy

Another major utility company in Virginia that will be impacted by the new law requiring it to potentially shoulder more of the burden of rising fuel costs.

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What they’re saying

“I hear from a lot of people who are just sick and tired of paying the higher electric bill than they used to, and costs continue to increase.”

— Creigh Deeds, State Senator

“We've got tremendous demand on our electric grid in Virginia, and costs are going up across the board.”

— Creigh Deeds, State Senator

What’s next

The new law will go into effect immediately, and the State Corporation Commission will begin reviewing utility fuel purchasing practices to determine if any cost savings can be passed on to customers.

The takeaway

This new law represents an effort by Virginia lawmakers to provide relief to residents struggling with rising electricity costs by shifting more of the burden onto the utility companies themselves. While the savings may be modest, it signals a willingness to take action on an issue that has been a growing concern for many Virginians.