Richmond, VA – May 11, 2026 — In a significant step toward tackling the growing energy demands from data centers, Governor Spanberger has signed HB 1062, mandating a feasibility study to assess the market potential of inclusive utility investments in Virginia for Dominion Energy and Appalachian Power Company. This study, to be completed by November 1, 2026, will guide a future pilot focused on electric energy conservation, solar energy generation, and energy storage.
Inclusive utility investment allows utilities to invest directly in energy efficiency upgrades at customer sites, recovering costs through a monthly charge that is less than the estimated savings from the upgrades. It’s designed to help households lower energy bills, reduce pollution, and access modern energy technology — without large upfront costs, credit requirements, or homeownership, all with strong consumer protections.
Rural electric cooperatives are already leading the way with inclusive utility investments in Virginia. In 2020, the state energy regulator adopted a code, supported by Rappahannock Electric Cooperative, which supported swift establishment of an inclusive utility investment offering at willing rural electric cooperatives.
As concerns about energy affordability continue to rise, a dedicated group of legislators, including Chief Patron Phil M. Hernandez, Chief Co-Patron Adele Y. McClure, and co-sponsors Katrina Callsen and Dan I. Helmer, along with the Southern Environmental Law Center Virginia (SELC), championed this effort to deliver effective solutions for Virginians facing high energy costs. Dominion Energy now has state authorization to conduct its own feasibility study, adding an important layer to Virginia’s energy strategy.
Inclusive utility investments can align with other proposed energy initiatives in Virginia. For example, HB 562 would allow electric cooperatives to establish virtual power plants, alleviating potential strain on the grid during periods of extreme heat or cold. Customers with equipment such as electric vehicle charging stations, smart thermostats, and battery storage can enroll their devices in a program which seamlessly reduces demand on the grid during peak hours, both reducing the customer’s energy costs and saving money for all ratepayers. Using inclusive utility investment to provide customers these money-saving, enrollable devices without upfront costs, credit requirements, and renter exclusions increases energy affordability for all.
Edwuan Whitehead, the Public Policy Director at the Center for Common Ground celebrates the potential of this model to support energy affordability. He states:
“Virginia’s move to advance an inclusive utility investment feasibility study speaks directly to what we’ve been calling the five pillars of affordability: housing, energy, transportation, food, and healthcare. Energy is a foundational cost—when it becomes unaffordable, it puts pressure on every other part of a household’s budget. For too long, energy-efficiency and clean-energy upgrades have been out of reach for many households due to upfront costs, credit barriers, or housing status. Inclusive utility investment flips that model by making savings immediate and accessible, including for renters and those historically left out of these programs. As energy demand grows—especially with the expansion of data centers—Virginia has an opportunity to lead with solutions that prioritize affordability, grid stability, and equity at the same time. But authorization alone isn’t enough. The real test will be whether utilities design programs that truly reach low-income households, not just those easiest to serve. Done right, this can be a cornerstone of energy affordability. Done poorly, it risks becoming another missed opportunity.”
Furthermore, Andrew Grigsby, Energy Services Director at Viridiant appreciates the model’s focus on actual savings performance:
“As an organization founded on building science and energy modeling, Viridiant supports performance-driven energy upgrade programs, where incentives are awarded based on actual energy savings, not a predetermined product or technology. Inclusive utility investment programs meet that critical standard while also unlocking new financial resources to directly benefit Virginia residents in all kinds of homes. Deployed smartly, these programs should advance energy efficiency as a scalable grid resource and make the electricity system more affordable for all.
Inclusive utility investment has already been approved by state energy regulators in ten other states, raising confidence that it will be deemed feasible for Virginians. Utilities must submit requirements for offerings by May 1, 2027, ensuring alignment with the consumer protections outlined by the U.S. Environmental Protection Agency and the program requirements of the Pay As You Save® program, a trademarked inclusive utility investment program developed by the Energy Efficiency Institute, Inc.
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