Virginia stakeholder group reviews performance‑based regulation tools; SCC explains gas decoupling under state law

A group convened by Virginia Energy spent a multi‑hour meeting reviewing performance‑based regulation options for the commonwealth92s utilities, spotlighting multiyear rate plans, performance metrics and incentives, earnings‑sharing, and the State Corporation Commission92s existing natural‑gas decoupling practice under Virginia law.

The meeting brought outside technical presenters together with utility representatives, consumer advocates and local government procurement officers to examine which toolsets could be used — and how — to align utility financial incentives with public policy goals such as meeting energy‑efficiency targets and protecting affordability.

Why it matters: the stakeholder group is preparing a report for the State Corporation Commission (SCC) and Virginia Energy that could shape whether and how PBR provisions are recommended for electric and gas utilities in Virginia. Changes to rate design, incentive structures and recovery mechanisms affect utility revenue, customer bills and the pace of utility programs such as energy efficiency and distributed resources.

Mark LaBelle, speaking for the Regulatory Assistance Project, framed PBR not as a single law or formula but as a set of regulatory tools that can be combined to change utility incentives without micromanaging operational choices. "PBR is a set of tools that state regulators can use to incentivize improved utility performance. But it's not a shortcut," LaBelle said, noting that jurisdictions typically combine multiyear rate plans, decoupling/revenue regulation, scorecards and performance incentive mechanisms.

LaBelle described tradeoffs regulators face. Multiyear rate plans ("stay‑out" periods…