The Virginia State Corporation Commission (SCC) has approved phase two of Dominion Energy’s ten-year plan to transform the electric distribution grid.

This approval aligns with the customer-focused, state regulated utility framework in Virginia. That framework has resulted in nationally leading decarbonisation goals, customer rates lower than national and regional averages, and high levels of reliability, made possible by a state regulatory model that embraces long-term planning and resiliency safeguards.

“This is another major step forward in building a clean energy economy in Virginia,” said Charlene Whitfield, senior-vice president at Dominion Energy Virginia. “This includes the largest offshore wind project in the nation, re-licensure of our nuclear units, energy storage and solar energy, all of which creates jobs and economic opportunity here in the commonwealth. As we bring more renewable energy onto our grid to build a cleaner future, and focus on increasing resiliency, we must modernise the way the system works. This decision by the SCC ensures that we can remain agile as a company to deliver the reliable, affordable and increasingly clean energy that our customers want and expect.”

Phase two of the plan focuses on investments needed to facilitate and optimise the integration of distributed energy resources, such as small-scale solar, energy storage facilities and electric vehicles. To integrate these energy resources distributed throughout the grid effectively, the company will continue to deploy smart metering infrastructure and intelligent grid devices that will provide visibility of grid conditions. The company will also invest in the infrastructure and systems to process, manage and use those data to optimise grid operations and improve customer reliability.

The SCC ruling approved over $650m of investments in 2022 and 2023. The company can seek recovery of those costs in a future proceeding.

Phase one of the plan is already underway with activities to enhance the reliability and security of the distribution grid as well as the development of a customer information platform (CIP). The CIP will provide information enabling customers to make better decisions about their usage and bills.

Recent federal and state clean energy policies as well as commitments and incentives to speed the transition to electric vehicles have accelerated the need for a transformed energy grid capable of supporting significant volumes of renewables, batteries and other distributed energy resources.

Virginia’s regulatory structure encourages investments to ensure the continued reliability of the electric grid, ensures fiscal oversight to provide affordable energy to customers, and facilitates the continued growth of renewables in line with Dominion Energy’s commitment to net zero carbon and methane emissions by 2050 across its footprint and the requirements set forth in the Virginia Clean Economy Act (VCEA).

About seven million users in 13 states energise their homes and businesses with electricity or natural gas from Dominion Energy, headquartered in Richmond, Virginia. The company says it is committed to sustainable, reliable, affordable and safe energy and to achieving net zero carbon dioxide and methane emissions from its power generation and gas infrastructure operations by 2050.