Standby (“Demandˮ) Charges are a monthly fee for Dominion customers with solar systems that have an export to the grid of 15 kW AC or more. This charge is not based on the amount kWhʼs consumed, but rather it is based on the peak demand (kW) during a billing cycle. It is very hard to control and monitor on the consumer end. Problem: This standby charge is an unfair “solar taxˮ on solar owners. Dominion has not shown an extra cost of service to serve solar customers, let alone solar customers with larger solar systems. Standby fees have traditionally only been applied to much larger electric customers. ● The standby fee is overly complicated and very difficult for customers to understand and calculate. It relies on a long formula with 10 different amounts, some found by reading Dominion tariffs, others based on customer usage and the max 30 minute demand over a billing cycle. ● The current 15 kW AC limit leads to undersizing of solar systems. The $25-50/month standby fee for larger systems prevents customers from building these systems. This is economically inefficient. It reduces the amount of local clean energy funded with private capital that is being put on the grid at a time when Virginia needs all of the power it can get. ● Increasing rooftop solar provides value to the grid and Virginians. State policy should support more rooftop solar, by getting rid of the standby fee or at least increasing the size that triggers it to 20 kWac as done by HB 1255. The 2026 report Value of Distributed Energy Resources (full report, webpage) in Virginia notes that increasing distributed energy resources like rooftop solar could provide $288 million in net benefits equating to $90 per Virginian each year. ● National experts including the Regulatory Assistance Project note that residential demand charges are less efficient and less equitable than time-of-use rates.1 In the “Charge without a cause?ˮ report, experts note: “Residents … are very diverse in their use of electricity …[and] most small consumersʼ individual peak usage does not actually occur during [system] peak... This means that traditional demand charges tend to overcharge the individual small consumer." To help address rising energy costs, increasing the threshold from 15 kW to 20 kW would allow more Virginians to properly size their systems, reap the maximum benefits of energy demand offsetting from their systems, and increase the amount of distributed generation to the grid that solar provides the utility. Solar United Neighbors Action strongly supports this bill.

Summary of Testimony in Support of HB1255 As a Herndon resident in Delegate Irene Shin’s district, I strongly endorse HB1255, which raises the residential solar net metering standby charge threshold from 15 kW to 20 kW in Dominion Energy’s territory. My experience with a Tesla solar roof and Powerwall system highlights the flaws in the current setup: despite investing heavily in renewables to power my home and electric vehicles with minimal carbon impact, I’ve faced monthly standby fees up to $75. These charges, meant to fund grid infrastructure, ironically penalize users like me who eliminate peak demand by self-powering during high-load times and exporting excess clean energy to the grid. Instead of rewards, I get eroded savings, extended payback periods, and a flawed credit system where unused peak credits expire at pennies on the dollar. To cope, I’ve reprogrammed chargers for slower overnight EV charging, often leaving cars undercharged for days, and avoided daytime loads—all while shifting usage to off-peak as encouraged, only to see fees spike from low-demand draws. This system discourages solar adoption at scale, contradicting Virginia’s clean energy goals under the Virginia Clean Economy Act. HB1255 offers a commonsense fix, removing barriers to larger systems, boosting ROI, jobs, and grid resilience. For a detailed account of my challenges and the visionary path forward to a smart, multifaceted energy future, please read the attached full testimony. I urge passage of this vital bill to empower Virginians toward sustainability.

My name is Jason Bassett, and I am submitting this testimony on behalf of Sheetz in support of HB 1225. Sheetz is a family-owned business that employs over 4,000 people in Virginia and operates approximately 115 locations across the Commonwealth with plans to add dozens more over the next five years. Our business model has always focused on providing affordable, reliable fuel and services in safe and accessible locations. As transportation continues to evolve, we believe electricity will play an increasingly important role as a transportation fuel, and Sheetz is actively evaluating opportunities to invest in EV charging infrastructure in Virginia. We appreciate Delegate Shin’s leadership on HB 1225. This legislation helps establish a fair and predictable framework for the EV charging marketplace by addressing the potential for unfair competition between regulated electric utilities and fuel retailers. For companies like Sheetz, regulatory clarity and a level playing field are essential to make the costly investment necessary to own and operate public fast charging stations. HB 1225 supports private-sector investment while preserving healthy competition, which ultimately benefits consumers through better service, innovation, and pricing. By setting reasonable guardrails, the bill encourages retailers to deploy fast-charging infrastructure without fear of unfair competition, helping Virginia meet growing demand for electric transportation. Thank you for the opportunity to share Sheetz’s perspective. We respectfully urge your support for HB 1225.