SB 981 — Imposing one-year moratorium on approval of certain public utility rate increases

WEST VIRGINIA LEGISLATURE REGULAR SESSION Committee Substitute for Senate Bill 981 ByB SenatorYSENATORS ChapmanCHAPMAN [Introduced, FebruaryOBERTS, 18,TAYLOR, 2026;HORNE, BARTLETT,ANDM.

referredMAYNARD to[Reported February 26, 2026, from the Committee on Government Organization] IntrCS for SB 981 2026R4214 A BILL to amend and reenact §24-1-2 of the Code of West Virginia, 1931, as amended;

and to amend the code by adding a new article, designated §24-2B-1, §24-2B-2, §24-2B-3, and §24-2B-4, relating to imposingrecommending a one-year moratorium on approval of certain public utility rate increases;

Except where a different meaning clearly appears from the context As used in this chapter, the following words when used in this chapter, shall mean and phrases have the meanings ascribed to them unless the context clearly indicates a different meaning.meaning:

Provided, That Public utility does not include individuals or entities any individual or entity owning a solar photovoltaic energy facility located on and designed to meet onlyCS 1for Intr SB 981 2026R4214only the electrical needs of the premises of a retail electric customer, the output of which is subject to a power purchase agreement with the retail electric customer, subject to §24-2-1(a) of this code.

 MORATORIUMMORATORIUM ON RATE INCREASES.

(1) Electric, natural gas, water, and waterwastewater utility rates paid by residential, commercial, and industrial customers in this state have increased significantly in recent years, placing a disproportionate burden on households, seniors, small businesses, and economic development efforts;

(4) A temporary pause in the approval of rate increases is necessaryrecommended to allow for a comprehensive evaluation of existing ratemaking practices, cost drivers, regulatory structures, and alternative methods to reduce or stabilize utility rates.

(b) The purpose of this article is to imposerecommend a one-year moratorium on any approval of electric, natural gas, water, and waterwastewater utility rate increases and to require a comprehensive study of methods and means to reduce utility rates for customers in this state.

One-yearRecommendation of one-year moratorium on utility rate increase approvals.

(a) NotwithstandingThe anyPublic otherService provisionCommission ofand thispolitical codesubdivisions toof the contrary,state thewith Publicrate-setting Serviceauthority Commissionare orrecommended political subdivision may not to approve noror allow to take effect any rate increase for 2any Intrutility CS for SB 981 2026R4214 any utility provider under itstheir jurisdictionrespective jurisdictions during the one-year period beginning July 1, 2026, and ending June 30, 2027.

(b) During the moratorium period, the commission and political subdivisions maywith rate- setting authority could continue to:

(c) The moratorium establishedrecommended by this section doeswould not apply to:

noror (3) Rates implemented solely to comply with a final federal mandate where failure to implement would result in immediate and material penalties, so long as the commission or political subdivision makes written findings supporting that determination.

(d) Any rate increase approved or allowed to take effect in violation of a moratorium imposed pursuant to this section isshall be void and of no force noror effect.

(a) The Public Service Commission shall conduct a comprehensive study on methods and means to reduce electric, natural gas, water, and waterwastewater utility rates paid by customers in this state.

(1) Utility cost structure, includingincluding, but not limited to:

and CS for SB 981 (D) Affiliate transactions and cost allocations.

3 Intr SB 981 2026R4214 (2) RatemakingRate-making policies and practices, includingincluding, but not limited to:

(3) Fuel, purchase power, and supply costs, includingincluding, but not limited to:

(4) Infrastructure investment and alternatives, includingincluding, but not limited to:

(5) Energy efficiency and demand-side management, includingincluding, but not limited to:

(6) Regulatory and statutory constraints, includingincluding, but not limited to:

(7) Customer impact and equity, includingincluding, but not limited to:

CS for SB 981 (B) Rate assistance plans and programs for low-income, senior, and fixed-income customers;

4 Intr SB 981 2026R4214 (C) Impact on small businesses and large employers;

(8) Utility financial health, includingincluding, but not limited to:

(9) General criteria and standards for evaluation, includingincluding, but not limited to whether:

(a) On or before DecemberFebruary 1, 2026,2027, the Public Service Commission shall submit a report to the Governor, SenatePresident President,of the Senate, and Speaker of the House of Delegates regarding the study required by this article.

CS for SB 981 (3) Cost-saving measures that could be implemented administratively by the commission or political subdivisions;

and 5 Intr SB 981 2026R4214 (4) An assessment of the anticipated rate impact of any recommended measure.

NOTE:

The purpose of this bill is to impose a one-year moratorium on approval of certain public utility rate increases.

Strike-throughs indicate language that would be stricken from a heading or the present law and underscoring indicates new language that would be added.