The proposal, SB651, recently moved to a conference committee after the Senate rejected a substitute version adopted by the House of Delegates. That procedural step means lawmakers from both chambers must now reconcile differences before the legislation can move forward.
At the center of the debate is how far Virginia should go in expanding the underground transmission program.
The state’s existing pilot program allows two qualifying projects to be considered for underground construction. The House version of SB651 would expand the program to four projects and broaden the types of transmission lines that could qualify.
Specifically, the House proposal would allow undergrounding of lines up to 500 kilovolts, compared with the earlier 230-kilovolt threshold tied to the current pilot. Because 500-kV lines form part of the bulk transmission system that moves electricity across regions, the change would allow significantly larger projects to be considered.
Supporters say the expansion would give utilities and communities more flexibility when routing transmission lines through areas where overhead infrastructure faces strong local opposition or environmental constraints.
But cost remains the central issue.
Underground transmission lines typically cost two to three times more than overhead construction, and the premium can be higher depending on terrain, engineering requirements, and voltage levels. Because of that, Virginia’s pilot program includes guardrails designed to limit how much more expensive underground construction can be compared with the overhead alternative.
Another key element of the program is local cost participation.
Communities that support underground transmission segments are expected to cover a share of the additional cost created by burying the lines instead of building them overhead. Local governments can use several tools to finance that obligation, including municipal bonds, local funding allocations, or special tax districts.
In some cases, the costs may ultimately be recovered through charges applied to electricity customers within the locality.
The structure is intended to ensure that communities advocating for underground construction share responsibility for the additional expense rather than shifting the entire premium to statewide utility ratepayers.
Because the Senate rejected the House substitute version of the bill, the conference committee will now determine whether the expansion proceeds — and if so, how broadly the pilot program will be structured.
Utilities, local governments, and energy planners are watching closely. Transmission infrastructure has become a growing issue in Virginia as demand rises and new generation projects connect to the grid.
Whether lawmakers choose to expand the underground pilot could shape how future transmission projects are routed — and who ultimately pays for them.
