Together We Generate Savings

Renewable Energy in Virginia

Contracting for Renewable Energy in Virginia introduces several new considerations for Commercial and Multi-Family property owners and managers.  For those familiar with energy contracting in Maryland or the District of Columbia, Virginia offers a somewhat different set of contracting parameters and risks.  As with all energy contracting, reading and understanding the provisions of competitive energy supply contracts is essential for gaining an understanding of the risks to which you will be exposed and the price you will ultimately pay for energy supply services.


  • Does the offered supply conform to statutory requirements for 100% renewable energy contracts?
  • How will Supplier compliance with 100% Renewable Energy Contract requirements be verified?
  • How will you be treated by Dominion Energy if your contract is terminated and you seek to return to utility service?


Basic Energy Contracting Considerations

Competitive electricity supply contract provisions can and do vary among suppliers. Each supplier prefers to use their own contract language. Supplier contracts are generally written to protect suppliers, not buyers.  The specifics of a supplier’s contract can, and often do, significantly impact:

  • The effective Contract Price
  • The Contract Term
  • Allowed Cost Pass-throughs
  • Contract Terms and Conditions
  • Buyers Rights and Responsibilities
  • Your ability to budget energy purchase costs


Be Aware of Contract Provisions that:

  • Allow the Supplier to exit the contract at any time for its convenience;
  • Provide for the pass-through of cost increases, but NOT cost savings;
  • Hold the Buyer responsible for the purchase of at least a specified Contract Quantity each month.

Contract Pricing Considerations


  • What components of your contract price, if any, are Fixed?
  • Which price components are subject to change during the contract term?
  • Under what conditions can the effective Contract Price change?
  • How are distribution line losses accounted for in the suppliers billing of energy supply services?
  • Do the Contract Terms expose you to additional charges if actual usage deviates from established contract quantities?
  • Do contract quantities for future periods reflect known or anticipated changes in building energy requirements relating to energy efficiency measures or tenancy changes?
  • Are you penalized for not using the full contract quantity?
  • What documentation will be provided for determination of deviations from the Contract Quantity?


AOBA Alliance held a briefing for commercial and multi-family Virginia properties on November 20, 2019 regarding recent clarifications in Virginia, which provides AOBA members the opportunity to purchase electric energy from a competitive service provider that is 100% renewable energy, if Dominion Energy does not offer a 100% renewable tariff, which it currently does not.


If you believe that there are savings for your properties and you understand the competitive supplier contract and market risks, now is the time to act on a renewable energy contract in Virginia.


If you have any questions, please call Frann Francis, Senior Vice President and General Counsel or Kevin Carey, Director of Operations at 202 296-3390.