This document contains the combined reports ("Report") of the Virginia State Corporation Commission ("Commission") pursuant to Enactment Clauses 2, 14, and 19 of Senate Bill 966. Specifically:

Grid Modernization, Reliability, and Integration of Renewables: 2018 Virginia Acts of Assembly Chapter 296, Enactment Clause 19, directs the Commission to submit annual reports by December 1 of each year assessing: (i) the reliability of electrical transmission or distribution systems; (ii) the integration of utility or customer owned renewable electric generation resources with the utility's electric distribution grid; (iii) the level of investment in generation, transmission, or distribution of electricity; (iv) the need for additional generation of electricity during times of peak demand; and (v) distribution system hardening projects and enhanced physical security measures;

The Commission currently is considering Virginia Electric and Power Company d/b/a Dominion Energy Virginia's ("DEV" or "Dominion") proposed Grid Transformation Plan, a 10-year plan that includes seven components in Phase I: (i) smart meters; (ii) customer information platform; (iii) reliability and resiliency; (iv) telecommunications infrastructure; (v) cyber and physical security; (vi) predictive analytics; and (vii) emerging technology. A Commission final order on this petition is due on January 24, 2019.

Transmission Line Undergrounding Pilot: 2018 Virginia Acts of Assembly Chapter 296, Enactment Clause 2, directs the Commission to submit annual reports by December 1 of each year assessing the progress of the underground pilot program for electrical transmission lines of 230 kilovolts ("kV") or less.

To date, the Commission has approved the undergrounding of a transmission project, known as the Haymarket Project, in Prince William and Loudoun Counties along part of Interstate 66. The Commission has not received any other transmission line applications where the applicant is seeking consideration for the pilot program.

Construction of New Solar and Wind Projects: 2018 Virginia Acts of Assembly Chapter 296, Enactment Clause 14, directs the Commission to submit annual reports by December 1 of each year assessing: (i) the aggregate annual new construction and development of new utility-owned and utility-operated generating facilities utilizing energy derived from sunlight; (ii) the integration of utility-owned renewable electric generation resources with the utility's electric distribution grid; (iii) the aggregate additional utility-owned and utility-operated generating facilities utilizing energy derived from sunlight placed in operation since July 1, 2018; and (iv) the need for additional generation of electricity utilizing energy derived from sunlight in order to meet the objective of the General Assembly on or before July 1, 2028.

The development of new solar and wind projects continues. Highlights of this report include the Commission's recent approval of Dominion's applications for approval of the 80 megawatt ("MW") Water Strider solar power purchase agreement and for the 12 MW Coastal Virginia Off-shore Wind project. Additionally, Dominion and Shenandoah Valley Electric Cooperative have issued requests for proposals for solar and/or wind facilities in the Commonwealth.