Gov. Northam has announced the appointment of Jehmal Hudson to the State Corporation Commission (SCC).
Hudson, from Arlington, Va., would be one of three SCC commissioners elected by the General Assembly.
Over the next few years, the SCC will play a key role in ensuring implementation of the Clean Economy Act – which puts the Commonwealth on a path to a 100% clean energy by 2045. Having well-qualified commissioners like Hudson guiding our state through a thoughtful, balanced transition to a clean energy economy gives us the best chance of achieving our state goals.
Hudson is the first African American SCC commissioner. Through this appointment, the Governor is underscoring the importance of racial, geographic, and experiential diversity in the Commonwealth’s governing bodies.
Background on the SCC
The State Corporation Commission (SCC) is one of Virginia’s most important regulatory bodies.
Created in 1902 as an independent branch of state government, the SCC has administrative, legislative, and judicial powers. While the SCC was originally established to oversee the telephone, telegraph, and railroad industries, this authority has since been expanded to include oversight of state-chartered financial institutions, securities, insurance, healthcare and utilities.
When it comes to electric utility regulation, the SCC plays a critical role. It is responsible for setting rates, assessing the necessity of new infrastructure, and determining how much of a utility’s costs can be passed on to ratepayers. Any time a utility wants to pass on costs to its customers, the SCC evaluates that request to determine whether the project is needed, is the lowest-cost, and is in the public interest.
The SCC is directed by three commissioners, each of whom is appointed by the General Assembly for a six-year term. When the legislature does not act, the Governor has the authority to appoint a member if there is an open seat.
The magnitude of the authority of SCC commissioners should not be underestimated. Any individual appointed to the SCC actively shapes Virginia’s energy future.