The proposal, which passed Friday on a bipartisan 67-32 vote, would allow renewable energy firms to compete with utilities to supply customers with clean power.
Dominion Energy and Appalachian Power are each pursuing pilot projects in which high-speed fiber connections are shared with local internet service providers.
Schools and governments in Southwest Virginia want solar policy to match new state law.
A 2016 agreement between Appalachian Power and local municipalities supersedes the state’s new solar law.
Independent energy suppliers would be allowed to compete head-to-head with monopoly utilities under the proposals.