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2017 SESSION

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SB 1492 Water utilities; retail rates of affiliated utilities, definitions, etc.

Introduced by: Richard H. Stuart | all patrons    ...    notes | add to my profiles | history

SUMMARY AS ENACTED WITH GOVERNOR'S RECOMMENDATION:

Water utilities; consolidated ratemaking. Requires that in any ratemaking proceeding for certain investor-owned water utilities that are part of a water utility network the State Corporation Commission shall ensure that equal fixed and volumetric rates are charged for each customer class of every water utility that is in the water utility network. In such proceeding, the Commission is authorized to aggregate the revenues and costs of the water utilities that are members of the applicable water utility network. In a proceeding implementing these provisions, the Commission is directed to order gradual adjustments to the water utility's rates over an appropriate period.

SUMMARY AS PASSED SENATE:

Water utilities; consolidated ratemaking. Requires that in any ratemaking proceeding for certain investor-owned water utilities that are part of a water utility network the State Corporation Commission shall ensure that equal fixed and volumetric rates are charged for each customer class of every water utility that is in the water utility network. In such proceeding, the Commission is authorized to aggregate the revenues and costs of the water utilities that are members of the applicable water utility network.

SUMMARY AS INTRODUCED:

Water utilities; retail supply choice. Establishes a procedure under which investor-owned water utilities operating in Virginia may be required to prepare and implement plans to provide retail supply choice to all their customers. The governing body of a locality may petition the State Corporation Commission (SCC) to institute a proceeding to determine whether the rates charged by the water utility to its customers impose an undue hardship on the customers. Rates shall be deemed to impose an undue hardship on customers if the volumetric rates charged to the majority of the water utility's customers have increased by over 100 percent in the five calendar years preceding the filing of the petition. If a water utility fails or refuses to file an acceptable plan for implementation of retail supply choice, the governing body of the locality may proceed against the incumbent water utility by a writ of quo warranto. The bill also establishes a private right of action for individuals harmed by competitive water suppliers' deceptive or unfair practices in providing or marketing water service. A competitive water supplier may be either a private entity licensed by the SCC or a political subdivision of the Commonwealth that is authorized to provide water utility service within the locality in which an incumbent water utility's certificated service territory is located.