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2019 SESSION

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Senate Committee on Commerce and Labor

Chairman: Frank W. Wagner

Clerk: Chad Starzer
Staff: Frank Munyan Chrissy Noonan
Date of Meeting: January 28, 2019
Time and Place: 15 minutes after adjournment, Senate Room A
Updated to add SB 1009, SB 1355, and SB 1534

S.B. 1009

Patron: Chase

Coal combustion residuals surface impoundments; closure. Directs the Department of Environmental Quality to require the closure of any coal combustion residuals (CCR) surface impoundment located in the Chesapeake Bay watershed. The bill requires that such closure include the removal of all CCRs for disposal in a permitted landfill that meets federal criteria and that the impoundment site be reclaimed in a manner consistent with federal mine reclamation standards. Finally, the bill allows an investor-owned public electric utility to recover the costs of closure from customers.

A BILL to amend the Code of Virginia by adding in Article 2.1 of Chapter 14 of Title 10.1 a section numbered 10.1-1413.3, relating to coal combustion residuals surface impoundments; Chesapeake Bay watershed; closure requirements.

19100103D

S.B. 1111

Patron: Marsden

Electric utilities; rate abatement offsetting consequences of reduced consumption. Requires each electric utility to provide eligible customers with a rate abatement that ensures that residential, commercial, and industrial customers are not subjected to higher rates per unit of consumption due to decreased consumption resulting from the customer's implementation of not less than $10,000 in investments in energy efficiency. The abatement shall be provided for not less than 20 years following the completion of the material investment in energy efficiency or conservation products or services. The measure requires the State Corporation Commission to adopt regulations to implement this requirement.

A BILL to amend the Code of Virginia by adding a section numbered 56-235.2:1, relating to electric utility regulation; customer classifications; energy efficiency.

19103383D

S.B. 1266

Patron: Saslaw

Open-end credit plans; penalty. Requires that any person engaged in the business of extending credit under an open-end credit plan under which interest is charged at an annual rate that exceeds 36 percent obtain a license to do so from the State Corporation Commission. The measure prohibits a person licensed as a motor vehicle title lender from extending credit under an open-end credit plan and prohibits a third party from making open-end credit loans in the office of a licensed motor vehicle title lender. The measure prohibits a person that extends credit under an open-end credit plan under which interest is charged at an annual rate that exceeds 36 percent from (i) obtaining or accepting from a borrower an authorization to electronically debit the borrower's deposit account; (ii) failing to comply with certain restrictions and prohibitions applicable to debt collectors contained in the federal Fair Debt Collection Practices Act; (iii) filing a legal proceeding against a borrower until 60 days after the date of default on an open-end credit plan, during which period the person and the borrower may voluntarily enter into a repayment arrangement; or (iv) causing a person to be obligated to the licensee for a principal amount that exceeds $500. The measure also makes it a prohibited practice under the Virginia Consumer Protection Act to violate the requirements applicable to extending credit under an open-end credit plan.

A BILL to amend and reenact §§ 6.2-312 and 59.1-200 of the Code of Virginia, relating to open-end credit plans; penalty.

19101155D

S.B. 1290

Patron: Saslaw

Open-end credit plans; governing law. Provides that an open-end credit plan shall be governed solely by federal law and the laws of the Commonwealth, regardless of whether the seller or lender has a physical location in the Commonwealth. The measure removes a provision that allows another jurisdiction's laws to govern if expressly agreed in writing by the parties.

A BILL to amend and reenact § 6.2-435 of the Code of Virginia, relating to open-end credit plans.

19103712D

S.B. 1346

Patron: Newman

Electric cooperatives; rates. Authorizes any electric cooperative to (i) increase or decrease its rates without State Corporation Commission approval for any of its services, rather than only for distribution services, at any time if such adjustments will not effect a cumulative net increase or decrease in excess of five percent in such rates in any three-year period; (ii) if it does not hold a membership interest in a utility aggregation cooperative, petition the Commission for approval of one or more rate adjustment clauses for the timely and current recovery from customers of the costs of generation facilities, modifications to generation facilities, or pumped hydroelectricity generation and storage facilities; (iii) adjust the total system cap for net energy metering, agricultural net energy metering, and small agricultural generators to up to five percent of the cooperative's highest total coincident system peak within the past five years; (iv) subject to findings that it will not result in either an intra-class or inter-class change in cost recovery, adopt any rate, rate component, program, tariff, or terms or conditions of service that the Commission has previously approved for any other cooperative; and (v) set its fixed monthly charge covering the fixed costs of owning and operating its electric distribution system as an alternative to volumetric charges associated with demand; currently, the fixed monthly charge may be assessed as an alternative to volumetric charges for electricity usage.

A BILL to amend and reenact § 56-585.3 of the Code of Virginia, relating to electric cooperatives; rates.

19104214D

S.B. 1355

Patron: Wagner

Coal combustion residuals impoundment; closure. Directs the Department of Environmental Quality (the Department), as it issues a permit for the closure of a coal combustion residuals (CCR) surface impoundment, commonly called a coal ash pond, located in the Chesapeake Bay watershed, to consider requirements of state and federal law and regulation, anticipated truck traffic, the long-term cost effectiveness of a proposed closure, and the ability of any closure to withstand extreme weather events or natural disasters. The bill provides that costs associated with any permit for closure, as well as any permit for capping in place, removing, or beneficially reusing any CCR from the site, shall be deemed in the public interest and recoverable by the utility. The bill provides that any such costs shall be fully allocated to all customers of the utility irrespective of the generation supplier of any particular customer.

A BILL to allow closure of certain coal combustion residuals impoundments.

19103057D

S.B. 1456

Patron: McClellan

Distributed renewable energy. Promotes the establishment of distributed renewable solar and other renewable energy. The measure (i) removes the one percent cap on the total amount of renewable energy that can be net metered in a utility's service territory, (ii) authorizes third-party power purchase agreements for all customer classes throughout the Commonwealth, (iii) allows local governments and certain other public bodies to install solar or wind facilities of up to five megawatts on government-owned property and use the electricity for government-owned buildings, (iv) allows all net metering customers to attribute output from a single solar array to multiple meters, (v) allows the owner of a multi-family residential building or the common areas of a condominium to install a renewable energy generation facility and sell the electricity to tenants or condominium unit owners, (vi) removes the restriction on customers installing a net-metered generation facility larger than that required to meet their previous 12 months' demand, (vii) raises the cap for net-metered nonresidential generation facilities from one megawatt to two megawatts, and (viii) removes the ability of utilities to assess standby charges. The measure also amends the Commonwealth Energy Policy to include provisions supporting distributed generation of renewable energy.

A BILL to amend and reenact §§ 56-1.2, 56-594, and 67-102 of the Code of Virginia; to amend the Code of Virginia by adding sections numbered 15.2-2109.4, 56-1.2:2, 56-232.2:2, 56-585.1:8, 56-585.1:9, and 56-594.3; and to repeal Chapters 358 and 382 of the Acts of Assembly of 2013, as amended by Chapter 803 of the Acts of Assembly of 2017, relating to the regulation of sales of electricity under third-party sales agreements; exempt resales of electricity by the owner of a multi-family residential building; net energy metering; installation of solar and wind energy facilities by local governments; and the removal of other barriers to the increased implementation of distributed solar and other renewable energy in the Commonwealth.

19103827D

S.B. 1460

Patron: McClellan

Renewable energy power purchase agreements; pilot programs. Makes any educational institution eligible to participate in Appalachian Power Company's pilot program for certain third party power purchase agreements. With respect to Dominion Power's pilot program, the measure increases from 50 megawatts to 150 megawatts the aggregated capacity of all solar-powered or wind-powered generation facilities that are subject to the third party power purchase agreements. With respect to Appalachian Power Company's pilot program, the measure increases from seven megawatts to 21 megawatts the aggregated capacity of all solar-powered or wind-powered generation facilities that are subject to the third party power purchase agreements. The measure also increases from one megawatt to three megawatts the maximum size of any generation facility that is subject to the third party power purchase agreement. The measure also (i) repeals the sunset clause applicable to the pilot program in effect for Dominion Energy and (ii) authorizes the State Corporation Commission to update its relevant regulations.

A BILL to amend and reenact § 1, as amended by the first enactment of Chapter 803 of the Acts of Assembly of 2017, and §§ 2 through 5 of the first enactment of Chapters 358 and 382 of the Acts of Assembly of 2013 and to repeal the second enactment of Chapter 803 of the Acts of Assembly of 2017, relating to pilot programs for certain power purchase agreements.

19102468D

S.B. 1483

Patron: Deeds

Net energy metering; schools. Directs Appalachian Power Company to conduct a pilot program, not exceeding 10 megawatts in the aggregate, under which any public school in the Commonwealth that generates more electricity from a wind-powered or solar-powered generation facility than it consumes in a billing period may either credit the excess electricity to the metered accounts of one or more other schools in the school division or be paid for the excess electricity at the contractually negotiated rate.

A BILL to direct the State Corporation Commission to establish a pilot program for schools that generate electricity at levels that exceed the school's consumption.

19101231D

S.B. 1513

Patron: Carrico

Agricultural equipment; time frame for reporting nonconformities. Changes the date by which a consumer is required to report to a manufacturer, its agent, or its authorized dealer the nonconformity of agricultural equipment from the earlier to the later of (i) the expiration date of an express written warranty or (ii) one year following the date of delivery of the agricultural equipment.

A BILL to amend and reenact § 59.1-207.8 of the Code of Virginia, relating to agricultural equipment; time frame for reporting nonconformities.

19101072D

S.B. 1534

Patron: Surovell

Coal combustion residuals; cleanup costs. Authorizes an electric utility to recover the costs of the permitted cleanup in the Chesapeake Bay watershed of coal combustion residuals that are generated from the burning of coal for the purpose of generating electricity. The bill provides that such cleanup costs shall be recovered over a 25-year period and shall not include any adjustments or compensation intended to compensate the utility for carrying costs, the length of the period of reimbursement, or interest on funds advanced by the utility or any rate of return on such funds.

A BILL to amend and reenact § 56-585.1 of the Code of Virginia, relating to utilities; coal combustion residuals; cleanup costs.

19103866D

S.B. 1565

Patron: Dunnavant


Travel insurance. Establishes procedures and requirements for travel protection plans and travel administrators. The measure defines a "travel protection plan" as any plan that provides travel insurance, travel assistance services, or cancellation fee waivers and defines a "travel administrator" as a person who directly or indirectly underwrites, collects, charges collateral or premiums from, or adjusts or settles claims on residents of the Commonwealth, in connection with travel insurance. The measure establishes a premium tax on travel insurance premiums paid by residents of the Commonwealth and establishes acceptable practices for the sale and advertising of travel insurance. The measure has a delayed effective date of October 1, 2019.

A BILL to amend and reenact §§ 38.2-1887 and 38.2-1888 of the Code of Virginia and to amend the Code of Virginia by adding sections numbered 38.2-1888.1 through 38.2-1888.4 and 58.1-2501.1, relating to travel insurance.

19102495D

S.B. 1566

Patron: Marsden

Fantasy Contest Act; registration requirements. Allows the Department of Agriculture and Consumer Services (the Department) to set fantasy contest operator registration and renewal fees not to exceed (i) $5,000 for any applicant with annual gross receipts from the operation of fantasy contests in Virginia of not greater than $250,000 in the most recently completed fiscal year, (ii) $20,000 for any applicant with annual gross receipts from the operation of fantasy contests in Virginia of greater than $250,000 but not greater than $500,000 in the most recently completed fiscal year, or (iii) $40,000 for any applicant with annual gross receipts from the operation of fantasy contests in Virginia of greater than $500,000 in the most recently completed fiscal year. Under current law, every registration must be accompanied by an initial registration fee set by the Department. The bill changes the annual consumer protection testing and financial audit requirements for registrants to a single test conducted within the first year of operation and financial audits at the request of the Department.

A BILL to amend and reenact §§ 59.1-557 and 59.1-559 of the Code of Virginia, relating to Fantasy Contest Act; registration requirements.

19104188D

S.B. 1583

Patron: Suetterlein

Electric utilities; retail competition. Shortens the period that a utility's customer who switches from an investor-owned electric utility to a licensed competing supplier is barred from returning as a customer of its utility from five years to 90 days.

A BILL to amend and reenact § 56-577 of the Code of Virginia, relating to electric utility regulation; retail competition; lock-out period.

19101810D

S.B. 1584

Patron: Suetterlein

Electric utilities; retail competition; renewable energy. Allows customers of an investor-owned electric utility to purchase electric energy provided 100 percent from renewable energy from any licensed supplier. The measure eliminates the condition that permits such purchases only if the investor-owned electric utility does not offer a tariff for 100 percent renewable energy. With regard to customers of an electric cooperative, the measure does not change the existing provisions that allow (i) sales of renewable power by a competitive provider only if the utility does not offer an approved tariff for electric energy provided 100 percent from renewable energy and (ii) continued purchases of renewable energy under the terms of a power purchase agreement in effect when the incumbent utility files a tariff for 100 percent renewable energy.

A BILL to amend and reenact § 56-577 of the Code of Virginia, relating to electric utilities; retail competition; renewable energy.

19101812D

S.B. 1605

Patron: Ebbin

Electric utilities; stakeholder process for energy efficiency programs. Requires that the participants in the stakeholder process established for the purpose of providing input and feedback on the development of electric utilities' energy efficiency programs meet not less frequently than once in each calendar quarter from July 1, 2019, through July 1, 2028. The measure also requires the independent monitor chosen to facilitate the energy efficiency stakeholder process to report annually on such process, including the goals and metrics identified by the stakeholder group to improve the design, implementation, and operation of energy efficiency programs, and the progress toward such improvements. Current law requires that an annual report be submitted by the utility and does not require that it include such information on the stakeholder process.

A BILL to amend and reenact the fifteenth enactment of Chapter 296 of the Acts of Assembly of 2018, relating to stakeholder processes for the development of energy efficiency programs.

19104084D

S.B. 1636

Patron: Boysko

Virginia Equal Pay Act; civil penalties. Prohibits private employers from discriminating on the basis of membership in a protected class between employees in the payment of wages or other compensation for substantially similar work. The measure defines "protected class" as a group of persons distinguished by race, color, religion, sex, sexual orientation, gender identification or expression, political affiliation, national origin, marital status, veteran status, disability, or age. The measure also prohibits (i) discrimination between employees by providing less favorable employment opportunities; (ii) limiting an employee's right to discuss wages; (iii) infringement on an employee's right to not disclose wage or salary history; and (iv) retaliating against an employee. The bill also establishes criteria for when wage differentials between employees are permitted. Violations are subject to civil penalties.

A BILL to amend the Code of Virginia by adding in Chapter 3 of Title 40.1 an article numbered 1.2, consisting of sections numbered 40.1-28.13 through 40.1-28.17, and to repeal § 40.1-28.6 of the Code of Virginia, relating to the Virginia Equal Pay Act; civil penalties.

19104521D

S.B. 1639

Patron: Boysko

Paid family and medical leave program. Requires the Virginia Employment Commission to establish and administer a paid family and medical leave program. Under the program, benefits are paid to eligible employees for family and medical leave. Funding for the program is provided through premiums assessed to employers and employees. The amount of a benefit is 70 percent of the employee's average weekly wage, not to exceed $850 per week, which amount is required to be adjusted annually to reflect changes in the Consumer Price Index. The measure caps the duration of paid leave at 12 weeks in any 52-week period, though 26 weeks of paid leave may be taken if the leave qualifies as military caregiver leave under the federal Family and Medical Leave Act. Employers with 25 or fewer employees are exempt from paying their contribution to the program but may elect to participate voluntarily. Self-employed individuals are provided the option of participating in the program. The measure also provides that employers may operate their own equivalent voluntary plans.

A BILL to amend the Code of Virginia by adding in Title 60.2 a chapter numbered 8, consisting of sections numbered 60.2-800 through 60.2-820, relating to the establishment of Paid Family and Medical Leave Program; financing through payroll taxes.

19104526D

S.B. 1648

Patron: Boysko

Electric utilities; limitations on fossil fuel facilities. Prohibits the State Corporation Commission (SCC) from issuing on or after July 1, 2019, a certificate of public convenience and necessity or granting any other permit or approval required for the construction or operation by an electric utility of a new fossil fuel facility or for the expansion or continued operation of an existing fossil fuel facility before first approving the construction and placing in service of renewable energy generation facilities having in the aggregate a rated capacity of 5,500 megawatts. The measure also prohibits the SCC on or after July 1, 2019, from authorizing or permitting an electric utility or re-permitting an existing idle fossil fuel facility to increase purchases of electric power under any agreement with another person, if the electric power is or will be generated at a fossil fuel facility, before first approving the construction and placing in service of such renewable energy generation facilities.

A BILL to amend the Code of Virginia by adding a section numbered 56-585.1:8, relating to electric utility regulation; limiting reliance on electricity generated at fossil fuel facilities.

19104541D

S.B. 1662

Patron: Wagner

Electric utilities; energy efficiency programs. Provides that any determination by the State Corporation Commission that an energy efficiency program is not in the public interest shall include with its final order the work product and analysis of all tests conducted by the staff of the Commission in making that determination. The measure provides that any utility petitioning the Commission for approval of one or more rate adjustment clauses for energy efficiency programs shall include a proposed budget for the design, implementation, and operation of the energy efficiency programs, which shall be approved only if the Commission finds that the proposed budget is reasonable and prudent. The measure provides that if the Commission reduces the proposed budget for a program, its final order shall include an analysis of the impact such budget reduction has upon the cost-effectiveness of the program. The bill requires that any rate adjustment clause approved for an energy efficiency program remain in effect until (i) the approved energy efficiency program is no longer cost-effective or (ii) the utility exhausts the approved budget for the energy efficiency program.

A BILL to amend and reenact §§ 56-576 and 56-585.1 of the Code of Virginia, relating to electric utilities; energy efficiency programs.

19104133D

S.B. 1693

Patron: Vogel

Health insurance; coverage for autism spectrum disorder. Requires health insurers, health care subscription plans, and health maintenance organizations to provide coverage for the diagnosis and treatment of autism spectrum disorder in individuals through age 18. Currently, such coverage is required to be provided for individuals from age two through age 10. The provision applies with respect to insurance policies, subscription contracts, and health care plans delivered, issued for delivery, reissued, or extended on or after January 1, 2020.

A BILL to amend and reenact § 38.2-3418.17 of the Code of Virginia, relating to health insurance; coverage for autism spectrum disorder.

19104506D

S.B. 1711

Patron: Carrico

Broadband service providers; fiber optic broadband lines; railroad crossings. Establishes a procedure by which a broadband service provider may obtain approval to place its fiber optic broadband lines across a railroad right-of-way. The measure provides that a broadband service provider may submit to the railroad company a notice of intent to construct, accompanied by a specification exhibit and a standard crossing fee of $800; if the railroad does not claim within 35 days that special circumstances exist or that the required specification exhibit is inadequate or incomplete, the broadband service provider is deemed to have authorization to commence placing the fiber optic broadband line across the railroad's right-of-way. The measure provides that a railroad company that believes that special circumstances exist may file a petition for relief with the State Corporation Commission. The bill requires the Commission to adopt regulations prescribing the terms and conditions for a crossing.

A BILL to amend the Code of Virginia by adding a section numbered 56-16.3, relating to broadband service providers; fiber optic broadband lines; railroad crossings.

19103944D

S.B. 1714

Patron: Edwards

Net energy metering; schools. Directs Appalachian Power Company to conduct a pilot program, not exceeding 10 megawatts in the aggregate, under which any public school in the Commonwealth that generates more electricity from a wind-powered or solar-powered generation facility than it consumes in a billing period may either credit the excess electricity to the metered accounts of one or more other schools in the school division or be paid for the excess electricity at the contractually negotiated rate.

A BILL to direct the State Corporation Commission to establish a pilot program for schools that generate electricity at levels that exceed the school's consumption.

19104576D

S.B. 1759

Patron: Surovell

Undergrounding utility lines; transportation infrastructure improvement. Provides that when the Commonwealth Transportation Board determines that it is necessary that any existing overhead electric distribution, cable, or telecommunications line be replaced with an underground line in order to accommodate a transportation infrastructure improvement in an area of transit-oriented development, the utility shall relocate the line underground, with the Board paying to the utility the cost of relocating or removing the line above ground. An electric utility may apply to recover the net costs of undergrounding a distribution line through a rate adjustment clause. A cable operator or telecommunications service provider may recover the net cost of undergrounding overhead cable or telecommunications lines in the same manner as it recovers other capital costs.

A BILL to amend and reenact §§ 56-466.2 and 56-585.1 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 33.2-367.1, relating to relocation, removal, and replacement of utility lines; transportation infrastructure improvements in areas of transit-oriented development.

19100654D

S.B. 1769

Patron: Sturtevant


Electric utilities; net energy metering. Establishes requirements for net energy metering by electric cooperatives effective upon the earlier of July 1, 2019, or the effective date of implementing regulations by the State Corporation Commission. Instances where the new net energy metering program's requirements differ from those of the existing program include (i) the cap on the capacity of generating facilities, which will initially be two percent of system peak for residential customers, two percent of system peak for not-for-profit and nonjurisdictional customers, and one percent of system peak for other nonresidential customers; (ii) authorizing an electric cooperative to raise these caps up to a cumulative total of seven percent of its system peak; (iii) legalizing third-party partial requirements power purchase agreements for those retail customers and nonjurisdictional customers of an electric cooperative that are exempt from federal income taxation; and (iv) establishing registration requirements for third-party partial requirements power purchase agreements, including a self-certification system under which a provider is required to certify to the Division, under oath and subject to penalty of revocation of registration, certain information. The measure authorizes the board of directors of an electric cooperative to adjust its rates, terms, conditions, and rate schedules governing net energy metering and prohibits a cooperative after the date of such an adjustment from collecting stand-by charges. The measure authorizes an electric cooperative to adopt a new rate schedule or rider containing demand charges based upon a net energy metering customer's noncoincident peak demand and provides for alternative caps on its net energy metering program. The measure authorizes a cooperative's fixed monthly charge covering the fixed costs of owning and operating its electric distribution system as an alternative to volumetric charges associated with demand; currently, the monthly charge may be assessed as an alternative to volumetric charges for electricity usage. The measure also authorizes an investor-owned utility participating in the pilot program for community solar development to petition the Commission to make its pilot program permanent.

A BILL to amend and reenact §§ 56-585.1:3, 56-585.3, and 56-594 of the Code of Virginia and to amend the Code of Virginia by adding sections numbered 56-585.4 and 56-594.01, relating to electric utilities; net energy metering by electric cooperatives; community solar development.

19104596D

S.B. 1779

Patron: Ebbin

Electric utilities; municipal net energy metering. Directs the State Corporation Commission to establish a pilot program that affords the opportunity for any municipality to participate in net energy metering if it is a retail customer of an investor-owned electric utility. In order to qualify for the program, the municipality is required to own and operate a renewable generating facility that is located on the municipality's premises and is intended primarily to offset all or part of the municipality's own electricity requirements. Under the pilot program, a municipal customer-generator that generates electricity in amounts that exceed the amount of electricity consumed by the municipal customer-generator, determined annually, will receive a credit against its electricity consumption at one or more other separately metered buildings or facilities. The measure provides that the amount of any such credit shall be equal to or greater than the generation-energy related rate under the Electrical Supply Service Charges of the host building plus all applicable generation-related riders or taxes and fuel-related riders or taxes, without the assessment by the utility of any service charges or fees in connection with or arising out of such crediting. The duration of the pilot program is six years.

A BILL to amend the Code of Virginia by adding a section numbered 56-585.1:8, relating to a pilot program for municipal net energy metering.

19104691D

S.B. 1780

Patron: Petersen


Electric utility regulation. Prohibits public electric utilities from making nonessential expenditures, which includes expenditures related to lobbying, political contributions, certain advertising, and compensating any employee more than $5 million a year. The measure requires public electric utilities to file annual reports on nonessential spending and requires the State Corporation Commission (SCC) to conduct annual proceedings to determine if an electric public utility has made any nonessential expenditures. If the SCC finds that such a utility has made if it has nonessential expenditures, the measure requires the SCC to order the amount thereof, or in the case of exceeding the compensation limit, 10 times the amount of the compensation in excess of the limit, to be refunded to the utility's customers. The measure directs the SCC to disallow an electric utility's request to recover fuel costs resulting from the purchase by the public utility or its affiliate or subsidiary of a greater amount of firm pipeline capacity for natural gas than the SCC finds is appropriate to ensure a reliable supply of natural gas. The measure requires the SCC to conduct a review of the rates, terms, and conditions for generation, distribution, and transmission services of Dominion Energy in 2019. The measure requires future reviews for Dominion Energy and AEP to be conducted biennially; currently, such reviews are scheduled to be conducted on a triennial basis. The measure requires the SCC to review audited financial reports of investor-owned electric utilities for every year since 2015. The measure requires the utilities to refund 90 percent of over-earnings once they exceed their authorized rate of return by 0.5 percent; currently, they are required to return 70 percent of over-earnings once they exceed their authorized rate of return by 0.7 percent. The measure abolishes the use of the peer group analysis when the SCC determines a utility's fair rates of return. In lieu of the peer group analysis, the measure requires the SCC to determine a fair rates of return based on a cost-of-service methodology. The measure directs the SCC to identify alternative forms of rate analysis such as performance-based testing and to report on such alternatives.

A BILL to amend and reenact §§ 56-235.2, 56-249.6, 56-585.1, 56-585.1:1, 56-585.1:4, and 56-599 of the Code of Virginia, to amend and reenact the fifth and twenty-third enactments of Chapter 296 of the Acts of Assembly of 2018, and to amend the Code of Virginia by adding sections numbered 56-235.2:1 and 56-235.2:2, relating to public utilities; electric utility rates and charges; contracts for natural gas pipeline capacity; prohibited expenditures; refunds for nonessential expenditures.

19104605D