SEARCH SITE
VIRGINIA LAW PORTAL
- Code of Virginia
- Virginia Administrative Code
- Constitution of Virginia
- Charters
- Authorities
- Compacts
- Uncodified Acts
- RIS Users (account required)
SEARCHABLE DATABASES
- Bills & Resolutions
session legislation - Bill Summaries
session summaries - Reports to the General Assembly
House and Senate documents - Legislative Liaisons
State agency contacts
ACROSS SESSIONS
- Subject Index: Since 1995
- Bills & Resolutions: Since 1994
- Summaries: Since 1994
Developed and maintained by the Division of Legislative Automated Systems.
2023 SESSION
23105834DBe it enacted by the General Assembly of Virginia:
1. That § 56-581 of the Code of Virginia is amended and reenacted as follows:
§ 56-581. Regulation of rates subject to Commission's jurisdiction.
A. After the expiration or termination of capped rates
except as provided in § 56-585.1, the The Commission shall regulate
the rates of investor-owned incumbent electric utilities for the transmission
of electric energy, to the extent not prohibited by federal law, and for the
generation of electric energy and the distribution of electric energy to retail
customers pursuant to this section and § 56-585.1.
B. In any proceeding to review base rates for a Phase I Utility that commences after July 1, 2023, if the Commission determines in its sole discretion that the utility's existing base rates will, on a going-forward basis, either produce (i) revenues in excess of the utility's authorized rate of return or (ii) revenues below the utility's authorized rate of return, then, notwithstanding any provision of law governing rate proceedings, the Commission shall order any reductions or increases, as applicable and necessary, to such base rates that it deems appropriate to ensure the resulting base rates (a) are just and reasonable and (b) provide the utility an opportunity to recover its costs of providing services over the rate period ending on December 31 of the year of the utility's succeeding review and earn a fair rate of return authorized pursuant to the provisions governing such review proceeding. Such determination shall be limited to the Phase I Utility's base rates and shall not consider the costs or revenues recovered in any rate adjustment clause authorized pursuant to this chapter.
C. In any proceeding to review base rates for a Phase II
Utility that commences after July 1, 2023, if the Commission determines in its
sole discretion that the utility's existing base rates will, on a going-forward
basis, either produce (i) revenues in excess of the utility's authorized rate
of return or (ii) revenues below the utility's authorized rate of return, then,
notwithstanding any provision of subdivision A 8 of § 56-585.1, the Commission
shall order any reductions or increases, as applicable and necessary, to such
base rates that it deems appropriate to ensure the resulting base rates (a) are
just and reasonable and (b) provide the utility an opportunity to recover its
costs of providing services over the rate period ending on December 31 of the
year of the utility's succeeding review and earn a fair rate of return [ authorized
pursuant to the provisions governing such review proceeding on its
base rates as determined in subdivision A 2 of § 56-585.1 ] . Such
determination shall be limited to the Phase II Utility's base rates and shall
not consider the costs or revenues recovered in any rate adjustment clause
authorized pursuant to subdivision A 6 of § 56-585.1 that has not been combined
with the utility's base rates. The Commission shall use the most recently ended
12-month test period, along with normalization of nonrecurring test period
costs and annualized adjustments for future costs, as the basis for determining
the appropriateness of any rate adjustment. In any such filing to review base
rates, a Phase II Utility shall separately project future costs over each
12-month period ending on December 31 of the year of the utility's succeeding
review period. The Commission may, to the extent it finds such action aligns
with the utility's projected cost of service, direct that any reduction or
increase to the utility's rates for generation and distribution services be
implemented on a staggered basis at the commencement and midpoint of the
succeeding rate period.
B. D. Beginning July 1, 1999, and thereafter, no
cooperative that was a member of a power supply cooperative on January 1, 1999,
shall be obligated to file any rate rider as a consequence of an increase or
decrease in the rates, other than fuel costs, of its wholesale supplier, nor
must any adjustment be made to such cooperative's rates as a consequence
thereof.
C. E. Except for the provision of default
services under § 56-585 or emergency services in § 56-586, nothing in this
chapter shall authorize the Commission to regulate the rates or charges for
electric service to the Commonwealth and its municipalities.
F. As used in this section:
"Base rates" means rates for generation and distribution services.
"Phase I Utility" has the same meaning as provided in subdivision A 1 of § 56-585.1.
"Phase II Utility" has the same meaning as provided in subdivision A 1 of § 56-585.1.