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1999 SESSION

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HB 2722 Gas utilities; retail supply choice; taxation; consumer protection.

Introduced by: Eric I. Cantor | all patrons    ...    notes | add to my profiles

SUMMARY AS PASSED HOUSE: (all summaries)

Gas utilities; retail supply choice; taxation; consumer protection. Authorizes gas utilities operating in Virginia to offer retail supply choice to all their customers. Transportation and delivery of gas would continue to be regulated by the State Corporation Commission (“SCC”). Gas utilities seeking to offer retail supply choice must file a plan for implementation with the SCC. The SCC must accept the plan if it contains (i) a schedule for implementing retail supply choice for all customers, (ii) tariff revisions and terms and conditions of service designed to provide nondiscriminatory open access over a gas utility’s transportation system, thereby allowing competitive suppliers to sell gas directly to a gas utility’s existing customers, (iii) provisions for complete recovery of costs prudently incurred to support the gas utility’s merchant obligation, (iv) a transportation balancing mechanism to ensure recovery of gas costs associated with operating the gas utility’s transportation system, (v) a mechanism for offering to gas suppliers and customers a right of first refusal to acquire the gas utility’s upstream transmission and/or storage capacity, and (vi) a code of conduct designed to prevent anti-competitive or discriminatory conduct and the unlawful exercise of market power. The SCC shall approve the plan to offer retail supply choice unless, after notice and opportunity for hearing, the SCC determines the plan (i) jeopardizes or impairs the provision of adequate service to the gas utility’s customers, (ii) produces a rate of return for the gas utility unreasonably in excess of authorized levels, or (iii) unreasonably discriminates against one class of the gas utility’s customers in favor of another class. The plan becomes effective within 120 days unless the SCC issues an order (i) approving the plan earlier or (ii) disapproving the plan. The SCC must issue a license to any person engaged in the business of selling gas to the customers of a gas utility. A person holding such license is defined as a “gas supplier” and is not considered a “public service corporation”, a “public service company”, or a “public utility” and is subject to the Virginia Consumer Protection Act. The Senate and House Finance Committees and the House Committee on Counties, Cities and Towns and the Senate Commission on Local Government will conduct a study of the taxation of gas utilities and natural gas suppliers and report their findings no later than December 15, 1999. Also, the act will not be effective unless reenacted by the 2000 General Assembly Session.


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