SEARCH SITE

VIRGINIA LAW PORTAL

SEARCHABLE DATABASES

ACROSS SESSIONS

Developed and maintained by the Division of Legislative Automated Systems.

1999 SESSION

  • | print version

SB 1105 Gas utilities; retail supply choice, etc.

Introduced by: Charles J. Colgan | all patrons    ...    notes | add to my profiles

SUMMARY AS PASSED: (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 non-mitigable costs prudently incurred to support the gas utility’s merchant obligation, (iv) tariff provisions to balance the receipt and deliveries of gas supplies to retail supply choice customers, (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, (vi) a code of conduct designed to prevent anti-competitive or discriminatory conduct and the unlawful exercise of market power, and (vii) other requirements established by the SCC. The SCC must 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 safety or reliability of natural gas service by the gas utility or 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, (iii) adversely affects the gas utility’s customers not participating in the retail supply choice plan, or (iv) unreasonably discriminates against one class of the gas utility’s customers in favor of another class. Plans approved by the SCC may not be placed into effect before July 1, 2000. The bill also establishes a private right of action for individuals harmed by gas suppliers’ deceptive or unfair practices in providing or marketing gas service. The Senate Finance Committee, House Finance Committee, Senate Committee on Local Government and House Committee on Counties, Cities and Towns are required to conduct a joint study of taxation of gas utilities and submit their recommendations by December 15, 1999. In formulating their findings and recommendations, the committees are required to consider and assess the effect of state and local taxation of gas utilities and natural gas suppliers on the economic development goals and objectives of the Commonwealth. Furthermore, the committees are required to formulate and recommend specific statutory language to ensure (i) revenue neutrality for the Commonwealth and its local governments and (ii) that any revisions to the existing regime of local and state taxation of gas utilities and natural gas suppliers do not increase the tax rate applicable to, or tax burdens borne by, gas utilities, natural gas suppliers and gas customers, as of the date of enactment of this legislation. This measure expires July 1, 2000.


FULL TEXT

AMENDMENTS

HISTORY