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2018 SESSION

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Senate Committee on Commerce and Labor

Chairman: Frank W. Wagner

Clerk: Chad Starzer
Staff: Frank Munyan
Date of Meeting: February 5, 2018
Time and Place: 15 Min after adj. Senate Room A, Pocahontas Building

S.B. 72 Electric distribution lines; minimum height upon or over agricultural land.

Patron: Cosgrove

Electric distribution lines; minimum height. Requires that electric distribution lines installed on or after July 1, 2018, upon or over agricultural land shall be placed at a height that is not less than the minimum height requirement that applies to the placement of such lines above road crossings.

A BILL to amend the Code of Virginia by adding in Article 4 of Chapter 10 of Title 56 a section numbered 56-256.1, relating to the height of electric power distribution lines over agricultural land.

18100734D

S.B. 82 Electric utility regulation; agricultural net energy metering.

Patron: Edwards

Electric utility regulation; agricultural net energy metering. Allows an otherwise eligible agricultural customer-generator to participate in an electric utility's net energy metering program if it is to be served by multiple meters located on one parcel or on multiple parcels. Currently, an agricultural customer-generator may be served by multiple meters that are located at separate but contiguous sites. The measure increases the generation capacity limit for agricultural net energy metering from 500 kilowatts to one megawatt and adds falling water as a type of generating facility that may be used in agricultural net energy metering. The measure also repeals a provision, added in 2017, that ends the ability of new eligible agricultural customer-generators served by electric cooperatives to commence net energy metering on and after July 1, 2019.

A BILL to amend and reenact § 56-594 of the Code of Virginia, relating to electric utility regulation; agricultural net energy metering.

18101561D

S.B. 83 Renewable energy; third-party power purchase agreements.

Patron: Edwards

Renewable energy; third-party power purchase agreements. Replaces the pilot program initially enacted in 2013 that authorized certain third-party power purchase agreements providing financing of certain renewable generation facilities. The measure requires the State Corporation Commission to establish third-party power purchase agreement programs for each electric utility. The programs authorized by this measure apply to all electric utilities and do not set limits on the size of facilities. The measure also exempts sellers under third-party power purchase agreements from being defined as a public utility, public service corporation, public service company, or electric utility solely because of the sale of electricity or ownership or operation of a renewable generation facility.

A BILL to amend and reenact § 56-1.2 of the Code of Virginia; to amend the Code of Virginia by adding sections numbered 56-1.2:2, 56-232.2:2, 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 retail sales of electricity under third-party sales agreements.

18101562D

S.B. 191 Net energy metering; eligibility limits.

Patron: Favola

Net energy metering; eligibility limits. Increases the cap on the amount of capacity a renewable electric generating facility may have and remain eligible to participate in the net energy metering program. The measure increases a facility's capacity from the expected annual energy consumption to 125 percent of that consumption based on billing history. If the building to be served by the generating facility is newly constructed, the expected annual energy consumption is based on annual energy consumption at similar buildings. Currently, a facility is ineligible to participate in a net energy metering program if its capacity exceeds expected annual energy consumption.

A BILL to amend and reenact § 56-594 of the Code of Virginia, relating to net energy metering.

18102658D

S.B. 284 Electric utilities; solar generation capacity, public interest.

Patron: Saslaw

Electric utilities; solar generation capacity; public interest. Declares that the construction or purchase of certain solar generation facilities, or the purchase of the energy, capacity, and environmental attributes from the facilities, is in the public interest. An enactment clause states that the development of solar generation facilities is encouraged in order to enable ratepayers to obtain the benefit of this energy source during the remaining period of the existing federal investment tax credit.

A BILL to amend the Code of Virginia by adding a section numbered 56-585.1:4, relating to solar energy capacity in the Commonwealth.

18102528D

S.B. 285 Utility rates; voluntary rate design schedules or riders.

Patron: Saslaw

Utility rates; voluntary rate design schedules or riders. Requires the State Corporation Commission (SCC) to enter its final order on certain petitions filed by an investor-owned electric utility within eight months of the filing of the petition. The measure applies to petitions seeking approval of a schedule or rider for a voluntary rate or rate design test or experiment. An existing exemption to the requirement that each public utility uniformly charge each of its customers using its service under like conditions allows a utility to implement special rates upon SCC approval of a petition for a voluntary rate or rate design test or experiment.

A BILL to amend and reenact § 56-234 of the Code of Virginia, relating to public utility rates; timeline for orders on voluntary rate design schedules or riders.

18102529D

S.B. 311 Community solar gardens; SCC to establish standards for operation.

Patron: Edwards


Community solar gardens. Requires the State Corporation Commission to establish standards for the operation of community solar gardens. A community solar garden is defined in the bill as a solar energy system that (i) has a nameplate capacity of not more than 20 megawatts, (ii) is owned or operated by a subscriber organization, and (iii) generates electricity for subscribers of the community solar garden. The regulations are required, among other things, to (a) establish goals for the generation of electricity by community solar gardens; (b) establish eligibility requirements for subscriber organizations, including a requirement that a subscriber organization have at least 10 subscribers; (c) prohibit a subscriber organization from allowing a subscriber to have a subscription that exceeds 40 percent of a proportional interest in a community solar garden owned or operated by the subscriber organization; (d) prohibit a subscriber organization from allowing subscriptions to a community solar garden that are more than 25 kilowatts to account for more than 40 percent of the total generating capacity of the community solar garden; and (e) require that at least 10 percent of the total generating capacity of community solar gardens be available for use by low-income residential customers or by persons providing services that benefit low-income customers. A subscriber is entitled to a credit on the subscriber's monthly utility bill for the proportional output of the community solar garden attributable to that subscriber for the preceding month; the credit is required to be provided for 25 years. The measure requires utilities to purchase unsubscribed electricity generated by a community solar garden within the service area of the utility.

A BILL to amend the Code of Virginia by adding a section numbered 56-585.1:4, relating to electric utilities; community solar gardens.

18101675D

S.B. 313 Community solar generation; establishment of facilities.

Patron: Edwards

Community solar generation facilities. Authorizes the establishment of community solar generation facilities, which are required to be owned by a subscriber organization that has at least 10 subscribers. Subscribers will receive credits on their utility bills from energy generated at the solar facility in proportion to the size of their subscription. The output from a community solar generation facility shall be purchased by the utility in the form of subscription credits allocated to the subscribers. To the extent that a subscriber's subscription credit exceeds the subscriber's electric bill in any billing period, the credit will be applied against future bills.

A BILL to amend the Code of Virginia by adding a section numbered 56-594.3, relating to electric utilities; community solar generation facilities; subscriber organizations.

18104237D

S.B. 405 Wireless communications infrastructure; zoning.

Patron: McDougle

Zoning for wireless communications infrastructure. Establishes parameters regarding applications for zoning approvals for certain wireless support structures. Applications for certain new wireless support structures that are 50 feet or less above ground level and for the co-location on an existing structure of a wireless facility that is not a small cell facility are exempt from requirements that they obtain a special exception, special use permit, or variance, though a locality may require administrative review for the issuance of any zoning permits or an acknowledgement that zoning approval is not required for such projects. Aspects of the zoning approval process addressed in this measure include periods for approval or disapproval of applications, a requirement that applications are deemed approved if not approved or disapproved within the applicable period; application fees; a prohibition against unreasonably discriminating between applicants and other wireless services providers, providers of telecommunications services, and nonpublic providers of cable television and electric services; and limits on the number of new wireless support structures that can be installed in a specific location. The measure also prohibits a locality, in its receiving, consideration, and processing of an application for zoning approval, from engaging in certain activities.

A BILL to amend and reenact § 15.2-2316.3 of the Code of Virginia and to amend the Code of Virginia by adding sections numbered 15.2-2316.4:1, 15.2-2316.4:2, and 15.2-2316.4:3, relating to zoning for wireless communications infrastructure.

18101342D

S.B. 639 Health care shared savings; incentive programs.

Patron: Dunnavant

Health care shared savings; incentive programs. Requires health carriers to establish a comparable health care service incentive program under which savings are shared with a covered person who elects to receive a covered health care service from a lower-cost provider. Incentive payments shall be at least 50 percent of the saved cost compared to the average cost. Incentive payments are not required for savings of $25 or less. Programs are required to be approved by the Commissioner of Insurance. The measure also requires health carriers to make available an interactive mechanism on their website that enables a covered person to compare costs between providers in-network, calculate estimated out-of-pocket costs, and obtain quality data for those providers, to the extent available. The measure authorizes covered persons to obtain health care services from out-of-network providers if their costs are below the average of in-network providers. The measure requires health care facilities and practitioners to provide a covered person an estimate of charges prior to an admission, procedure, or service. All health care providers are required to post in a visible area notification of the patient's ability to obtain information in order to get an estimate of out-of-pocket costs from his health carrier and to compare providers.

A BILL to amend and reenact §§ 38.2-4214 and 38.2-4319 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 32.1-134.5, by adding in Chapter 34 of Title 38.2 an article numbered 8, consisting of sections numbered 38.2-3461 through 38.2-3466, and by adding a section numbered 54.1-2962.3, relating to health care shared savings; required disclosures by health care providers; and health insurance incentive programs.

18104607D

S.B. 646 Electric utilities; fuel cost recovery, contracts for natural gas pipeline capacity.

Patron: McPike

Electric utilities; fuel factor; gas pipeline capacity. Directs the State Corporation Commission 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 Commission finds is appropriate to ensure a reliable supply of natural gas. The measure also directs the Commission to conduct a proceeding to establish the proper amount of natural gas pipeline capacity that an electric utility needs to purchase under firm contract.

A BILL to amend and reenact § 56-249.6 of the Code of Virginia, relating to public utilities; fuel cost recovery; contracts for natural gas pipeline capacity.

18102458D

S.B. 662 Electric utilities; competition.

Patron: Wagner

Electric utilities; competition. Limits the scope of the provision that allows individual retail customers to aggregate or combine their demands in order to meet the five megawatt threshold above which they are permitted to purchase electric energy from any licensed supplier. The measure provides that the demands of individual retail customers may be aggregated or combined to meet this level only if they (i) are served by an electric cooperative with more than 150,000 customer accounts, (ii) have a combined noncoincident peak demand that exceeds 120 megawatts, and (iii) receive service at sites that are within 20 miles of each other.

A BILL to amend and reenact § 56-577 of the Code of Virginia, relating to electric utility regulation; ability to purchase from competing supplier.

18103013D

S.B. 711 Electric utilities; community renewable projects.

Patron: Wexton

Electric utilities; community renewable projects. Requires the State Corporation Commission to adopt rules under which community renewable projects are authorized to operate. A community renewable project is a solar-powered or wind-powered electric generation facility with a capacity of not more than 20 megawatts that is operated subject to the requirement that the electricity generated by the facility belongs to the project's subscribers. The facility may be owned either by the investor-owned electric utility or distribution cooperative in whose service territory the facility is located or a for-profit or nonprofit entity, which may be an entity entirely owned by or consisting of subscribers, that contracts to sell the electricity generated by the facility to the retail utility. The measure provides that neither the owner of a project nor its subscribers are public utilities and that prices paid for subscriptions in projects shall not be subject to regulation by the Commission. The measure also requires the retail utility to purchase all of the electricity generated by the project and that the purchase of the electricity by the utility shall take the form of a credit against the utility's electric bill to each of the project's subscribers. Finally, the measure requires the Commission to formulate and implement policies that simultaneously encourage (i) the ownership by customers of subscriptions in projects and of other forms of distributed generation to the extent the Commission finds there to be demand for such ownership; (ii) the development of projects with attributes that the Commission finds result in lower overall total costs for the retail utility's customers; and (iii) the successful financing and operation of subscriber-owned projects.

A BILL to amend the Code of Virginia by adding a section numbered 56-585.1:4, relating to electric utilities; community renewable projects.

18102547D

S.B. 780 Hydroelectric plant; revenue sharing agreement among certain localities.

Patron: Chafin

Hydroelectric plant revenue sharing agreement among certain localities. Requires the Counties of Buchanan, Dickenson, Lee, Russell, Scott, Tazewell, and Wise and the City of Norton to enter into a hydroelectric plant revenue sharing agreement whereby the host county shall receive revenue from a hydroelectric plant and distribute a portion of that revenue to the other localities on the basis of the agreed-upon formula.

A BILL to require a hydroelectric plant revenue sharing agreement among certain localities.

18104617D

S.B. 817 Life insurance; prohibits an insurer form issuing a policy for an individual under 5 years of age.

Patron: Saslaw

Life insurance on minors; limits. Prohibits an insurer from issuing in Virginia a policy of life insurance upon the life of an individual under the age of five years. The bill also caps the amount of life insurance that may be issued on the life of a minor who is at least five years of age but under the age of 15 years at $50,000. The measure does not prohibit a domestic insurer from issuing for delivery, in another state or foreign country, a life insurance policy that is governed by the laws of such state or country for any amount not prohibited by the laws of the other state or country.

A BILL to amend and reenact § 38.2-302 of the Code of Virginia and to amend the Code of Virginia by adding a section numbered 38.2-3105.1, relating to life insurance on the life of a minor; limits.

18100033D

S.B. 823 Wireless support structures; public rights-of-way use fees established.

Patron: McDougle

Wireless support structures; public rights-of-way use fees. Establishes an annual wireless support structure public rights-of-way use fee to be charged to wireless services providers and wireless infrastructure providers in connection with a permit for occupation and use of the public rights-of-way under the jurisdiction of the Department of Transportation (VDOT) or a locality for the construction of new wireless support structures. The amount of the use fee is (i) $1,000 for any wireless support structure at or below 50 feet in height; (ii) $3,000 for any wireless support structure above 50 feet and at or below 120 feet in height; (iii) $5,000 for any wireless support structure above 120 feet in height; and (iv) $1 per square foot for any other equipment, shelter, or associated facilities constructed on the ground. The measure provides that the use fee amounts shall be adjusted every five years on the basis of inflation. The measure also provides that an existing agreement, contract, license, easement, or permit allowing the use of the public rights-of-way by a wireless services provider or wireless infrastructure provider may be enforced by VDOT or the locality only until the current term of the agreement, contract, license, easement, or permit expires.

A BILL to amend the Code of Virginia by adding in Chapter 15.1 of Title 56 a section numbered 56-484.32, relating to wireless support structures; public rights-of-way use fees.

18104616D

S.B. 837 Electric utilities; retail competition.

Patron: Suetterlein

Electric utilities; retail competition. Reduces the amount of the demand of an investor-owned electric utility's customer that makes the customer eligible to purchase electric power from any licensed supplier from five megawatts to one megawatt. The measure shortens the period that a utility's customer who switches from an investor-owned electric utility to a competing supplier is barred from returning as a customer of its utility from five years to three months. The measure revises the methodology for calculating certain costs for customers of an investor-owned electric utility that receive an exemption from the lock-out period. The measure (i) allows customers of an investor-owned electric utility to purchase 100 percent renewable energy from any licensed supplier and (ii) eliminates the condition that permits such purchases only if the incumbent investor-owned electric utility does not offer a tariff for 100 percent renewable energy. The measure does not change the existing corresponding requirements applicable to cooperative electric utilities.

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

18103957D

S.B. 853 Insurance agents; continuing education requirements.

Patron: Wagner

Insurance agents; continuing education requirements. Revises the provisions applicable to the deadlines by which insurance agents are required to comply with continuing education requirements applicable to licensed insurance agents. The measure also revises provisions regarding licensees who are exempt from continuing education requirements. The measure has a delayed effective date of January 1, 2019.

A BILL to amend and reenact §§ 38.2-1868.1, 38.2-1869, 38.2-1871, and 38.2-1872 of the Code of Virginia, relating to insurance agent licensing; continuing education requirements.

18104024D

S.B. 855 Energy efficiency programs; programs proposed by an electric utility.

Patron: Sturtevant

Energy efficiency programs. Provides that an energy efficiency program proposed by an electric utility is in the public interest if the net present value of the benefits exceeds the net present value of the costs as determined by any three of four benefit cost tests. The four tests to be considered are the Total Resource Cost Test, the Utility Cost Test, the Participant Test, and the Ratepayer Impact Measure Test. The measure also revises the existing standard for what constitutes a cost-effective conservation and energy efficiency program conducted by a natural gas utility to conform to the provisions for electric utilities.

A BILL to amend and reenact §§ 56-576 and 56-600 of the Code of Virginia, relating to electric and natural gas utilities; energy efficiency programs.

18105018D

S.B. 857 Public Rights-of-Way Use; fees used for high-speed Internet access in underserved areas.

Patron: Chafin

Public Rights-of-Way Use Fees; high-speed Internet access. Allocates a portion of Public Rights-of-Way Use fees collected by the Virginia Department of Transportation and certain localities to be used for the deployment and expansion of high-speed Internet services in underserved areas.

A BILL to amend and reenact § 56-468.1 of the Code of Virginia, relating to Public Rights-of-Way Use Fees; high-speed Internet access.

18102138D

S.B. 860 Health care provider panels; vertically integrated carriers, public hospitals.

Patron: Lucas

Health care provider panels; vertically integrated carriers; public hospitals. Requires any vertically integrated carrier, which is a health insurer or other carrier that owns an interest in an acute care hospital facility, to offer to every public hospital the ability to participate in the provider panels or networks established for each of the carrier's policies, products, and plans. The measure also requires any contract by which a public hospital participates in a vertically integrated carrier's provider panel or network to obligate the carrier to reimburse the public hospital for a covered health care service at a rate that is not less than the fair and nondiscriminatory rate. The measure establishes the methodology for determining a fair and nondiscriminatory rate, which is based on the same percentage in excess of the Medicare rate that the carrier pays to the acute care hospital facilities in which it owns an interest. The measure provides a procedure by which a public hospital may dispute a vertically integrated carrier's calculation of a fair and nondiscriminatory rate and authorizes a public hospital to bring a civil action against such a carrier to recover any underpayment or for injunctive or declaratory relief.

A BILL to amend and reenact § 38.2-3407.10 of the Code of Virginia, relating to health care provider panels; vertically integrated carriers; reimbursements to public hospitals.

18104204D

S.B. 901 Electric utilities; undergrounding distribution lines, reasonableness and prudence of costs.

Patron: Sturtevant

Electric utilities; undergrounding distribution lines; reasonableness and prudence of costs. States that the General Assembly has determined that (i) the conversion of an investor-owned electric utility's existing overhead distribution tap lines with new underground facilities will provide local and system-wide benefits, (ii) the new underground facilities are cost beneficial, and (iii) the costs associated with the new underground facilities are reasonably and prudently incurred. This legislative determination replaces a provision enacted in 2017 that established a rebuttable presumption regarding these three issues. The measure also directs the State Corporation Commission, in proceedings authorized or required by § 56-585.1, to only consider whether activities, facilities, or projects were or will be subject to proper and required purchasing and construction practices and whether costs proposed for such activities, facilities, or projects are reasonable such that they are attributable to expenses. This directive supersedes provisions enacted in 2007 that authorized the Commission to determine the reasonableness and prudence of costs incurred by a utility.

A BILL to amend and reenact § 56-585.1 of the Code of Virginia, relating to electric utility regulation; undergrounding distribution facilities; finding by General Assembly; authority to determine the reasonableness and prudence of costs.

18104735D

S.B. 908 Electric vehicle charging stations; local and public operation.

Patron: McClellan

Electric vehicle charging stations; local and public operation. Authorizes any locality or public institution of higher education, or the Department of Conservation and Recreation, to locate and operate a retail fee-based electric vehicle charging station on property such entity owns or leases. The bill requires that the use of a retail fee-based electric vehicle charging station on property owned or leased by a locality be restricted to employees of the locality and authorized visitors and that such station be accompanied by appropriate signage that provides reasonable notice of such restriction. The bill exempts such a locality, public institution of higher education, or the Department of Conservation and Recreation from being considered a public utility solely because of the sale of electric vehicle charging service or the ownership or operation of an electric vehicle charging station and further exempts such service from constituting the retail sale of electricity.

A BILL to amend and reenact §§ 56-1.2, 56-1.2:1, and 56-232.2:1 of the Code of Virginia and to amend the Code of Virginia by adding sections numbered 10.1-104.01, 15.2-967.2, 23.1-1301.1, and 23.1-2908.1, relating to electric vehicle charging stations; local and public operation.

18104936D

S.B. 922 Electric utilities; rates and tariffs.

Patron: Chafin

Electric utilities; rates and tariffs. Directs the State Corporation Commission to use the unconsolidated capital structure and cost of capital of an investor-owned electric utility when regulating the rates, terms, and conditions of service. Currently there is no requirement that the capital structure and cost of capital be unconsolidated. The measure also authorizes a utility to request an adjustment to a tariff during a biennial filing when the utility's rates do not change and requires the Commission to approve such an adjustment if it is found to be in the public interest.

A BILL to amend and reenact § 56-585.1 of the Code of Virginia, relating to the regulation of investor-owned electric utilities.

18102900D

S.B. 933 Health insurance; copayments for prescription drugs, disclosures.

Patron: Saslaw

Health insurance; copayments for prescription drugs; disclosures. Prohibits any contract between a health carrier or its pharmacy benefits manager and a pharmacy or pharmacist from containing a provision that requires an enrollee to make a copayment for a covered prescription drug in an amount that exceeds the lesser of (i) the applicable copayment for the prescription drug or (ii) the cash price the enrollee would pay for the prescription drug if the enrollee purchased the prescription drug without using the enrollee's health plan. The measure applies to provider contracts entered into, amended, extended, or renewed on or after January 1, 2019.

A BILL to amend the Code of Virginia by adding a section numbered 38.2-3407.15:4, relating to carrier business practices; contracts with pharmacies and pharmacists; amounts charged to an enrollee for covered prescription drugs; disclosure of less expensive alternatives to using enrollee's health plan.

18104784D

S.B. 955 Electric utility regulation; suspension of reviews of earnings, Transitional Rate Period.

Patron: Petersen

Electric utility regulation; suspension of reviews of earnings; Transitional Rate Period. Provides that the Transitional Rate Period for Virginia Electric and Power Company (Dominion) will conclude on December 31, 2018, and its next biennial review will be conducted in 2019. The Transitional Rate Period for Dominion currently is scheduled to expire on December 31, 2019, and its next biennial review is scheduled to occur in 2022. The measure does not change the date Appalachian Power's Transitional Rate Period is scheduled to conclude (December 31, 2017), but does advance the year of its next biennial review from 2020 to 2018. During the first biennial reviews after the conclusion of the Transitional Rate Period, the State Corporation Commission shall review the earnings of the utilities by utilizing the two successive 12-month test periods ending December 31 of the year preceding the biennial review. During the first biennial reviews after the conclusion of the Transitional Rate Period, the Commission shall review the earnings of the utility during the Transitional Rate Period and, if warranted, shall order credits to customers, order adjustments to rates, or both. The measure also authorizes the Commission to notify customers of such utilities that (i) the General Assembly has authorized the Commission to conduct biennial reviews of the rates, terms, and conditions for any service of the utility during 2018 or 2019, as applicable, and (ii) pursuant to a biennial review, the customer may be entitled to a credit on the customer's bill.

A BILL to amend and reenact § 56-585.1:1 of the Code of Virginia, relating to electric utility regulation; suspension of reviews of earnings; conclusion of Transitional Rate Period; notice to utility customers.

18104916D

S.B. 964 Health insurance; catastrophic health plans.

Patron: Sturtevant

Health insurance; catastrophic health plans. Requires health carriers to offer catastrophic plans in the individual market in every locality in the Commonwealth in which they offer any health benefit plan. A catastrophic plan is a high-deductible health care plan that provides essential health benefits and coverage for at least three primary care visits per policy year. Under the federal Affordable Care Act, catastrophic plans satisfy requirements that health benefit plans provide minimum levels of coverage only if they cover individuals who are under 30 years of age or who qualify for a hardship exemption or affordability exemption. The measure requires the Secretary of Health and Human Resources to apply to the federal government for a state innovation waiver allowing the implementation of the provision. The provision will become effective 30 days after the Secretary notifies persons that the request has been approved.

A BILL to amend the Code of Virginia by adding a section numbered 38.2-3446.1, relating to health insurance; catastrophic plans.

18104904D

S.B. 965 Electric utility regulation; rate review proceedings, Transitional Rate Period, etc.

Patron: Newman

Electric utilities. Advances the date rate reviews are scheduled to resume for Dominion Energy Virginia (DEV) from 2022 to 2021. The review will use the three 12-month test periods beginning January 1, 2018, and ending December 31, 2020. The measure provides that for purposes of the Utility Facility Act a company that owns or operates facilities for the storage of electric energy for sale, including pumped hydroelectric generation and storage facilities in the coalfield region of Virginia is a public utility. The measure excludes from the definition of "public utility," for purposes of the Utility Facility Act, a company that provides storage of electric energy that is not for sale to the public, if the company is not organized as a public utility. The measure also includes enactment clauses that (i) direct the State Corporation Commission to conduct pilot programs for the deployment of electric power storage batteries; (ii) bar Appalachian Power (AEP) from recovering $10 million of incurred fuel costs; (iii) direct DEV to provide current customers a one-time bill credit of $133 million; (iv) require DEV to roll into its base rates certain costs associated with the conversion of certain generation facilities to utilize biomass as fuel; (v) require reductions in the rates for all incumbent electric utilities to reflect reductions in federal tax liability resulting from the enactment of federal tax legislation; and (vi) require DEV and AEP to continue funding for pilot programs for energy assistance and weatherization for low-income, elderly, and disabled individuals.

A BILL to amend and reenact §§ 56-265.1 and 56-585.1:1 of the Code of Virginia, relating to electric utility regulation; rate review proceedings; Transitional Rate Period; energy storage facilities; cost recovery; pilot programs; fuel factor; bill credits; rate adjustment clauses for major unit conversions; rate reductions attributable to changes in federal law.

18105571D

S.B. 966 Electric utility regulation; grid modernization, energy efficiency.

Patron: Wagner

Electric utility regulation. Provides that, in lieu of the biennial review proceedings previously required, Dominion Energy Virginia (DEV) and Appalachian Power (AEP) will be subject to triennial reviews of their rates, terms, and conditions for generation, distribution, and transmission services. The measure advances the termination of the Transitional Rate Period for DEV by two years, to December 31, 2017. The termination of the Transitional Rate Period for AEP remains December 31, 2017. For DEV, the first review after its Transitional Rate Period will be held in 2021, which is one year earlier than currently scheduled. For AEP, the first review after its Transitional Rate Period will be held in 2020, which is unchanged. In the triennial review proceedings, overearnings that might have been refunded to customers may be reduced by the amounts invested by DEV in certain new solar or wind generation facilities or on electric distribution grid transformation projects. The measure also: (i) excludes from the definition of "public utility" for purposes of the Utility Facility Act a company that provides storage of electric energy that is not for sale to the public, if the company is not organized as a public utility; (ii) provides that an energy efficiency program proposed by an electric utility is in the public interest if the net present value of the benefits exceeds the net present value of the costs as determined by any three of four benefit cost tests; (iii) declares that the conversion of an investor-owned electric utility's existing overhead distribution tap lines with new underground facilities are cost beneficial and that related costs are reasonable and prudently incurred if the average cost per customer does not exceed $20,000 and the costs per mile do not exceed $750,000; (iv) establishes a new rate adjustment clause category for electric distribution grid transformation project expenses; (v) declares that electric distribution grid transformation projects are in the public interest; (vi) provides that the costs of such projects may be recovered either through a rate adjustment clause or through a customer credit reinvestment offset; (vii) requires the State Corporation Commission (SCC) to enter an order on a petition for approval of a solar generation facility within six months after the petition's filing; (viii) provides that in any triennial review certain costs, including costs for certain meters and costs of coal combustion byproduct management, may be deferred for recovery in future periods; and (ix) allows utilities to avoid being required to credit customers with 70 percent of the amount of overearnings by applying a customer credit reinvestment offset for expenses on new solar and wind generation facilities and electric distribution grid transformation projects. The provision creating the customer credit reinvestment offset expires on July 1, 2028. The measure also includes enactment clauses that (a) establish a pilot program consisting of the approval of the underground construction of two electrical transmission lines and directs the SCC to approve as a qualifying project a transmission line that appears to track the I-66 Hybrid Route that has been considered in the application of DEV for the Haymarket transmission line project in Prince William County and approve a rate adjustment clause to allow the utility to recover from the utility's Virginia jurisdictional customers the costs of the project; (b) require DEV to provide current customers a one-time bill credit of $133 million; (c) require DEV to roll certain costs associated with the conversion of certain generation facilities to utilize biomass as fuel into its base rates; (d) require reductions in the rates for all incumbent electric utilities to reflect reductions in federal tax liability resulting from the enactment of federal tax legislation; (e) require DEV and AEP to continue funding for pilot programs for energy assistance and weatherization for low-income, elderly, and disabled individuals; and (f) require the SCC to submit a report and make recommendations to the Governor and the General Assembly annually on or before December 1 of each year, assessing the reliability of electrical transmission or distribution systems, the integration of utility-owned or customer-owned renewable electric generation resources with the utility's electric distribution grid, the level of investment in generation, transmission, or distribution of electricity, and related matters.

A BILL to amend and reenact §§ 56-265.1, 56-576, 56-585.1, and 56-585.1:1 of the Code of Virginia, relating to electric utility regulation; grid modernization; energy efficiency programs; schedule for rate review proceedings; Transitional Rate Period; energy storage facilities; electric distribution grid transformation projects, wind and solar generation facilities; coal combustion by-product management; pilot programs; undergrounding electrical transmission lines; fuel factor; bill credits; rate adjustment clauses for major unit conversions; rate reductions attributable to changes in federal tax law.

18105626D

S.B. 967 Electric utility regulation; grid modernization, energy efficiency.

Patron: Saslaw

Electric utility regulation. Provides that, in lieu of the biennial review proceedings previously required, Dominion Energy Virginia (DEV) and Appalachian Power (AEP) will be subject to triennial reviews of their rates, terms, and conditions for generation, distribution, and transmission services. The measure advances the termination of the Transitional Rate Period for DEV by two years, to December 31, 2017. The termination of the Transitional Rate Period for AEP remains December 31, 2017. For DEV, the first review after its Transitional Rate Period will be held in 2021, which is one year earlier than currently scheduled. For AEP, the first review after its Transitional Rate Period will be held in 2020, which is unchanged. In the triennial review proceedings, overearnings that might have been refunded to customers may be reduced by the amounts invested by DEV in certain new solar or wind generation facilities or on electric distribution grid transformation projects. The measure also: (i) excludes from the definition of "public utility" for purposes of the Utility Facility Act a company that provides storage of electric energy that is not for sale to the public, if the company is not organized as a public utility; (ii) authorizes an investor-owned electric utility, if a cable operator does not elect to relocate facilities underground when the electric utility relocates its facilities underground, to either convey poles to the cable operator or retain ownership of the poles; (iii) provides that an energy efficiency program proposed by an electric utility is in the public interest if the net present value of the benefits exceeds the net present value of the costs as determined by any three of four benefit cost tests; (iv) establishes a new rate adjustment clause category for electric distribution grid transformation project expenses; (v) increases the amount of capacity of solar generation facilities constructed by a utility that are in the public interest from 50 megawatts to 4,000 megawatts, including rooftop solar installations with a capacity of not less than 50 kilowatts; (vi) declares that the conversion of an investor-owned electric utility's existing overhead distribution tap lines with new underground facilities are cost beneficial and that related costs are reasonable and prudently incurred if the average cost per customer does not exceed $20,000 and the costs per mile do not exceed $750,000; (vii) declares that electric distribution grid transformation projects, offshore wind generation facilities with a capacity of not more than 16 megawatts, and all onshore wind generation facilities, are in the public interest and that the costs thereof may be recovered either through a rate adjustment clause or through a customer credit reinvestment offset; (viii) provides that in any triennial review certain costs, including costs for certain meters and costs of coal combustion byproduct management, may be deferred for recovery in future periods; (ix) requires the SCC to enter an order on a petition for approval of a solar generation facility within six months after the petition's filing; and (x) allows utilities to avoid being required to credit customers with 70 percent of the amount of overearnings by applying a customer credit reinvestment offset for expenses on new solar and wind generation facilities and electric distribution grid transformation projects. The provision creating the customer credit reinvestment offset expires on July 1, 2028. The measure also includes enactment clauses that (a) establish a pilot program consisting of the approval of the underground construction of two electrical transmission lines and directs the SCC to approve as a qualifying project a transmission line that appears to track the I-66 Hybrid Route that has been considered in the application of DEV for the Haymarket transmission line project in Prince William County and approve a rate adjustment clause to allow the utility to recover from the utility's Virginia jurisdictional customers the costs of the project; (b) require DEV to provide current customers a one-time bill credit of $133 million; (c) require DEV to roll certain costs associated with the conversion of certain generation facilities to utilize biomass as fuel into its base rates; (d) require reductions in the rates for all incumbent electric utilities to reflect reductions in federal tax liability resulting from the enactment of federal tax legislation; and (e) require DEV and AEP to continue funding for pilot programs for energy assistance and weatherization for low-income, elderly, and disabled individuals.

A BILL to amend and reenact §§ 56-265.1, 56-466.2, 56-576, 56-585.1, and 56-585.1:1 of the Code of Virginia, relating to electric utility regulation; grid modernization; energy efficiency programs; schedule for rate review proceedings; Transitional Rate Period; energy storage facilities; electric distribution grid transformation projects, wind and solar generation facilities; coal combustion by-product management; pilot programs; undergrounding electrical transmission lines; fuel factor; bill credits; rate adjustment clauses for major unit conversions; rate reductions attributable to changes in federal tax law.

18105575D

S.B. 989 Virginia Antitrust Act; exemption for hospitals.

Patron: Wagner

Virginia Antitrust Act; exemption for hospitals. Removes the exemption from the Virginia Antitrust Act that currently exists for certain activities of nonprofit hospitals or their officers, directors, or employees.

A BILL to amend and reenact § 59.1-9.4 of the Code of Virginia, relating to the Virginia Antitrust Act; exemption for certain hospitals.

18105773D