Saturday, August 30, 2008
The General Assembly is not in session.
Tracking Virginia’s General Assembly
since 2007.
HB1523: Electric utilities; resource planning.
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Title 56 a chapter numbered 24, consisting of sections numbered 56-597, 56-598, and 56-599, as follows:
§ 56-597. Definitions.
As used in this chapter:
"Affiliate" means a person that controls, is controlled by, or is under common control with an electric utility.
"Electric utility" means any investor-owned public utility that provides electric energy for use by retail customers.
"Integrated resource plan" or "IRP" means a document developed by an electric utility that provides a forecast of its load obligations and a plan to meet those obligations by supply side and demand side resources over the ensuing 15 years to promote reasonable prices, reliable service, energy independence, and environmental responsibility.
"Retail customer" means any person that purchases retail electric energy for its own consumption at one or more metering points or non-metered points of delivery located in the Commonwealth.
§ 56-598. Contents of integrated resource plans.
An IRP should:
1. Integrate, over the planning period, the electric utility's forecast of demand for electric generation supply with recommended plans to meet that forecasted demand and assure adequate and sufficient reliability of service, including, but not limited to:
a. Generating electricity from generation facilities that it currently operates or intends to construct or purchase;
b. Purchasing electricity from affiliates and third parties; and
c. Reducing load growth and peak demand growth through cost-effective demand reduction programs;
2. Identify a portfolio of electric generation supply resources, including purchased and self-generated electric power, that:
a. Consistent with § 56-585.1, is most likely to provide the electric generation supply needed to meet the forecasted demand, net of any reductions from demand side programs, so that the utility will continue to provide reliable service at reasonable prices over the long term; and
b. Will consider low cost energy/capacity available from short-term or spot market transactions, consistent with a reasonable assessment of risk with respect to both price and generation supply availability over the term of the plan;
3. Reflect a diversity of electric generation supply and cost-effective demand reduction contracts and services so as to reduce the risks associated with an over-reliance on any particular fuel or type of generation demand and supply resources and be consistent with the Commonwealth's energy policies as set forth in § 67-102;
4. Include such additional information as the Commission requests pertaining to how the electric utility intends to meets its obligation to provide electric generation service for use by its retail customers over the planning period.
§ 56-599. Integrated resource plan required.
A. Not later than December 31, 2008, the Commission shall order each electric utility to develop an integrated resource plan. The order may establish guidelines for developing an IRP.
B. By September 1, 2009, each electric utility shall file an initial integrated resource plan with the Commission, which plan shall comply with the provisions of the order of the Commission issued pursuant to subsection A.
C. Each electric utility shall file an updated integrated resource plan at least every two years thereafter, which plan shall comply with the provisions of any relevant order of the Commission establishing guidelines for the format and contents of updated and revised integrated resource plans.
D. In preparing an integrated resource plan, each electric utility shall systematically evaluate, and may propose:
1. Entering into short-term and long-term electric power purchase contracts;
2. Owning and operating electric power generation facilities;
3. Building new generation facilities;
4. Relying on purchases from the short term or spot markets;
5. Making investments in demand-side resources, including energy efficiency and demand-side management services;
6. Taking such other actions, as the Commission may approve, to diversify its generation supply portfolio and ensure that the electric utility is able to implement an approved plan; and
7. The methods by which the electric utility proposes to acquire the supply and demand resources identified in its proposed integrated resource plan.
E. The Commission shall analyze and review an integrated resource plan and, after giving notice and opportunity to be heard, the Commission shall make a determination as to whether an IRP is reasonable and is in the public interest.
2. That as part of its 2009 integrated resource plan developed pursuant to this act, each electric utility shall assess governmental, nonprofit, and utility programs in its service territory to assist low income residential customers with energy costs and shall examine, in cooperation with relevant governmental, nonprofit, and private sector stakeholders, options for making any needed changes to such programs.
3. That a copy of each electric utility's integrated resource plan filed with the State Corporation Commission in 2009 pursuant to this act shall also be provided to the chairmen of the House Committee on Commerce and Labor, the Senate Committee on Commerce and Labor, and the Commission on Electric Utilities Restructuring.
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding in Title 56 a chapter numbered 24, consisting of sections numbered 56-597 through 56-602 as follows:
§ 56-597. Definitions.
As used in this chapter:
"Affiliate" means a person that controls, is controlled by, or is under common control with an electric utility.
"Electric utility" means any investor-owned public utility or utility formed under or subject to Chapter 9.1 (§ 56-231.15 et seq.), that provides electric energy for use by retail customers.
"Procurement plan" means a document that sets forth how an electric utility intends to meet its obligation to provide electric generation supply for use by its retail customers over the ensuing 20 years. A procurement plan shall:
1. Integrate, over the term of the plan, the electric utility's forecast of demand for electric generation supply with actions the utility recommends taking to meet that forecasted demand and assure adequate and sufficient reliability of service, including, but not limited to:
a. Generating electricity from generation facilities that it currently operates or intends to construct or purchase;
b. Purchasing electricity from affiliates and third parties through bilateral contracts; and
c. Reducing load growth and peak demand growth through cost-effective demand reduction contracts and services;
2. Identify a portfolio of electric generation supply resources, including purchased and self-generated electric power, that:
a. Is most likely to provide the electric generation supply needed to meet the forecasted demand, net of any reductions from demand side programs, at the lowest total price with reasonable price stability over the term of the plan so as to assure just and reasonable prices; and
b. Will minimize reliance on short-term or spot market transaction, consistent with a reasonable assessment of risk with respect to both price and generation supply availability over the term of the plan;
3. Reflect a diversity of electric generation supply and cost-effective demand reduction contracts and services so as to reduce the risks associated with an over-reliance on any particular fuel or type of generation demand and supply resources and demonstrate compliance with the Commonwealth's energy policies as set forth in § 67-102;
4. Contain a mechanism to rely on annual price changes for generation supply service that reflects the actual changes in price of the various components of the entire portfolio and to minimize, to the extent reasonable, the need to reconcile costs associated with price changes in the entire portfolio on an annual basis; and
5. Include such additional information as the Commission requests pertaining to how the electric utility intends to meets its obligation to provide electric generation supply for use by its retail customers over the ensuing 20 years.
"Retail customer" means any person that purchases retail electric energy for its own consumption at one or more metering points or nonmetered points of delivery located in the Commonwealth.
§ 56-598. Procurement plan required.
A. Not later than August 1, 2008, the Commission shall order each electric utility to develop a procurement plan. The order shall establish guidelines for the format and contents of the procurement plans.
B. By January 1, 2009, each electric utility shall file an initial procurement plan with the Commission, which plan shall comply with the provisions of the order of the Commission issued pursuant to subsection A.
C. Each electric utility shall file an updated procurement plan every two years thereafter, which plan shall comply with the provisions of any relevant order of the Commission establishing guidelines for the format and contents of updated procurement plans.
D. In preparing a procurement plan, each electric utility shall systematically evaluate, and may propose:
1. Entering into short-term and long-term electric power purchase contracts;
2. Owning and operating electric power generation facilities;
3. Making investments in demand-side resources, including energy efficiency and demand-side management services; and
4. Taking such other actions, as the Commission may approve, to diversify its generation supply portfolio and ensure that the electric utility is able to implement an approved plan.
E. The Commission shall approve a procurement plan if, after giving notice and opportunity to be heard, it determines that the plan complies with the requirements of this chapter and is in the public interest. The Commission may modify a procurement plan filed by an electric utility to ensure that it conforms to the provisions of this chapter and is otherwise in the public interest.
F. The approval of a procurement plan shall not be construed to alter the obligations and powers of electric utilities and the Commission pursuant to § 56-234.3.
§ 56-599. Electric energy to be provided pursuant to approved plan.
Each electric utility shall provide electric energy for use by retail customers in accordance with its approved procurement plan.
§ 56-600. Cost recovery.
Each electric utility may recover the actual and incremental costs incurred to manage a generation supply portfolio in an approved procurement plan. An electric utility may propose a balanced incentive mechanism that includes both penalties and rewards and that establishes one or more procurement benchmarks that use quantifiable objectives and standards in meeting the portfolio management goals and objectives as set forth in the approved procurement plan.
§ 56-601. Competitive acquisition practices.
To the extent possible, and consistent with the requirements of § 56-233.1, an electric utility shall rely on competitive methods of acquiring the products, contracts, and resources that are identified in its procurement plan for generation supply service that are not already owned by the utility. The Commission shall approve any proposed method of competitive acquisition as part of its review of the electric utility's proposed procurement plan.
§ 56-602. Metering systems.
A. Any proposal by an electric utility, as an element of a procurement plan, to adopt an advanced metering technology or system, including metering that identifies consumption in more detail than a conventional meter and may communicate information regarding time of use to electric utility for monitoring and billing purposes, for its residential customers shall include an evaluation of all other reasonable demand response programs for residential customers that do not rely on such a metering technology or system.
B. The Commission shall not require residential customers to pay for such a metering technology or system unless it finds that the electric utility's investment in the technology or system will result in a net reduction in the rates for electric service for such customers.
C. In evaluating the costs and benefits of any proposal for a new metering system for residential customers, the Commission shall consider other cost-effective options to obtain the demand response results identified in a procurement plan as necessary to achieve the plan's objectives and goals, including direct load control programs in which the customer is provided a bill credit or incentive to participate in the program.
D. In no event shall the Commission approve a procurement plan that provides for the implementation of a demand response or time-based pricing program for residential customers unless a customer's participation in the program is voluntary.
Be it enacted by the General Assembly of Virginia:
1. That §§ 46.2-755.1 and 46.2-755.2 of the Code of Virginia are amended and reenacted as follows:
§ 46.2-755.1. Additional annual license fees in certain localities.
In addition to taxes and license fees imposed pursuant to § 46.2-752 and to all other taxes and fees permitted by law, the Hampton Roads Transportation Authority established pursuant to § 33.1-391.7 and the Northern Virginia Transportation Authority established pursuant to § 15.2-4830 are authorized to charge an additional non-refundable annual license fee in the amount of $10 for each vehicle registered in any county or city that is embraced by the respective Authority, for such vehicles subject to state registration fees under this Title. Such additional license fees shall not, however, be charged for any vehicle registered under the International Registration Plan developed by International Registration Plan, Inc. Such additional license fees shall be collected by the Department of Motor Vehicles in connection with the issuance or renewal of license plates or by agents or others acting on behalf of the Department of Motor Vehicles (1) who agree voluntarily and in writing to act on behalf of the Department of Motor Vehicles and (2) in accordance with a compensation scheduled developed by the Department of Motor Vehicles.
§ 46.2-755.2. Additional initial registration fees in certain localities.
In addition to taxes and license fees imposed pursuant to § 46.2-752 and to all other taxes and fees permitted by law, the Hampton Roads Transportation Authority established pursuant to § 33.1-391.7 and the Northern Virginia Transportation Authority established pursuant to § 15.2-4830 are authorized to charge an additional non-refundable initial, one-time registration fee on any vehicle registered in any county or city that is embraced by the respective Authority, for such vehicles subject to state registration fees under this Title. The fee shall be imposed at a rate of 1% of the value of the vehicle at the time the vehicle is first registered in such county or city by the owner of the vehicle. The value of the vehicle shall be determined on the same basis as is or would be used to determine the basis for motor vehicle sales and use tax as set forth in Chapter 24 (§ 58.1-2400 et seq.) of Title 58.1. The fee authorized by this section shall be assessed at the time the vehicle is first registered in the county or city embraced by the respective Authority by the owner of the vehicle, and shall be imposed only once, so long as the ownership of the vehicle upon which they are imposed remains unchanged. Such initial registration fees shall be collected by the Department of Motor Vehicles by agents or others acting on behalf of the Department of Motor Vehicles (1) who agree voluntarily and in writing to act on behalf of the Department of Motor Vehicles and (2) in accordance with a compensation schedule developed by the Department of Motor Vehicles.
The fee authorized by this section shall not be imposed upon (i) vehicles registered prior to January 1, 2008 unless the ownership of the vehicle changes on or after January 1, 2008; (ii) vehicles registered under the International Registration Plan developed by International Registration Plan, Inc.; and (iii) any vehicle for which the sole basis for imposing the fee would be a change in the ownership of the vehicle due to (a) a gift to the spouse, son, or daughter of the transferor, (b) a transfer to a spouse, heir under the will, or heir at law by intestate succession as a result of the death of the owner of the vehicle, or (c) the addition or removal of a spouse.
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