Thursday, August 21, 2008
The General Assembly is not in session.
Tracking Virginia’s General Assembly
since 2007.
SB778: Tolls; State Corporation Commission authority to approve or revise rates charged.
Be it enacted by the General Assembly of Virginia:
1. That § 56-542 of the Code of Virginia is amended and reenacted as follows:
§ 56-542. Powers of the Commission.
A. The Commission shall have the power to regulate the operator under this title as a public service corporation. The Commission shall also have the power, and be charged with the duties of reviewing and approving or denying the application, of supervising and controlling the operator in the performance of its duties under this chapter and title, and of correcting any abuse in the performance of the operator's public duties.
B. Pursuant to § 56-36, the Commission shall require from the operator a verified report describing the nature of its contractual and other relationships with individuals or entities contracting with the operator for the provision of significant financial, construction, or maintenance services. The Commission shall review the report and such other materials as it shall deem necessary for the purpose of determining improper or excessive costs, and shall exclude from the operator's costs any amounts which it finds are improper or excessive.
C. The Commission also shall have the duty and
authority to approve or revise the toll rates charged by the operator. Initial
rates shall be approved if they appear reasonable to the user in relation to
the benefit obtained, not likely to materially discourage use of the roadway
and provide the operator no more than a reasonable rate of return as determined
by the Commission. Thereafter, the Commission, upon application, complaint or
its own initiative, and after investigation, may order substituted for any toll
being charged by the operator, a toll which is set at a level which is
that:
1. Is reasonable to the user in relation to the benefit
obtained and which will;
2. Will not materially discourage use of the roadway by
the public; and which will
3. Will provide the operator the opportunity to earn no more than a reasonable return as determined by the Commission.
D. If a change in the ownership of the facility or change in control of an operator occurs, whether or not accompanied by the issuance of securities as defined in subsection A of § 56-57 and § 56-65.1, the Commission, in any subsequent proceeding to set the level of a toll charged by the operator, shall ensure that the price paid in connection with the change in ownership or control, and any costs and other factors attributable to or resulting from the change in ownership or control, if they would contribute to an increase in the level of the toll, are excluded from the Commission's determination of the operator's reasonable return, in order to ensure that a change in ownership or control does not increase the level of the toll above that level that would otherwise have been required under subsection C if the change in ownership or control had not occurred. As used in this subsection, "control" has the same meaning as provided in § 56-88.1.
E. Pursuant to § 56-36, the Commission shall require an operator to provide copies of annual audited financial statements for the operator, together with a statement of the operator's ownership. The operator shall file such statement within four months from the end of the operator's fiscal year.
F. In addition to its powers under subsection B, the Commission shall have the power, in any proceeding involving the toll rates charged by an operator, to exclude in whole or in part from the accounts of the operator any payment or compensation to an affiliated interest for any services rendered or property or service furnished under contracts or arrangements with such affiliated interest, if it shall appear and be established upon investigation that such payment or compensation or such contract or arrangement is not consistent with the public interest. In such proceeding any payment or compensation may be disapproved or disallowed by the Commission, in whole or in part, unless satisfactory proof is submitted to the Commission of the cost to the affiliated interest rendering the service or furnishing the property or service above described.
G. The Commission may charge a reasonable annual fee to cover the costs of supervision and controlling the operator in the performance of its duties under this chapter and pursuant to this section.
2. That the Office of the Attorney General is requested, by September 1, 2008, to report to the General Assembly regarding (i) the findings from its independent financial review of the operator, as defined in § 56-536 of the Code of Virginia, and (ii) any recommendations regarding any amendments to the Virginia Highway Corporation Act of 1988 (§ 56-535 et seq.).
Be it enacted by the General Assembly of Virginia:
1. That §§ 56-88 and 56-542 of the Code of Virginia are amended and reenacted as follows:
§ 56-88. Definitions.
In this chapter the following terms shall have the following meanings:
"Acquire" or "acquisition" includes any purchase or other acquisition, whether by payment, exchange, gift, conveyance, lease, license, merger, consolidation or otherwise.
"Company" means a corporation, a partnership, an association, a joint-stock company, a business trust or an organized group of persons, whether incorporated or not; or any receiver, trustee or other liquidating agent of any of the foregoing in his capacity as such; but not a municipal corporation or county.
"Dispose of" or "disposition" includes any sale or other disposition, whether by payment, exchange, gift, conveyance, lease, license, merger, consolidation or otherwise.
"Public utility" means any company which owns or operates facilities within the Commonwealth for the generation, transmission or distribution of electric energy for sale; for the production, transmission or distribution, otherwise than in enclosed portable containers, of natural or manufactured gas for sale for heat, light or power, but excluding any company described in subdivision (b) (8) of § 56-265.1; or for the furnishing of sewerage facilities or water. "Public utility" shall also include an operator that has been issued a certificate of authority pursuant to Chapter 20 (§ 56-535 et seq.).
"Utility assets" means the facilities in place of any public utility or municipality for the production, transmission or distribution of electric energy or natural or manufactured gas, or for the furnishing of sewerage facilities or water. "Utility assets" also includes the roadway, as defined in § 56-536, constructed or operated by an operator that has been issued a certificate of authority pursuant to Chapter 20 (§ 56-535 et seq.).
"Utility security" means any note, draft, debenture, bond, share of stock, certificate, collateral trust certificate, preorganization certificate or subscription, transferable share, investment contract, receiver's or trustee's certificate or any other instrument or interest commonly known as a security which is issued, assumed or guaranteed by any public utility or any company which would be a public utility if the facilities owned or operated by it were within the Commonwealth, or any company substantially engaged in the ownership of any of the aforesaid securities or in supplying management or advice to any of the aforesaid companies; or any certificate of deposit for, voting trust certificate for, certificate of interest or participation in, temporary or interim certificate for, receipt for, guaranty of, assumption of liability on, or warrant or right to subscribe to or purchase or acquire, any of the aforesaid securities.
§ 56-542. Powers of the Commission.
A. The Commission shall have the power to regulate the operator under this title as a public service corporation. The Commission shall also have the power, and be charged with the duties of reviewing and approving or denying the application, of supervising and controlling the operator in the performance of its duties under this chapter and title, and of correcting any abuse in the performance of the operator's public duties.
B. Pursuant to § 56-36, the Commission shall require from the operator a verified report describing the nature of its contractual and other relationships with individuals or entities contracting with the operator for the provision of significant financial, construction, or maintenance services. The Commission shall review the report and such other materials as it shall deem necessary for the purpose of determining improper or excessive costs, and shall exclude from the operator's costs any amounts which it finds are improper or excessive. The costs of the operator's debt obligations shall be deemed to be improper or excessive to the extent that any proceeds from the issuance of securities, as defined in subsection A of § 56-57 and § 56-65.1, are distributed to any affiliated interest, as defined in § 56-76. The operator's non-cash account that (i) reflects accumulated retained earnings and (ii) pursuant to an order of the Commission authorizing the operator's establishment of such account may be used to determine tolls or rates at a future date, shall be deemed to be improper or excessive to the extent that any gains from a sale of the operator, or control thereof, are distributed to the operator or any affiliated interest, as defined in § 56-76, without being applied to reduce the balance of such non-cash account.
C. The Commission also shall have the
duty and authority to approve or revise the toll rates charged by the operator.
Initial rates shall be approved if they appear reasonable to the user in
relation to the benefit obtained, not likely to materially discourage use of
the roadway and provide the operator no more than a reasonable rate of return
as determined by the Commission. Thereafter, the Commission, upon application,
complaint or its own initiative, and after investigation, may order substituted
for any toll being charged by the operator, a toll which is set at a level which
is that:
1. Is reasonable to the user in
relation to the benefit obtained and which will;
2. Will not materially discourage use
of the roadway by the public; and which will
3. Will provide the operator the opportunity to earn no more than a reasonable return as determined by the Commission.
D. If (i) a change in the ownership of the facility or change in control of an operator occurs, whether or not accompanied by the issuance of securities as defined in subsection A of § 56-57 and § 56-65.1, or (ii) the operator issues securities as defined in subsection A of § 56-57 and § 56-65.1, the Commission, in any subsequent proceeding to set the level of a toll charged by the operator, shall ensure that the price paid in connection with the change in ownership or control, and any costs, changes in debt and capital structure, and other factors attributable to or resulting from the change in ownership or control, the issuance of securities, or both, if they would contribute to an increase in the level of the toll, are excluded from the Commission's determination of the operator's reasonable return, in order to ensure that a change in ownership or control, or the issuance of securities, does not increase the level of the toll above that level that would otherwise have been required under subsection C if the change in ownership or control, or the issuance of securities, had not occurred. As used in this subsection, "control" has the same meaning as provided in § 56-88.1.
E. Pursuant to § 56-36, the Commission shall require an operator to provide copies of annual audited financial statements for the operator and any affiliated interest, as defined in § 56-76, together with a statement of the operator's ownership. The operator shall file such statement within four months from the end of the operator's fiscal year.
F. In addition to its powers under subsection B, the Commission shall have the power, in any proceeding involving the toll rates charged by an operator, to exclude in whole or in part from the accounts of the operator any payment or compensation to an affiliated interest for any services rendered or property or service furnished under contracts or arrangements with such affiliated interest, if it shall appear and be established upon investigation that such payment or compensation or such contract or arrangement is not consistent with the public interest. In such proceeding any payment or compensation may be disapproved or disallowed by the Commission, in whole or in part, unless satisfactory proof is submitted to the Commission of the cost to the affiliated interest rendering the service or furnishing the property or service above described.
G. The Commission may charge a reasonable annual fee to cover the costs of supervision and controlling the operator in the performance of its duties under this chapter and pursuant to this section.
Additional Data
Explanation
This is the actual text of the bill — the legislation itself. Generally this is amending existing law, proposing the addition or removal of words from laws that are already on the books.
Words that are highlighted in yellow are
proposed additions, and words that are crossed out in
red are proposed removals.
The numbers with the § symbol before them are references to existing laws, and if you click on them they’ll take you to that part of the law on the state's website.