Electric utility regulation; SCC to regulate rate for services of investor-owned electric utilities. (SB680)
Introduced By
Sen. Phil Puckett (D-Tazewell) with support from co-patrons Del. Anne Crockett-Stark (R-Wytheville), and Del. Will Morefield (R-North Tazewell)
Progress
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Introduced |
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Passed Committee |
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Passed House |
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Passed Senate |
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Signed by Governor |
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Became Law |
Description
Electric utility regulation. Reinstates provisions governing the authority of the State Corporation Commission (SCC) to regulate the rates for services of investor-owned electric utilities that existed prior to the enactment of the Electric Utility Restructuring Act in 1999 and of electric utility re-regulation legislation in 2007. Specifically, the measure eliminates, for rate cases initiated after January 1, 2011, rules that authorize such utilities to earn a rate of return on common equity that is not lower than the average of such returns for a majority of peer group utilities, and to recover certain costs through rate adjustment clauses. In rate cases initiated in 2011 and thereafter the SCC is directed to determine rates, terms, and conditions for the provision of generation, distribution, and transmission services for each investor-owned incumbent electric utility that are just, reasonable, and nondiscriminatory. These proceedings shall be governed by the provisions of Chapter 10 of Title 56 and shall provide fair rates of return on common equity. In such proceedings, the SCC may use any methodology to determine rates of return on common equity that it finds consistent with the public interest. The SCC is authorized to permit a utility to recover its actual costs, if the Commission finds such recovery is just, reasonable, and in the public interest, of peak-shaving programs, energy efficiency programs, participating in the renewable energy portfolio standard program, and environmental projects. Amends § 56-234.2 (“Review of rates.”), § 56-235.2 (“All rates, tolls, etc., to be just and reasonable to jurisdictional customers; findings and conclusions to be set forth; alternative forms of regulation for electric companies.”), § 56-249.6 (“Recovery of fuel and purchased power costs.”), § 56-577 (“Schedule for transition to retail competition; Commission authority; exemptions; pilot programs.”), § 56-585.1 (“Generation, distribution, and transmission rates after capped rates terminate or expire.”), § 56-585.2 (“Sale of electricity from renewable sources through a renewable energy portfolio standard program.”), of the Code of Virginia. View Full Text »
