Electric Utility Restructuring Act; capped rates and default service. (SB1191)

Introduced By

Sen. Roscoe Reynolds (D-Martinsville) with support from co-patron Sen. Phil Puckett (D-Tazewell)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Electric utility restructuring. Extends the period during which rates for electric service are capped from December 31, 2010, until July 1, 2013. The measure also provides that, upon the end of the capped rate period, rates for default service provided by distributors will be based on prudently incurred costs, rather than on prices in competitive regional electricity markets. Other provisions clarify that the capped rates and default service rates for utilities that have divested their generation assets will be determined in a manner consistent with the terms of the orders of the State Corporation Commission approving the transfer of such assets. The measure also revises the criteria for adjustments to capped rates to provide that, rather than being allowed to recover increases in transmission and distribution reliability and environmental costs through single-issue proceedings, after July 1, 2007, certain utilities may seek to recover increased costs through annual full rate cases. Read the Bill »


Bill Has Failed


01/10/2007Prefiled and ordered printed; offered 01/10/07 070386808
01/10/2007Referred to Committee on Commerce and Labor
01/17/2007Impact statement from SCC (SB1191)