Natural gas utilities; alternative ratemaking plan, report. (HB543)

Introduced By

Del. Sam Nixon (R-Richmond)

Description

Natural gas utilities; alternative ratemaking plan. Authorizes any natural gas utility to file a conservation and ratemaking efficiency plan that includes (i) a normalization component that removes the effect of weather from the determination of conservation and energy efficiency results and (ii) a mechanism that decouples the recovery of a utility's allowed distribution revenue from the level of consumption of natural gas by its customers. Such plans may include one or more residential, small commercial, or small general service classes, but shall not apply to large commercial or large industrial customer classes. The State Corporation Commission (SCC) is required to allow a utility that implements a plan to recover, through its regulated rates, its costs, together with a return thereon, associated with cost-effective conservation and energy efficiency programs. Utilities that demonstrate certain reductions in annualized, weather-normalized usage per customer, will receive an incentive of 10 percent of the net realized commodity savings. The SCC is prohibited from reducing a utility's profit as a result of the implementation of a natural gas conservation and ratemaking efficiency plan. The SCC shall consider authorizing a greater profit when a natural gas conservation and ratemaking efficiency plan is implemented in conjunction with a cost-of-service rate case or a performance-based regulation plan. Read the Bill »

Outcome

History