Electric utilities; inclining block rate schedules. (SB907)

Introduced By

Sen. Don McEachin (D-Richmond)


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Electric utilities; inclining block rate schedules. Requires the State Corporation Commission, in any proceeding in which an electric utility asks to modify an existing residential retail rate structure, or to offer a new residential retail rate structure, to consider the extent to which such proposed rates encourage conservation and the efficient use of electricity by incorporating inclining block rate schedules. Inclining block rates charge higher rates for consumption that exceeds a certain amount per billing period. The Commission is also required to consider in such proceedings (i) the extent to which the utility expands the desired effect of its inclining block rate schedule by incorporating three or more blocks and by incorporating elements that are currently fixed rate and (ii) the extent to which the utility incorporates consumer awareness of the new rate structure and helps customers make informed choices and decisions with respect to efficiency investments. If requested by the utility, the Commission shall allow for the recovery of revenue reductions related to a decrease in energy consumption directly attributed to the new schedules. Finally, the measure directs the Commission to encourage investor-owned electric utilities to file a proposal to offer their residential customers a revenue neutral standard tariff under which rates reflect inclining block rate schedules that charge higher rates for consumption over a certain amount per billing period for the seven non-heating months of April through October and flat rates for the five heating months of November through March. The Commission is directed to publish, by January 1, 2012, guidelines that provide design standards for inclining block rates. Read the Bill »


Bill Has Failed


01/10/2011Prefiled and ordered printed; offered 01/12/11 11103755D
01/10/2011Referred to Committee on Commerce and Labor
01/13/2011Impact statement from (SB907)
01/13/2011Impact statement from SCC (SB907)
02/08/2011Left in Commerce and Labor