Electric utility regulation; initial triennial review, requirements. (HB1132)

Introduced By

Del. Jay Jones (D-Norfolk) with support from co-patron Del. Lee Ware (R-Powhatan)

Progress

Introduced
Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law

Description

Electric utility regulation; initial triennial review. Establishes requirements for the first scheduled triennial review proceeding for Virginia Electric and Power Company that is scheduled to be conducted in 2021. The measure directs that such initial triennial review shall consist of a generation and distribution rate case conducted solely pursuant to Chapter 10 (§ 56-232 et seq.) of Title 56 of the Code of Virginia, rules of the State Corporation Commission, and this measure. As part of the initial triennial review, the Commission is directed to review the earnings during the utility's test period and to order credits to customers in amounts equal to any earnings during the combined test periods that are above the utility's authorized rate of return in effect on July 1, 2020, as determined in the initial triennial review. The measure authorizes the Commission to order rate adjustments and to use any methodology to determine the fair rate of return on common equity that it finds consistent with the public interest, provided that such return shall be set at a level that is sufficient to assure confidence in the utility's financial integrity, adequate to maintain and support the utility's credit and its ability to attract capital, and comparable to returns that investors in securities would expect to earn on investments of similar risk. The measure provides that any capital investments made during the combined test periods reviewed during an initial triennial review in utility owned solar or wind generation facilities or electric distribution grid transformation projects will not be applied as customer credit reinvestment offsets during such utility's initial triennial review, but any portion of such capital investments that remain undepreciated as of the utility's subsequent triennial reviews may be applied as customer credit reinvestment offsets in subsequent proceedings. The measure directs the utility to make its initial triennial review filing by March 31, 2021. Subsequent triennial reviews shall be conducted pursuant to the Virginia Electric Utility Regulation Act. This bill incorporates HB 969. Read the Bill »

Status

02/12/2020: In Committee

History

DateAction
01/07/2020Committee
01/07/2020Prefiled and ordered printed; offered 01/08/20 20104968D
01/07/2020Referred to Committee on Labor and Commerce
01/13/2020Impact statement from SCC (HB1132)
01/16/2020Assigned L & C sub: Subcommittee #3
02/04/2020Subcommittee recommends reporting with substitute (6-Y 4-N)
02/06/2020Committee substitute printed 20107779D-H1
02/06/2020Incorporates HB969 (Ware)
02/06/2020Reported from Labor and Commerce with substitute (17-Y 5-N) (see vote tally)
02/09/2020Read first time
02/10/2020Read second time
02/10/2020Committee substitute agreed to 20107779D-H1
02/10/2020Engrossed by House - committee substitute HB1132H1
02/11/2020Read third time and passed House (77-Y 23-N)
02/11/2020VOTE: Passage (77-Y 23-N) (see vote tally)
02/12/2020Constitutional reading dispensed
02/12/2020Referred to Committee on Commerce and Labor
02/14/2020Impact statement from SCC (HB1132H1)

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