Electric utilities; triennial review, fair rate of return, customer bill credits. (HB2160)

Introduced By

Del. Kathy Tran (D-Springfield) with support from 8 copatrons, whose average partisan position is:

Those copatrons are Del. Betsy Carr (D-Richmond), Del. Elizabeth Guzman (D-Dale City), Del. Dan Helmer (D-Fairfax Station), Del. Patrick Hope (D-Arlington), Del. Mark Keam (D-Vienna), Del. Kaye Kory (D-Falls Church), Del. Alfonso Lopez (D-Arlington), Del. Schuyler VanValkenburg (D-Henrico)

Progress

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

Description

Electric utilities; fair rate of return; customer bill credits. Provides that the State Corporation Commission may, in any triennial review, establish a range above or below the authorized rate of return such that if the combined rate of return on common equity earned by the generation and distribution services is within that range, such combined return is not to be considered either excessive or insufficient, respectively. The bill provides that during a triennial review period, if a utility's earned return on its generation and distribution services falls below that range due to certain costs, the Commission is required to authorize deferred recovery for such costs. Additionally, if during a triennial review period a utility's earned return on its generation and distribution services falls below that range due to revenue reductions related to energy efficiency measures or other programs, the Commission is required to order an increase to the utility's rates. The bill requires that the Commission direct 100 percent of the amount that a utility earns over its fair rate of return to customers' bills. Under current law, the Commission is required to direct 70 percent of any earnings that were more than a certain percentage above the utility's fair rate of return to customers' bills. The bill provides that if, during a triennial review period, a utility has earned above its fair combined rate of return, the Commission is required to order reductions to the utility's rates it finds appropriate. Under current law, the Commission is only required to order reductions to the utility's rates if the utility earned more than a certain percentage above its fair combined rate of return. The provisions of the bill apply to all triennial reviews, including the first triennial review of Dominion Energy Virginia conducted after January 1, 2021. Read the Bill »

Outcome

Bill Has Failed

History

DateAction
01/12/2021Prefiled and ordered printed; offered 01/13/21 21102815D
01/12/2021Referred to Committee on Labor and Commerce
01/19/2021Assigned L & C sub: Subcommittee #3
01/20/2021Impact statement from SCC (HB2160)
02/01/2021Subcommittee recommends reporting (6-Y 4-N)
02/02/2021Reported from Labor and Commerce (14-Y 8-N) (see vote tally)
02/03/2021Read first time
02/04/2021Read second time and engrossed
02/05/2021Read third time and passed House (62-Y 38-N)
02/05/2021VOTE: Passage (62-Y 38-N) (see vote tally)
02/05/2021Constitutional reading dispensed
02/05/2021Referred to Committee on Commerce and Labor
02/05/2021Continued to 2021 Sp. Sess. 1 in Commerce and Labor (15-Y 0-N) (see vote tally)
02/10/2021Assigned C&L sub: Energy
02/12/2021Senate committee, floor amendments and substitutes offered
02/15/2021Passed by indefinitely in Commerce and Labor (12-Y 3-N) (see vote tally)

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