General Assembly>Division of Legislative Services>Publications>Session Summaries>2007>Public Service Companies

CONTENTS | < PREVIOUS | NEXT > | BILL INDEX

Public Service Companies

Passed

P HB 1603

Multiline telephone systems. Requires multiline telephone systems acquired or installed on or after July 1, 2009, to be maintained and operated so that calls to 9-1-1 from each telephone station on the system provides either automatic location and number identification information or an alternative method of providing call location information. The Wireless E-911 Services Board is directed to monitor developments in E-911 service and multiline telephone system technologies.
Patron - Rapp

P HB 1755

Utility Transfers Act; telephone companies. Eliminates the requirement that the State Corporation Commission approve the acquisition or disposal of the assets or of control of a telephone company. The measure will not apply to transactions for which applications seeking Commission approval were filed prior to July 1, 2007.
Patron - Kilgore

P HB 1885

Voice-over-Internet protocol service. Revises the definition of Voice-over-Internet protocol service to eliminate references to Internet protocol-compatible customer premises equipment. Providers of Voice-over-Internet protocol service are exempt from regulation by the State Corporation Commission.
Patron - Marshall, R.G.

P HB 2381

Virginia Public-Private Education Facilities and Infrastructure Act; provision of wireless broadband services. Specifies that the Virginia Public-Private Education Facilities and Infrastructure Act can be used for projects related to the technology and infrastructure necessary to deploy wireless broadband services to schools, businesses, and residential areas. The bill also authorizes the Virginia Resources Authority to fund wireless broadband projects.
Patron - May

P HB 2614

Construction of electrical utility facilities; review of applications by State Corporation Commission. Requires the State Corporation Commission to conduct an analysis of the facility applicant's assessment of need, load flow analysis, and method of installation. Utilities are required to provide a GIS map of any proposed improvement or extension to the Commission, which shall make the GIS map publicly available on its website.
Patron - May

P HB 2708

Net energy metering; sales of net electricity. Requires the default service provider to enter into an agreement to purchase any excess electricity generated by an eligible customer-generator that is consistent with the minimum requirements for such interests established by the State Corporation Commission.
Patron - Hugo

P HB 3068

Electric utilities. Advances the scheduled expiration of the capped rate period from December 31, 2010, to December 31, 2008, establishes a new mechanism for regulating the rates of investor-owned electric utilities, and limits the ability of most consumers to purchase electric generation service from competing suppliers. The ratemaking procedure requires the State Corporation Commission (SCC) to conduct a rate case for investor-owned utilities in 2009; thereafter, the SCC will review each utility's rates, terms, and conditions using two 12-month test periods ending December 31, 2010, though the SCC is given discretion to stagger the years in which it conducts such reviews. In these biennial reviews the SCC will determine fair rates of return on common equity for the utility's generation and distribution services, using any methodology it finds consistent with the public interest. However, the return shall not be set: (i) lower than the average of the returns on common equity reported to the Securities and Exchange Commission for the three most recent annual periods by a peer group of a majority of the other vertically-integrated investor-owned electric utilities in the southeastern United States with a Moody's bond rating of at least Baa or (ii) higher than 300 basis points above that average. Increases in the rate of return are capped based on the rate of increases in the Consumer Price Index (CPI). The SCC may increase or decrease the rate of return by a Performance Incentive of up to 50 basis points based on the generating plant performance, customer service, operations and efficiency of a utility. If the combined rate of return on common equity earned is no more than one half of one percent above or below this rate of return, the return shall not be considered either excessive or insufficient. Each utility may seek rate adjustment clauses to recover (i) costs for transmission services provided by PJM Interconnection under applicable rates, terms and conditions approved by the Federal Energy Regulatory Commission (FERC) and costs of FERC-approved demand response programs; (ii) deferred environmental and reliability costs authorized under prior capped rate rules; (iii) costs of providing incentives for the utility to design and operate fair and effective demand-management, conservation, energy efficiency, and load management programs; (iv) costs of participation in the new renewable energy portfolio standard program; and (v) costs of projects that the Commission finds to be necessary to comply with state or federal environmental laws or regulations applicable to generation facilities used to serve the utility's native load obligations, which costs may include the enhanced rate of return for new base load generation if the project would reduce the need for construction of new generation facilities by enabling the continued operation of existing generation facilities. A utility may also apply a rate adjustment clause for recovery from customers of the costs of (i) a coal-fired generation facility that utilizes Virginia coal and is located in the coalfield region of the Commonwealth, (ii) one or more other generation facilities, or (iii) one or more major unit modifications of generation facilities, to meet the utility's projected native load obligations. The utility may recover an enhanced rate of return on common equity associated with the type of project, and the period over which the enhanced rate of return may be collected depends on the type of facility, as determined by the Commission within specified ranges. The Commission's final order on any petition filed for any of the rate adjustment clauses shall be entered within a specified period after the filing of the petition, and any rate increase required by the clause shall go into effect within 60 days or upon the end of capped rates, whichever is later. The Commission is required to consider petitions for rate adjustment clauses on a stand-alone basis, without regard to the other costs or revenues of the utility. The enhanced returns are subject to revocation is permits are not applied for or construction is not commenced by specified dates. If the Commission determines in a biennial review that a utility underearned by at least 50 basis points on its generation and distribution services, excluding provisions for new generation facilities, the Commission is required to increase the utility's rates to a level necessary to provide the opportunity to fully recover the costs of providing the utility's services and to earn such fair rate of return. If the Commission determines in a biennial review that a utility earned more than 50 basis points above a fair combined rate of return on its generation and distribution services, excluding provisions for new generation facilities, the Commission is required to direct that 60% of such overearnings be credited to customers' bills. In addition, if the Commission determines that (i) the utility's earnings exceed this limit for two consecutive biennial review periods, the Commission shall also order reductions to the utility's rates, provided that rates may not be reduced to levels below what would provide the utility with the opportunity to fully recover its costs and to earn a fair combined rate of return on its generation and distribution services, excluding provisions for new generation facilities and (ii) the utility's total aggregate regulated rates would exceed the annual increases in CPI, when compared to the utility's rates as determined in the biennial review for a base period (either the utility's first test period or the most recent test period for which credits are applied to customers' bills), the Commission shall direct, unless such action would not be in the public interest, that any or all of such overearnings be credited to customers' bills. An electric utility that demonstrates that it has a reasonable expectation of achieving 12% of its base year electric energy sales from renewable energy sources during calendar year 2022 may participate in a renewable energy portfolio standard program. Under the program, a participating utility that meets specified percentage goals for sales of renewable energy is eligible for a Performance Incentive that increases the fair combined rate of return on common equity for the utility by a 50 basis points through the third succeeding biennial review if it continues to meet the RPS Goals. It is also entitled to an enhanced rate of return on the costs associated with the construction of renewable energy generation facilities used to provide the renewable energy. Double credits will be provided for energy from solar or wind sources. Specific provisions address the use of certain wood products for projects qualifying to meet the renewable energy goals. With regard to the ability of customers to purchase generation services from competing providers, the measure provides that after the capped rate period ends, only customers whose annual demand exceeds five megawatts will be permitted to shop, and the load of the switching customers does not exceed one percent of the utility's load. However, two or more individual nonresidential retail customers may aggregate their demand for the purpose of meeting the five megawatt threshold if the Commission finds that neither their incumbent electric utility nor its retail customers will be adversely affected and that the demand of the customers who are allowed to buy power from competitors will not exceed one percent of the utility's peak annual load. The ability of large customers to purchase electric power from a licensed competitive supplier is subject to the condition that they cannot thereafter purchase electricity from their incumbent utility without giving five years' notice, with certain exceptions. Municipalities are allowed to aggregate the electric energy load of their governmental operations for the purpose of negotiating rates and terms, and conditions of service from the electric utility certificated by the Commission to serve the territory in which such operations are located. Other provisions (i) require the deferral over the period 2008-2010 of a portion of Dominion's 2007 fuel factor increase; (ii) authorize electric utilities to seek approval of optional performance-based regulation methodologies to the same extent as gas utilities; (iii) requires that 75% of the margins from off-system sales be applied to the utility's fuel expenses unless the SCC finds by clear and convincing evidence that a smaller percentage is in the public interest; (iv) requires rates of distribution electric cooperatives to be regulated pursuant to the provisions of Chapters 9.1 and 10 of Title 56, subject to the ability to increase rates without SCC approval by not more than five percent over three years and to make certain other changes to terms and conditions of service; (v) states that it does not impair the terms, unless otherwise modified by an order of the SCC, of any order approving the divestiture of generation assets; (vi) provides that the measure does not modify or impair the terms, unless otherwise modified by an order of the SCC, of any SCC order approving the divestiture of generation assets; (vii) directs the SCC to conduct a proceeding to establish goals for the amount of energy and demand to be reduced by the operation of demand side management, conservation, energy efficiency, and load management programs, and develop a plan for the development and implementation of recommended programs; (viii) directs the Office of the Attorney General to identify issues of the act that impede its implementation; and (ix) directs the Department of Taxation to conduct an analysis of the potential implications of the provisions of this measure on the system of taxation. Provisions of the Electric Utility Restructuring Act that exempt the generation of electric energy from regulation, prohibit public service corporations from exercising the power of eminent domain to acquire property for generation facilities, authorize the collection of wires charges, and authorize competition for metering and billing services are repealed. This bill is identical to SB 1416.
Patron - Hogan

P HB 3153

Income tax; public utilities. Directs the State Corporation Commission, to determine the federal and state income tax costs for investor-owned water, gas or electric utilities that are part of a publicly traded consolidated group by calculating its apportioned state income tax costs according to the applicable statutory rate and its federal income tax costs according to the applicable federal income tax rate, excluding any consolidated tax liability or benefit adjustments originating from any taxable income or loss of its affiliates.
Patron - Nixon

P SB 1031

Power plant siting. Establishes a pre-application planning and review process for certain gas or electric utility facilities.
Patron - O'Brien

P SB 1362

Construction of electrical utility facilities; review of applications by State Corporation Commission. Reduces the threshold for the size of electrical transmission lines requiring approval of the State Corporation Commission from 150 kilovolts to 138 kilovolts. Utilities are required to provide a GIS map of any proposed improvement or extension to the Commission, which shall make the GIS map publicly available on its website. The measure requires the Commission to conduct an analysis of the applicant's assessment of need, load flow analysis, and method of installation. The measure also makes several technical changes.
Patron - Colgan

P SB 1416

Failed

F HB 1632

State Corporation Commission regulation; charges for inmate telecommunications systems. Authorizes the State Corporation Commission to determine that the rates for debit or prepaid telephone systems at state correctional facilities are at the lowest available rates for the service in accordance with filed schedules. The measure also establishes a 10% cap on the amount of any commissions, lease payments or other fees that a provider of inmate telecommunications services may pay to the Commonwealth or any agency or political subdivision under its contract. Any amounts paid in excess of this cap are to be deposited in a newly established Prisoner Telephone Rate Fund and used to reduce the surcharges or rates paid for calls.
Patron - Morgan

F HB 1649

Underground location of transmission lines. Establishes a presumption that bars the State Corporation Commission from issuing a certificate allowing the installation of an overhead electrical transmission line of 150 kilovolts or more within 500 feet of any school building or residential dwelling or in any area where such an overhead transmission line would unduly impair scenic vistas that are essential to the economic vitality of the affected locality. The presumption may be rebutted by demonstrations that constructing the transmission line underground would not be technologically feasible and that a viable alternative route does not exist. If the Commission approves the underground installation of the line, the costs would be recoverable through the utility's rates. If the locality obligates itself to reimburse the utility for the incremental costs of undergrounding the transmission line, the Commission may approve the underground installation of the line even if it does not find that its overhead installation would impair scenic vistas.
Patron - Cole

F HB 1804

Solar water heating system pay-as-you-save pilot program. Directs the State Corporation Commission to analyze, and if appropriate, to establish, a pilot program whereby residential customers who install a solar water heating system will be able to pay for the system as an item on their monthly electricity bill. Participation in the pilot program would be voluntary. Participating electricity distributors will be required to submit proposed tariffs for recovery of the costs of the systems over a term not to exceed 75% of the expected life of the system, in monthly amounts that are less than the expected reductions in the electricity bill resulting from the installation of the system. This bill was incorporated into HB 2401.
Patron - Poisson

F HB 2398

Approval of utility lines; plan for undergrounding lines. Requires a utility seeking State Corporation Commission approval of a certain 500 kV electrical transmission line to submit to the Commission and to members of the General Assembly a plan to install the line or lines underground within current utility right-of-way. Hearings on the application for the new transmission line would be held after the Commission has reviewed the plan.
Patron - Athey

F HB 2399

Approval of electrical transmission lines; alternative plan. Requires a utility seeking State Corporation Commission approval of a certain 500 kV electrical transmission line to submit to the Commission and to members of the General Assembly a plan for alternative measures to increase the capacity of existing facilities without constructing new transmission towers. Hearings on the application for the new transmission line would be held after the Commission has reviewed the alternative plan. This bill was incorporated into HB 2398.
Patron - Athey

F HB 2401

Electric utility conservation programs. Requires the State Corporation Commission to conduct a proceeding to consider electric energy consumption goals. The Commission is directed to establish a work group to develop a plan to achieve these goals and define programs. This bill incorporates HB 1804.
Patron - Athey

F HB 2402

Approval of certificate for electrical transmission lines. Requires the State Corporation Commission, when considering an application for a certificate for the construction of lines such as the 500 kV Trans-Allegheny Interstate Line, to consider all effects of the proposed line, including its effects on adjoining properties.
Patron - Athey

F HB 2433

Public-Private Transportation Act; procurement. Requires interim or comprehensive agreements under the Public-Private Transportation Act to be competitively bid if the total cost of the project involves the expenditure of $10 million or more in state funds.
Patron - Albo

F HB 2561

Automatic dialing-announcing devices; penalty. Prohibits callers from using an automatic dialing-announcing device to make a telephone call to a health care provider, business providing ambulance services, residential facility, law-enforcement agency, fire department or rescue squad. For other calls, callers are prohibited from using, or connecting to a telephone line, an automatic dialing-announcing device unless the subscriber has knowingly or voluntarily requested, consented to, permitted, or authorized receipt of the message or unless the message is preceded by a live operator who obtains the subscriber's consent before the message is delivered. The measure also imposes calling time restrictions and requires automatic dialing-announcing devices or other devices that disseminate a prerecorded or synthesized voice message to the number called to disconnect within five seconds after termination of the telephone call. An automatic dialing-announcing device selects and dials telephone numbers and disseminates a prerecorded or synthesized voice message to the telephone number called. A violation of these requirements is a prohibited practice under the Consumer Protection Act. The existing prohibition on using recorded solicitation calls is repealed.
Patron - Brink

F HB 2615

Suspension of construction of new electrical utility facilities; pilot projects in Loudoun County and Fauquier County. Suspends the approval of all applications for the construction of new electrical utility facilities pending before the State Corporation Commission and the commencement of all facility construction until July 1, 2008. The bill also establishes a pilot project in Loudoun County and Fauquier County for the installation of underground transmission lines. This bill contains an emergency clause.
Patron - May

F HB 2784

Electric utility restructuring; capped rates; default service rates. Provides that effective January 1, 2008, the rates for customers receiving default service will be determined by the State Corporation Commission based on the cost of service under the provisions of Chapter 10 of Title 56. The measure also clarifies that the Electric Utility Restructuring Act's provisions do not modify or impair the terms of orders approving the divestiture of an electric utility's generation assets. Currently the Act provides that through December 31, 2010, default service rates are a utility's capped rates, and that thereafter default service rates for utilities (other than distribution cooperatives) will be based on prices in competitive regional markets.
Patron - Morgan

F HB 2870

Programming cell phones with ICE numbers. Requires providers of commercial mobile telecommunications service to implement a program, in accordance with criteria developed by the Wireless E-911 Services Board, of encouraging its subscribers to program one or more ICE numbers into their mobile telephones. An ICE number is a telephone number that is programmed into a mobile telephone, and labeled ICE, which when called by a firefighter, paramedic, emergency medical technician, rescue worker, or ambulance when the subscriber is nonresponsive or impaired, will connect to the person who the subscriber desires to be contacted in case of an emergency.
Patron - McEachin

F HB 3029

Underground electric transmission lines. Authorizes a locality in or adjacent to the Eighth Planning District to enter into an agreement with an electric utility that has proposed an overhead transmission line of 450 kV or more whereby the utility will construct the line underground and the additional cost of underground installation will be paid by the locality. The locality is authorized to create a special rate district and assess its customers in the special rate district a tax to recover its payments to the electric utility. The measure also authorizes the locality to create a stock corporation and provides that the electric utility will distribute to the corporation shares of its capital stock with a value equal to the additional cost of the underground installation that was paid by the locality.
Patron - Marshall, R.G.

F HB 3030

Electrical transmission facilities; regional transmission organizations. Repeals provisions relating to the current requirement that Virginia's electric utilities join a regional transmission organization. The measure directs the State Corporation Commission and Office of the Attorney General to institute proceedings at the Federal Energy Regulatory Commission to obtain all necessary federal approvals to accomplish the withdrawal of Virginia's electric utilities from membership in any regional transmission organization. The measure also authorizes a locality in or adjacent to the Eighth Planning District to enter into an agreement with an electric utility that has proposed an overhead transmission line of 450 kV or more whereby the utility will construct the line underground and the additional cost of underground installation will be paid by the locality. The locality is authorized to create a special rate district and assess its customers in the special rate district a tax to recover its payments to the electric utility. The locality is further authorized to create a stock corporation to which the electric utility is required to distribute shares of its capital stock with a value equal to the additional cost of the underground installation.
Patron - Marshall, R.G.

F HB 3050

Electric utilities. Repeals provisions of the Virginia Electric Utility Restructuring Act effective January 1, 2008. The measure authorizes the State Corporation Commission to provide for recovery of the costs of new generation facilities through the utility's rate base or through rate surcharges, adders, or other recovery mechanisms as are in the public interest. The Commission is also authorized to approve a performance-based rate-making methodology for electric utilities, which tracks the current provision for gas utilities. Provisions of the Restructuring Act that are not repealed by this measure include those that address the construction of a coal-fired plant in Southwest Virginia, net energy metering, electric energy emergencies, and permitting for electrical generating facilities.
Patron - Morgan

F HB 3155

Divestiture of generation assets. Provides that nothing in Title 56 shall modify or impair the terms of a State Corporation Commission order that approved the divestiture of generation assets of an electric utility.
Patron - Lewis

F SB 1143

F SB 1150

Electric utilities; collection of FERC fines. Authorizes any electric utility that is assessed by the Federal Energy Regulatory Commission with fines, penalties, or similar charges as a result of brownouts or blackouts in its service territory that are attributable to the utility's failure to have adequate transmission infrastructure, to recover its payments of fines, penalties, or similar charges from those customers receiving service within the planning district or districts where construction of transmission facilities was delayed or thwarted as the result of opposition from the utility's customers.
Patron - Wagner

F SB 1191

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.
Patron - Reynolds

F SB 1245

State Corporation Commission; public hearings. Requires the State Corporation Commission to conduct a public hearing in any case involving approval of the construction of an overhead electrical transmission line of 150 kV or more or an increase in toll rates under the Virginia Highway Corporation Act of 1988. The measure also requires at least one Commissioner of the State Corporation Commission be physically present at any hearing in such cases at which public comment is allowed or required.
Patron - Herring

F SB 1275

Renewable energy and energy efficiency program requirements. Requires that by the period June 1, 2020, through May 31, 2021, and in subsequent years, 12% of the electric energy sold by each supplier to retail customers in the Commonwealth be generated from renewable generation energy sources, and that each supplier achieve reductions in the consumption of electric energy by its retail customers, through the supplier's implementation of energy efficiency programs, in an amount equal to 5% of the amount of electric energy consumed by its retail customers in 2006. The requirements are phased in over a period commencing June 1, 2008. The 12% requirement for renewable generation energy sources is comprised of three categories of renewable energy sources, each of which has separate percentage requirements. Generators of renewable energy receive renewable energy credits for power generated through eligible renewable sources or conserved through energy efficiency programs. Suppliers who do not comply with the minimum percentage requirements are required to make alternative compliance payments into a new Virginia Sustainable Energy, Energy Efficiency, and Energy Conservation Fund. Distributors are authorized to recover incremental costs of compliance incurred during the capped rate period under the procedure for recovery of the costs of purchased power. Electric cooperatives and municipal electric utilities are exempted from the measure.
Patron - Whipple

F SB 1361

Suspension of construction of new electrical utility facilities; pilot projects in Loudoun County, Fauquier, and Prince William Counties. Suspends the approval of all applications for the construction of new electrical utility facilities pending before the State Corporation Commission and the commencement of all facility construction until July 1, 2008. The bill also establishes pilot projects in Loudoun County, Fauquier County, and Prince William County for the installation of underground transmission lines. This bill contains an emergency clause.
Patron - Colgan

F SB 1377

Water and sewer rates of certain towns. Prohibits towns from charging rates for water and sewer service provided to residents of an adjacent county that unreasonably discriminate between customers on the basis of whether services are provided to customers located within or outside the limits of the town, or that provide a cross-subsidy for in-town customers. Upon receipt of a petition from five percent of the customers who receive service in the county, the Commission on Local Government is authorized to conduct an investigation and analyze the rates, fees and charges. If the Commission determines that the rates, fees and charges assessed by a town do not comply with these requirements, it will notify the county and the city. The county may then petition for the appointment of a special court to set rates for such services.
Patron - Herring

CONTENTS | < PREVIOUS | NEXT > | BILL INDEX

General Assembly>Division of Legislative Services>Publications>Session Summaries>2007>Public Service Companies

E-mail Webmaster