1999 VIRGINIA ELECTRIC UTILITY RESTRUCTURING ACT
The Virginia Electric Utility Restructuring Act of 1999 brought significant changes to the state's utility regulations, including rate caps, stranded cost recovery, and the separation of rates into generation, transmission, and distribution. Subsequent legislation in 2007 and 2009 further addressed energy efficiency, cost recognition, and transitional rate periods.
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1999 VIRGINIA ELECTRIC UTILITY RESTRUCTURING ACT Bill Tracking - 1999 session > Legislation (virginia.gov)
Capped Dominion and Apcos rates Rate Cap January 1, 2001 through July 1, 2007 Provided for Stranded Cost Recovery Through either Base Rates or Wires Charge RESTRUCTURING ACT Rates were separated into Generation, Transmission and Distribution Regional Transmission Organization Required to join by January 1, 2001 Confidential
2007 LEGISLATION THE VIRGINIA REGULATION ACT legp604.exe (virginia.gov) Confidential
Going in base rate case for Dominion and Apco 2007 Established Biennial Reviews beginning in 2011 LEGISLATION ESTABLISHED 56.585.1 Established Peer Group Floor Established RACs for Transmission (A4), Energy Efficiency (A5) and Generation (A6) Prescribed how earnings results were handled Final Order required in 9 months
2009 LEGISLATION ENERGY EFFICIENCY Provided a margin on Energy Efficiency Expenses BILL TRACKING - 2009 SESSION > LEGISLATION Provide opportunity for Lost Revenues (VIRGINIA.GOV)
Costs recognized as recorded per books for: 2013 LEGISLATION A8 COSTS costs associated with asset impairments related to early retirement determinations made by the utility prior to December 31, 2012, for utility generation plant BILL TRACKING - 2013 SESSION > LEGISLATION costs associated with severe weather events; (VIRGINIA.GOV) costs associated with natural disasters
RAC for Undergrounding Distribution Lines 2014 LEGISLATION 30% of North Anna 3 Costs recoverable through RAC BILL TRACKING - 2014 SESSION > LEGISLATION 70% of North Anna 3 costs recognized in 2015 Biennial Review (VIRGINIA.GOV)
Transitional Rate Period 56.585.1:1 Apco s Rates frozen January 1, 2014 2015 LEGISLATION Dominion s Rates frozen January 1, 2015 BILL TRACKING - 2015 SESSION > LEGISLATION (VIRGINIA.GOV) Commission to determine Fair Rate of Return for RAC s every two years
Established Triennial Reviews Electric Distribution Grid Transformation Projects 2018 LEGISLATION GRID TRANSFORMATION AND SECURITY ACT RAC for GTSA and CVOW BILL TRACKING - 2018 SESSION > LEGISLATION (VIRGINIA.GOV) Customer Credit Reinvestment Offsets (CCRO s) Additional A8 period costs
FIRST TRIENNIAL REVIEWS APCo DEV March 31, 2021 filing date March 31, 2020 filing date Test years 2017-2020 Test years 2017-2019 Base rates may not increase ROE set applies to base rates and RACs Reduction limited to $50 million ROE set applies to base rates and RACs
COSTS DEEMED FULLY RECOVERED 56-585.1 A8 provides that the following costs must be expensed in the Earnings Test in the year incurred asset impairments related to early retirement determinations made by the utility for utility generation plant facilities fueled by coal, natural gas, or oil automated meter reading electric distribution service meters projects necessary to comply with state or federal environmental laws, regulations, or judicial or administrative orders relating to coal combustion by-product management severe weather events natural disasters Confidential
CUSTOMER CREDIT REINVESTMENT OFFSET (CCRO) Allowable Costs Aggregate level of: (i) new utility-owned generation facilities utilizing energy derived from sunlight, or from onshore or offshore wind, and (ii) electric distribution grid transformation projects Use Shall offset any customer bill credit amounts (refunds), on a dollar for dollar basis, up to the aggregate level of invested or committed capital Confidential
State Corporation Commission establishes amortization period for recovery of cost of early retirement of any electric generation facility Coal Ash RAC 2020 LEGISLATION Broadband Pilot Costs Recoverable through RAC Permits use of either earned or authorized ROE for calculation of ROE Floor BILL TRACKING - 2020 SESSION > LEGISLATION (VIRGINIA.GOV) Virginia Clean Economy Act Includes Mandatory Renewable Portfolio Standards Margin on Energy Efficiency Changed Percentage of Income Payment Program Offshore Wind
2020 SPECIAL SESSION AND 2021 LEGISLATION Required Dominion to use earnings to forgive customer arrearage balances as of December 31, 2020
