An Act to amend and reenact § 56-585.1:2 of the Code of Virginia, relating to electric utilities; pilot program for energy assistance and weatherization for certain individuals; recovery for certain costs; revised tariff; securitization of certain costs; prevailing wage rate.
HB1393 amends Virginia Code § 56-585.1:2 and related utility ratemaking provisions to expand and extend electric utility programs and cost-recovery rules. The bill continues the pilot program for energy assistance and weatherization for low-income, elderly, and disabled customers served by Phase I and Phase II utilities, increases the funding framework for Phase II utilities, and extends the program’s duration to July 1, 2038. It also requires utilities to report annually on participation and expenditures.
The bill further authorizes recovery of certain approved costs for Phase II utilities, including tap line conversion costs, subject to limits on average cost per mile and annual investment growth. It directs the State Corporation Commission, in biennial review proceedings, to take measures to prevent other customer classes from subsidizing high-load customers and to avoid adverse rate impacts from those customers’ service terms. In addition, it creates an election option for certain large industrial or warehousing customers to remain on existing rate schedules rather than migrate to a high-load tariff, and the caption indicates the bill also addresses a revised tariff, securitization of certain costs, and prevailing wage rate provisions.
HB1393 changes state utility law by modifying § 56-585.1:2 and related ratemaking standards applicable to Phase I and Phase II electric utilities. It expands and extends utility-funded energy assistance and weatherization obligations, sets new funding ranges and deadlines, and adds reporting requirements. It also affects how the State Corporation Commission may approve and allocate utility costs, particularly for tap line conversion, high-load customer service, and customer migration to high-load rate schedules. The bill primarily affects electric utilities, the SCC, and certain large commercial and industrial customers, while preserving or expanding assistance for low-income, elderly, and disabled households.
The available record shows no committee transcript or recorded vote history, so there is no documented debate or formal opposition in the provided materials. Based on the bill’s structure, it appears to combine consumer assistance and utility regulation provisions with cost-recovery and large-customer rate protections, suggesting a generally mixed but pragmatic policy approach. The enacted chapter status indicates the measure ultimately advanced successfully.
The most likely points of contention are the cost and duration of the expanded utility-funded assistance program, the limits placed on Phase II utility cost recovery, and the protections for high-load customers and large industrial users. Consumer advocates would likely favor the continued funding for low-income, elderly, and disabled customers, while utilities or ratepayer advocates could object to the financial burden, the SCC’s ratemaking constraints, or the special treatment of large customers. The bill also appears to balance competing interests between keeping rates equitable for ordinary customers and preserving rate options for major employers and high-load users.