{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-231.34_1.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-231.34_1.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-231.34_1.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-231.34_1.html"}],"law_id":71119,"edition_id":1,"section_id":71119,"structure_id":13548,"section_number":"56-231.34:1","catch_line":"Separation of regulated and unregulated businesses","history":"1999, c. 874; 2000, cc. 944, 999; 2025, cc. 499, 598.","full_text":"A\n\nNo cooperative that engages in a regulated utility service shall conduct any unregulated business activity, other than traditional cooperative activities, except in or through one or more affiliates of such cooperative, provided that a cooperative that provides regulated utility services, or one or more of its affiliates, shall have the right to offer and make unregulated sales of electric power to members of the cooperative that are served at or by dedicated or excess facilities within the cooperative’s certificated service territory and that contract for electric utility services to serve a demand that is reasonably expected to exceed 90 megawatts. No such affiliates, formed to engage in any business that is not a regulated utility service, shall engage in regulated utility services.B\n\nThe Commission shall promulgate rules and regulations, governing the conduct of the cooperatives, to promote effective and fair competition between (i) affiliates of cooperatives that are engaged in business activities which are not regulated utility services and (ii) other persons engaged in the same or similar businesses. The rules and regulations shall be effective by July 1, 2000, and shall include provisions:1\n\nProhibiting cost-shifting or cross-subsidies between a cooperative and its affiliates;2\n\nProhibiting anticompetitive behavior or self-dealing between a cooperative and its affiliates;3\n\nProhibiting a cooperative from engaging in discriminatory behavior towards nonaffiliated entities; and4\n\nEstablishing codes of conduct detailing permissible relations between a cooperative and its affiliates. In establishing such codes, the Commission shall consider, among other things, whether and, if so, under what circumstances and conditions (i) a cooperative may provide its affiliates with customer lists or other customer information, sales leads, procurement advice, joint promotions, and access to billing or mailing systems unless such information or services are made available to third parties under the same terms and conditions, (ii) the cooperative’s name, logos or trademarks may be used in promotional, advertising or sales activities conducted by its affiliates, and (iii) the cooperative’s vehicles, equipment, office space and employees may be used by its affiliates.C\n\nNothing in this article shall be deemed to abrogate or modify the Commission’s authority under Chapter 4 (§ 56-76 et seq.) of this title.","order_by":null,"text":{"0":{"id":256410,"text":"No cooperative that engages in a regulated utility service shall conduct any unregulated business activity, other than traditional cooperative activities, except in or through one or more affiliates of such cooperative, provided that a cooperative that provides regulated utility services, or one or more of its affiliates, shall have the right to offer and make unregulated sales of electric power to members of the cooperative that are served at or by dedicated or excess facilities within the cooperative’s certificated service territory and that contract for electric utility services to serve a demand that is reasonably expected to exceed 90 megawatts. No such affiliates, formed to engage in any business that is not a regulated utility service, shall engage in regulated utility services.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":256411,"text":"The Commission shall promulgate rules and regulations, governing the conduct of the cooperatives, to promote effective and fair competition between (i) affiliates of cooperatives that are engaged in business activities which are not regulated utility services and (ii) other persons engaged in the same or similar businesses. The rules and regulations shall be effective by July 1, 2000, and shall include provisions:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":256412,"text":"Prohibiting cost-shifting or cross-subsidies between a cooperative and its affiliates;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":256413,"text":"Prohibiting anticompetitive behavior or self-dealing between a cooperative and its affiliates;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":256414,"text":"Prohibiting a cooperative from engaging in discriminatory behavior towards nonaffiliated entities; and","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":256415,"text":"Establishing codes of conduct detailing permissible relations between a cooperative and its affiliates. In establishing such codes, the Commission shall consider, among other things, whether and, if so, under what circumstances and conditions (i) a cooperative may provide its affiliates with customer lists or other customer information, sales leads, procurement advice, joint promotions, and access to billing or mailing systems unless such information or services are made available to third parties under the same terms and conditions, (ii) the cooperative’s name, logos or trademarks may be used in promotional, advertising or sales activities conducted by its affiliates, and (iii) the cooperative’s vehicles, equipment, office space and employees may be used by its affiliates.","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"C"},"6":{"id":256416,"text":"Nothing in this article shall be deemed to abrogate or modify the Commission’s authority under Chapter 4 (§ 56-76 et seq.) of this title.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B4"}},"ancestry":[{"id":13548,"edition_id":1,"name":"Utility Consumer Services Cooperatives Act","identifier":"1","label":"article","depth":3,"order_by":1,"parent_id":13182,"metadata":{},"date_created":"2026-06-26 03:45:11","date_modified":"2026-06-26 03:45:11","permalink":{"id":251325,"object_type":"structure","relational_id":13548,"identifier":"1","token":"56\/9.1\/1","url":"\/56\/9.1\/1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13182,"edition_id":1,"name":"Utility Consumer Services Cooperatives and Utility Aggregation Cooperatives","identifier":"9.1","label":"chapter","depth":2,"order_by":1,"parent_id":12881,"metadata":{},"date_created":"2026-06-26 03:44:24","date_modified":"2026-06-26 03:44:24","permalink":{"id":251323,"object_type":"structure","relational_id":13182,"identifier":"9.1","token":"56\/9.1","url":"\/56\/9.1\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12881,"edition_id":1,"name":"Public Service Companies","identifier":"56","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:58","date_modified":"2026-06-26 03:43:58","permalink":{"id":248473,"object_type":"structure","relational_id":12881,"identifier":"56","token":"56","url":"\/56\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":77567,"structure_id":13548,"section_number":"56-231.15","catch_line":"Definitions","url":"\/56-231.15\/","token":"56\/9.1\/1\/56-231.15","metadata":false},{"id":69452,"structure_id":13548,"section_number":"56-231.16","catch_line":"Organization; purpose","url":"\/56-231.16\/","token":"56\/9.1\/1\/56-231.16","metadata":false},{"id":84775,"structure_id":13548,"section_number":"56-231.17","catch_line":"Articles of incorporation","url":"\/56-231.17\/","token":"56\/9.1\/1\/56-231.17","metadata":false},{"id":62056,"structure_id":13548,"section_number":"56-231.18","catch_line":"Name of other corporations not to include term \"electric cooperative\" or \"utility consumer services cooperative.\"","url":"\/56-231.18\/","token":"56\/9.1\/1\/56-231.18","metadata":false},{"id":56649,"structure_id":13548,"section_number":"56-231.19","catch_line":"Filing articles of incorporation; effect thereof; other provisions of law applicable","url":"\/56-231.19\/","token":"56\/9.1\/1\/56-231.19","metadata":false},{"id":56722,"structure_id":13548,"section_number":"56-231.20","catch_line":"Repealed","url":"\/56-231.20\/","token":"56\/9.1\/1\/56-231.20","metadata":false},{"id":63207,"structure_id":13548,"section_number":"56-231.21","catch_line":"Dissolution and termination of cooperatives","url":"\/56-231.21\/","token":"56\/9.1\/1\/56-231.21","metadata":false},{"id":83080,"structure_id":13548,"section_number":"56-231.22","catch_line":"Charter amendments","url":"\/56-231.22\/","token":"56\/9.1\/1\/56-231.22","metadata":false},{"id":72128,"structure_id":13548,"section_number":"56-231.23","catch_line":"General powers granted","url":"\/56-231.23\/","token":"56\/9.1\/1\/56-231.23","metadata":false},{"id":81307,"structure_id":13548,"section_number":"56-231.24","catch_line":"Power to dispose of property","url":"\/56-231.24\/","token":"56\/9.1\/1\/56-231.24","metadata":false},{"id":73620,"structure_id":13548,"section_number":"56-231.25","catch_line":"Power to issue obligations","url":"\/56-231.25\/","token":"56\/9.1\/1\/56-231.25","metadata":false},{"id":82512,"structure_id":13548,"section_number":"56-231.26","catch_line":"Covenants in connection with obligations","url":"\/56-231.26\/","token":"56\/9.1\/1\/56-231.26","metadata":false},{"id":56541,"structure_id":13548,"section_number":"56-231.27","catch_line":"Power to purchase its own obligations","url":"\/56-231.27\/","token":"56\/9.1\/1\/56-231.27","metadata":false},{"id":54513,"structure_id":13548,"section_number":"56-231.28","catch_line":"Board of directors of cooperatives","url":"\/56-231.28\/","token":"56\/9.1\/1\/56-231.28","metadata":false},{"id":55041,"structure_id":13548,"section_number":"56-231.29","catch_line":"Powers of board of directors","url":"\/56-231.29\/","token":"56\/9.1\/1\/56-231.29","metadata":false},{"id":62265,"structure_id":13548,"section_number":"56-231.30","catch_line":"Rights and liabilities of members","url":"\/56-231.30\/","token":"56\/9.1\/1\/56-231.30","metadata":false},{"id":63250,"structure_id":13548,"section_number":"56-231.31","catch_line":"Payment of certain patronage capital to spouse or next of kin of deceased person","url":"\/56-231.31\/","token":"56\/9.1\/1\/56-231.31","metadata":false},{"id":82313,"structure_id":13548,"section_number":"56-231.31:1","catch_line":"Donation of certain patronage capital to the cooperative","url":"\/56-231.31_1\/","token":"56\/9.1\/1\/56-231.31_1","metadata":false},{"id":59045,"structure_id":13548,"section_number":"56-231.32","catch_line":"Service to members","url":"\/56-231.32\/","token":"56\/9.1\/1\/56-231.32","metadata":false},{"id":75936,"structure_id":13548,"section_number":"56-231.33","catch_line":"Adequate service; rates","url":"\/56-231.33\/","token":"56\/9.1\/1\/56-231.33","metadata":false},{"id":66118,"structure_id":13548,"section_number":"56-231.34","catch_line":"Regulation by Commission","url":"\/56-231.34\/","token":"56\/9.1\/1\/56-231.34","metadata":false},{"id":71119,"structure_id":13548,"section_number":"56-231.34:1","catch_line":"Separation of regulated and unregulated businesses","url":"\/56-231.34_1\/","token":"56\/9.1\/1\/56-231.34_1","metadata":false},{"id":82749,"structure_id":13548,"section_number":"56-231.34:2","catch_line":"Right of action; violation of rules or regulations","url":"\/56-231.34_2\/","token":"56\/9.1\/1\/56-231.34_2","metadata":false},{"id":69534,"structure_id":13548,"section_number":"56-231.35","catch_line":"Charter fees, etc","url":"\/56-231.35\/","token":"56\/9.1\/1\/56-231.35","metadata":false},{"id":58392,"structure_id":13548,"section_number":"56-231.36","catch_line":"Construction of article; conflicting laws","url":"\/56-231.36\/","token":"56\/9.1\/1\/56-231.36","metadata":false},{"id":85836,"structure_id":13548,"section_number":"56-231.37","catch_line":"How article cited","url":"\/56-231.37\/","token":"56\/9.1\/1\/56-231.37","metadata":false}],"previous_section":{"id":66118,"structure_id":13548,"section_number":"56-231.34","catch_line":"Regulation by Commission","url":"\/56-231.34\/","token":"56\/9.1\/1\/56-231.34","metadata":false},"next_section":{"id":82749,"structure_id":13548,"section_number":"56-231.34:2","catch_line":"Right of action; violation of rules or regulations","url":"\/56-231.34_2\/","token":"56\/9.1\/1\/56-231.34_2","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-231.34:1\/","history_text":"

This law was first created in 1999. The record of its establishment is cataloged in chapter 874<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 2 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2000, chapters 944<\/a> and 999<\/a>; in 2025, chapters 499<\/a> and 598<\/a>.<\/p>","references":[{"id":82086,"section_number":"55.1-306.1","catch_line":"Utility easements; expansion of broadband","order_by":null,"url":"\/55.1-306.1\/"},{"id":66118,"section_number":"56-231.34","catch_line":"Regulation by Commission","order_by":null,"url":"\/56-231.34\/"},{"id":82749,"section_number":"56-231.34:2","catch_line":"Right of action; violation of rules or regulations","order_by":null,"url":"\/56-231.34_2\/"}],"refers_to":[{"id":58706,"section_number":"56-76","catch_line":"Definitions","order_by":null,"url":"\/56-76\/"}],"permalink":{"id":251411,"object_type":"law","relational_id":71119,"identifier":"56-231.34:1","token":"56\/9.1\/1\/56-231.34_1","url":"\/56-231.34_1\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-231.34_1\/","token":"56\/9.1\/1\/56-231.34_1","dublin_core":{"Title":"Separation of regulated and unregulated businesses","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-231.34:1","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> No cooperative<\/span> that engages in a regulated utility service shall conduct any unregulated business activity, other than traditional cooperative<\/span> activities, except in or through one or more affiliates<\/span> of such cooperative<\/span>, provided that a cooperative<\/span> that provides regulated utility services<\/span>, or one or more of its affiliates<\/span>, shall have the right to offer and make unregulated sales of electric power to members<\/span> of the cooperative<\/span> that are served at or by dedicated or excess facilities within the cooperative<\/span>’s certificated service territory and that contract<\/span> for electric utility services to serve a demand that is reasonably expected to exceed 90 megawatts. No such affiliates<\/span>, formed to engage in any business that is not a regulated utility service, shall engage in regulated utility services<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Commission<\/span> shall promulgate rules and regulations, governing the conduct of the cooperatives<\/span>, to promote effective and fair competition between (i) affiliates<\/span> of cooperatives<\/span> that are engaged in business activities which are not regulated utility services<\/span> and (ii) other persons<\/span> engaged in the same or similar businesses. The rules and regulations shall be effective by July 1, 2000, and shall include provisions: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Prohibiting cost-shifting or cross-subsidies between a cooperative<\/span> and its affiliates<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Prohibiting anticompetitive behavior or self-dealing between a cooperative<\/span> and its affiliates<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Prohibiting a cooperative<\/span> from engaging in discriminatory behavior towards nonaffiliated entities; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Establishing codes of conduct detailing permissible relations between a cooperative<\/span> and its affiliates<\/span>. In establishing such codes, the Commission<\/span> shall consider, among other things, whether and, if so, under what circumstances and conditions (i) a cooperative<\/span> may provide its affiliates<\/span> with customer lists or other customer information, sales leads, procurement advice, joint promotions, and access to billing or mailing systems<\/span> unless such information or services are made available to third parties under the same terms and conditions, (ii) the cooperative<\/span>’s name, logos or trademarks may be used in promotional, advertising or sales activities conducted by its affiliates<\/span>, and (iii) the cooperative<\/span>’s vehicles, equipment, office space and employees may be used by its affiliates<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Nothing in this article shall be deemed to abrogate or modify the Commission<\/span>’s authority under Chapter 4 (§ 56-76<\/a> et seq.) of this title. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nSEPARATION OF REGULATED AND UNREGULATED BUSINESSES (\u00a7 56-231.34:1)\n\nA. No cooperative that engages in a regulated utility service shall conduct any\nunregulated business activity, other than traditional cooperative activities,\nexcept in or through one or more affiliates of such cooperative, provided that a\ncooperative that provides regulated utility services, or one or more of its\naffiliates, shall have the right to offer and make unregulated sales of electric\npower to members of the cooperative that are served at or by dedicated or excess\nfacilities within the cooperative’s certificated service territory and\nthat contract for electric utility services to serve a demand that is reasonably\nexpected to exceed 90 megawatts. No such affiliates, formed to engage in any\nbusiness that is not a regulated utility service, shall engage in regulated\nutility services.\n\nB. The Commission shall promulgate rules and regulations, governing the conduct\nof the cooperatives, to promote effective and fair competition between (i)\naffiliates of cooperatives that are engaged in business activities which are not\nregulated utility services and (ii) other persons engaged in the same or similar\nbusinesses. The rules and regulations shall be effective by July 1, 2000, and\nshall include provisions:\n\n 1. Prohibiting cost-shifting or cross-subsidies between a cooperative and its\n affiliates;\n\n 2. Prohibiting anticompetitive behavior or self-dealing between a cooperative\n and its affiliates;\n\n 3. Prohibiting a cooperative from engaging in discriminatory behavior towards\n nonaffiliated entities; and\n\n 4. Establishing codes of conduct detailing permissible relations between a\n cooperative and its affiliates. In establishing such codes, the Commission\n shall consider, among other things, whether and, if so, under what\n circumstances and conditions (i) a cooperative may provide its affiliates with\n customer lists or other customer information, sales leads, procurement advice,\n joint promotions, and access to billing or mailing systems unless such\n information or services are made available to third parties under the same\n terms and conditions, (ii) the cooperative’s name, logos or trademarks\n may be used in promotional, advertising or sales activities conducted by its\n affiliates, and (iii) the cooperative’s vehicles, equipment, office\n space and employees may be used by its affiliates.\n\nC. Nothing in this article shall be deemed to abrogate or modify the\nCommission’s authority under Chapter 4 (§ 56-76 et seq.) of this\ntitle.\n\nHISTORY: 1999, c. 874; 2000, cc. 944, 999; 2025, cc. 499, 598.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}