{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-234.3.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-234.3.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-234.3.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-234.3.html"}],"law_id":78493,"edition_id":1,"section_id":78493,"structure_id":14465,"section_number":"56-234.3","catch_line":"Approval of expenditures for and monitoring of new generation facilities and projected operation programs of electric utilities","history":"1976, c. 701; 1977, c. 261; 1978, c. 700; 1984, cc. 453, 454; 1997, c. 138.","full_text":"Prior to construction or financial commitments therefor, any electric utility subject to the jurisdiction of the State Corporation Commission intending to construct any new generation facility capable of producing 100 megawatts or more of electric energy shall submit to the State Corporation Commission a petition setting forth the nature of the proposed construction and the necessity therefor in relation to its projected forecast of programs of operation. Such petition shall include (i) the utility&#8217;s preliminary construction plans, (ii) the methods by which the work will be contracted, by competitive bid or otherwise, (iii) the names and addresses of the contractors and subcontractors, when known, proposed to do such work, and (iv) the plan by which the public utility will monitor such construction to ensure that the work will be done in a proper, expeditious and efficient manner. The Commission, upon receipt of the petition, shall order that a public hearing be held to assist it in accumulating as much relevant data as possible in reaching its determination for the necessity of the proposed generation facility. The Commission shall review the petition, consider the testimony given at the public hearing, and determine whether the proposed improvements are necessary to enable the public utility to furnish reasonably adequate service and facilities at reasonable and just rates. After making its determination, the Commission shall enter an order within nine months after the filing of such petition either approving or disapproving the proposed expenditure. Upon approval, the Commission shall set forth in its order terms and conditions it deems necessary for the efficient and proper construction of the generation facility.\n\t\tEvery electric utility capable of producing 100 megawatts or more of electric energy shall file with the Commission a projected forecast of its programs of operation, on such terms and for such time periods as directed by the Commission. Such a forecast shall include, but not be limited to, the anticipated required capacity to fulfill the requirements of the forecast, how the utility will achieve such capacity, the financial requirements for the period covered, the anticipated sources of those financial requirements, the research and development procedures, where appropriate, of new energy sources, and the budget for the research and development program.\n\t\tIn addition, the Commission shall investigate and monitor the major construction projects of any public utility to assure that such projects are being conducted in an economical, expeditious, and efficient manner.\n\t\tWhenever uneconomical, inefficient or wasteful practices, procedures, designs or planning are found to exist, the Commission shall have the authority to employ, at the sole expense of the utility, qualified persons, answerable solely to the Commission, who shall audit and investigate such practices, procedures, designs or planning and recommend to the Commission measures necessary to correct or eliminate such practices, procedures, designs or planning.\n\t\tConsistent with \u00a7 56-235.3, any public utility, electric or otherwise, seeking to pass through the cost of any capital project to its customers, shall have the burden of proving that such cost was incurred through reasonable, proper and efficient practices, and to the extent that such public utility fails to bear such burden of proof, such costs shall not be passed on to its customers in its rate base.\n\t\tThe Commission shall have the authority to approve, disapprove, or alter the utility&#8217;s program in a manner consistent with the best interest of the citizens of the Commonwealth. The petitioning or filing public utility may appeal the decision of the Commission to the Supreme Court of Virginia.","order_by":null,"text":{"0":{"id":281330,"text":"Prior to construction or financial commitments therefor, any electric utility subject to the jurisdiction of the State Corporation Commission intending to construct any new generation facility capable of producing 100 megawatts or more of electric energy shall submit to the State Corporation Commission a petition setting forth the nature of the proposed construction and the necessity therefor in relation to its projected forecast of programs of operation. Such petition shall include (i) the utility&#8217;s preliminary construction plans, (ii) the methods by which the work will be contracted, by competitive bid or otherwise, (iii) the names and addresses of the contractors and subcontractors, when known, proposed to do such work, and (iv) the plan by which the public utility will monitor such construction to ensure that the work will be done in a proper, expeditious and efficient manner. The Commission, upon receipt of the petition, shall order that a public hearing be held to assist it in accumulating as much relevant data as possible in reaching its determination for the necessity of the proposed generation facility. The Commission shall review the petition, consider the testimony given at the public hearing, and determine whether the proposed improvements are necessary to enable the public utility to furnish reasonably adequate service and facilities at reasonable and just rates. After making its determination, the Commission shall enter an order within nine months after the filing of such petition either approving or disapproving the proposed expenditure. Upon approval, the Commission shall set forth in its order terms and conditions it deems necessary for the efficient and proper construction of the generation facility.\n\t\tEvery electric utility capable of producing 100 megawatts or more of electric energy shall file with the Commission a projected forecast of its programs of operation, on such terms and for such time periods as directed by the Commission. Such a forecast shall include, but not be limited to, the anticipated required capacity to fulfill the requirements of the forecast, how the utility will achieve such capacity, the financial requirements for the period covered, the anticipated sources of those financial requirements, the research and development procedures, where appropriate, of new energy sources, and the budget for the research and development program.\n\t\tIn addition, the Commission shall investigate and monitor the major construction projects of any public utility to assure that such projects are being conducted in an economical, expeditious, and efficient manner.\n\t\tWhenever uneconomical, inefficient or wasteful practices, procedures, designs or planning are found to exist, the Commission shall have the authority to employ, at the sole expense of the utility, qualified persons, answerable solely to the Commission, who shall audit and investigate such practices, procedures, designs or planning and recommend to the Commission measures necessary to correct or eliminate such practices, procedures, designs or planning.\n\t\tConsistent with \u00a7 56-235.3, any public utility, electric or otherwise, seeking to pass through the cost of any capital project to its customers, shall have the burden of proving that such cost was incurred through reasonable, proper and efficient practices, and to the extent that such public utility fails to bear such burden of proof, such costs shall not be passed on to its customers in its rate base.\n\t\tThe Commission shall have the authority to approve, disapprove, or alter the utility&#8217;s program in a manner consistent with the best interest of the citizens of the Commonwealth. The petitioning or filing public utility may appeal the decision of the Commission to the Supreme Court of Virginia.","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1}},"ancestry":[{"id":14465,"edition_id":1,"name":"Services, Rates, Charges, Etc","identifier":"2","label":"article","depth":3,"order_by":1,"parent_id":13238,"metadata":{},"date_created":"2026-06-26 03:48:13","date_modified":"2026-06-26 03:48:13","permalink":{"id":248755,"object_type":"structure","relational_id":14465,"identifier":"2","token":"56\/10\/2","url":"\/56\/10\/2\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13238,"edition_id":1,"name":"Heat, Light, Power, Water and Other Utility Companies Generally","identifier":"10","label":"chapter","depth":2,"order_by":1,"parent_id":12881,"metadata":{},"date_created":"2026-06-26 03:44:30","date_modified":"2026-06-26 03:44:30","permalink":{"id":248721,"object_type":"structure","relational_id":13238,"identifier":"10","token":"56\/10","url":"\/56\/10\/","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":87361,"structure_id":14465,"section_number":"56-234","catch_line":"Duty to furnish adequate service at reasonable and uniform rates","url":"\/56-234\/","token":"56\/10\/2\/56-234","metadata":false},{"id":74382,"structure_id":14465,"section_number":"56-234.1","catch_line":"Liability to customer for violation of duty to determine and charge lowest rate applicable","url":"\/56-234.1\/","token":"56\/10\/2\/56-234.1","metadata":false},{"id":56457,"structure_id":14465,"section_number":"56-234.2","catch_line":"Review of rates","url":"\/56-234.2\/","token":"56\/10\/2\/56-234.2","metadata":false},{"id":78493,"structure_id":14465,"section_number":"56-234.3","catch_line":"Approval of expenditures for and monitoring of new generation facilities and projected operation programs of electric utilities","url":"\/56-234.3\/","token":"56\/10\/2\/56-234.3","metadata":false},{"id":72152,"structure_id":14465,"section_number":"56-234.4","catch_line":"Authority to investigate utility operations to determine efficiency","url":"\/56-234.4\/","token":"56\/10\/2\/56-234.4","metadata":false},{"id":84236,"structure_id":14465,"section_number":"56-234.5","catch_line":"Required disclosure by certain officers and directors of certain utilities","url":"\/56-234.5\/","token":"56\/10\/2\/56-234.5","metadata":false},{"id":77453,"structure_id":14465,"section_number":"56-235","catch_line":"When Commission may fix rates, schedules, etc.; conformance with chapter","url":"\/56-235\/","token":"56\/10\/2\/56-235","metadata":false},{"id":85095,"structure_id":14465,"section_number":"56-235.1","catch_line":"Conservation of energy and capital resources","url":"\/56-235.1\/","token":"56\/10\/2\/56-235.1","metadata":false},{"id":57116,"structure_id":14465,"section_number":"56-235.10","catch_line":"Recovery of eligible safety activity costs; administration; procedure","url":"\/56-235.10\/","token":"56\/10\/2\/56-235.10","metadata":false},{"id":68057,"structure_id":14465,"section_number":"56-235.11","catch_line":"Retail rates of affiliated water utilities","url":"\/56-235.11\/","token":"56\/10\/2\/56-235.11","metadata":false},{"id":69890,"structure_id":14465,"section_number":"56-235.12","catch_line":"Economic development programs","url":"\/56-235.12\/","token":"56\/10\/2\/56-235.12","metadata":false},{"id":80899,"structure_id":14465,"section_number":"56-235.1:1","catch_line":"Rates for stand-by electric service at renewable cogeneration facilities","url":"\/56-235.1_1\/","token":"56\/10\/2\/56-235.1_1","metadata":false},{"id":80993,"structure_id":14465,"section_number":"56-235.1:2","catch_line":"Costs of using small, women-owned, or minority-owned businesses","url":"\/56-235.1_2\/","token":"56\/10\/2\/56-235.1_2","metadata":false},{"id":62621,"structure_id":14465,"section_number":"56-235.2","catch_line":"All rates, tolls, etc., to be just and reasonable to jurisdictional customers; findings and conclusions to be set forth; alternative forms of regulation for electric companies","url":"\/56-235.2\/","token":"56\/10\/2\/56-235.2","metadata":false},{"id":66652,"structure_id":14465,"section_number":"56-235.3","catch_line":"Procedures for investigation of rate applications","url":"\/56-235.3\/","token":"56\/10\/2\/56-235.3","metadata":false},{"id":63163,"structure_id":14465,"section_number":"56-235.4","catch_line":"Prohibition of multiple rate increases within any twelve-month period; exception","url":"\/56-235.4\/","token":"56\/10\/2\/56-235.4","metadata":false},{"id":55844,"structure_id":14465,"section_number":"56-235.5","catch_line":"Telephone regulatory alternatives","url":"\/56-235.5\/","token":"56\/10\/2\/56-235.5","metadata":false},{"id":87078,"structure_id":14465,"section_number":"56-235.5:1","catch_line":"Local exchange telephone service competition policy","url":"\/56-235.5_1\/","token":"56\/10\/2\/56-235.5_1","metadata":false},{"id":71641,"structure_id":14465,"section_number":"56-235.6","catch_line":"Optional performance-based regulation of certain utilities","url":"\/56-235.6\/","token":"56\/10\/2\/56-235.6","metadata":false},{"id":77670,"structure_id":14465,"section_number":"56-235.7","catch_line":"Jurisdiction of Commission when federal governmental facility ceases to be retail customer of electric utility","url":"\/56-235.7\/","token":"56\/10\/2\/56-235.7","metadata":false},{"id":78685,"structure_id":14465,"section_number":"56-235.8","catch_line":"Retail supply choice for natural gas customers","url":"\/56-235.8\/","token":"56\/10\/2\/56-235.8","metadata":false},{"id":62516,"structure_id":14465,"section_number":"56-235.9","catch_line":"Recovery of funds used for capital projects prior to a rate case for strategic natural gas facilities","url":"\/56-235.9\/","token":"56\/10\/2\/56-235.9","metadata":false},{"id":59697,"structure_id":14465,"section_number":"56-236","catch_line":"Public utilities required to file schedules of rates and charges; rules and regulations; when detariffing of telephone services to be permitted","url":"\/56-236\/","token":"56\/10\/2\/56-236","metadata":false},{"id":85571,"structure_id":14465,"section_number":"56-236.1","catch_line":"Rates to be charged churches","url":"\/56-236.1\/","token":"56\/10\/2\/56-236.1","metadata":false},{"id":74562,"structure_id":14465,"section_number":"56-236.2","catch_line":"Suspension of service to sewerage system","url":"\/56-236.2\/","token":"56\/10\/2\/56-236.2","metadata":false},{"id":57569,"structure_id":14465,"section_number":"56-237","catch_line":"How changes in rates effected; notice required; changes to be indicated on schedules","url":"\/56-237\/","token":"56\/10\/2\/56-237","metadata":false},{"id":64233,"structure_id":14465,"section_number":"56-237.1","catch_line":"Notification of intent to seek rate change in schedules required to be filed under \u00a7 56-236","url":"\/56-237.1\/","token":"56\/10\/2\/56-237.1","metadata":false},{"id":67487,"structure_id":14465,"section_number":"56-237.2","catch_line":"Public hearings on protests or objections to rate changes","url":"\/56-237.2\/","token":"56\/10\/2\/56-237.2","metadata":false},{"id":80068,"structure_id":14465,"section_number":"56-238","catch_line":"Suspension of proposed rates, etc.; investigation; effectiveness of rates pending investigation and subject to bond; fixing reasonable rates, etc","url":"\/56-238\/","token":"56\/10\/2\/56-238","metadata":false},{"id":78378,"structure_id":14465,"section_number":"56-239","catch_line":"Appeal from action of Commission","url":"\/56-239\/","token":"56\/10\/2\/56-239","metadata":false},{"id":64527,"structure_id":14465,"section_number":"56-240","catch_line":"Proposed rates, etc., or changes thereof, not suspended effective subject to later change by Commission; refund or credit; appeal; investor-owned public utilities required to show increase complies with \u00a7 56-235.2","url":"\/56-240\/","token":"56\/10\/2\/56-240","metadata":false},{"id":57241,"structure_id":14465,"section_number":"56-241","catch_line":"Rates of telephone companies","url":"\/56-241\/","token":"56\/10\/2\/56-241","metadata":false},{"id":83712,"structure_id":14465,"section_number":"56-241.1","catch_line":"Flat and measured telephone rates; certain rates prohibited","url":"\/56-241.1\/","token":"56\/10\/2\/56-241.1","metadata":false},{"id":74999,"structure_id":14465,"section_number":"56-241.2","catch_line":"Approval of rates for resale of telephone service","url":"\/56-241.2\/","token":"56\/10\/2\/56-241.2","metadata":false},{"id":72101,"structure_id":14465,"section_number":"56-242","catch_line":"Temporary reduction of rates","url":"\/56-242\/","token":"56\/10\/2\/56-242","metadata":false},{"id":79154,"structure_id":14465,"section_number":"56-243","catch_line":"Duration of such temporary reduction","url":"\/56-243\/","token":"56\/10\/2\/56-243","metadata":false},{"id":84025,"structure_id":14465,"section_number":"56-244","catch_line":"Increase to make up for losses due to excessive temporary reduction","url":"\/56-244\/","token":"56\/10\/2\/56-244","metadata":false},{"id":67793,"structure_id":14465,"section_number":"56-245","catch_line":"Temporary increase in rates","url":"\/56-245\/","token":"56\/10\/2\/56-245","metadata":false},{"id":75868,"structure_id":14465,"section_number":"56-245.1","catch_line":"Meters to be kept in good working condition; defective meters","url":"\/56-245.1\/","token":"56\/10\/2\/56-245.1","metadata":false},{"id":80955,"structure_id":14465,"section_number":"56-245.1:1","catch_line":"Customers to be notified about nuclear emergency evacuation plans","url":"\/56-245.1_1\/","token":"56\/10\/2\/56-245.1_1","metadata":false},{"id":61620,"structure_id":14465,"section_number":"56-245.1:2","catch_line":"Customers to be notified of renewable power options","url":"\/56-245.1_2\/","token":"56\/10\/2\/56-245.1_2","metadata":false},{"id":70183,"structure_id":14465,"section_number":"56-245.1:3","catch_line":"Disconnection suspension for utilities","url":"\/56-245.1_3\/","token":"56\/10\/2\/56-245.1_3","metadata":false},{"id":86241,"structure_id":14465,"section_number":"56-245.1:4","catch_line":"Notice procedures for nonpayment; disconnecting utility service","url":"\/56-245.1_4\/","token":"56\/10\/2\/56-245.1_4","metadata":false}],"previous_section":{"id":56457,"structure_id":14465,"section_number":"56-234.2","catch_line":"Review of rates","url":"\/56-234.2\/","token":"56\/10\/2\/56-234.2","metadata":false},"next_section":{"id":72152,"structure_id":14465,"section_number":"56-234.4","catch_line":"Authority to investigate utility operations to determine efficiency","url":"\/56-234.4\/","token":"56\/10\/2\/56-234.4","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-234.3\/","history_text":"<p>This law was first created in 1976. The record of its establishment is cataloged in chapter 701 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. Unfortunately, the 1976 \u201cActs\u201d aren\u2019t available online. It has been modified 4 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 1977, chapter 261; in 1978, chapter 700; in 1984, chapters 453 and 454; in 1997, chapter <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?971+ful+CHAP0138\">138<\/a>.<\/p>","references":[{"id":84424,"section_number":"15.2-5406","catch_line":"Rights, powers and duties of authority","order_by":null,"url":"\/15.2-5406\/"}],"refers_to":[{"id":66652,"section_number":"56-235.3","catch_line":"Procedures for investigation of rate applications","order_by":null,"url":"\/56-235.3\/"}],"permalink":{"id":248769,"object_type":"law","relational_id":78493,"identifier":"56-234.3","token":"56\/10\/2\/56-234.3","url":"\/56-234.3\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-234.3\/","token":"56\/10\/2\/56-234.3","dublin_core":{"Title":"Approval of expenditures for and monitoring of new generation facilities and projected operation programs of electric utilities","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-234.3","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section><p>Prior to construction or financial commitments therefor, any electric utility subject to the <span class=\"dictionary\">jurisdiction<\/span> of the State <span class=\"dictionary\">Corporation<\/span> <span class=\"dictionary\">Commission<\/span> intending to construct any new generation facility capable of producing 100 megawatts or more of electric energy shall submit to the State <span class=\"dictionary\">Corporation<\/span> <span class=\"dictionary\">Commission<\/span> a <span class=\"dictionary\">petition<\/span> setting forth the nature of the proposed construction and the necessity therefor in relation to its projected forecast of programs of operation. Such <span class=\"dictionary\">petition<\/span> shall include (i) the utility&#8217;s preliminary construction plans, (ii) the methods by which the work will be contracted, by competitive bid or otherwise, (iii) the names and addresses of the contractors and subcontractors, when known, proposed to do such work, and (iv) the plan by which the public utility will monitor such construction to ensure that the work will be done in a proper, expeditious and efficient manner. The <span class=\"dictionary\">Commission<\/span>, upon receipt of the <span class=\"dictionary\">petition<\/span>, shall <span class=\"dictionary\">order<\/span> that a public <span class=\"dictionary\">hearing<\/span> be held to assist it in accumulating as much relevant data as possible in reaching its determination for the necessity of the proposed generation facility. The <span class=\"dictionary\">Commission<\/span> shall review the <span class=\"dictionary\">petition<\/span>, consider the <span class=\"dictionary\">testimony<\/span> given at the public <span class=\"dictionary\">hearing<\/span>, and determine whether the proposed improvements are necessary to enable the public utility to furnish reasonably adequate service and facilities at reasonable and just <span class=\"dictionary\">rates<\/span>. After making its determination, the <span class=\"dictionary\">Commission<\/span> shall enter an <span class=\"dictionary\">order<\/span> within nine months after the filing of such <span class=\"dictionary\">petition<\/span> either approving or disapproving the proposed expenditure. Upon approval, the <span class=\"dictionary\">Commission<\/span> shall set forth in its <span class=\"dictionary\">order<\/span> terms and conditions it deems necessary for the efficient and proper construction of the generation facility.\n\t\tEvery electric utility capable of producing 100 megawatts or more of electric energy shall file with the <span class=\"dictionary\">Commission<\/span> a projected forecast of its programs of operation, on such terms and for such time periods as directed by the <span class=\"dictionary\">Commission<\/span>. Such a forecast shall include, but not be limited to, the anticipated required capacity to fulfill the requirements of the forecast, how the utility will achieve such capacity, the financial requirements for the period covered, the anticipated sources of those financial requirements, the research and development procedures, where appropriate, of new energy sources, and the budget for the research and development program.\n\t\tIn addition, the <span class=\"dictionary\">Commission<\/span> shall investigate and monitor the major construction projects of any public utility to assure that such projects are being conducted in an economical, expeditious, and efficient manner.\n\t\tWhenever uneconomical, inefficient or wasteful practices, procedures, designs or planning are found to exist, the <span class=\"dictionary\">Commission<\/span> shall have the authority to employ, at the sole expense of the utility, qualified <span class=\"dictionary\">persons<\/span>, answerable solely to the <span class=\"dictionary\">Commission<\/span>, who shall audit and investigate such practices, procedures, designs or planning and recommend to the <span class=\"dictionary\">Commission<\/span> measures necessary to correct or eliminate such practices, procedures, designs or planning.\n\t\tConsistent with \u00a7&nbsp;<a class=\"law\" title=\"Procedures for investigation of rate applications\" href=\"\/56-235.3\/\">56-235.3<\/a>, any public utility, electric or otherwise, seeking to pass through the cost of any capital project to its customers, shall have the burden of proving that such cost was incurred through reasonable, proper and efficient practices, and to the extent that such public utility fails to bear such <span class=\"dictionary\">burden of proof<\/span>, such costs shall not be passed on to its customers in its <span class=\"dictionary\">rate<\/span> base.\n\t\tThe <span class=\"dictionary\">Commission<\/span> shall have the authority to approve, disapprove, or alter the utility&#8217;s program in a manner consistent with the best interest of the citizens of the Commonwealth. The petitioning or filing public utility may <span class=\"dictionary\">appeal<\/span> the decision of the <span class=\"dictionary\">Commission<\/span> to the Supreme <span class=\"dictionary\">Court<\/span> of Virginia.<\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nAPPROVAL OF EXPENDITURES FOR AND MONITORING OF NEW GENERATION FACILITIES AND\nPROJECTED OPERATION PROGRAMS OF ELECTRIC UTILITIES (\u00a7 56-234.3)\n\nPrior to construction or financial commitments therefor, any electric utility\nsubject to the jurisdiction of the State Corporation Commission intending to\nconstruct any new generation facility capable of producing 100 megawatts or more\nof electric energy shall submit to the State Corporation Commission a petition\nsetting forth the nature of the proposed construction and the necessity therefor\nin relation to its projected forecast of programs of operation. Such petition\nshall include (i) the utility&#8217;s preliminary construction plans, (ii) the\nmethods by which the work will be contracted, by competitive bid or otherwise,\n(iii) the names and addresses of the contractors and subcontractors, when known,\nproposed to do such work, and (iv) the plan by which the public utility will\nmonitor such construction to ensure that the work will be done in a proper,\nexpeditious and efficient manner. The Commission, upon receipt of the petition,\nshall order that a public hearing be held to assist it in accumulating as much\nrelevant data as possible in reaching its determination for the necessity of the\nproposed generation facility. The Commission shall review the petition, consider\nthe testimony given at the public hearing, and determine whether the proposed\nimprovements are necessary to enable the public utility to furnish reasonably\nadequate service and facilities at reasonable and just rates. After making its\ndetermination, the Commission shall enter an order within nine months after the\nfiling of such petition either approving or disapproving the proposed\nexpenditure. Upon approval, the Commission shall set forth in its order terms\nand conditions it deems necessary for the efficient and proper construction of\nthe generation facility.\n\t\tEvery electric utility capable of producing 100 megawatts or more of electric\nenergy shall file with the Commission a projected forecast of its programs of\noperation, on such terms and for such time periods as directed by the\nCommission. Such a forecast shall include, but not be limited to, the\nanticipated required capacity to fulfill the requirements of the forecast, how\nthe utility will achieve such capacity, the financial requirements for the\nperiod covered, the anticipated sources of those financial requirements, the\nresearch and development procedures, where appropriate, of new energy sources,\nand the budget for the research and development program.\n\t\tIn addition, the Commission shall investigate and monitor the major\nconstruction projects of any public utility to assure that such projects are\nbeing conducted in an economical, expeditious, and efficient manner.\n\t\tWhenever uneconomical, inefficient or wasteful practices, procedures, designs\nor planning are found to exist, the Commission shall have the authority to\nemploy, at the sole expense of the utility, qualified persons, answerable solely\nto the Commission, who shall audit and investigate such practices, procedures,\ndesigns or planning and recommend to the Commission measures necessary to\ncorrect or eliminate such practices, procedures, designs or planning.\n\t\tConsistent with \u00a7 56-235.3, any public utility, electric or otherwise,\nseeking to pass through the cost of any capital project to its customers, shall\nhave the burden of proving that such cost was incurred through reasonable,\nproper and efficient practices, and to the extent that such public utility fails\nto bear such burden of proof, such costs shall not be passed on to its customers\nin its rate base.\n\t\tThe Commission shall have the authority to approve, disapprove, or alter the\nutility&#8217;s program in a manner consistent with the best interest of the\ncitizens of the Commonwealth. The petitioning or filing public utility may\nappeal the decision of the Commission to the Supreme Court of Virginia.\n\nHISTORY: 1976, c. 701; 1977, c. 261; 1978, c. 700; 1984, cc. 453, 454; 1997, c.\n138.","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}}