{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-235.12.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-235.12.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-235.12.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-235.12.html"}],"law_id":69890,"edition_id":1,"section_id":69890,"structure_id":14465,"section_number":"56-235.12","catch_line":"Economic development programs","history":"2019, cc. 494, 495.","full_text":"A\n\nAs used in this section:\n\t\t\t“Acquire utility rights-of-way” means the planning, surveying, permitting, and acquisition of land, including options, easements, and other estates in land.\n\t\t\t“Costs” includes depreciation, taxes, return on investment, and other land-related costs associated with costs incurred to acquire utility rights-of-way pursuant to a Program.\n\t\t\t“Economic Development Program” or “Program” means a program under which a utility is authorized by the Commission under this section to acquire utility rights-of-way for one or more qualified economic development sites.\n\t\t\t“Partnership” means the Virginia Economic Development Partnership Authority.\n\t\t\t“Qualified economic development site” means an industrial site within the Commonwealth that has been certified by the Partnership pursuant to subsection B.\n\t\t\t“Utility” means a public utility providing water, sewer, electric, or natural gas service to retail customers in the Commonwealth.B\n\nThe Partnership is authorized to certify that an industrial site is a qualified economic development site if it finds that:1\n\nThe person with legal authority to develop the site is authorized to contract for the extension of utility service to the site;2\n\nThe development of the site is compliant with applicable zoning requirements and is consistent with the locality’s comprehensive plan;3\n\nApplicable environmental surveys and reviews, including any wetlands survey, geotechnical borings, a topographical survey, a cultural resources review, an Endangered Species review, or a Phase 1 Environmental Assessment, if required, are completed;4\n\nAn estimate of the costs of the development of the site has been prepared and provided to the Partnership; and5\n\nThe acquisition of utility rights-of-way for the site will further the creation of new jobs and capital investment in the Commonwealth by facilitating the location of one or more significant economic development projects in the Commonwealth.C\n\nA utility proposing an Economic Development Program shall file a proposal with the Commission for review. A proposal for approval of a Program shall include an analysis of how acquiring utility rights-of-way will enhance the Commonwealth’s infrastructure and promote the Commonwealth’s competitive business environment by improving the readiness of a qualified economic development site.D\n\nThe Commission shall approve, or approve with appropriate modifications, a Program if it finds that:1\n\nThe implementation of the Program will provide material economic development benefits that might not otherwise be attained absent the Commission’s approval of the Program;2\n\nThe Program proposes a rate mechanism, including base rates or a rate adjustment clause, that authorizes the utility to recover its costs incurred in implementing the Program until such time as the investment is placed in service;3\n\nThe proposal to acquire utility rights-of-way would not otherwise be immediately supported by expected revenues from new loads served under the Program at the qualified economic development site;4\n\nThe utility’s capital investment does not exceed one percent of gross plant investment in the aggregate or $5 million for any specific qualified economic development site;5\n\nThe associated charges resulting from implementation of the Program will apply only to firm service customers;6\n\nThe Virginia Economic Development Partnership has certified pursuant to subsection B that the site for which the utility proposes to acquire utility rights-of-way under the Program is a qualified economic development site;7\n\nThe Program is designed only to acquire utility rights-of-way to a qualified economic development site and not to provide service to other customers or potential customers;8\n\nThe utility’s assumptions regarding costs to acquire utility rights-of-way under the Program are not unduly speculative; and9\n\nThe Program is not otherwise contrary to the public interest.E\n\nAfter Commission review and absent action by the Commission to the contrary, the Program shall take effect 120 days following the date on which the proposal for the Program was filed. Any amendment to a Program following its implementation shall be submitted to the Commission at least 60 days prior to the proposed effective date thereof and, absent action by the Commission to the contrary, the amendment shall become effective on such date.F\n\nThe Commission’s approval of a Program shall authorize the utility to:1\n\nAcquire utility rights-of-way for the ordinary extension of utility facilities in the normal course of business to one or more qualified economic development sites; and2\n\nRecover costs incurred in implementing the Program, including costs deferred and associated carrying costs, from the time incurred until the time the Commission establishes new rates that include recovery of such deferred costs.G\n\nA utility, in implementing a Program, shall in good faith coordinate the acquisition of rights-of-way with communications providers and other utilities, including water, sewer, electric, or natural gas utilities, so that any facilities ultimately to be constructed may be collocated to the extent feasible.H\n\nIn calculating the utility’s return on the investment with regard to costs incurred in implementing a Program, the Commission shall use the utility’s regulatory capital structure, including the cost of equity most recently approved by the Commission. If the utility’s cost of capital at the time its Economic Development Program is filed has not been changed by order of the Commission within the preceding five years, the Commission may require the utility to file an updated weighted average cost of capital, and the utility may propose an updated weighted average cost of capital.I\n\nNothing in this section shall:1\n\nBe deemed to prevent one or more utilities from jointly filing a Program under this section, and the Commission may consolidate consideration of Programs filed to serve the same qualified economic development site;2\n\nOtherwise impair or enlarge the powers granted to public service companies by this title;3\n\nPermit a Program to include conversion of existing retail propane customers to electric or natural gas; or4\n\nProhibit an electric utility from recovering its transmission-related costs incurred in implementing the Program through a rate adjustment clause pursuant to subdivision A 4 of § 56-585.1.J\n\nA utility may request proprietary treatment of any and all supporting materials provided in support of a Program.","order_by":null,"text":{"0":{"id":252521,"text":"As used in this section:\n\t\t\t“Acquire utility rights-of-way” means the planning, surveying, permitting, and acquisition of land, including options, easements, and other estates in land.\n\t\t\t“Costs” includes depreciation, taxes, return on investment, and other land-related costs associated with costs incurred to acquire utility rights-of-way pursuant to a Program.\n\t\t\t“Economic Development Program” or “Program” means a program under which a utility is authorized by the Commission under this section to acquire utility rights-of-way for one or more qualified economic development sites.\n\t\t\t“Partnership” means the Virginia Economic Development Partnership Authority.\n\t\t\t“Qualified economic development site” means an industrial site within the Commonwealth that has been certified by the Partnership pursuant to subsection B.\n\t\t\t“Utility” means a public utility providing water, sewer, electric, or natural gas service to retail customers in the Commonwealth.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":252522,"text":"The Partnership is authorized to certify that an industrial site is a qualified economic development site if it finds that:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"B1"},"2":{"id":252523,"text":"The person with legal authority to develop the site is authorized to contract for the extension of utility service to the site;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"3":{"id":252524,"text":"The development of the site is compliant with applicable zoning requirements and is consistent with the locality’s comprehensive plan;","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"4":{"id":252525,"text":"Applicable environmental surveys and reviews, including any wetlands survey, geotechnical borings, a topographical survey, a cultural resources review, an Endangered Species review, or a Phase 1 Environmental Assessment, if required, are completed;","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"B4"},"5":{"id":252526,"text":"An estimate of the costs of the development of the site has been prepared and provided to the Partnership; and","type":"section","prefixes":["B","4"],"prefix":"4","entire_prefix":"B4","prefix_anchor":"B4","level":2,"prior_prefix":"B3","next_prefix":"B5"},"6":{"id":252527,"text":"The acquisition of utility rights-of-way for the site will further the creation of new jobs and capital investment in the Commonwealth by facilitating the location of one or more significant economic development projects in the Commonwealth.","type":"section","prefixes":["B","5"],"prefix":"5","entire_prefix":"B5","prefix_anchor":"B5","level":2,"prior_prefix":"B4","next_prefix":"C"},"7":{"id":252528,"text":"A utility proposing an Economic Development Program shall file a proposal with the Commission for review. A proposal for approval of a Program shall include an analysis of how acquiring utility rights-of-way will enhance the Commonwealth’s infrastructure and promote the Commonwealth’s competitive business environment by improving the readiness of a qualified economic development site.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B5","next_prefix":"D"},"8":{"id":252529,"text":"The Commission shall approve, or approve with appropriate modifications, a Program if it finds that:","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"D1"},"9":{"id":252530,"text":"The implementation of the Program will provide material economic development benefits that might not otherwise be attained absent the Commission’s approval of the Program;","type":"section","prefixes":["D","1"],"prefix":"1","entire_prefix":"D1","prefix_anchor":"D1","level":2,"prior_prefix":"D","next_prefix":"D2"},"10":{"id":252531,"text":"The Program proposes a rate mechanism, including base rates or a rate adjustment clause, that authorizes the utility to recover its costs incurred in implementing the Program until such time as the investment is placed in service;","type":"section","prefixes":["D","2"],"prefix":"2","entire_prefix":"D2","prefix_anchor":"D2","level":2,"prior_prefix":"D1","next_prefix":"D3"},"11":{"id":252532,"text":"The proposal to acquire utility rights-of-way would not otherwise be immediately supported by expected revenues from new loads served under the Program at the qualified economic development site;","type":"section","prefixes":["D","3"],"prefix":"3","entire_prefix":"D3","prefix_anchor":"D3","level":2,"prior_prefix":"D2","next_prefix":"D4"},"12":{"id":252533,"text":"The utility’s capital investment does not exceed one percent of gross plant investment in the aggregate or $5 million for any specific qualified economic development site;","type":"section","prefixes":["D","4"],"prefix":"4","entire_prefix":"D4","prefix_anchor":"D4","level":2,"prior_prefix":"D3","next_prefix":"D5"},"13":{"id":252534,"text":"The associated charges resulting from implementation of the Program will apply only to firm service customers;","type":"section","prefixes":["D","5"],"prefix":"5","entire_prefix":"D5","prefix_anchor":"D5","level":2,"prior_prefix":"D4","next_prefix":"D6"},"14":{"id":252535,"text":"The Virginia Economic Development Partnership has certified pursuant to subsection B that the site for which the utility proposes to acquire utility rights-of-way under the Program is a qualified economic development site;","type":"section","prefixes":["D","6"],"prefix":"6","entire_prefix":"D6","prefix_anchor":"D6","level":2,"prior_prefix":"D5","next_prefix":"D7"},"15":{"id":252536,"text":"The Program is designed only to acquire utility rights-of-way to a qualified economic development site and not to provide service to other customers or potential customers;","type":"section","prefixes":["D","7"],"prefix":"7","entire_prefix":"D7","prefix_anchor":"D7","level":2,"prior_prefix":"D6","next_prefix":"D8"},"16":{"id":252537,"text":"The utility’s assumptions regarding costs to acquire utility rights-of-way under the Program are not unduly speculative; and","type":"section","prefixes":["D","8"],"prefix":"8","entire_prefix":"D8","prefix_anchor":"D8","level":2,"prior_prefix":"D7","next_prefix":"D9"},"17":{"id":252538,"text":"The Program is not otherwise contrary to the public interest.","type":"section","prefixes":["D","9"],"prefix":"9","entire_prefix":"D9","prefix_anchor":"D9","level":2,"prior_prefix":"D8","next_prefix":"E"},"18":{"id":252539,"text":"After Commission review and absent action by the Commission to the contrary, the Program shall take effect 120 days following the date on which the proposal for the Program was filed. Any amendment to a Program following its implementation shall be submitted to the Commission at least 60 days prior to the proposed effective date thereof and, absent action by the Commission to the contrary, the amendment shall become effective on such date.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D9","next_prefix":"F"},"19":{"id":252540,"text":"The Commission’s approval of a Program shall authorize the utility to:","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"F1"},"20":{"id":252541,"text":"Acquire utility rights-of-way for the ordinary extension of utility facilities in the normal course of business to one or more qualified economic development sites; and","type":"section","prefixes":["F","1"],"prefix":"1","entire_prefix":"F1","prefix_anchor":"F1","level":2,"prior_prefix":"F","next_prefix":"F2"},"21":{"id":252542,"text":"Recover costs incurred in implementing the Program, including costs deferred and associated carrying costs, from the time incurred until the time the Commission establishes new rates that include recovery of such deferred costs.","type":"section","prefixes":["F","2"],"prefix":"2","entire_prefix":"F2","prefix_anchor":"F2","level":2,"prior_prefix":"F1","next_prefix":"G"},"22":{"id":252543,"text":"A utility, in implementing a Program, shall in good faith coordinate the acquisition of rights-of-way with communications providers and other utilities, including water, sewer, electric, or natural gas utilities, so that any facilities ultimately to be constructed may be collocated to the extent feasible.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F2","next_prefix":"H"},"23":{"id":252544,"text":"In calculating the utility’s return on the investment with regard to costs incurred in implementing a Program, the Commission shall use the utility’s regulatory capital structure, including the cost of equity most recently approved by the Commission. If the utility’s cost of capital at the time its Economic Development Program is filed has not been changed by order of the Commission within the preceding five years, the Commission may require the utility to file an updated weighted average cost of capital, and the utility may propose an updated weighted average cost of capital.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"I"},"24":{"id":252545,"text":"Nothing in this section shall:","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H","next_prefix":"I1"},"25":{"id":252546,"text":"Be deemed to prevent one or more utilities from jointly filing a Program under this section, and the Commission may consolidate consideration of Programs filed to serve the same qualified economic development site;","type":"section","prefixes":["I","1"],"prefix":"1","entire_prefix":"I1","prefix_anchor":"I1","level":2,"prior_prefix":"I","next_prefix":"I2"},"26":{"id":252547,"text":"Otherwise impair or enlarge the powers granted to public service companies by this title;","type":"section","prefixes":["I","2"],"prefix":"2","entire_prefix":"I2","prefix_anchor":"I2","level":2,"prior_prefix":"I1","next_prefix":"I3"},"27":{"id":252548,"text":"Permit a Program to include conversion of existing retail propane customers to electric or natural gas; or","type":"section","prefixes":["I","3"],"prefix":"3","entire_prefix":"I3","prefix_anchor":"I3","level":2,"prior_prefix":"I2","next_prefix":"I4"},"28":{"id":252549,"text":"Prohibit an electric utility from recovering its transmission-related costs incurred in implementing the Program through a rate adjustment clause pursuant to subdivision A 4 of § 56-585.1.","type":"section","prefixes":["I","4"],"prefix":"4","entire_prefix":"I4","prefix_anchor":"I4","level":2,"prior_prefix":"I3","next_prefix":"J"},"29":{"id":252550,"text":"A utility may request proprietary treatment of any and all supporting materials provided in support of a Program.","type":"section","prefixes":["J"],"prefix":"J","entire_prefix":"J","prefix_anchor":"J","level":1,"prior_prefix":"I4"}},"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.; 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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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-235.12\/","history_text":"

This law was first created in 2019. The record of its establishment is cataloged in chapters 494<\/a> and 495<\/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.<\/p>","references":false,"refers_to":false,"permalink":{"id":248797,"object_type":"law","relational_id":69890,"identifier":"56-235.12","token":"56\/10\/2\/56-235.12","url":"\/56-235.12\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-235.12\/","token":"56\/10\/2\/56-235.12","dublin_core":{"Title":"Economic development programs","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-235.12","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Acquire utility rights-of-way<\/span>” means the planning, surveying, permitting, and acquisition of land, including options, easements, and other estates in land.\n\t\t\t“Costs<\/span>” includes depreciation, taxes, return on investment, and other land-related costs<\/span> associated with costs<\/span> incurred to acquire utility rights-of-way<\/span> pursuant to a Program.\n\t\t\t“Economic Development Program<\/span>” or “Program” means a program under which a utility is authorized by the Commission<\/span> under this section to acquire utility rights-of-way<\/span> for one or more qualified economic development sites<\/span>.\n\t\t\t“Partnership<\/span>” means the Virginia Economic Development Partnership<\/span> Authority.\n\t\t\t“Qualified economic development site<\/span>” means an industrial site within the Commonwealth that has been certified by the Partnership<\/span> pursuant to subsection B.\n\t\t\t“Utility” means a public utility providing water, sewer, electric, or natural gas service to retail customers in the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Partnership<\/span> is authorized to certify that an industrial site is a qualified economic development site<\/span> if it finds that: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The person<\/span> with legal authority to develop the site is authorized to contract<\/span> for the extension of utility service to the site; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The development of the site is compliant with applicable zoning requirements and is consistent with the locality’s comprehensive plan; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Applicable environmental surveys and reviews, including any wetlands survey, geotechnical borings, a topographical survey, a cultural resources review, an Endangered Species review, or a Phase 1 Environmental Assessment, if required, are completed; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> An estimate of the costs<\/span> of the development of the site has been prepared and provided to the Partnership<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The acquisition of utility rights-of-way for the site will further the creation of new jobs and capital investment in the Commonwealth by facilitating the location of one or more significant economic development projects in the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A utility proposing an Economic Development Program<\/span> shall file a proposal with the Commission<\/span> for review. A proposal for approval of a Program shall include an analysis of how acquiring utility rights-of-way will enhance the Commonwealth’s infrastructure and promote the Commonwealth’s competitive business environment by improving the readiness of a qualified economic development site<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> The Commission<\/span> shall approve, or approve with appropriate modifications, a Program if it finds that: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> The implementation of the Program will provide material<\/span> economic development benefits that might not otherwise be attained absent the Commission<\/span>’s approval of the Program; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> The Program proposes a rate<\/span> mechanism, including base rates<\/span> or a rate<\/span> adjustment clause, that authorizes the utility to recover its costs<\/span> incurred in implementing the Program until such time as the investment is placed in service; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The proposal to acquire utility rights-of-way<\/span> would not otherwise be immediately supported by expected revenues from new loads served under the Program at the qualified economic development site<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The utility’s capital investment does not exceed one percent of gross plant investment in the aggregate or $5 million for any specific qualified economic development site<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> The associated charges resulting from implementation of the Program will apply only to firm service customers; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> The Virginia Economic Development Partnership<\/span> has certified pursuant to subsection B that the site for which the utility proposes to acquire utility rights-of-way<\/span> under the Program is a qualified economic development site<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> The Program is designed only to acquire utility rights-of-way<\/span> to a qualified economic development site<\/span> and not to provide service to other customers or potential customers; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> The utility’s assumptions regarding costs<\/span> to acquire utility rights-of-way<\/span> under the Program are not unduly speculative; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

9.<\/span> The Program is not otherwise contrary to the public interest. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> After Commission<\/span> review and absent action by the Commission<\/span> to the contrary, the Program shall take effect 120 days following the date on which the proposal for the Program was filed. Any amendment to a Program following its implementation shall be submitted to the Commission<\/span> at least 60 days prior to the proposed effective date thereof and, absent action by the Commission<\/span> to the contrary, the amendment shall become effective on such date. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The Commission<\/span>’s approval of a Program shall authorize the utility to: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Acquire utility rights-of-way<\/span> for the ordinary extension of utility facilities in the normal course of business to one or more qualified economic development sites<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Recover costs<\/span> incurred in implementing the Program, including costs<\/span> deferred and associated carrying costs<\/span>, from the time incurred until the time the Commission<\/span> establishes new rates<\/span> that include recovery of such deferred costs<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> A utility, in implementing a Program, shall in good faith coordinate the acquisition of rights-of-way with communications providers and other utilities, including water, sewer, electric, or natural gas utilities, so that any facilities ultimately to be constructed may be collocated to the extent feasible. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

H.<\/span> In calculating the utility’s return on the investment with regard to costs<\/span> incurred in implementing a Program, the Commission<\/span> shall use the utility’s regulatory capital structure, including the cost of equity<\/span> most recently approved by the Commission<\/span>. If the utility’s cost of capital at the time its Economic Development Program<\/span> is filed has not been changed by order<\/span> of the Commission<\/span> within the preceding five years, the Commission<\/span> may require the utility to file an updated weighted average cost of capital, and the utility may propose an updated weighted average cost of capital. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

I.<\/span> Nothing in this section shall: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Be deemed to prevent one or more utilities from jointly filing a Program under this section, and the Commission<\/span> may consolidate consideration of Programs<\/span> filed to serve the same qualified economic development site<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Otherwise impair or enlarge the powers granted to public service companies by this title; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Permit a Program to include conversion of existing retail propane customers to electric or natural gas; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Prohibit an electric utility from recovering its transmission-related costs<\/span> incurred in implementing the Program through a rate<\/span> adjustment clause pursuant to subdivision A 4 of § 56-585.1<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

J.<\/span> A utility may request proprietary treatment of any and all supporting materials<\/span> provided in support of a Program. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nECONOMIC DEVELOPMENT PROGRAMS (\u00a7 56-235.12)\n\nA. As used in this section:\n\t\t\t“Acquire utility rights-of-way” means the planning, surveying,\npermitting, and acquisition of land, including options, easements, and other\nestates in land.\n\t\t\t“Costs” includes depreciation, taxes, return on investment, and\nother land-related costs associated with costs incurred to acquire utility\nrights-of-way pursuant to a Program.\n\t\t\t“Economic Development Program” or “Program” means a\nprogram under which a utility is authorized by the Commission under this section\nto acquire utility rights-of-way for one or more qualified economic development\nsites.\n\t\t\t“Partnership” means the Virginia Economic Development Partnership\nAuthority.\n\t\t\t“Qualified economic development site” means an industrial site\nwithin the Commonwealth that has been certified by the Partnership pursuant to\nsubsection B.\n\t\t\t“Utility” means a public utility providing water, sewer,\nelectric, or natural gas service to retail customers in the Commonwealth.\n\nB. The Partnership is authorized to certify that an industrial site is a\nqualified economic development site if it finds that:\n\n 1. The person with legal authority to develop the site is authorized to\n contract for the extension of utility service to the site;\n\n 2. The development of the site is compliant with applicable zoning\n requirements and is consistent with the locality’s comprehensive plan;\n\n 3. Applicable environmental surveys and reviews, including any wetlands\n survey, geotechnical borings, a topographical survey, a cultural resources\n review, an Endangered Species review, or a Phase 1 Environmental Assessment,\n if required, are completed;\n\n 4. An estimate of the costs of the development of the site has been prepared\n and provided to the Partnership; and\n\n 5. The acquisition of utility rights-of-way for the site will further the\n creation of new jobs and capital investment in the Commonwealth by\n facilitating the location of one or more significant economic development\n projects in the Commonwealth.\n\nC. A utility proposing an Economic Development Program shall file a proposal\nwith the Commission for review. A proposal for approval of a Program shall\ninclude an analysis of how acquiring utility rights-of-way will enhance the\nCommonwealth’s infrastructure and promote the Commonwealth’s\ncompetitive business environment by improving the readiness of a qualified\neconomic development site.\n\nD. The Commission shall approve, or approve with appropriate modifications, a\nProgram if it finds that:\n\n 1. The implementation of the Program will provide material economic\n development benefits that might not otherwise be attained absent the\n Commission’s approval of the Program;\n\n 2. The Program proposes a rate mechanism, including base rates or a rate\n adjustment clause, that authorizes the utility to recover its costs incurred\n in implementing the Program until such time as the investment is placed in\n service;\n\n 3. The proposal to acquire utility rights-of-way would not otherwise be\n immediately supported by expected revenues from new loads served under the\n Program at the qualified economic development site;\n\n 4. The utility’s capital investment does not exceed one percent of gross\n plant investment in the aggregate or $5 million for any specific qualified\n economic development site;\n\n 5. The associated charges resulting from implementation of the Program will\n apply only to firm service customers;\n\n 6. The Virginia Economic Development Partnership has certified pursuant to\n subsection B that the site for which the utility proposes to acquire utility\n rights-of-way under the Program is a qualified economic development site;\n\n 7. The Program is designed only to acquire utility rights-of-way to a\n qualified economic development site and not to provide service to other\n customers or potential customers;\n\n 8. The utility’s assumptions regarding costs to acquire utility\n rights-of-way under the Program are not unduly speculative; and\n\n 9. The Program is not otherwise contrary to the public interest.\n\nE. After Commission review and absent action by the Commission to the contrary,\nthe Program shall take effect 120 days following the date on which the proposal\nfor the Program was filed. Any amendment to a Program following its\nimplementation shall be submitted to the Commission at least 60 days prior to\nthe proposed effective date thereof and, absent action by the Commission to the\ncontrary, the amendment shall become effective on such date.\n\nF. The Commission’s approval of a Program shall authorize the utility to:\n\n 1. Acquire utility rights-of-way for the ordinary extension of utility\n facilities in the normal course of business to one or more qualified economic\n development sites; and\n\n 2. Recover costs incurred in implementing the Program, including costs\n deferred and associated carrying costs, from the time incurred until the time\n the Commission establishes new rates that include recovery of such deferred\n costs.\n\nG. A utility, in implementing a Program, shall in good faith coordinate the\nacquisition of rights-of-way with communications providers and other utilities,\nincluding water, sewer, electric, or natural gas utilities, so that any\nfacilities ultimately to be constructed may be collocated to the extent\nfeasible.\n\nH. In calculating the utility’s return on the investment with regard to\ncosts incurred in implementing a Program, the Commission shall use the\nutility’s regulatory capital structure, including the cost of equity most\nrecently approved by the Commission. If the utility’s cost of capital at\nthe time its Economic Development Program is filed has not been changed by order\nof the Commission within the preceding five years, the Commission may require\nthe utility to file an updated weighted average cost of capital, and the utility\nmay propose an updated weighted average cost of capital.\n\nI. Nothing in this section shall:\n\n 1. Be deemed to prevent one or more utilities from jointly filing a Program\n under this section, and the Commission may consolidate consideration of\n Programs filed to serve the same qualified economic development site;\n\n 2. Otherwise impair or enlarge the powers granted to public service companies\n by this title;\n\n 3. Permit a Program to include conversion of existing retail propane customers\n to electric or natural gas; or\n\n 4. Prohibit an electric utility from recovering its transmission-related costs\n incurred in implementing the Program through a rate adjustment clause pursuant\n to subdivision A 4 of § 56-585.1.\n\nJ. A utility may request proprietary treatment of any and all supporting\nmaterials provided in support of a Program.\n\nHISTORY: 2019, cc. 494, 495.","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}}