{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-235.9.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-235.9.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-235.9.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-235.9.html"}],"law_id":62516,"edition_id":1,"section_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","history":"2008, c. 867; 2014, cc. 467, 507.","full_text":"A\n\nAs used in this section:\n\t\t\t“Capitalized carrying cost” includes the return on the investment, depreciation, and tax.\n\t\t\t“Natural gas transmission company” means any investor-owned public service company engaged in the business of transporting natural gas to more than one electric utility, natural gas utility, or non-jurisdictional customer.\n\t\t\t“Natural gas utility” means any investor-owned public service company engaged in the business of furnishing natural gas service to the public.\n\t\t\t“Strategic natural gas facility” includes, without limitation, a natural gas distribution or transmission pipeline, storage facility, compressor station, liquefied natural gas facility, peaking facility or other appurtenant facility, used to furnish natural gas service in the Commonwealth that, for a natural gas utility with fewer than 150,000 customers, adds stand-alone design day deliverability or designed send-out of at least 10,000 dekaTherms per day or two or more such facilities, regardless of size, that add design day deliverability or designed send out of at least 75,000 dekaTherms per day in the aggregate, and for a natural gas utility with 150,000 or more customers, adds stand-alone design day deliverability or designed send out of at least 20,000 dekaTherms per day or two or more such facilities, regardless of size, that add design day deliverability or designed send out of at least 100,000 dekaTherms per day in the aggregate, and for a natural gas transmission company, adds design day deliverability or designed send out of at least 100,000 dekaTherms per day in the aggregate.B\n\nAny natural gas utility that places a strategic natural gas facility into service on or after July 1, 2008, or natural gas transmission company that places a strategic natural gas facility into service on or after July 1, 2014, to serve its customers shall have the right to recover through its rates charged to those customers the entire prudently incurred costs of the facility including: planning, development and construction costs; costs of infrastructure associated therewith; an allowance for funds used during construction; and the capitalized carrying cost from the time construction is completed and the asset is placed into service until the time that the Commission establishes new rates that include recovery of all costs as defined herein. Such recovery shall be permitted by allowing such costs to be recorded in the utility’s plant accounts and included in rate base for purposes of cost recovery (i) in new rate schedules for service not offered under existing rate schedules or new rate schedules for expansion of existing services as permitted by § 56-235.4, (ii) in a rate case using the cost of service methodology set forth in § 56-235.2, or (iii) in a performance-based regulation plan authorized by § 56-235.6, subject to Commission determination that such costs were prudently incurred. The allowance for funds used during construction and the return on investment shall be calculated utilizing the weighted average cost of capital, including the cost of debt and cost of equity used in determining the natural gas utility’s base rates in effect during the construction period of the strategic natural gas facility.C\n\nNothing in this section shall be construed to prohibit the Commission from granting similar treatment to other natural gas facilities when the Commission deems such treatment to be in the public interest.","order_by":null,"text":{"0":{"id":227972,"text":"As used in this section:\n\t\t\t“Capitalized carrying cost” includes the return on the investment, depreciation, and tax.\n\t\t\t“Natural gas transmission company” means any investor-owned public service company engaged in the business of transporting natural gas to more than one electric utility, natural gas utility, or non-jurisdictional customer.\n\t\t\t“Natural gas utility” means any investor-owned public service company engaged in the business of furnishing natural gas service to the public.\n\t\t\t“Strategic natural gas facility” includes, without limitation, a natural gas distribution or transmission pipeline, storage facility, compressor station, liquefied natural gas facility, peaking facility or other appurtenant facility, used to furnish natural gas service in the Commonwealth that, for a natural gas utility with fewer than 150,000 customers, adds stand-alone design day deliverability or designed send-out of at least 10,000 dekaTherms per day or two or more such facilities, regardless of size, that add design day deliverability or designed send out of at least 75,000 dekaTherms per day in the aggregate, and for a natural gas utility with 150,000 or more customers, adds stand-alone design day deliverability or designed send out of at least 20,000 dekaTherms per day or two or more such facilities, regardless of size, that add design day deliverability or designed send out of at least 100,000 dekaTherms per day in the aggregate, and for a natural gas transmission company, adds design day deliverability or designed send out of at least 100,000 dekaTherms per day in the aggregate.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":227973,"text":"Any natural gas utility that places a strategic natural gas facility into service on or after July 1, 2008, or natural gas transmission company that places a strategic natural gas facility into service on or after July 1, 2014, to serve its customers shall have the right to recover through its rates charged to those customers the entire prudently incurred costs of the facility including: planning, development and construction costs; costs of infrastructure associated therewith; an allowance for funds used during construction; and the capitalized carrying cost from the time construction is completed and the asset is placed into service until the time that the Commission establishes new rates that include recovery of all costs as defined herein. Such recovery shall be permitted by allowing such costs to be recorded in the utility’s plant accounts and included in rate base for purposes of cost recovery (i) in new rate schedules for service not offered under existing rate schedules or new rate schedules for expansion of existing services as permitted by § 56-235.4, (ii) in a rate case using the cost of service methodology set forth in § 56-235.2, or (iii) in a performance-based regulation plan authorized by § 56-235.6, subject to Commission determination that such costs were prudently incurred. The allowance for funds used during construction and the return on investment shall be calculated utilizing the weighted average cost of capital, including the cost of debt and cost of equity used in determining the natural gas utility’s base rates in effect during the construction period of the strategic natural gas facility.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":227974,"text":"Nothing in this section shall be construed to prohibit the Commission from granting similar treatment to other natural gas facilities when the Commission deems such treatment to be in the public interest.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-235.9\/","history_text":"

This law was first created in 2008. The record of its establishment is cataloged in chapter 867<\/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 1 time. 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. That modification is as follows: in 2014, chapters 467<\/a> and 507<\/a>.<\/p>","references":false,"refers_to":[{"id":62621,"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","order_by":null,"url":"\/56-235.2\/"},{"id":63163,"section_number":"56-235.4","catch_line":"Prohibition of multiple rate increases within any twelve-month period; exception","order_by":null,"url":"\/56-235.4\/"},{"id":71641,"section_number":"56-235.6","catch_line":"Optional performance-based regulation of certain utilities","order_by":null,"url":"\/56-235.6\/"}],"permalink":{"id":248841,"object_type":"law","relational_id":62516,"identifier":"56-235.9","token":"56\/10\/2\/56-235.9","url":"\/56-235.9\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-235.9\/","token":"56\/10\/2\/56-235.9","dublin_core":{"Title":"Recovery of funds used for capital projects prior to a rate case for strategic natural gas facilities","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-235.9","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Capitalized carrying cost<\/span>” includes the return on the investment, depreciation, and tax.\n\t\t\t“Natural gas transmission company<\/span>” means any investor-owned public service company<\/span> engaged in the business of transporting natural gas to more than one electric utility, natural gas utility<\/span>, or non-jurisdictional customer.\n\t\t\t“Natural gas utility<\/span>” means any investor-owned public service company<\/span> engaged in the business of furnishing natural gas service to the public.\n\t\t\t“Strategic natural gas facility” includes, without limitation, a natural gas distribution or transmission pipeline, storage facility, compressor station, liquefied natural gas facility, peaking facility or other appurtenant facility, used to furnish natural gas service in the Commonwealth that, for a natural gas utility<\/span> with fewer than 150,000 customers, adds stand-alone design day deliverability or designed send-out of at least 10,000 dekaTherms per day or two or more such facilities, regardless of size, that add design day deliverability or designed send out of at least 75,000 dekaTherms per day in the aggregate, and for a natural gas utility<\/span> with 150,000 or more customers, adds stand-alone design day deliverability or designed send out of at least 20,000 dekaTherms per day or two or more such facilities, regardless of size, that add design day deliverability or designed send out of at least 100,000 dekaTherms per day in the aggregate, and for a natural gas transmission company<\/span>, adds design day deliverability or designed send out of at least 100,000 dekaTherms per day in the aggregate. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Any natural gas utility<\/span> that places a strategic natural gas facility into service on or after July 1, 2008, or natural gas transmission company<\/span> that places a strategic natural gas facility into service on or after July 1, 2014, to serve its customers shall have the right to recover through its rates<\/span> charged to those customers the entire prudently incurred costs of the facility including: planning, development and construction costs; costs of infrastructure associated therewith; an allowance for funds used during construction; and the capitalized carrying cost<\/span> from the time construction is completed and the asset is placed into service until the time that the Commission<\/span> establishes new rates<\/span> that include recovery of all costs as defined herein. Such recovery shall be permitted by allowing such costs to be recorded in the utility’s plant accounts and included in rate<\/span> base for purposes of cost recovery (i) in new rate<\/span> schedules<\/span> for service not offered under existing rate<\/span> schedules<\/span> or new rate<\/span> schedules<\/span> for expansion of existing services as permitted by § 56-235.4<\/a>, (ii) in a rate<\/span> case using the cost of service methodology set forth in § 56-235.2<\/a>, or (iii) in a performance-based regulation plan authorized by § 56-235.6<\/a>, subject to Commission<\/span> determination that such costs were prudently incurred. The allowance for funds used during construction and the return on investment shall be calculated utilizing the weighted average cost of capital, including the cost of debt and cost of equity<\/span> used in determining the natural gas utility<\/span>’s base rates<\/span> in effect during the construction period of the strategic natural gas facility. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Nothing in this section shall be construed to prohibit the Commission<\/span> from granting similar treatment to other natural gas facilities when the Commission<\/span> deems such treatment to be in the public interest. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nRECOVERY OF FUNDS USED FOR CAPITAL PROJECTS PRIOR TO A RATE CASE FOR STRATEGIC\nNATURAL GAS FACILITIES (\u00a7 56-235.9)\n\nA. As used in this section:\n\t\t\t“Capitalized carrying cost” includes the return on the\ninvestment, depreciation, and tax.\n\t\t\t“Natural gas transmission company” means any investor-owned\npublic service company engaged in the business of transporting natural gas to\nmore than one electric utility, natural gas utility, or non-jurisdictional\ncustomer.\n\t\t\t“Natural gas utility” means any investor-owned public service\ncompany engaged in the business of furnishing natural gas service to the public.\n\t\t\t“Strategic natural gas facility” includes, without limitation, a\nnatural gas distribution or transmission pipeline, storage facility, compressor\nstation, liquefied natural gas facility, peaking facility or other appurtenant\nfacility, used to furnish natural gas service in the Commonwealth that, for a\nnatural gas utility with fewer than 150,000 customers, adds stand-alone design\nday deliverability or designed send-out of at least 10,000 dekaTherms per day or\ntwo or more such facilities, regardless of size, that add design day\ndeliverability or designed send out of at least 75,000 dekaTherms per day in the\naggregate, and for a natural gas utility with 150,000 or more customers, adds\nstand-alone design day deliverability or designed send out of at least 20,000\ndekaTherms per day or two or more such facilities, regardless of size, that add\ndesign day deliverability or designed send out of at least 100,000 dekaTherms\nper day in the aggregate, and for a natural gas transmission company, adds\ndesign day deliverability or designed send out of at least 100,000 dekaTherms\nper day in the aggregate.\n\nB. Any natural gas utility that places a strategic natural gas facility into\nservice on or after July 1, 2008, or natural gas transmission company that\nplaces a strategic natural gas facility into service on or after July 1, 2014,\nto serve its customers shall have the right to recover through its rates charged\nto those customers the entire prudently incurred costs of the facility\nincluding: planning, development and construction costs; costs of infrastructure\nassociated therewith; an allowance for funds used during construction; and the\ncapitalized carrying cost from the time construction is completed and the asset\nis placed into service until the time that the Commission establishes new rates\nthat include recovery of all costs as defined herein. Such recovery shall be\npermitted by allowing such costs to be recorded in the utility’s plant\naccounts and included in rate base for purposes of cost recovery (i) in new rate\nschedules for service not offered under existing rate schedules or new rate\nschedules for expansion of existing services as permitted by § 56-235.4,\n(ii) in a rate case using the cost of service methodology set forth in §\n56-235.2, or (iii) in a performance-based regulation plan authorized by §\n56-235.6, subject to Commission determination that such costs were prudently\nincurred. The allowance for funds used during construction and the return on\ninvestment shall be calculated utilizing the weighted average cost of capital,\nincluding the cost of debt and cost of equity used in determining the natural\ngas utility’s base rates in effect during the construction period of the\nstrategic natural gas facility.\n\nC. Nothing in this section shall be construed to prohibit the Commission from\ngranting similar treatment to other natural gas facilities when the Commission\ndeems such treatment to be in the public interest.\n\nHISTORY: 2008, c. 867; 2014, cc. 467, 507.","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}}