{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-582.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-582.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-582.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-582.html"}],"law_id":75586,"edition_id":1,"section_id":75586,"structure_id":13084,"section_number":"56-582","catch_line":"Rate caps","history":"1999, c. 411; 2000, cc. 942, 991; 2001, c. 748; 2004, c. 827; 2007, cc. 888, 933; 2008, c. 883.","full_text":"A\n\nThe Commission shall establish capped rates, effective January 1, 2001, for each service territory of every incumbent utility as follows:1\n\nCapped rates shall be established for customers purchasing bundled electric transmission, distribution and generation services from an incumbent electric utility.2\n\nCapped rates for electric generation services, only, shall also be established for the purpose of effecting customer choice for those retail customers authorized under this chapter to purchase generation services from a supplier other than the incumbent utility during this period.3\n\nThe capped rates established under this section shall be the rates in effect for each incumbent utility as of the effective date of this chapter, or rates subsequently placed into effect pursuant to a rate application filed by an incumbent electric utility with the Commission prior to January 1, 2001, and subsequently approved by the Commission, and made by an incumbent electric utility that is not currently bound by a rate case settlement adopted by the Commission that extends in its application beyond January 1, 2002. If such rate application is filed, the rates proposed therein shall go into effect on January 1, 2001, but such rates shall be interim in nature and subject to refund until such time as the Commission has completed its investigation of such application. Any amount of the rates found excessive by the Commission shall be subject to refund with interest, as may be ordered by the Commission. The Commission shall act upon such applications prior to January 1, 2002. Such rate application and the Commission’s approval shall give due consideration, on a forward-looking basis, to the justness and reasonableness of rates to be effective for a period of time ending as late as July 1, 2007. The capped rates established under this section, which include rates, tariffs, electric service contracts, and rate programs (including experimental rates, regardless of whether they otherwise would expire), shall be such rates, tariffs, contracts, and programs of each incumbent electric utility, provided that experimental rates and rate programs may be closed to new customers upon application to the Commission. Such capped rates shall also include rates for new services where, subsequent to January 1, 2001, rate applications for any such rates are filed by incumbent electric utilities with the Commission and are thereafter approved by the Commission. In establishing such rates for new services, the Commission may use any rate method that promotes the public interest and that is fairly compensatory to any utilities requesting such rates.B\n\nThe Commission may adjust such capped rates in connection with the following: (i) utilities’ recovery of fuel and purchased power costs pursuant to § 56-249.6, and, if applicable, in accordance with the terms of any Commission order approving the divestiture of generation assets pursuant to § 56-590, (ii) any changes in the taxation by the Commonwealth of incumbent electric utility revenues, (iii) any financial distress of the utility beyond its control, (iv) with respect to cooperatives that were not members of a power supply cooperative on January 1, 1999, and as long as they do not become members, their cost of purchased wholesale power and discounts from capped rates to match the cost of providing distribution services, (v) with respect to cooperatives that were members of a power supply cooperative on January 1, 1999, their recovery of fuel costs, through the wholesale power cost adjustment clauses of their tariffs pursuant to § 56-231.33, and (vi) with respect to incumbent electric utilities that were not, as of the effective date of this chapter, bound by a rate case settlement adopted by the Commission that extended in its application beyond January 1, 2002, the Commission shall adjust such utilities’ capped rates, not more than once in any 12-month period, for the timely recovery of their incremental costs for transmission or distribution system reliability and compliance with state or federal environmental laws or regulations to the extent such costs are prudently incurred on and after July 1, 2004. Any adjustments pursuant to § 56-249.6 and clause (i) of this subsection by an incumbent electric utility that transferred all of its generation assets to an affiliate with the approval of the Commission pursuant to § 56-590 prior to January 1, 2002, shall be effective only on and after July 1, 2007. Notwithstanding the provisions of § 56-249.6, the Commission may authorize tariffs that include incentives designed to encourage an incumbent electric utility to reduce its fuel costs by permitting retention of a portion of cost savings resulting from fuel cost reductions or by other methods determined by the Commission to be fair and reasonable to the utility and its customers.C\n\nA utility may petition the Commission to terminate the capped rates to all customers any time after January 1, 2004, and such capped rates may be terminated upon the Commission finding of an effectively competitive market for generation services within the service territory of that utility. If its capped rates, as established and adjusted from time to time pursuant to subsections A and B, are continued after January 1, 2004, an incumbent electric utility that is not, as of the effective date of this chapter, bound by a rate case settlement adopted by the Commission that extends in its application beyond January 1, 2002, may petition the Commission, during the period January 1, 2004, through June 30, 2007, for approval of a one-time change in its rates, and if the capped rates are continued after July 1, 2007, such incumbent electric utility may at any time after July 1, 2007, petition the Commission for approval of a one-time change in its rates. Any change in rates pursuant to this subsection by an incumbent electric utility that divested its generation assets with approval of the Commission pursuant to § 56-590 prior to January 1, 2002, shall be in accordance with the terms of any Commission order approving such divestiture. Any petition for changes to capped rates filed pursuant to this subsection shall be governed by the provisions of Chapter 10 (§ 56-232 et seq.) of this title.D\n\nUntil the expiration or termination of capped rates as provided in this section, the incumbent electric utility, consistent with the functional separation plan implemented under § 56-590, shall make electric service available at capped rates established under this section to any customer in the incumbent electric utility’s service territory, including any customer that, until the expiration or termination of capped rates, requests such service after a period of utilizing service from another supplier.E\n\nDuring the period when capped rates are in effect for an incumbent electric utility, such utility may file with the Commission a plan describing the method used by such utility to assure full funding of its nuclear decommissioning obligation and specifying the amount of the revenues collected under either the capped rates, as provided in this section, or the wires charges, as provided in former § 56-583, that are dedicated to funding such nuclear decommissioning obligation under the plan. The Commission shall approve the plan upon a finding that the plan is not contrary to the public interest.F\n\nThe capped rates established pursuant to this section shall expire on December 31, 2008, unless sooner terminated by the Commission pursuant to the provisions of subsection C; however, rates after the expiration or termination of capped rates shall equal capped rates until such rates are changed pursuant to other provisions of this title.","order_by":null,"text":{"0":{"id":271516,"text":"The Commission shall establish capped rates, effective January 1, 2001, for each service territory of every incumbent utility as follows:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":271517,"text":"Capped rates shall be established for customers purchasing bundled electric transmission, distribution and generation services from an incumbent electric utility.","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":271518,"text":"Capped rates for electric generation services, only, shall also be established for the purpose of effecting customer choice for those retail customers authorized under this chapter to purchase generation services from a supplier other than the incumbent utility during this period.","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":271519,"text":"The capped rates established under this section shall be the rates in effect for each incumbent utility as of the effective date of this chapter, or rates subsequently placed into effect pursuant to a rate application filed by an incumbent electric utility with the Commission prior to January 1, 2001, and subsequently approved by the Commission, and made by an incumbent electric utility that is not currently bound by a rate case settlement adopted by the Commission that extends in its application beyond January 1, 2002. If such rate application is filed, the rates proposed therein shall go into effect on January 1, 2001, but such rates shall be interim in nature and subject to refund until such time as the Commission has completed its investigation of such application. Any amount of the rates found excessive by the Commission shall be subject to refund with interest, as may be ordered by the Commission. The Commission shall act upon such applications prior to January 1, 2002. Such rate application and the Commission’s approval shall give due consideration, on a forward-looking basis, to the justness and reasonableness of rates to be effective for a period of time ending as late as July 1, 2007. The capped rates established under this section, which include rates, tariffs, electric service contracts, and rate programs (including experimental rates, regardless of whether they otherwise would expire), shall be such rates, tariffs, contracts, and programs of each incumbent electric utility, provided that experimental rates and rate programs may be closed to new customers upon application to the Commission. Such capped rates shall also include rates for new services where, subsequent to January 1, 2001, rate applications for any such rates are filed by incumbent electric utilities with the Commission and are thereafter approved by the Commission. In establishing such rates for new services, the Commission may use any rate method that promotes the public interest and that is fairly compensatory to any utilities requesting such rates.","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"B"},"4":{"id":271520,"text":"The Commission may adjust such capped rates in connection with the following: (i) utilities’ recovery of fuel and purchased power costs pursuant to § 56-249.6, and, if applicable, in accordance with the terms of any Commission order approving the divestiture of generation assets pursuant to § 56-590, (ii) any changes in the taxation by the Commonwealth of incumbent electric utility revenues, (iii) any financial distress of the utility beyond its control, (iv) with respect to cooperatives that were not members of a power supply cooperative on January 1, 1999, and as long as they do not become members, their cost of purchased wholesale power and discounts from capped rates to match the cost of providing distribution services, (v) with respect to cooperatives that were members of a power supply cooperative on January 1, 1999, their recovery of fuel costs, through the wholesale power cost adjustment clauses of their tariffs pursuant to § 56-231.33, and (vi) with respect to incumbent electric utilities that were not, as of the effective date of this chapter, bound by a rate case settlement adopted by the Commission that extended in its application beyond January 1, 2002, the Commission shall adjust such utilities’ capped rates, not more than once in any 12-month period, for the timely recovery of their incremental costs for transmission or distribution system reliability and compliance with state or federal environmental laws or regulations to the extent such costs are prudently incurred on and after July 1, 2004. Any adjustments pursuant to § 56-249.6 and clause (i) of this subsection by an incumbent electric utility that transferred all of its generation assets to an affiliate with the approval of the Commission pursuant to § 56-590 prior to January 1, 2002, shall be effective only on and after July 1, 2007. Notwithstanding the provisions of § 56-249.6, the Commission may authorize tariffs that include incentives designed to encourage an incumbent electric utility to reduce its fuel costs by permitting retention of a portion of cost savings resulting from fuel cost reductions or by other methods determined by the Commission to be fair and reasonable to the utility and its customers.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A3","next_prefix":"C"},"5":{"id":271521,"text":"A utility may petition the Commission to terminate the capped rates to all customers any time after January 1, 2004, and such capped rates may be terminated upon the Commission finding of an effectively competitive market for generation services within the service territory of that utility. If its capped rates, as established and adjusted from time to time pursuant to subsections A and B, are continued after January 1, 2004, an incumbent electric utility that is not, as of the effective date of this chapter, bound by a rate case settlement adopted by the Commission that extends in its application beyond January 1, 2002, may petition the Commission, during the period January 1, 2004, through June 30, 2007, for approval of a one-time change in its rates, and if the capped rates are continued after July 1, 2007, such incumbent electric utility may at any time after July 1, 2007, petition the Commission for approval of a one-time change in its rates. Any change in rates pursuant to this subsection by an incumbent electric utility that divested its generation assets with approval of the Commission pursuant to § 56-590 prior to January 1, 2002, shall be in accordance with the terms of any Commission order approving such divestiture. Any petition for changes to capped rates filed pursuant to this subsection shall be governed by the provisions of Chapter 10 (§ 56-232 et seq.) of this title.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"6":{"id":271522,"text":"Until the expiration or termination of capped rates as provided in this section, the incumbent electric utility, consistent with the functional separation plan implemented under § 56-590, shall make electric service available at capped rates established under this section to any customer in the incumbent electric utility’s service territory, including any customer that, until the expiration or termination of capped rates, requests such service after a period of utilizing service from another supplier.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"7":{"id":271523,"text":"During the period when capped rates are in effect for an incumbent electric utility, such utility may file with the Commission a plan describing the method used by such utility to assure full funding of its nuclear decommissioning obligation and specifying the amount of the revenues collected under either the capped rates, as provided in this section, or the wires charges, as provided in former § 56-583, that are dedicated to funding such nuclear decommissioning obligation under the plan. The Commission shall approve the plan upon a finding that the plan is not contrary to the public interest.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"8":{"id":271524,"text":"The capped rates established pursuant to this section shall expire on December 31, 2008, unless sooner terminated by the Commission pursuant to the provisions of subsection C; however, rates after the expiration or termination of capped rates shall equal capped rates until such rates are changed pursuant to other provisions of this title.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E"}},"ancestry":[{"id":13084,"edition_id":1,"name":"Virginia Electric Utility Regulation Act","identifier":"23","label":"chapter","depth":2,"order_by":1,"parent_id":12881,"metadata":{},"date_created":"2026-06-26 03:44:15","date_modified":"2026-06-26 03:44:15","permalink":{"id":250597,"object_type":"structure","relational_id":13084,"identifier":"23","token":"56\/23","url":"\/56\/23\/","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":62210,"structure_id":13084,"section_number":"56-576","catch_line":"Definitions","url":"\/56-576\/","token":"56\/23\/56-576","metadata":false},{"id":79838,"structure_id":13084,"section_number":"56-577","catch_line":"Schedule for transition to retail competition; Commission authority; exemptions; pilot 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equipment","url":"\/56-596.2_1\/","token":"56\/23\/56-596.2_1","metadata":false},{"id":70146,"structure_id":13084,"section_number":"56-596.2:2","catch_line":"(Expires January 1, 2031) Energy efficiency savings targets for certain customers","url":"\/56-596.2_2\/","token":"56\/23\/56-596.2_2","metadata":false},{"id":71672,"structure_id":13084,"section_number":"56-596.3","catch_line":"Electric generation, transmission, and distribution; report","url":"\/56-596.3\/","token":"56\/23\/56-596.3","metadata":false},{"id":54473,"structure_id":13084,"section_number":"56-596.4","catch_line":"Electric utilities; local reliability data","url":"\/56-596.4\/","token":"56\/23\/56-596.4","metadata":false},{"id":75595,"structure_id":13084,"section_number":"56-596.5","catch_line":"Rate increases in certain months prohibited; Phase I Utility","url":"\/56-596.5\/","token":"56\/23\/56-596.5","metadata":false},{"id":80765,"structure_id":13084,"section_number":"56-596.6","catch_line":"Distribution cost sharing program","url":"\/56-596.6\/","token":"56\/23\/56-596.6","metadata":false}],"previous_section":{"id":70038,"structure_id":13084,"section_number":"56-581.1","catch_line":"Repealed","url":"\/56-581.1\/","token":"56\/23\/56-581.1","metadata":false},"next_section":{"id":60164,"structure_id":13084,"section_number":"56-583","catch_line":"Repealed","url":"\/56-583\/","token":"56\/23\/56-583","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-582\/","history_text":"

This law was first created in 1999. The record of its establishment is cataloged in chapter 411<\/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 5 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 2000, chapters 942<\/a> and 991<\/a>; in 2001, chapter 748<\/a>; in 2004, chapter 827<\/a>; in 2007, chapters 888<\/a> and 933<\/a>; in 2008, chapter 883<\/a>.<\/p>","references":[{"id":79838,"section_number":"56-577","catch_line":"Schedule for transition to retail competition; Commission authority; exemptions; pilot programs","order_by":null,"url":"\/56-577\/"},{"id":77551,"section_number":"56-580","catch_line":"Transmission and distribution of electric energy","order_by":null,"url":"\/56-580\/"},{"id":60319,"section_number":"56-584","catch_line":"Stranded costs","order_by":null,"url":"\/56-584\/"},{"id":67687,"section_number":"56-585.1","catch_line":"Generation, distribution, and transmission rates after capped rates terminate or expire","order_by":null,"url":"\/56-585.1\/"},{"id":86105,"section_number":"56-590","catch_line":"Divestiture, functional separation and other corporate relationships","order_by":null,"url":"\/56-590\/"},{"id":79891,"section_number":"58.1-400.3","catch_line":"Minimum tax on certain electric suppliers","order_by":null,"url":"\/58.1-400.3\/"}],"refers_to":[{"id":75936,"section_number":"56-231.33","catch_line":"Adequate service; rates","order_by":null,"url":"\/56-231.33\/"},{"id":75233,"section_number":"56-232","catch_line":"Public utility and schedules defined","order_by":null,"url":"\/56-232\/"},{"id":55635,"section_number":"56-249.6","catch_line":"Recovery of fuel and purchased power costs","order_by":null,"url":"\/56-249.6\/"},{"id":60164,"section_number":"56-583","catch_line":"Repealed","order_by":null,"url":"\/56-583\/"},{"id":86105,"section_number":"56-590","catch_line":"Divestiture, functional separation and other corporate relationships","order_by":null,"url":"\/56-590\/"}],"permalink":{"id":250631,"object_type":"law","relational_id":75586,"identifier":"56-582","token":"56\/23\/56-582","url":"\/56-582\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-582\/","token":"56\/23\/56-582","dublin_core":{"Title":"Rate caps","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-582","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> The Commission<\/span> shall establish capped rates<\/span>, effective January 1, 2001, for each service territory of every incumbent utility as follows: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Capped rates<\/span> shall be established for customers purchasing bundled electric transmission, distribution and generation services from an incumbent electric utility<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Capped rates<\/span> for electric generation services, only, shall also be established for the purpose of effecting customer choice<\/span> for those retail customers<\/span> authorized under this chapter to purchase generation services from a supplier<\/span> other than the incumbent utility during this period. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The capped rates<\/span> established under this section shall be the rates<\/span> in effect for each incumbent utility as of the effective date of this chapter, or rates<\/span> subsequently placed into effect pursuant to a rate<\/span> application filed by an incumbent electric utility<\/span> with the Commission<\/span> prior to January 1, 2001, and subsequently approved by the Commission<\/span>, and made by an incumbent electric utility<\/span> that is not currently bound by a rate<\/span> case settlement<\/span> adopted by the Commission<\/span> that extends in its application beyond January 1, 2002. If such rate<\/span> application is filed, the rates<\/span> proposed therein shall go into effect on January 1, 2001, but such rates<\/span> shall be interim in nature and subject to refund until such time as the Commission<\/span> has completed its investigation of such application. Any amount of the rates<\/span> found excessive by the Commission<\/span> shall be subject to refund with interest, as may be ordered by the Commission<\/span>. The Commission<\/span> shall act upon such applications prior to January 1, 2002. Such rate<\/span> application and the Commission<\/span>’s approval shall give due consideration, on a forward-looking basis, to the justness and reasonableness of rates<\/span> to be effective for a period of time ending as late as July 1, 2007. The capped rates<\/span> established under this section, which include rates<\/span>, tariffs, electric service contracts<\/span>, and rate<\/span> programs (including experimental rates<\/span>, regardless of whether they otherwise would expire), shall be such rates<\/span>, tariffs, contracts<\/span>, and programs of each incumbent electric utility<\/span>, provided that experimental rates<\/span> and rate<\/span> programs may be closed to new customers upon application to the Commission<\/span>. Such capped rates<\/span> shall also include rates<\/span> for new services where, subsequent to January 1, 2001, rate<\/span> applications for any such rates<\/span> are filed by incumbent electric utilities with the Commission<\/span> and are thereafter approved by the Commission<\/span>. In establishing such rates<\/span> for new services, the Commission<\/span> may use any rate<\/span> method that promotes the public interest and that is fairly compensatory to any utilities requesting such rates<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Commission<\/span> may adjust such capped rates<\/span> in connection with the following: (i) utilities’ recovery of fuel and purchased power costs pursuant to § 56-249.6<\/a>, and, if applicable, in accordance with the terms of any Commission<\/span> order<\/span> approving the divestiture of generation assets<\/span> pursuant to § 56-590<\/a>, (ii) any changes in the taxation by the Commonwealth of incumbent electric utility<\/span> revenues, (iii) any financial distress of the utility beyond its control, (iv) with respect to cooperatives<\/span> that were not members of a power supply<\/span> cooperative<\/span> on January 1, 1999, and as long as they do not become members, their cost of purchased wholesale power and discounts from capped rates<\/span> to match the cost of providing distribution services, (v) with respect to cooperatives<\/span> that were members of a power supply<\/span> cooperative<\/span> on January 1, 1999, their recovery of fuel costs, through the wholesale power cost adjustment clauses of their tariffs pursuant to § 56-231.33<\/a>, and (vi) with respect to incumbent electric utilities that were not, as of the effective date of this chapter, bound by a rate<\/span> case settlement<\/span> adopted by the Commission<\/span> that extended in its application beyond January 1, 2002, the Commission<\/span> shall adjust such utilities’ capped rates<\/span>, not more than once in any 12-month period, for the timely recovery of their incremental costs for transmission or distribution system reliability and compliance with state or federal environmental laws<\/span> or regulations to the extent such costs are prudently incurred on and after July 1, 2004. Any adjustments pursuant to § 56-249.6<\/a> and clause (i) of this subsection by an incumbent electric utility<\/span> that transferred all of its generation assets<\/span> to an affiliate<\/span> with the approval of the Commission<\/span> pursuant to § 56-590<\/a> prior to January 1, 2002, shall be effective only on and after July 1, 2007. Notwithstanding the provisions of § 56-249.6<\/a>, the Commission<\/span> may authorize tariffs that include incentives designed to encourage an incumbent electric utility<\/span> to reduce its fuel costs by permitting retention of a portion of cost savings resulting from fuel cost reductions or by other methods determined by the Commission<\/span> to be fair and reasonable to the utility and its customers. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> A utility may petition<\/span> the Commission<\/span> to terminate the capped rates<\/span> to all customers any time after January 1, 2004, and such capped rates<\/span> may be terminated upon the Commission<\/span> finding<\/span> of an effectively competitive market for generation services within the service territory of that utility. If its capped rates<\/span>, as established and adjusted from time to time pursuant to subsections A and B, are continued after January 1, 2004, an incumbent electric utility<\/span> that is not, as of the effective date of this chapter, bound by a rate<\/span> case settlement<\/span> adopted by the Commission<\/span> that extends in its application beyond January 1, 2002, may petition<\/span> the Commission<\/span>, during the period January 1, 2004, through June 30, 2007, for approval of a one-time change in its rates<\/span>, and if the capped rates<\/span> are continued after July 1, 2007, such incumbent electric utility<\/span> may at any time after July 1, 2007, petition<\/span> the Commission<\/span> for approval of a one-time change in its rates<\/span>. Any change in rates<\/span> pursuant to this subsection by an incumbent electric utility<\/span> that divested its generation assets<\/span> with approval of the Commission<\/span> pursuant to § 56-590<\/a> prior to January 1, 2002, shall be in accordance with the terms of any Commission<\/span> order<\/span> approving such divestiture. Any petition<\/span> for changes to capped rates<\/span> filed pursuant to this subsection shall be governed by the provisions of Chapter 10 (§ 56-232<\/a> et seq.) of this title. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> Until the expiration or termination of capped rates<\/span> as provided in this section, the incumbent electric utility<\/span>, consistent with the functional separation plan implemented under § 56-590<\/a>, shall make electric service available at capped rates<\/span> established under this section to any customer in the incumbent electric utility<\/span>’s service territory, including any customer that, until the expiration or termination of capped rates<\/span>, requests such service after a period of utilizing service from another supplier<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> During the period when capped rates<\/span> are in effect for an incumbent electric utility<\/span>, such utility may file with the Commission<\/span> a plan describing the method used by such utility to assure full funding of its nuclear decommissioning obligation and specifying the amount of the revenues collected under either the capped rates<\/span>, as provided in this section, or the wires charges, as provided in former § 56-583<\/a>, that are dedicated to funding such nuclear decommissioning obligation under the plan. The Commission<\/span> shall approve the plan upon a finding<\/span> that the plan is not contrary to the public interest. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> The capped rates<\/span> established pursuant to this section shall expire on December 31, 2008, unless sooner terminated by the Commission<\/span> pursuant to the provisions of subsection C; however, rates<\/span> after the expiration or termination of capped rates<\/span> shall equal capped rates<\/span> until such rates<\/span> are changed pursuant to other provisions of this title. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nRATE CAPS (\u00a7 56-582)\n\nA. The Commission shall establish capped rates, effective January 1, 2001, for\neach service territory of every incumbent utility as follows:\n\n 1. Capped rates shall be established for customers purchasing bundled electric\n transmission, distribution and generation services from an incumbent electric\n utility.\n\n 2. Capped rates for electric generation services, only, shall also be\n established for the purpose of effecting customer choice for those retail\n customers authorized under this chapter to purchase generation services from a\n supplier other than the incumbent utility during this period.\n\n 3. The capped rates established under this section shall be the rates in\n effect for each incumbent utility as of the effective date of this chapter, or\n rates subsequently placed into effect pursuant to a rate application filed by\n an incumbent electric utility with the Commission prior to January 1, 2001,\n and subsequently approved by the Commission, and made by an incumbent electric\n utility that is not currently bound by a rate case settlement adopted by the\n Commission that extends in its application beyond January 1, 2002. If such\n rate application is filed, the rates proposed therein shall go into effect on\n January 1, 2001, but such rates shall be interim in nature and subject to\n refund until such time as the Commission has completed its investigation of\n such application. Any amount of the rates found excessive by the Commission\n shall be subject to refund with interest, as may be ordered by the Commission.\n The Commission shall act upon such applications prior to January 1, 2002. Such\n rate application and the Commission’s approval shall give due\n consideration, on a forward-looking basis, to the justness and reasonableness\n of rates to be effective for a period of time ending as late as July 1, 2007.\n The capped rates established under this section, which include rates, tariffs,\n electric service contracts, and rate programs (including experimental rates,\n regardless of whether they otherwise would expire), shall be such rates,\n tariffs, contracts, and programs of each incumbent electric utility, provided\n that experimental rates and rate programs may be closed to new customers upon\n application to the Commission. Such capped rates shall also include rates for\n new services where, subsequent to January 1, 2001, rate applications for any\n such rates are filed by incumbent electric utilities with the Commission and\n are thereafter approved by the Commission. In establishing such rates for new\n services, the Commission may use any rate method that promotes the public\n interest and that is fairly compensatory to any utilities requesting such\n rates.\n\nB. The Commission may adjust such capped rates in connection with the following:\n(i) utilities’ recovery of fuel and purchased power costs pursuant to\n§ 56-249.6, and, if applicable, in accordance with the terms of any\nCommission order approving the divestiture of generation assets pursuant to\n§ 56-590, (ii) any changes in the taxation by the Commonwealth of incumbent\nelectric utility revenues, (iii) any financial distress of the utility beyond\nits control, (iv) with respect to cooperatives that were not members of a power\nsupply cooperative on January 1, 1999, and as long as they do not become\nmembers, their cost of purchased wholesale power and discounts from capped rates\nto match the cost of providing distribution services, (v) with respect to\ncooperatives that were members of a power supply cooperative on January 1, 1999,\ntheir recovery of fuel costs, through the wholesale power cost adjustment\nclauses of their tariffs pursuant to § 56-231.33, and (vi) with respect to\nincumbent electric utilities that were not, as of the effective date of this\nchapter, bound by a rate case settlement adopted by the Commission that extended\nin its application beyond January 1, 2002, the Commission shall adjust such\nutilities’ capped rates, not more than once in any 12-month period, for\nthe timely recovery of their incremental costs for transmission or distribution\nsystem reliability and compliance with state or federal environmental laws or\nregulations to the extent such costs are prudently incurred on and after July 1,\n2004. Any adjustments pursuant to § 56-249.6 and clause (i) of this\nsubsection by an incumbent electric utility that transferred all of its\ngeneration assets to an affiliate with the approval of the Commission pursuant\nto § 56-590 prior to January 1, 2002, shall be effective only on and after\nJuly 1, 2007. Notwithstanding the provisions of § 56-249.6, the Commission\nmay authorize tariffs that include incentives designed to encourage an incumbent\nelectric utility to reduce its fuel costs by permitting retention of a portion\nof cost savings resulting from fuel cost reductions or by other methods\ndetermined by the Commission to be fair and reasonable to the utility and its\ncustomers.\n\nC. A utility may petition the Commission to terminate the capped rates to all\ncustomers any time after January 1, 2004, and such capped rates may be\nterminated upon the Commission finding of an effectively competitive market for\ngeneration services within the service territory of that utility. If its capped\nrates, as established and adjusted from time to time pursuant to subsections A\nand B, are continued after January 1, 2004, an incumbent electric utility that\nis not, as of the effective date of this chapter, bound by a rate case\nsettlement adopted by the Commission that extends in its application beyond\nJanuary 1, 2002, may petition the Commission, during the period January 1, 2004,\nthrough June 30, 2007, for approval of a one-time change in its rates, and if\nthe capped rates are continued after July 1, 2007, such incumbent electric\nutility may at any time after July 1, 2007, petition the Commission for approval\nof a one-time change in its rates. Any change in rates pursuant to this\nsubsection by an incumbent electric utility that divested its generation assets\nwith approval of the Commission pursuant to § 56-590 prior to January 1,\n2002, shall be in accordance with the terms of any Commission order approving\nsuch divestiture. Any petition for changes to capped rates filed pursuant to\nthis subsection shall be governed by the provisions of Chapter 10 (§ 56-232\net seq.) of this title.\n\nD. Until the expiration or termination of capped rates as provided in this\nsection, the incumbent electric utility, consistent with the functional\nseparation plan implemented under § 56-590, shall make electric service\navailable at capped rates established under this section to any customer in the\nincumbent electric utility’s service territory, including any customer\nthat, until the expiration or termination of capped rates, requests such service\nafter a period of utilizing service from another supplier.\n\nE. During the period when capped rates are in effect for an incumbent electric\nutility, such utility may file with the Commission a plan describing the method\nused by such utility to assure full funding of its nuclear decommissioning\nobligation and specifying the amount of the revenues collected under either the\ncapped rates, as provided in this section, or the wires charges, as provided in\nformer § 56-583, that are dedicated to funding such nuclear decommissioning\nobligation under the plan. The Commission shall approve the plan upon a finding\nthat the plan is not contrary to the public interest.\n\nF. The capped rates established pursuant to this section shall expire on\nDecember 31, 2008, unless sooner terminated by the Commission pursuant to the\nprovisions of subsection C; however, rates after the expiration or termination\nof capped rates shall equal capped rates until such rates are changed pursuant\nto other provisions of this title.\n\nHISTORY: 1999, c. 411; 2000, cc. 942, 991; 2001, c. 748; 2004, c. 827; 2007, cc.\n888, 933; 2008, c. 883.","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}}