{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-585.1_14.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-585.1_14.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-585.1_14.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-585.1_14.html"}],"law_id":68074,"edition_id":1,"section_id":68074,"structure_id":13084,"section_number":"56-585.1:14","catch_line":"(Effective until December 31, 2029) Recovery of development costs associated with small modular reactor","history":"2024, c. 789.","full_text":"A\n\nAs used in this section:\n\t\t\t“Small modular reactor” or “SMR” means a nuclear reactor that produces nuclear power and has a nameplate capacity that does not exceed 500 megawatts of generating capacity per reactor.\n\t\t\t“SMR facility” means an SMR or multiple SMRs that generate electricity at a single site.\n\t\t\t“SMR project development costs” or “project costs” means all costs associated with the development of one or more SMRs, including costs of evaluation, design, engineering, federal approvals and licensing, environmental analysis and permitting, early site permitting, equipment procurement, and authorized rate of return.\n\t\t\t“Utility” means a Phase II Utility, as that term is defined in subdivision A 1 of § 56-585.1.B\n\nNotwithstanding any limitation under subdivision A 6 of § 56-585.1, the utility may petition the Commission at any time for approval of a rate adjustment clause pursuant to subdivision A 6 of § 56-585.1 for the recovery of SMR project development costs. The utility may petition the Commission for up to one SMR facility pursuant to this section. Such utilities may petition the Commission for SMR project development cost recovery along separate development phases and, if the Commission determines such projected or actual project costs to be reasonable and prudent, such project costs may be recovered by such utility on a timely and current basis from customers prior to any approval pursuant to subsection D of § 56-580 or the commercial operation date of any such SMR facility. Any SMR project development costs incurred prior to July 1, 2024, and 20 percent of SMR project development costs incurred after July 1, 2024, shall not be eligible for accelerated cost recovery pursuant to this section and may be recovered through the utility’s rates for generation and distribution services pursuant to subdivision A 1 of § 56-585.1. The utility that petitions the Commission for recovery of SMR project development costs shall demonstrate that such utility has evaluated funding opportunities from the U.S. Department of Energy. Nothing in this section shall limit the Commission’s discretion to determine whether the proposed SMR project development costs are reasonable and prudent. As part of a final order approving such cost recovery, the Commission may impose a deadline by which the relevant utility shall either (i) place an SMR into commercial operation or (ii) sell the permitted site, unless it is at a previously existing nuclear site, and return the proceeds of the sale to customers. The length of such deadline shall be at the Commission’s discretion; however, it shall provide the utility a reasonable timeframe in which to obtain all necessary permits and approvals, including allowing for approval by federal agencies such as the Nuclear Regulatory Commission, and completing construction of an SMR.C\n\nNothing in this section shall limit the Commission’s authority to approve or deny a petition for recovery of SMR project development costs or to require a utility to demonstrate that such utility made reasonable good-faith efforts to secure appropriate funding opportunities from the U.S. Department of Energy. The annual revenue requirement for any rate adjustment clause authorized pursuant to this section shall not exceed an amount that would increase the monthly bill of the utility’s typical Virginia residential customer, utilizing 1,000 kilowatt hours of electricity monthly, by more than $1.40.","order_by":null,"text":{"0":{"id":246465,"text":"As used in this section:\n\t\t\t“Small modular reactor” or “SMR” means a nuclear reactor that produces nuclear power and has a nameplate capacity that does not exceed 500 megawatts of generating capacity per reactor.\n\t\t\t“SMR facility” means an SMR or multiple SMRs that generate electricity at a single site.\n\t\t\t“SMR project development costs” or “project costs” means all costs associated with the development of one or more SMRs, including costs of evaluation, design, engineering, federal approvals and licensing, environmental analysis and permitting, early site permitting, equipment procurement, and authorized rate of return.\n\t\t\t“Utility” means a Phase II Utility, as that term is defined in subdivision A 1 of § 56-585.1.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":246466,"text":"Notwithstanding any limitation under subdivision A 6 of § 56-585.1, the utility may petition the Commission at any time for approval of a rate adjustment clause pursuant to subdivision A 6 of § 56-585.1 for the recovery of SMR project development costs. The utility may petition the Commission for up to one SMR facility pursuant to this section. Such utilities may petition the Commission for SMR project development cost recovery along separate development phases and, if the Commission determines such projected or actual project costs to be reasonable and prudent, such project costs may be recovered by such utility on a timely and current basis from customers prior to any approval pursuant to subsection D of § 56-580 or the commercial operation date of any such SMR facility. Any SMR project development costs incurred prior to July 1, 2024, and 20 percent of SMR project development costs incurred after July 1, 2024, shall not be eligible for accelerated cost recovery pursuant to this section and may be recovered through the utility’s rates for generation and distribution services pursuant to subdivision A 1 of § 56-585.1. The utility that petitions the Commission for recovery of SMR project development costs shall demonstrate that such utility has evaluated funding opportunities from the U.S. Department of Energy. Nothing in this section shall limit the Commission’s discretion to determine whether the proposed SMR project development costs are reasonable and prudent. As part of a final order approving such cost recovery, the Commission may impose a deadline by which the relevant utility shall either (i) place an SMR into commercial operation or (ii) sell the permitted site, unless it is at a previously existing nuclear site, and return the proceeds of the sale to customers. The length of such deadline shall be at the Commission’s discretion; however, it shall provide the utility a reasonable timeframe in which to obtain all necessary permits and approvals, including allowing for approval by federal agencies such as the Nuclear Regulatory Commission, and completing construction of an SMR.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":246467,"text":"Nothing in this section shall limit the Commission’s authority to approve or deny a petition for recovery of SMR project development costs or to require a utility to demonstrate that such utility made reasonable good-faith efforts to secure appropriate funding opportunities from the U.S. Department of Energy. The annual revenue requirement for any rate adjustment clause authorized pursuant to this section shall not exceed an amount that would increase the monthly bill of the utility’s typical Virginia residential customer, utilizing 1,000 kilowatt hours of electricity monthly, by more than $1.40.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"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 programs","url":"\/56-577\/","token":"56\/23\/56-577","metadata":false},{"id":69790,"structure_id":13084,"section_number":"56-577.1","catch_line":"Electric utilities; retail competition; pilot program","url":"\/56-577.1\/","token":"56\/23\/56-577.1","metadata":false},{"id":66769,"structure_id":13084,"section_number":"56-578","catch_line":"Nondiscriminatory access to transmission and distribution system","url":"\/56-578\/","token":"56\/23\/56-578","metadata":false},{"id":76158,"structure_id":13084,"section_number":"56-579","catch_line":"Regional transmission entities","url":"\/56-579\/","token":"56\/23\/56-579","metadata":false},{"id":77551,"structure_id":13084,"section_number":"56-580","catch_line":"Transmission and distribution of electric energy","url":"\/56-580\/","token":"56\/23\/56-580","metadata":false},{"id":76009,"structure_id":13084,"section_number":"56-581","catch_line":"Regulation of rates subject to Commission's jurisdiction","url":"\/56-581\/","token":"56\/23\/56-581","metadata":false},{"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},{"id":75586,"structure_id":13084,"section_number":"56-582","catch_line":"Rate caps","url":"\/56-582\/","token":"56\/23\/56-582","metadata":false},{"id":60164,"structure_id":13084,"section_number":"56-583","catch_line":"Repealed","url":"\/56-583\/","token":"56\/23\/56-583","metadata":false},{"id":60319,"structure_id":13084,"section_number":"56-584","catch_line":"Stranded costs","url":"\/56-584\/","token":"56\/23\/56-584","metadata":false},{"id":66252,"structure_id":13084,"section_number":"56-585","catch_line":"Default service","url":"\/56-585\/","token":"56\/23\/56-585","metadata":false},{"id":67687,"structure_id":13084,"section_number":"56-585.1","catch_line":"Generation, distribution, and transmission rates after capped rates terminate or expire","url":"\/56-585.1\/","token":"56\/23\/56-585.1","metadata":false},{"id":75688,"structure_id":13084,"section_number":"56-585.1:1","catch_line":"Transitional Rate Period: review of rates, terms and conditions for utility generation facilities","url":"\/56-585.1_1\/","token":"56\/23\/56-585.1_1","metadata":false},{"id":86211,"structure_id":13084,"section_number":"56-585.1:10","catch_line":"Program for electric infrastructure serving business parks","url":"\/56-585.1_10\/","token":"56\/23\/56-585.1_10","metadata":false},{"id":82389,"structure_id":13084,"section_number":"56-585.1:11","catch_line":"Development of offshore wind capacity","url":"\/56-585.1_11\/","token":"56\/23\/56-585.1_11","metadata":false},{"id":82816,"structure_id":13084,"section_number":"56-585.1:12","catch_line":"Multi-family shared solar program","url":"\/56-585.1_12\/","token":"56\/23\/56-585.1_12","metadata":false},{"id":84410,"structure_id":13084,"section_number":"56-585.1:13","catch_line":"Recovery of costs associated with investment in transportation electrification","url":"\/56-585.1_13\/","token":"56\/23\/56-585.1_13","metadata":false},{"id":68074,"structure_id":13084,"section_number":"56-585.1:14","catch_line":"(Effective until December 31, 2029) Recovery of development costs associated with small modular reactor","url":"\/56-585.1_14\/","token":"56\/23\/56-585.1_14","metadata":false},{"id":86919,"structure_id":13084,"section_number":"56-585.1:15","catch_line":"(Effective until July 1, 2034) Recovery of development costs associated with small modular nuclear facility","url":"\/56-585.1_15\/","token":"56\/23\/56-585.1_15","metadata":false},{"id":54669,"structure_id":13084,"section_number":"56-585.1:16","catch_line":"Virtual power plant pilot program","url":"\/56-585.1_16\/","token":"56\/23\/56-585.1_16","metadata":false},{"id":68837,"structure_id":13084,"section_number":"56-585.1:2","catch_line":"Pilot program for energy assistance and weatherization","url":"\/56-585.1_2\/","token":"56\/23\/56-585.1_2","metadata":false},{"id":78934,"structure_id":13084,"section_number":"56-585.1:3","catch_line":"Pilot programs for community solar development","url":"\/56-585.1_3\/","token":"56\/23\/56-585.1_3","metadata":false},{"id":86978,"structure_id":13084,"section_number":"56-585.1:4","catch_line":"Development of solar and wind generation and energy storage capacity in the Commonwealth","url":"\/56-585.1_4\/","token":"56\/23\/56-585.1_4","metadata":false},{"id":75808,"structure_id":13084,"section_number":"56-585.1:5","catch_line":"Pilot program for underground transmission lines","url":"\/56-585.1_5\/","token":"56\/23\/56-585.1_5","metadata":false},{"id":73594,"structure_id":13084,"section_number":"56-585.1:6","catch_line":"Pilot Programs to deploy electric power storage batteries","url":"\/56-585.1_6\/","token":"56\/23\/56-585.1_6","metadata":false},{"id":73105,"structure_id":13084,"section_number":"56-585.1:7","catch_line":"Pilot program for electric generation by public schools","url":"\/56-585.1_7\/","token":"56\/23\/56-585.1_7","metadata":false},{"id":83744,"structure_id":13084,"section_number":"56-585.1:8","catch_line":"Pilot program for municipal net energy metering","url":"\/56-585.1_8\/","token":"56\/23\/56-585.1_8","metadata":false},{"id":78790,"structure_id":13084,"section_number":"56-585.1:9","catch_line":"Provision of broadband capacity to unserved areas of the Commonwealth","url":"\/56-585.1_9\/","token":"56\/23\/56-585.1_9","metadata":false},{"id":56958,"structure_id":13084,"section_number":"56-585.2","catch_line":"Repealed","url":"\/56-585.2\/","token":"56\/23\/56-585.2","metadata":false},{"id":87343,"structure_id":13084,"section_number":"56-585.3","catch_line":"Regulation of cooperative rates after rate caps","url":"\/56-585.3\/","token":"56\/23\/56-585.3","metadata":false},{"id":80324,"structure_id":13084,"section_number":"56-585.4","catch_line":"Net energy metering transition provisions for electric cooperatives","url":"\/56-585.4\/","token":"56\/23\/56-585.4","metadata":false},{"id":81665,"structure_id":13084,"section_number":"56-585.5","catch_line":"Generation of electricity from renewable and zero carbon sources","url":"\/56-585.5\/","token":"56\/23\/56-585.5","metadata":false},{"id":57139,"structure_id":13084,"section_number":"56-585.6","catch_line":"Universal service fee; Percentage of Income Payment Program and Fund","url":"\/56-585.6\/","token":"56\/23\/56-585.6","metadata":false},{"id":63065,"structure_id":13084,"section_number":"56-585.7","catch_line":"On-bill tariff program; electric cooperatives","url":"\/56-585.7\/","token":"56\/23\/56-585.7","metadata":false},{"id":84206,"structure_id":13084,"section_number":"56-585.8","catch_line":"Biennial rate reviews","url":"\/56-585.8\/","token":"56\/23\/56-585.8","metadata":false},{"id":78391,"structure_id":13084,"section_number":"56-586","catch_line":"Emergency service provider","url":"\/56-586\/","token":"56\/23\/56-586","metadata":false},{"id":60930,"structure_id":13084,"section_number":"56-586.1","catch_line":"Electric energy emergencies","url":"\/56-586.1\/","token":"56\/23\/56-586.1","metadata":false},{"id":63919,"structure_id":13084,"section_number":"56-587","catch_line":"Licensure of retail electric energy suppliers and persons providing other competitive services","url":"\/56-587\/","token":"56\/23\/56-587","metadata":false},{"id":69085,"structure_id":13084,"section_number":"56-588","catch_line":"Licensing of aggregators","url":"\/56-588\/","token":"56\/23\/56-588","metadata":false},{"id":57502,"structure_id":13084,"section_number":"56-589","catch_line":"Municipal and state aggregation","url":"\/56-589\/","token":"56\/23\/56-589","metadata":false},{"id":59256,"structure_id":13084,"section_number":"56-589.1","catch_line":"Energy generation by public school buildings and facilities","url":"\/56-589.1\/","token":"56\/23\/56-589.1","metadata":false},{"id":86105,"structure_id":13084,"section_number":"56-590","catch_line":"Divestiture, functional separation and other corporate relationships","url":"\/56-590\/","token":"56\/23\/56-590","metadata":false},{"id":67461,"structure_id":13084,"section_number":"56-591","catch_line":"Application of antitrust laws","url":"\/56-591\/","token":"56\/23\/56-591","metadata":false},{"id":85339,"structure_id":13084,"section_number":"56-592","catch_line":"Consumer education and marketing practices","url":"\/56-592\/","token":"56\/23\/56-592","metadata":false},{"id":75703,"structure_id":13084,"section_number":"56-592.1","catch_line":"Consumer education program; scope and funding","url":"\/56-592.1\/","token":"56\/23\/56-592.1","metadata":false},{"id":77066,"structure_id":13084,"section_number":"56-593","catch_line":"Retail customers' private right of action; marketing practices","url":"\/56-593\/","token":"56\/23\/56-593","metadata":false},{"id":76060,"structure_id":13084,"section_number":"56-594","catch_line":"Net energy metering provisions","url":"\/56-594\/","token":"56\/23\/56-594","metadata":false},{"id":74615,"structure_id":13084,"section_number":"56-594.01","catch_line":"Net energy metering provisions for electric cooperative service territories","url":"\/56-594.01\/","token":"56\/23\/56-594.01","metadata":false},{"id":56626,"structure_id":13084,"section_number":"56-594.01:1","catch_line":"Local facilities usage charges; electric cooperatives","url":"\/56-594.01_1\/","token":"56\/23\/56-594.01_1","metadata":false},{"id":66346,"structure_id":13084,"section_number":"56-594.02","catch_line":"Solar-powered or wind-powered electricity generation; power purchase agreements; pilot programs","url":"\/56-594.02\/","token":"56\/23\/56-594.02","metadata":false},{"id":82596,"structure_id":13084,"section_number":"56-594.1","catch_line":"Interconnection by farms","url":"\/56-594.1\/","token":"56\/23\/56-594.1","metadata":false},{"id":78424,"structure_id":13084,"section_number":"56-594.2","catch_line":"Small agricultural generators","url":"\/56-594.2\/","token":"56\/23\/56-594.2","metadata":false},{"id":54132,"structure_id":13084,"section_number":"56-594.3","catch_line":"Shared solar programs; Phase II Utility","url":"\/56-594.3\/","token":"56\/23\/56-594.3","metadata":false},{"id":80234,"structure_id":13084,"section_number":"56-594.4","catch_line":"Shared solar programs; Phase I Utility","url":"\/56-594.4\/","token":"56\/23\/56-594.4","metadata":false},{"id":77419,"structure_id":13084,"section_number":"56-595","catch_line":"Repealed","url":"\/56-595\/","token":"56\/23\/56-595","metadata":false},{"id":69517,"structure_id":13084,"section_number":"56-596","catch_line":"Consideration of economic development; report","url":"\/56-596\/","token":"56\/23\/56-596","metadata":false},{"id":82462,"structure_id":13084,"section_number":"56-596.1","catch_line":"New generating facilities utilizing energy derived from sunlight and from wind; report","url":"\/56-596.1\/","token":"56\/23\/56-596.1","metadata":false},{"id":57383,"structure_id":13084,"section_number":"56-596.2","catch_line":"Energy efficiency policy and programs; financial assistance for low-income customers","url":"\/56-596.2\/","token":"56\/23\/56-596.2","metadata":false},{"id":80361,"structure_id":13084,"section_number":"56-596.2:1","catch_line":"Incentives for energy conservation measures and solar energy 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":84410,"structure_id":13084,"section_number":"56-585.1:13","catch_line":"Recovery of costs associated with investment in transportation electrification","url":"\/56-585.1_13\/","token":"56\/23\/56-585.1_13","metadata":false},"next_section":{"id":86919,"structure_id":13084,"section_number":"56-585.1:15","catch_line":"(Effective until July 1, 2034) Recovery of development costs associated with small modular nuclear facility","url":"\/56-585.1_15\/","token":"56\/23\/56-585.1_15","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-585.1:14\/","history_text":"

This law was first created in 2024. The record of its establishment is cataloged in chapter 789<\/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":[{"id":77551,"section_number":"56-580","catch_line":"Transmission and distribution of electric energy","order_by":null,"url":"\/56-580\/"},{"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\/"}],"permalink":{"id":250671,"object_type":"law","relational_id":68074,"identifier":"56-585.1:14","token":"56\/23\/56-585.1_14","url":"\/56-585.1_14\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-585.1_14\/","token":"56\/23\/56-585.1_14","dublin_core":{"Title":"(Effective until December 31, 2029) Recovery of development costs associated with small modular reactor","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-585.1:14","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Small modular reactor<\/span>” or “SMR” means a nuclear reactor that produces nuclear power and has a nameplate capacity that does not exceed 500 megawatts of generating capacity per reactor.\n\t\t\t“SMR facility<\/span>” means an SMR or multiple SMRs<\/span> that generate electricity at a single site.\n\t\t\t“SMR project development costs<\/span>” or “project costs<\/span>” means all costs associated with the development of one or more SMRs<\/span>, including costs of evaluation, design, engineering, federal approvals and licensing, environmental analysis and permitting, early site permitting, equipment procurement, and authorized rate<\/span> of return.\n\t\t\t“Utility<\/span>” means a Phase II Utility<\/span>, as that term is defined in subdivision A 1 of § 56-585.1<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Notwithstanding any limitation under subdivision A 6 of § 56-585.1<\/a>, the utility<\/span> may petition<\/span> the Commission<\/span> at any time for approval of a rate<\/span> adjustment clause pursuant to subdivision A 6 of § 56-585.1<\/a> for the recovery of SMR project development costs<\/span>. The utility<\/span> may petition<\/span> the Commission<\/span> for up to one SMR facility<\/span> pursuant to this section. Such utilities may petition<\/span> the Commission<\/span> for SMR project development cost recovery along separate development phases and, if the Commission<\/span> determines such projected or actual project costs<\/span> to be reasonable and prudent, such project costs<\/span> may be recovered by such utility<\/span> on a timely and current basis from customers prior to any approval pursuant to subsection D of § 56-580<\/a> or the commercial operation date of any such SMR facility<\/span>. Any SMR project development costs<\/span> incurred prior to July 1, 2024, and 20 percent of SMR project development costs<\/span> incurred after July 1, 2024, shall not be eligible for accelerated cost recovery pursuant to this section and may be recovered through the utility<\/span>’s rates<\/span> for generation and distribution services pursuant to subdivision A 1 of § 56-585.1<\/a>. The utility<\/span> that petitions<\/span> the Commission<\/span> for recovery of SMR project development costs<\/span> shall demonstrate that such utility<\/span> has evaluated funding opportunities from the U.S. Department of Energy. Nothing in this section shall limit the Commission<\/span>’s discretion to determine whether the proposed SMR project development costs<\/span> are reasonable and prudent. As part of a final order<\/span> approving such cost recovery, the Commission<\/span> may impose a deadline by which the relevant utility<\/span> shall either (i) place an SMR into commercial operation or (ii) sell the permitted site, unless it is at a previously existing nuclear site, and return the proceeds of the sale to customers. The length of such deadline shall be at the Commission<\/span>’s discretion; however, it shall provide the utility<\/span> a reasonable timeframe in which to obtain all necessary permits and approvals, including allowing for approval by federal agencies such as the Nuclear Regulatory Commission<\/span>, and completing construction of an SMR. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Nothing in this section shall limit the Commission<\/span>’s authority to approve or deny a petition<\/span> for recovery of SMR project development costs<\/span> or to require a utility<\/span> to demonstrate that such utility<\/span> made reasonable good-faith efforts to secure appropriate funding opportunities from the U.S. Department of Energy. The annual revenue requirement for any rate<\/span> adjustment clause authorized pursuant to this section shall not exceed an amount that would increase the monthly bill of the utility<\/span>’s typical Virginia residential customer, utilizing 1,000 kilowatt hours of electricity monthly, by more than $1.40. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\n(EFFECTIVE UNTIL DECEMBER 31, 2029) RECOVERY OF DEVELOPMENT COSTS ASSOCIATED\nWITH SMALL MODULAR REACTOR (\u00a7 56-585.1:14)\n\nA. As used in this section:\n\t\t\t“Small modular reactor” or “SMR” means a nuclear\nreactor that produces nuclear power and has a nameplate capacity that does not\nexceed 500 megawatts of generating capacity per reactor.\n\t\t\t“SMR facility” means an SMR or multiple SMRs that generate\nelectricity at a single site.\n\t\t\t“SMR project development costs” or “project costs”\nmeans all costs associated with the development of one or more SMRs, including\ncosts of evaluation, design, engineering, federal approvals and licensing,\nenvironmental analysis and permitting, early site permitting, equipment\nprocurement, and authorized rate of return.\n\t\t\t“Utility” means a Phase II Utility, as that term is defined in\nsubdivision A 1 of § 56-585.1.\n\nB. Notwithstanding any limitation under subdivision A 6 of § 56-585.1, the\nutility may petition the Commission at any time for approval of a rate\nadjustment clause pursuant to subdivision A 6 of § 56-585.1 for the\nrecovery of SMR project development costs. The utility may petition the\nCommission for up to one SMR facility pursuant to this section. Such utilities\nmay petition the Commission for SMR project development cost recovery along\nseparate development phases and, if the Commission determines such projected or\nactual project costs to be reasonable and prudent, such project costs may be\nrecovered by such utility on a timely and current basis from customers prior to\nany approval pursuant to subsection D of § 56-580 or the commercial\noperation date of any such SMR facility. Any SMR project development costs\nincurred prior to July 1, 2024, and 20 percent of SMR project development costs\nincurred after July 1, 2024, shall not be eligible for accelerated cost recovery\npursuant to this section and may be recovered through the utility’s rates\nfor generation and distribution services pursuant to subdivision A 1 of §\n56-585.1. The utility that petitions the Commission for recovery of SMR project\ndevelopment costs shall demonstrate that such utility has evaluated funding\nopportunities from the U.S. Department of Energy. Nothing in this section shall\nlimit the Commission’s discretion to determine whether the proposed SMR\nproject development costs are reasonable and prudent. As part of a final order\napproving such cost recovery, the Commission may impose a deadline by which the\nrelevant utility shall either (i) place an SMR into commercial operation or (ii)\nsell the permitted site, unless it is at a previously existing nuclear site, and\nreturn the proceeds of the sale to customers. The length of such deadline shall\nbe at the Commission’s discretion; however, it shall provide the utility a\nreasonable timeframe in which to obtain all necessary permits and approvals,\nincluding allowing for approval by federal agencies such as the Nuclear\nRegulatory Commission, and completing construction of an SMR.\n\nC. Nothing in this section shall limit the Commission’s authority to\napprove or deny a petition for recovery of SMR project development costs or to\nrequire a utility to demonstrate that such utility made reasonable good-faith\nefforts to secure appropriate funding opportunities from the U.S. Department of\nEnergy. The annual revenue requirement for any rate adjustment clause authorized\npursuant to this section shall not exceed an amount that would increase the\nmonthly bill of the utility’s typical Virginia residential customer,\nutilizing 1,000 kilowatt hours of electricity monthly, by more than $1.40.\n\nHISTORY: 2024, c. 789.","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}}