{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-585.1_15.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-585.1_15.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-585.1_15.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-585.1_15.html"}],"law_id":86919,"edition_id":1,"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","history":"2024, c. 836.","full_text":"A\n\nAs used in this section:\n\t\t\t“Phase I Utility” means an investor-owned incumbent electric utility that was, as of July 1, 1999, not bound by a rate case settlement adopted by the Commission that extended its application beyond January 1, 2002.\n\t\t\t“Project development costs” means all capital and operation and maintenance costs associated with a potential small modular nuclear facility incurred by a Phase I Utility before issuance of a certificate for a small modular nuclear facility located in the Commonwealth, including the costs of evaluation, design, engineering, environmental analysis and permitting, land options or acquisition, and early site permitting, as that term is defined in 10 C.F.R. § 52.1. “Project development costs” does not include the costs to obtain construction permits, combined licensing costs required by the Nuclear Regulatory Commission, or construction costs other than construction costs necessary for early site permitting.\n\t\t\t“Small modular nuclear facility” means a nuclear reactor that has a rated electric generating capacity of not more than 500 megawatts that is capable of being constructed and operated either alone or in combination with one or more similar reactors at a single site.B\n\nPrior to the filing of an application for a certificate to construct a small modular nuclear facility to serve customers in the Commonwealth or in West Virginia and no earlier than July 1, 2024, a Phase I Utility may request the Commission to review the Phase I Utility’s decision to incur project development costs. The Commission shall hold a hearing regarding the request and shall issue a final order within 180 days after the date on which the Phase I Utility files its request.C\n\nAll approved reasonable and prudent project development costs incurred for a potential small modular nuclear facility shall be recovered through a rate adjustment clause filed pursuant to subdivision A 6 of § 56-585.1, amortized over a period equal to the period during which the costs were incurred or five years, whichever is greater. Beginning July 1, 2025, a Phase I Utility may make annual filings pursuant to subdivision A 6 of § 56-585.1 to recover project development costs incurred for a small modular nuclear facility, provided that the annual revenue requirement shall not exceed $25 million and that the overall project development costs recovered in such rate adjustment clause shall not exceed $125 million, excluding the cost of acquiring a site. Any such rate adjustment clause shall not be implemented prior to January 1, 2026.D\n\nA Phase I Utility may only request for review under subsection B project development costs that are (i) associated with the preliminary analysis, testing, and evaluation of a site related to the property to be owned by such Phase I Utility, (ii) associated with the purchase of property to be owned by such Phase I Utility, or (iii) related to siting work on property owned by such Phase I Utility.E\n\nIf a Phase I Utility serves customers in more than one jurisdiction, the percentage of project development costs to be recovered shall be equal to the percentage of associated energy and capacity from the small modular nuclear facility that is assigned to serve customers located in the Commonwealth.F\n\nAs part of a final order approving cost recovery pursuant to this section, the Commission may impose a deadline by which the Phase I Utility shall either (i) place a small modular nuclear facility into commercial operation or (ii) sell the permitted 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 a small modular nuclear facility.","order_by":null,"text":{"0":{"id":311206,"text":"As used in this section:\n\t\t\t“Phase I Utility” means an investor-owned incumbent electric utility that was, as of July 1, 1999, not bound by a rate case settlement adopted by the Commission that extended its application beyond January 1, 2002.\n\t\t\t“Project development costs” means all capital and operation and maintenance costs associated with a potential small modular nuclear facility incurred by a Phase I Utility before issuance of a certificate for a small modular nuclear facility located in the Commonwealth, including the costs of evaluation, design, engineering, environmental analysis and permitting, land options or acquisition, and early site permitting, as that term is defined in 10 C.F.R. § 52.1. “Project development costs” does not include the costs to obtain construction permits, combined licensing costs required by the Nuclear Regulatory Commission, or construction costs other than construction costs necessary for early site permitting.\n\t\t\t“Small modular nuclear facility” means a nuclear reactor that has a rated electric generating capacity of not more than 500 megawatts that is capable of being constructed and operated either alone or in combination with one or more similar reactors at a single site.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":311207,"text":"Prior to the filing of an application for a certificate to construct a small modular nuclear facility to serve customers in the Commonwealth or in West Virginia and no earlier than July 1, 2024, a Phase I Utility may request the Commission to review the Phase I Utility’s decision to incur project development costs. The Commission shall hold a hearing regarding the request and shall issue a final order within 180 days after the date on which the Phase I Utility files its request.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":311208,"text":"All approved reasonable and prudent project development costs incurred for a potential small modular nuclear facility shall be recovered through a rate adjustment clause filed pursuant to subdivision A 6 of § 56-585.1, amortized over a period equal to the period during which the costs were incurred or five years, whichever is greater. Beginning July 1, 2025, a Phase I Utility may make annual filings pursuant to subdivision A 6 of § 56-585.1 to recover project development costs incurred for a small modular nuclear facility, provided that the annual revenue requirement shall not exceed $25 million and that the overall project development costs recovered in such rate adjustment clause shall not exceed $125 million, excluding the cost of acquiring a site. Any such rate adjustment clause shall not be implemented prior to January 1, 2026.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":311209,"text":"A Phase I Utility may only request for review under subsection B project development costs that are (i) associated with the preliminary analysis, testing, and evaluation of a site related to the property to be owned by such Phase I Utility, (ii) associated with the purchase of property to be owned by such Phase I Utility, or (iii) related to siting work on property owned by such Phase I Utility.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":311210,"text":"If a Phase I Utility serves customers in more than one jurisdiction, the percentage of project development costs to be recovered shall be equal to the percentage of associated energy and capacity from the small modular nuclear facility that is assigned to serve customers located in the Commonwealth.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":311211,"text":"As part of a final order approving cost recovery pursuant to this section, the Commission may impose a deadline by which the Phase I Utility shall either (i) place a small modular nuclear facility into commercial operation or (ii) sell the permitted 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 a small modular nuclear facility.","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 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This law was first created in 2024. The record of its establishment is cataloged in chapter 836<\/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":[{"id":75595,"section_number":"56-596.5","catch_line":"Rate increases in certain months prohibited; Phase I Utility","order_by":null,"url":"\/56-596.5\/"}],"refers_to":[{"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":250675,"object_type":"law","relational_id":86919,"identifier":"56-585.1:15","token":"56\/23\/56-585.1_15","url":"\/56-585.1_15\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-585.1_15\/","token":"56\/23\/56-585.1_15","dublin_core":{"Title":"(Effective until July 1, 2034) Recovery of development costs associated with small modular nuclear facility","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-585.1:15","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Phase I Utility<\/span>” means an investor-owned incumbent electric utility<\/span> that was, as of July 1, 1999, not bound by a rate<\/span> case settlement<\/span> adopted by the Commission<\/span> that extended its application beyond January 1, 2002.\n\t\t\t“Project development costs<\/span>” means all capital and operation and maintenance costs associated with a potential small modular nuclear facility<\/span> incurred by a Phase I Utility<\/span> before issuance of a certificate for a small modular nuclear facility<\/span> located in the Commonwealth, including the costs of evaluation, design, engineering, environmental analysis and permitting, land options or acquisition, and early site permitting, as that term is defined in 10 C.F.R. § 52.1. “Project development costs<\/span>” does not include the costs to obtain construction permits, combined licensing costs required by the Nuclear Regulatory Commission<\/span>, or construction costs other than construction costs necessary for early site permitting.\n\t\t\t“Small modular nuclear facility<\/span>” means a nuclear reactor that has a rated electric generating capacity of not more than 500 megawatts that is capable of being constructed and operated either alone or in combination with one or more similar reactors at a single site. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Prior to the filing of an application for a certificate to construct a small modular nuclear facility<\/span> to serve customers in the Commonwealth or in West Virginia and no earlier than July 1, 2024, a Phase I Utility<\/span> may request the Commission<\/span> to review the Phase I Utility<\/span>’s decision to incur project development costs<\/span>. The Commission<\/span> shall hold a hearing<\/span> regarding the request and shall issue<\/span> a final order<\/span> within 180 days after the date on which the Phase I Utility<\/span> files its request. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> All approved reasonable and prudent project development costs<\/span> incurred for a potential small modular nuclear facility<\/span> shall be recovered through a rate<\/span> adjustment clause filed pursuant to subdivision A 6 of § 56-585.1<\/a>, amortized over a period equal to the period during which the costs were incurred or five years, whichever is greater. Beginning July 1, 2025, a Phase I Utility<\/span> may make annual filings pursuant to subdivision A 6 of § 56-585.1<\/a> to recover project development costs<\/span> incurred for a small modular nuclear facility<\/span>, provided that the annual revenue requirement shall not exceed $25 million and that the overall project development costs<\/span> recovered in such rate<\/span> adjustment clause shall not exceed $125 million, excluding the cost of acquiring a site. Any such rate<\/span> adjustment clause shall not be implemented prior to January 1, 2026. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> A Phase I Utility<\/span> may only request for review under subsection B project development costs<\/span> that are (i) associated with the preliminary analysis, testing, and evaluation of a site related to the property to be owned by such Phase I Utility<\/span>, (ii) associated with the purchase of property to be owned by such Phase I Utility<\/span>, or (iii) related to siting work on property owned by such Phase I Utility<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> If a Phase I Utility<\/span> serves customers in more than one jurisdiction<\/span>, the percentage of project development costs<\/span> to be recovered shall be equal to the percentage of associated energy and capacity from the small modular nuclear facility<\/span> that is assigned to serve customers located in the Commonwealth. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> As part of a final order<\/span> approving cost recovery pursuant to this section, the Commission<\/span> may impose a deadline by which the Phase I Utility<\/span> shall either (i) place a small modular nuclear facility<\/span> into commercial operation or (ii) sell the permitted 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 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 a small modular nuclear facility<\/span>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\n(EFFECTIVE UNTIL JULY 1, 2034) RECOVERY OF DEVELOPMENT COSTS ASSOCIATED WITH\nSMALL MODULAR NUCLEAR FACILITY (\u00a7 56-585.1:15)\n\nA. As used in this section:\n\t\t\t“Phase I Utility” means an investor-owned incumbent electric\nutility that was, as of July 1, 1999, not bound by a rate case settlement\nadopted by the Commission that extended its application beyond January 1, 2002.\n\t\t\t“Project development costs” means all capital and operation and\nmaintenance costs associated with a potential small modular nuclear facility\nincurred by a Phase I Utility before issuance of a certificate for a small\nmodular nuclear facility located in the Commonwealth, including the costs of\nevaluation, design, engineering, environmental analysis and permitting, land\noptions or acquisition, and early site permitting, as that term is defined in 10\nC.F.R. § 52.1. “Project development costs” does not include the\ncosts to obtain construction permits, combined licensing costs required by the\nNuclear Regulatory Commission, or construction costs other than construction\ncosts necessary for early site permitting.\n\t\t\t“Small modular nuclear facility” means a nuclear reactor that has\na rated electric generating capacity of not more than 500 megawatts that is\ncapable of being constructed and operated either alone or in combination with\none or more similar reactors at a single site.\n\nB. Prior to the filing of an application for a certificate to construct a small\nmodular nuclear facility to serve customers in the Commonwealth or in West\nVirginia and no earlier than July 1, 2024, a Phase I Utility may request the\nCommission to review the Phase I Utility’s decision to incur project\ndevelopment costs. The Commission shall hold a hearing regarding the request and\nshall issue a final order within 180 days after the date on which the Phase I\nUtility files its request.\n\nC. All approved reasonable and prudent project development costs incurred for a\npotential small modular nuclear facility shall be recovered through a rate\nadjustment clause filed pursuant to subdivision A 6 of § 56-585.1,\namortized over a period equal to the period during which the costs were incurred\nor five years, whichever is greater. Beginning July 1, 2025, a Phase I Utility\nmay make annual filings pursuant to subdivision A 6 of § 56-585.1 to\nrecover project development costs incurred for a small modular nuclear facility,\nprovided that the annual revenue requirement shall not exceed $25 million and\nthat the overall project development costs recovered in such rate adjustment\nclause shall not exceed $125 million, excluding the cost of acquiring a site.\nAny such rate adjustment clause shall not be implemented prior to January 1,\n2026.\n\nD. A Phase I Utility may only request for review under subsection B project\ndevelopment costs that are (i) associated with the preliminary analysis,\ntesting, and evaluation of a site related to the property to be owned by such\nPhase I Utility, (ii) associated with the purchase of property to be owned by\nsuch Phase I Utility, or (iii) related to siting work on property owned by such\nPhase I Utility.\n\nE. If a Phase I Utility serves customers in more than one jurisdiction, the\npercentage of project development costs to be recovered shall be equal to the\npercentage of associated energy and capacity from the small modular nuclear\nfacility that is assigned to serve customers located in the Commonwealth.\n\nF. As part of a final order approving cost recovery pursuant to this section,\nthe Commission may impose a deadline by which the Phase I Utility shall either\n(i) place a small modular nuclear facility into commercial operation or (ii)\nsell the permitted site and return the proceeds of the sale to customers. The\nlength of such deadline shall be at the Commission’s discretion; however,\nit shall provide the utility a reasonable timeframe in which to obtain all\nnecessary permits and approvals, including allowing for approval by federal\nagencies such as the Nuclear Regulatory Commission, and completing construction\nof a small modular nuclear facility.\n\nHISTORY: 2024, c. 836.","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}}