{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-585.4.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-585.4.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-585.4.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-585.4.html"}],"law_id":80324,"edition_id":1,"section_id":80324,"structure_id":13084,"section_number":"56-585.4","catch_line":"Net energy metering transition provisions for electric cooperatives","history":"2019, cc. 742, 763.","full_text":"Distribution electric cooperatives subject to Article 1 (\u00a7 56-231.15 et seq.) of Chapter 9.1 shall be regulated in accordance with the provisions of Chapters 9.1 (\u00a7 56-231.15 et seq.) and 10 (\u00a7 56-232 et seq.), as amended by relevant sections of this chapter and by the following provisions:\n\n1\n\nNotwithstanding anything to the contrary in this title, each cooperative may, without Commission approval or the requirement of any filing other than as provided in this subdivision, upon the adoption by its board of directors of a resolution so providing, make adjustments in the cooperative’s rates, terms, conditions, and rate schedules governing net energy metering as provided in this section by electing to subject itself to the provisions of this section. The cooperative promptly shall (i) file such resolution and notice with the Commission for informational purposes and (ii) place a notice of its board of directors’ adoption of such resolution (the Cooperative Net Energy Metering Transition Notice) on the cooperative’s website. The Cooperative Net Energy Metering Transition Notice shall contain an initial election date and a date upon which, for each class of net energy metering customer, the transition shall become effective upon the first to occur of (a) the date the cooperative reaches the cap set forth in subsection F of § 56-594.01 or (b) five years following the date of the initial Cooperative Net Energy Metering Transition Notice. If a cooperative transitions a given class of customers as a result of reaching a cap set forth in subsection F of § 56-594.01, the effectiveness of such transition shall be permanent, regardless of future changes in the cooperative’s system peak. A Cooperative Net Energy Metering Transition Notice may be amended and refiled as the cooperative deems appropriate at any time. Any eligible customer-generator as defined in § 56-594 that was interconnected prior to a transition start date enumerated in a Cooperative Net Energy Metering Transition Notice may continue to participate in net energy metering pursuant to the terms of § 56-594.01 until July 1, 2039.2\n\nAfter the transition date for a class of customers, any standby charges implemented by the cooperative pursuant to subsection H of § 56-594.01 shall be eliminated and are prohibited. The cooperative may make any necessary changes to rate schedules or terms and conditions and shall promptly file the same with the Commission for informational purposes.3\n\nWhenever the cooperative’s transition date occurs, the cooperative may establish and publish, without Commission approval or the requirement of any filing other than as provided in this subdivision, a new rate schedule or rider for purposes of its new net energy metering program established pursuant to this section and shall promptly file the same with the Commission for informational purposes.4\n\nThe new rate schedule or rider described in subdivision 3 may contain a demand charge or charges for distribution, supply, or both, based upon a customer’s monthly, ratcheted, or 60-minute absolute value noncoincident peak demand for customers that were not previously subject to demand charges in each rate class; however, such demand charges shall be revenue neutral based on the cooperative’s determination of the proper intra-class allocation of the revenues produced by its then-current rates serving the same rate class of customer. The cooperative shall implement such new demand charge through the provisions of subdivision 5. The cooperative shall file promptly revised tariffs reflecting any such new demand charges with the Commission for informational purposes. The demand charge component of any net energy metering rate class derived from a rate class with a preexisting demand charge shall remain fixed for a period of five years. The fixed monthly customer charge of any net energy metering rate class derived from a preexisting rate class having a fixed monthly customer charge less than or equal to $20 as of the transition date shall not exceed $20 for the duration of the five-year period described in subdivision 5. During the five-year period described in subdivision 5, a cooperative may not increase the monthly customer charge of any net energy metering rate class derived from a preexisting rate class having a fixed monthly customer charge greater than $20 as of the transition date. Demand charges included in a new rate schedule or rider shall apply to net energy metering customers, regardless of whether a customer uses a third-party partial requirements power purchase agreement or not.5\n\nFor purposes of implementing subdivision 4, a cooperative shall, after the published transition date for a given class of customers, close its existing net energy metering rate schedule rider to new customers and open a new tariff pursuant to subdivision 3. Demand charges shall be implemented over a five-year period. In the first year of the five-year period, the demand charges shall be set to zero. In the second year of the five-year period, implementation of the demand rates may begin, and demand charges shall not exceed $0.25 per kilowatt of distribution demand and $0.25 per kilowatt of supply demand. In the third year of the five-year period, the demand charges shall not exceed $0.50 per kilowatt of distribution demand and $0.50 per kilowatt of supply demand. In the fourth year of the five-year period, the demand charges shall not exceed $0.75 per kilowatt of distribution demand and $0.75 per kilowatt of supply demand. In the fifth year of the five-year period, the demand charges shall not exceed $1 per kilowatt of distribution demand and $1 per kilowatt of supply demand. Following the expiration of the five-year period, the cooperative is authorized to rebalance its rates. In any filing for informational purposes, the cooperative shall clearly set forth to the Commission the schedule for the five-year period.6\n\nAfter the transition date for a given class of customers, the following caps, which shall be in lieu of the caps established by subsection F of § 56-594.01, shall apply to net energy metering for that class of customer. The caps shall be calculated as described in subsection F of § 56-594.01 except that the caps shall be adjusted as follows, expressed in alternating current nameplate capacity of the generators: three percent of system peak for residential customers, four percent of system peak for not-for-profit and nonjurisdictional customers, and two percent for other nonresidential customers.7\n\nAfter the transition date for a given class of customers, only the following restrictions shall apply to the capacity of a net energy metering electrical generating facility:\n\t\t\ta. For nonresidential customers, the maximum capacity shall not exceed the least of:1\n\n1.2 megawatts alternating current;2\n\nOne percent of the cooperative’s system peak calculated according to the methodology described in subsection F of § 56-594.01; or3\n\nThe expected annual energy consumption based on the previous 12 months of billing history or an annualized calculation of billing history if 12 months of billing history is not available; and\n\t\t\t\tb. For residential customers, the maximum capacity shall not exceed 125 percent of the expected annual energy consumption based on the previous 12 months of billing history or an annualized calculation of billing history if 12 months of billing history is not available.8\n\nAfter the transition date for a given class of customers, third-party partial requirements power purchase agreements entered into with registered providers shall be permitted for that class of customer pursuant to subsection K of § 56-594.01.","order_by":null,"text":{"0":{"id":287516,"text":"Distribution electric cooperatives subject to Article 1 (\u00a7 56-231.15 et seq.) of Chapter 9.1 shall be regulated in accordance with the provisions of Chapters 9.1 (\u00a7 56-231.15 et seq.) and 10 (\u00a7 56-232 et seq.), as amended by relevant sections of this chapter and by the following provisions:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":287517,"text":"Notwithstanding anything to the contrary in this title, each cooperative may, without Commission approval or the requirement of any filing other than as provided in this subdivision, upon the adoption by its board of directors of a resolution so providing, make adjustments in the cooperative’s rates, terms, conditions, and rate schedules governing net energy metering as provided in this section by electing to subject itself to the provisions of this section. The cooperative promptly shall (i) file such resolution and notice with the Commission for informational purposes and (ii) place a notice of its board of directors’ adoption of such resolution (the Cooperative Net Energy Metering Transition Notice) on the cooperative’s website. The Cooperative Net Energy Metering Transition Notice shall contain an initial election date and a date upon which, for each class of net energy metering customer, the transition shall become effective upon the first to occur of (a) the date the cooperative reaches the cap set forth in subsection F of § 56-594.01 or (b) five years following the date of the initial Cooperative Net Energy Metering Transition Notice. If a cooperative transitions a given class of customers as a result of reaching a cap set forth in subsection F of § 56-594.01, the effectiveness of such transition shall be permanent, regardless of future changes in the cooperative’s system peak. A Cooperative Net Energy Metering Transition Notice may be amended and refiled as the cooperative deems appropriate at any time. Any eligible customer-generator as defined in § 56-594 that was interconnected prior to a transition start date enumerated in a Cooperative Net Energy Metering Transition Notice may continue to participate in net energy metering pursuant to the terms of § 56-594.01 until July 1, 2039.","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":287518,"text":"After the transition date for a class of customers, any standby charges implemented by the cooperative pursuant to subsection H of § 56-594.01 shall be eliminated and are prohibited. The cooperative may make any necessary changes to rate schedules or terms and conditions and shall promptly file the same with the Commission for informational purposes.","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":287519,"text":"Whenever the cooperative’s transition date occurs, the cooperative may establish and publish, without Commission approval or the requirement of any filing other than as provided in this subdivision, a new rate schedule or rider for purposes of its new net energy metering program established pursuant to this section and shall promptly file the same with the Commission for informational purposes.","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":287520,"text":"The new rate schedule or rider described in subdivision 3 may contain a demand charge or charges for distribution, supply, or both, based upon a customer’s monthly, ratcheted, or 60-minute absolute value noncoincident peak demand for customers that were not previously subject to demand charges in each rate class; however, such demand charges shall be revenue neutral based on the cooperative’s determination of the proper intra-class allocation of the revenues produced by its then-current rates serving the same rate class of customer. The cooperative shall implement such new demand charge through the provisions of subdivision 5. The cooperative shall file promptly revised tariffs reflecting any such new demand charges with the Commission for informational purposes. The demand charge component of any net energy metering rate class derived from a rate class with a preexisting demand charge shall remain fixed for a period of five years. The fixed monthly customer charge of any net energy metering rate class derived from a preexisting rate class having a fixed monthly customer charge less than or equal to $20 as of the transition date shall not exceed $20 for the duration of the five-year period described in subdivision 5. During the five-year period described in subdivision 5, a cooperative may not increase the monthly customer charge of any net energy metering rate class derived from a preexisting rate class having a fixed monthly customer charge greater than $20 as of the transition date. Demand charges included in a new rate schedule or rider shall apply to net energy metering customers, regardless of whether a customer uses a third-party partial requirements power purchase agreement or not.","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":287521,"text":"For purposes of implementing subdivision 4, a cooperative shall, after the published transition date for a given class of customers, close its existing net energy metering rate schedule rider to new customers and open a new tariff pursuant to subdivision 3. Demand charges shall be implemented over a five-year period. In the first year of the five-year period, the demand charges shall be set to zero. In the second year of the five-year period, implementation of the demand rates may begin, and demand charges shall not exceed $0.25 per kilowatt of distribution demand and $0.25 per kilowatt of supply demand. In the third year of the five-year period, the demand charges shall not exceed $0.50 per kilowatt of distribution demand and $0.50 per kilowatt of supply demand. In the fourth year of the five-year period, the demand charges shall not exceed $0.75 per kilowatt of distribution demand and $0.75 per kilowatt of supply demand. In the fifth year of the five-year period, the demand charges shall not exceed $1 per kilowatt of distribution demand and $1 per kilowatt of supply demand. Following the expiration of the five-year period, the cooperative is authorized to rebalance its rates. In any filing for informational purposes, the cooperative shall clearly set forth to the Commission the schedule for the five-year period.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"6":{"id":287522,"text":"After the transition date for a given class of customers, the following caps, which shall be in lieu of the caps established by subsection F of § 56-594.01, shall apply to net energy metering for that class of customer. The caps shall be calculated as described in subsection F of § 56-594.01 except that the caps shall be adjusted as follows, expressed in alternating current nameplate capacity of the generators: three percent of system peak for residential customers, four percent of system peak for not-for-profit and nonjurisdictional customers, and two percent for other nonresidential customers.","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5","next_prefix":"7"},"7":{"id":287523,"text":"After the transition date for a given class of customers, only the following restrictions shall apply to the capacity of a net energy metering electrical generating facility:\n\t\t\ta. For nonresidential customers, the maximum capacity shall not exceed the least of:","type":"section","prefixes":["7"],"prefix":"7","entire_prefix":"7","prefix_anchor":"7","level":1,"prior_prefix":"6","next_prefix":"71"},"8":{"id":287524,"text":"1.2 megawatts alternating current;","type":"section","prefixes":["7","1"],"prefix":"1","entire_prefix":"71","prefix_anchor":"71","level":2,"prior_prefix":"7","next_prefix":"72"},"9":{"id":287525,"text":"One percent of the cooperative’s system peak calculated according to the methodology described in subsection F of § 56-594.01; or","type":"section","prefixes":["7","2"],"prefix":"2","entire_prefix":"72","prefix_anchor":"72","level":2,"prior_prefix":"71","next_prefix":"73"},"10":{"id":287526,"text":"The expected annual energy consumption based on the previous 12 months of billing history or an annualized calculation of billing history if 12 months of billing history is not available; and\n\t\t\t\tb. For residential customers, the maximum capacity shall not exceed 125 percent of the expected annual energy consumption based on the previous 12 months of billing history or an annualized calculation of billing history if 12 months of billing history is not available.","type":"section","prefixes":["7","3"],"prefix":"3","entire_prefix":"73","prefix_anchor":"73","level":2,"prior_prefix":"72","next_prefix":"8"},"11":{"id":287527,"text":"After the transition date for a given class of customers, third-party partial requirements power purchase agreements entered into with registered providers shall be permitted for that class of customer pursuant to subsection K of § 56-594.01.","type":"section","prefixes":["8"],"prefix":"8","entire_prefix":"8","prefix_anchor":"8","level":1,"prior_prefix":"73"}},"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 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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":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},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-585.4\/","history_text":"

This law was first created in 2019. The record of its establishment is cataloged in chapters 742<\/a> and 763<\/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":74615,"section_number":"56-594.01","catch_line":"Net energy metering provisions for electric cooperative service territories","order_by":null,"url":"\/56-594.01\/"}],"refers_to":[{"id":77567,"section_number":"56-231.15","catch_line":"Definitions","order_by":null,"url":"\/56-231.15\/"},{"id":75233,"section_number":"56-232","catch_line":"Public utility and schedules defined","order_by":null,"url":"\/56-232\/"},{"id":76060,"section_number":"56-594","catch_line":"Net energy metering provisions","order_by":null,"url":"\/56-594\/"},{"id":74615,"section_number":"56-594.01","catch_line":"Net energy metering provisions for electric cooperative service territories","order_by":null,"url":"\/56-594.01\/"}],"permalink":{"id":250723,"object_type":"law","relational_id":80324,"identifier":"56-585.4","token":"56\/23\/56-585.4","url":"\/56-585.4\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-585.4\/","token":"56\/23\/56-585.4","dublin_core":{"Title":"Net energy metering transition provisions for electric cooperatives","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-585.4","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

Distribution electric cooperatives<\/span> subject to Article 1 (\u00a7 56-231.15<\/a> et seq.) of Chapter 9.1 shall be regulated in accordance with the provisions of Chapters 9.1 (\u00a7 56-231.15<\/a> et seq.) and 10 (\u00a7 56-232<\/a> et seq.), as amended by relevant sections of this chapter and by the following provisions:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Notwithstanding anything to the contrary in this title, each cooperative<\/span> may, without Commission<\/span> approval or the requirement of any filing other than as provided in this subdivision, upon the adoption by its board of directors of a resolution so providing, make adjustments in the cooperative<\/span>’s rates<\/span>, terms, conditions, and rate<\/span> schedules<\/span> governing net energy metering as provided in this section by electing to subject itself to the provisions of this section. The cooperative<\/span> promptly shall (i) file such resolution and notice with the Commission<\/span> for informational purposes and (ii) place a notice of its board of directors’ adoption of such resolution (the Cooperative<\/span> Net Energy Metering Transition Notice) on the cooperative<\/span>’s website. The Cooperative<\/span> Net Energy Metering Transition Notice shall contain an initial election date and a date upon which, for each class of net energy metering customer, the transition shall become effective upon the first to occur of (a) the date the cooperative<\/span> reaches the cap set forth in subsection F of § 56-594.01<\/a> or (b) five years following the date of the initial Cooperative<\/span> Net Energy Metering Transition Notice. If a cooperative<\/span> transitions a given class of customers as a result of reaching a cap set forth in subsection F of § 56-594.01<\/a>, the effectiveness of such transition shall be permanent, regardless of future changes in the cooperative<\/span>’s system peak. A Cooperative<\/span> Net Energy Metering Transition Notice may be amended and refiled as the cooperative<\/span> deems appropriate at any time. Any eligible customer-generator<\/span> as defined in § 56-594<\/a> that was interconnected prior to a transition start date enumerated in a Cooperative<\/span> Net Energy Metering Transition Notice may continue to participate in net energy metering pursuant to the terms of § 56-594.01<\/a> until July 1, 2039. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> After the transition date for a class of customers, any standby charges implemented by the cooperative<\/span> pursuant to subsection H of § 56-594.01<\/a> shall be eliminated and are prohibited. The cooperative<\/span> may make any necessary changes to rate<\/span> schedules<\/span> or terms and conditions and shall promptly file the same with the Commission<\/span> for informational purposes. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Whenever the cooperative<\/span>’s transition date occurs, the cooperative<\/span> may establish and publish, without Commission<\/span> approval or the requirement of any filing other than as provided in this subdivision, a new rate<\/span> schedule or rider for purposes of its new net energy metering program established pursuant to this section and shall promptly file the same with the Commission<\/span> for informational purposes. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> The new rate<\/span> schedule or rider described in subdivision 3 may contain a demand charge or charges for distribution, supply<\/span>, or both, based upon a customer’s monthly, ratcheted, or 60-minute absolute value noncoincident peak demand for customers that were not previously subject to demand charges in each rate<\/span> class; however, such demand charges shall be revenue neutral based on the cooperative<\/span>’s determination of the proper intra-class allocation of the revenues produced by its then-current rates<\/span> serving the same rate<\/span> class of customer. The cooperative<\/span> shall implement such new demand charge through the provisions of subdivision 5. The cooperative<\/span> shall file promptly revised tariffs reflecting any such new demand charges with the Commission<\/span> for informational purposes. The demand charge component of any net energy metering rate<\/span> class derived from a rate<\/span> class with a preexisting demand charge shall remain fixed for a period of five years. The fixed monthly customer charge of any net energy metering rate<\/span> class derived from a preexisting rate<\/span> class having a fixed monthly customer charge less than or equal to $20 as of the transition date shall not exceed $20 for the duration of the five-year period described in subdivision 5. During the five-year period described in subdivision 5, a cooperative<\/span> may not increase the monthly customer charge of any net energy metering rate<\/span> class derived from a preexisting rate<\/span> class having a fixed monthly customer charge greater than $20 as of the transition date. Demand charges included in a new rate<\/span> schedule or rider shall apply to net energy metering customers, regardless of whether a customer uses a third-party<\/span> partial requirements power purchase agreement or not. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> For purposes of implementing subdivision 4, a cooperative<\/span> shall, after the published transition date for a given class of customers, close its existing net energy metering rate<\/span> schedule rider to new customers and open a new tariff pursuant to subdivision 3. Demand charges shall be implemented over a five-year period. In the first year of the five-year period, the demand charges shall be set to zero. In the second year of the five-year period, implementation of the demand rates<\/span> may begin, and demand charges shall not exceed $0.25 per kilowatt of distribution demand and $0.25 per kilowatt of supply<\/span> demand. In the third year of the five-year period, the demand charges shall not exceed $0.50 per kilowatt of distribution demand and $0.50 per kilowatt of supply<\/span> demand. In the fourth year of the five-year period, the demand charges shall not exceed $0.75 per kilowatt of distribution demand and $0.75 per kilowatt of supply<\/span> demand. In the fifth year of the five-year period, the demand charges shall not exceed $1 per kilowatt of distribution demand and $1 per kilowatt of supply<\/span> demand. Following the expiration of the five-year period, the cooperative<\/span> is authorized to rebalance its rates<\/span>. In any filing for informational purposes, the cooperative<\/span> shall clearly set forth to the Commission<\/span> the schedule for the five-year period. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> After the transition date for a given class of customers, the following caps, which shall be in lieu of the caps established by subsection F of § 56-594.01<\/a>, shall apply to net energy metering for that class of customer. The caps shall be calculated as described in subsection F of § 56-594.01<\/a> except that the caps shall be adjusted as follows, expressed in alternating current nameplate capacity of the generators<\/span>: three percent of system peak for residential customers, four percent of system peak for not-for-profit and nonjurisdictional customers, and two percent for other nonresidential customers. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

7.<\/span> After the transition date for a given class of customers, only the following restrictions shall apply to the capacity of a net energy metering electrical generating facility:\n\t\t\ta. For nonresidential customers, the maximum capacity shall not exceed the least of: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> 1.2 megawatts alternating current; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> One percent of the cooperative<\/span>’s system peak calculated according to the methodology described in subsection F of § 56-594.01<\/a>; or <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> The expected annual energy consumption based on the previous 12 months of billing history or an annualized calculation of billing history if 12 months of billing history is not available; and\n\t\t\t\tb. For residential customers, the maximum capacity shall not exceed 125 percent of the expected annual energy consumption based on the previous 12 months of billing history or an annualized calculation of billing history if 12 months of billing history is not available. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

8.<\/span> After the transition date for a given class of customers, third-party<\/span> partial requirements power purchase agreements entered into with registered providers shall be permitted for that class of customer pursuant to subsection K of § 56-594.01<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nNET ENERGY METERING TRANSITION PROVISIONS FOR ELECTRIC COOPERATIVES (\u00a7\n56-585.4)\n\nDistribution electric cooperatives subject to Article 1 (\u00a7 56-231.15 et seq.)\nof Chapter 9.1 shall be regulated in accordance with the provisions of Chapters\n9.1 (\u00a7 56-231.15 et seq.) and 10 (\u00a7 56-232 et seq.), as amended by relevant\nsections of this chapter and by the following provisions:\n\n1. Notwithstanding anything to the contrary in this title, each cooperative may,\nwithout Commission approval or the requirement of any filing other than as\nprovided in this subdivision, upon the adoption by its board of directors of a\nresolution so providing, make adjustments in the cooperative’s rates,\nterms, conditions, and rate schedules governing net energy metering as provided\nin this section by electing to subject itself to the provisions of this section.\nThe cooperative promptly shall (i) file such resolution and notice with the\nCommission for informational purposes and (ii) place a notice of its board of\ndirectors’ adoption of such resolution (the Cooperative Net Energy\nMetering Transition Notice) on the cooperative’s website. The Cooperative\nNet Energy Metering Transition Notice shall contain an initial election date and\na date upon which, for each class of net energy metering customer, the\ntransition shall become effective upon the first to occur of (a) the date the\ncooperative reaches the cap set forth in subsection F of § 56-594.01 or (b)\nfive years following the date of the initial Cooperative Net Energy Metering\nTransition Notice. If a cooperative transitions a given class of customers as a\nresult of reaching a cap set forth in subsection F of § 56-594.01, the\neffectiveness of such transition shall be permanent, regardless of future\nchanges in the cooperative’s system peak. A Cooperative Net Energy\nMetering Transition Notice may be amended and refiled as the cooperative deems\nappropriate at any time. Any eligible customer-generator as defined in §\n56-594 that was interconnected prior to a transition start date enumerated in a\nCooperative Net Energy Metering Transition Notice may continue to participate in\nnet energy metering pursuant to the terms of § 56-594.01 until July 1,\n2039.\n\n2. After the transition date for a class of customers, any standby charges\nimplemented by the cooperative pursuant to subsection H of § 56-594.01\nshall be eliminated and are prohibited. The cooperative may make any necessary\nchanges to rate schedules or terms and conditions and shall promptly file the\nsame with the Commission for informational purposes.\n\n3. Whenever the cooperative’s transition date occurs, the cooperative may\nestablish and publish, without Commission approval or the requirement of any\nfiling other than as provided in this subdivision, a new rate schedule or rider\nfor purposes of its new net energy metering program established pursuant to this\nsection and shall promptly file the same with the Commission for informational\npurposes.\n\n4. The new rate schedule or rider described in subdivision 3 may contain a\ndemand charge or charges for distribution, supply, or both, based upon a\ncustomer’s monthly, ratcheted, or 60-minute absolute value noncoincident\npeak demand for customers that were not previously subject to demand charges in\neach rate class; however, such demand charges shall be revenue neutral based on\nthe cooperative’s determination of the proper intra-class allocation of\nthe revenues produced by its then-current rates serving the same rate class of\ncustomer. The cooperative shall implement such new demand charge through the\nprovisions of subdivision 5. The cooperative shall file promptly revised tariffs\nreflecting any such new demand charges with the Commission for informational\npurposes. The demand charge component of any net energy metering rate class\nderived from a rate class with a preexisting demand charge shall remain fixed\nfor a period of five years. The fixed monthly customer charge of any net energy\nmetering rate class derived from a preexisting rate class having a fixed monthly\ncustomer charge less than or equal to $20 as of the transition date shall not\nexceed $20 for the duration of the five-year period described in subdivision 5.\nDuring the five-year period described in subdivision 5, a cooperative may not\nincrease the monthly customer charge of any net energy metering rate class\nderived from a preexisting rate class having a fixed monthly customer charge\ngreater than $20 as of the transition date. Demand charges included in a new\nrate schedule or rider shall apply to net energy metering customers, regardless\nof whether a customer uses a third-party partial requirements power purchase\nagreement or not.\n\n5. For purposes of implementing subdivision 4, a cooperative shall, after the\npublished transition date for a given class of customers, close its existing net\nenergy metering rate schedule rider to new customers and open a new tariff\npursuant to subdivision 3. Demand charges shall be implemented over a five-year\nperiod. In the first year of the five-year period, the demand charges shall be\nset to zero. In the second year of the five-year period, implementation of the\ndemand rates may begin, and demand charges shall not exceed $0.25 per kilowatt\nof distribution demand and $0.25 per kilowatt of supply demand. In the third\nyear of the five-year period, the demand charges shall not exceed $0.50 per\nkilowatt of distribution demand and $0.50 per kilowatt of supply demand. In the\nfourth year of the five-year period, the demand charges shall not exceed $0.75\nper kilowatt of distribution demand and $0.75 per kilowatt of supply demand. In\nthe fifth year of the five-year period, the demand charges shall not exceed $1\nper kilowatt of distribution demand and $1 per kilowatt of supply demand.\nFollowing the expiration of the five-year period, the cooperative is authorized\nto rebalance its rates. In any filing for informational purposes, the\ncooperative shall clearly set forth to the Commission the schedule for the\nfive-year period.\n\n6. After the transition date for a given class of customers, the following caps,\nwhich shall be in lieu of the caps established by subsection F of §\n56-594.01, shall apply to net energy metering for that class of customer. The\ncaps shall be calculated as described in subsection F of § 56-594.01 except\nthat the caps shall be adjusted as follows, expressed in alternating current\nnameplate capacity of the generators: three percent of system peak for\nresidential customers, four percent of system peak for not-for-profit and\nnonjurisdictional customers, and two percent for other nonresidential customers.\n\n7. After the transition date for a given class of customers, only the following\nrestrictions shall apply to the capacity of a net energy metering electrical\ngenerating facility:\n\t\t\ta. For nonresidential customers, the maximum capacity shall not exceed the\nleast of:\n\n 1. 1.2 megawatts alternating current;\n\n 2. One percent of the cooperative’s system peak calculated according to\n the methodology described in subsection F of § 56-594.01; or\n\n 3. The expected annual energy consumption based on the previous 12 months of\n billing history or an annualized calculation of billing history if 12 months\n of billing history is not available; and\n \t\t\t\tb. For residential customers, the maximum capacity shall not exceed 125\n percent of the expected annual energy consumption based on the previous 12\n months of billing history or an annualized calculation of billing history if\n 12 months of billing history is not available.\n\n8. After the transition date for a given class of customers, third-party partial\nrequirements power purchase agreements entered into with registered providers\nshall be permitted for that class of customer pursuant to subsection K of §\n56-594.01.\n\nHISTORY: 2019, cc. 742, 763.","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}}