{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-596.6.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-596.6.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-596.6.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-596.6.html"}],"law_id":80765,"edition_id":1,"section_id":80765,"structure_id":13084,"section_number":"56-596.6","catch_line":"Distribution cost sharing program","history":"2025, cc. 615, 658.","full_text":"A\n\nAs used in this section:\n\t\t\t“Hosting capacity” means the amount of aggregate generation that can be accommodated on the electric distribution system without any infrastructure upgrades.\n\t\t\t“Program” means the distribution cost sharing program established pursuant to this section.\n\t\t\t“Qualifying upgrade” means a system upgrade that increases the hosting capacity of the utility’s distribution system.\n\t\t\t“Sharing project” means any distributed energy resource with an alternating current (AC) nameplate capacity rating greater than or equal to 250 kilowatts and less than or equal to three megawatts within the Phase I or Phase II Utility’s service territory seeking to interconnect to the utility’s distribution system and participate in net energy metering pursuant to § 56-594 that utilizes distribution system upgrades that were necessary to interconnect a triggering project.\n\t\t\t“Triggering project” means a project application in the interconnection queue at a given substation or feeder that requires a qualifying upgrade to successfully interconnect the project to the electric distribution system.B\n\nThe Commission shall establish by regulation a distribution cost sharing program for Phase I and Phase II Utilities, as those terms are defined in subdivision A 1 of § 56-585.1, to construct distribution system upgrades required to interconnect triggering projects. Under the program, when a Phase I or Phase II Utility determines that a qualifying upgrade is required to interconnect a triggering project, such utility shall determine the costs of the qualifying upgrade and the net increase in hosting capacity that would result from the construction of the qualifying upgrade. The costs of the qualifying upgrade shall be subject to approval by the Commission that the costs are reasonable and prudent. The program shall require each Phase I and Phase II Utility to allocate the costs of qualifying upgrades among any sharing projects based on the AC nameplate capacity rating of each sharing project, except that a project shall be exempted from the program if the owner or developer of such project elects to pay in full the approved cost of any associated qualifying upgrade. The Commission shall determine limits on cost recovery for ratepayers and the appropriate time period for cost recovery under the program. The program shall also require that the costs attributed to jurisdictional triggering projects are recovered from jurisdictional sharing projects and costs attributed to nonjurisdictional triggering projects are recovered from nonjurisdictional sharing projects. The Commission may establish a system to refund projects for any interconnection upgrade costs collected during time periods in which such projects are not operational and may provide such refunds upon the petition of the owner of a participating project.","order_by":null,"text":{"0":{"id":289481,"text":"As used in this section:\n\t\t\t“Hosting capacity” means the amount of aggregate generation that can be accommodated on the electric distribution system without any infrastructure upgrades.\n\t\t\t“Program” means the distribution cost sharing program established pursuant to this section.\n\t\t\t“Qualifying upgrade” means a system upgrade that increases the hosting capacity of the utility’s distribution system.\n\t\t\t“Sharing project” means any distributed energy resource with an alternating current (AC) nameplate capacity rating greater than or equal to 250 kilowatts and less than or equal to three megawatts within the Phase I or Phase II Utility’s service territory seeking to interconnect to the utility’s distribution system and participate in net energy metering pursuant to § 56-594 that utilizes distribution system upgrades that were necessary to interconnect a triggering project.\n\t\t\t“Triggering project” means a project application in the interconnection queue at a given substation or feeder that requires a qualifying upgrade to successfully interconnect the project to the electric distribution system.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":289482,"text":"The Commission shall establish by regulation a distribution cost sharing program for Phase I and Phase II Utilities, as those terms are defined in subdivision A 1 of § 56-585.1, to construct distribution system upgrades required to interconnect triggering projects. Under the program, when a Phase I or Phase II Utility determines that a qualifying upgrade is required to interconnect a triggering project, such utility shall determine the costs of the qualifying upgrade and the net increase in hosting capacity that would result from the construction of the qualifying upgrade. The costs of the qualifying upgrade shall be subject to approval by the Commission that the costs are reasonable and prudent. The program shall require each Phase I and Phase II Utility to allocate the costs of qualifying upgrades among any sharing projects based on the AC nameplate capacity rating of each sharing project, except that a project shall be exempted from the program if the owner or developer of such project elects to pay in full the approved cost of any associated qualifying upgrade. The Commission shall determine limits on cost recovery for ratepayers and the appropriate time period for cost recovery under the program. The program shall also require that the costs attributed to jurisdictional triggering projects are recovered from jurisdictional sharing projects and costs attributed to nonjurisdictional triggering projects are recovered from nonjurisdictional sharing projects. The Commission may establish a system to refund projects for any interconnection upgrade costs collected during time periods in which such projects are not operational and may provide such refunds upon the petition of the owner of a participating project.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A"}},"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 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This law was first created in 2025. The record of its establishment is cataloged in chapters 615<\/a> and 658<\/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":67687,"section_number":"56-585.1","catch_line":"Generation, distribution, and transmission rates after capped rates terminate or expire","order_by":null,"url":"\/56-585.1\/"},{"id":76060,"section_number":"56-594","catch_line":"Net energy metering provisions","order_by":null,"url":"\/56-594\/"}],"permalink":{"id":250855,"object_type":"law","relational_id":80765,"identifier":"56-596.6","token":"56\/23\/56-596.6","url":"\/56-596.6\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-596.6\/","token":"56\/23\/56-596.6","dublin_core":{"Title":"Distribution cost sharing program","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-596.6","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> As used in this section:\n\t\t\t“Hosting capacity<\/span>” means the amount of aggregate generation that can be accommodated on the electric distribution system without any infrastructure upgrades.\n\t\t\t“Program<\/span>” means the distribution cost sharing program<\/span> established pursuant to this section.\n\t\t\t“Qualifying upgrade<\/span>” means a system upgrade that increases the hosting capacity<\/span> of the utility’s distribution system.\n\t\t\t“Sharing project<\/span>” means any distributed energy resource with an alternating current (AC) nameplate capacity rating greater than or equal to 250 kilowatts and less than or equal to three megawatts within the Phase I or Phase II Utility’s service territory seeking to interconnect to the utility’s distribution system and participate in net energy metering pursuant to § 56-594<\/a> that utilizes distribution system upgrades that were necessary to interconnect a triggering project<\/span>.\n\t\t\t“Triggering project<\/span>” means a project application in the interconnection queue at a given substation or feeder that requires a qualifying upgrade<\/span> to successfully interconnect the project to the electric distribution system. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Commission<\/span> shall establish by regulation a distribution cost sharing program<\/span> for Phase I and Phase II Utilities, as those terms are defined in subdivision A 1 of § 56-585.1<\/a>, to construct distribution system upgrades required to interconnect triggering projects<\/span>. Under the program<\/span>, when a Phase I or Phase II Utility determines that a qualifying upgrade<\/span> is required to interconnect a triggering project<\/span>, such utility shall determine the costs of the qualifying upgrade<\/span> and the net increase in hosting capacity<\/span> that would result from the construction of the qualifying upgrade<\/span>. The costs of the qualifying upgrade<\/span> shall be subject to approval by the Commission<\/span> that the costs are reasonable and prudent. The program<\/span> shall require each Phase I and Phase II Utility to allocate the costs of qualifying upgrades<\/span> among any sharing projects<\/span> based on the AC nameplate capacity rating of each sharing project<\/span>, except that a project shall be exempted from the program<\/span> if the owner or developer of such project elects to pay in full the approved cost of any associated qualifying upgrade<\/span>. The Commission<\/span> shall determine limits on cost recovery for ratepayers and the appropriate time period for cost recovery under the program<\/span>. The program<\/span> shall also require that the costs attributed to jurisdictional triggering projects<\/span> are recovered from jurisdictional sharing projects<\/span> and costs attributed to nonjurisdictional triggering projects<\/span> are recovered from nonjurisdictional sharing projects<\/span>. The Commission<\/span> may establish a system to refund projects for any interconnection upgrade costs collected during time periods in which such projects are not operational and may provide such refunds upon the petition<\/span> of the owner of a participating project. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDISTRIBUTION COST SHARING PROGRAM (\u00a7 56-596.6)\n\nA. As used in this section:\n\t\t\t“Hosting capacity” means the amount of aggregate generation that\ncan be accommodated on the electric distribution system without any\ninfrastructure upgrades.\n\t\t\t“Program” means the distribution cost sharing program established\npursuant to this section.\n\t\t\t“Qualifying upgrade” means a system upgrade that increases the\nhosting capacity of the utility’s distribution system.\n\t\t\t“Sharing project” means any distributed energy resource with an\nalternating current (AC) nameplate capacity rating greater than or equal to 250\nkilowatts and less than or equal to three megawatts within the Phase I or Phase\nII Utility’s service territory seeking to interconnect to the\nutility’s distribution system and participate in net energy metering\npursuant to § 56-594 that utilizes distribution system upgrades that were\nnecessary to interconnect a triggering project.\n\t\t\t“Triggering project” means a project application in the\ninterconnection queue at a given substation or feeder that requires a qualifying\nupgrade to successfully interconnect the project to the electric distribution\nsystem.\n\nB. The Commission shall establish by regulation a distribution cost sharing\nprogram for Phase I and Phase II Utilities, as those terms are defined in\nsubdivision A 1 of § 56-585.1, to construct distribution system upgrades\nrequired to interconnect triggering projects. Under the program, when a Phase I\nor Phase II Utility determines that a qualifying upgrade is required to\ninterconnect a triggering project, such utility shall determine the costs of the\nqualifying upgrade and the net increase in hosting capacity that would result\nfrom the construction of the qualifying upgrade. The costs of the qualifying\nupgrade shall be subject to approval by the Commission that the costs are\nreasonable and prudent. The program shall require each Phase I and Phase II\nUtility to allocate the costs of qualifying upgrades among any sharing projects\nbased on the AC nameplate capacity rating of each sharing project, except that a\nproject shall be exempted from the program if the owner or developer of such\nproject elects to pay in full the approved cost of any associated qualifying\nupgrade. The Commission shall determine limits on cost recovery for ratepayers\nand the appropriate time period for cost recovery under the program. The program\nshall also require that the costs attributed to jurisdictional triggering\nprojects are recovered from jurisdictional sharing projects and costs attributed\nto nonjurisdictional triggering projects are recovered from nonjurisdictional\nsharing projects. The Commission may establish a system to refund projects for\nany interconnection upgrade costs collected during time periods in which such\nprojects are not operational and may provide such refunds upon the petition of\nthe owner of a participating project.\n\nHISTORY: 2025, cc. 615, 658.","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}}