{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-601.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-601.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-601.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-601.html"}],"law_id":59830,"edition_id":1,"section_id":59830,"structure_id":15651,"section_number":"56-601","catch_line":"Natural gas conservation and ratemaking efficiency","history":"2008, c. 639; 2021, Sp. Sess. I, c. 327; 2022, cc. 728, 759.","full_text":"A\n\nConsistent with the objectives pertaining to the energy issues and policy elements stated in \u00a7 45.2-1706.1, it is in the public interest to authorize and encourage the adoption of natural gas conservation and ratemaking efficiency plans that promote the wise use of natural gas and natural gas infrastructure through the development of alternative rate designs and other mechanisms that more closely align the interests of natural gas utilities, their customers, and the Commonwealth generally, and improve the efficiency of ratemaking to more closely reflect the dynamic nature of the natural gas market, the economy, and public policy regarding conservation and energy efficiency. Such alternative rate designs and other mechanisms should, where feasible:1\n\nProvide utilities with better tools to work with customers to decrease the average customer’s annual average weather-normalized consumption of energy;2\n\nProvide reasonable assurance of a utility’s ability to recover costs of serving the public, including its cost-effective investments in conservation and energy efficiency as well as infrastructure needed to provide or maintain reliable service to the public;3\n\nReward utilities for meeting or exceeding conservation and energy efficiency goals that may be established pursuant to the Virginia Energy Plan (§ 45.2-1710 et seq.);4\n\nProvide customers with long-term, meaningful opportunities to more efficiently consume energy, while ensuring that the rate design methodology used to set a utility’s revenue recovery is not inconsistent with such conservation and energy efficiency goals;5\n\nRecognize the economic and environmental benefits of efficient use of natural gas, biogas, and lower-carbon gases; and6\n\nPreserve or enhance the utility bill savings that customers receive when they reduce their energy use.B\n\nNatural gas utilities are authorized pursuant to this chapter to file natural gas conservation and ratemaking efficiency plans that implement alternative natural gas utility rate designs and other mechanisms, in addition to or in conjunction with the cost of service methodology set forth in \u00a7 56-235.2 and performance-based regulation plans authorized by \u00a7 56-235.6, that:1\n\nReplace existing utility rate designs or other mechanisms that promote inefficient use of natural gas with rate designs or other mechanisms that ensure a utility’s recovery of its authorized revenues is independent of the amount of customers’ natural gas consumption;2\n\nProvide incentives for natural gas utilities to promote conservation and energy efficiency by granting recovery of the costs associated with cost-effective conservation and energy efficiency programs; and3\n\nReward utilities that meet or exceed conservation and energy efficiency goals on a weather-normalized, annualized average customer basis through the implementation of cost-effective conservation and energy efficiency programs.C\n\nThis chapter shall be construed liberally to accomplish these purposes.","order_by":null,"text":{"0":{"id":219124,"text":"Consistent with the objectives pertaining to the energy issues and policy elements stated in \u00a7 45.2-1706.1, it is in the public interest to authorize and encourage the adoption of natural gas conservation and ratemaking efficiency plans that promote the wise use of natural gas and natural gas infrastructure through the development of alternative rate designs and other mechanisms that more closely align the interests of natural gas utilities, their customers, and the Commonwealth generally, and improve the efficiency of ratemaking to more closely reflect the dynamic nature of the natural gas market, the economy, and public policy regarding conservation and energy efficiency. Such alternative rate designs and other mechanisms should, where feasible:","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"A1"},"1":{"id":219125,"text":"Provide utilities with better tools to work with customers to decrease the average customer’s annual average weather-normalized consumption of energy;","type":"section","prefixes":["A","1"],"prefix":"1","entire_prefix":"A1","prefix_anchor":"A1","level":2,"prior_prefix":"A","next_prefix":"A2"},"2":{"id":219126,"text":"Provide reasonable assurance of a utility’s ability to recover costs of serving the public, including its cost-effective investments in conservation and energy efficiency as well as infrastructure needed to provide or maintain reliable service to the public;","type":"section","prefixes":["A","2"],"prefix":"2","entire_prefix":"A2","prefix_anchor":"A2","level":2,"prior_prefix":"A1","next_prefix":"A3"},"3":{"id":219127,"text":"Reward utilities for meeting or exceeding conservation and energy efficiency goals that may be established pursuant to the Virginia Energy Plan (§ 45.2-1710 et seq.);","type":"section","prefixes":["A","3"],"prefix":"3","entire_prefix":"A3","prefix_anchor":"A3","level":2,"prior_prefix":"A2","next_prefix":"A4"},"4":{"id":219128,"text":"Provide customers with long-term, meaningful opportunities to more efficiently consume energy, while ensuring that the rate design methodology used to set a utility’s revenue recovery is not inconsistent with such conservation and energy efficiency goals;","type":"section","prefixes":["A","4"],"prefix":"4","entire_prefix":"A4","prefix_anchor":"A4","level":2,"prior_prefix":"A3","next_prefix":"A5"},"5":{"id":219129,"text":"Recognize the economic and environmental benefits of efficient use of natural gas, biogas, and lower-carbon gases; and","type":"section","prefixes":["A","5"],"prefix":"5","entire_prefix":"A5","prefix_anchor":"A5","level":2,"prior_prefix":"A4","next_prefix":"A6"},"6":{"id":219130,"text":"Preserve or enhance the utility bill savings that customers receive when they reduce their energy use.","type":"section","prefixes":["A","6"],"prefix":"6","entire_prefix":"A6","prefix_anchor":"A6","level":2,"prior_prefix":"A5","next_prefix":"B"},"7":{"id":219131,"text":"Natural gas utilities are authorized pursuant to this chapter to file natural gas conservation and ratemaking efficiency plans that implement alternative natural gas utility rate designs and other mechanisms, in addition to or in conjunction with the cost of service methodology set forth in \u00a7 56-235.2 and performance-based regulation plans authorized by \u00a7 56-235.6, that:","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A6","next_prefix":"B1"},"8":{"id":219132,"text":"Replace existing utility rate designs or other mechanisms that promote inefficient use of natural gas with rate designs or other mechanisms that ensure a utility’s recovery of its authorized revenues is independent of the amount of customers’ natural gas consumption;","type":"section","prefixes":["B","1"],"prefix":"1","entire_prefix":"B1","prefix_anchor":"B1","level":2,"prior_prefix":"B","next_prefix":"B2"},"9":{"id":219133,"text":"Provide incentives for natural gas utilities to promote conservation and energy efficiency by granting recovery of the costs associated with cost-effective conservation and energy efficiency programs; and","type":"section","prefixes":["B","2"],"prefix":"2","entire_prefix":"B2","prefix_anchor":"B2","level":2,"prior_prefix":"B1","next_prefix":"B3"},"10":{"id":219134,"text":"Reward utilities that meet or exceed conservation and energy efficiency goals on a weather-normalized, annualized average customer basis through the implementation of cost-effective conservation and energy efficiency programs.","type":"section","prefixes":["B","3"],"prefix":"3","entire_prefix":"B3","prefix_anchor":"B3","level":2,"prior_prefix":"B2","next_prefix":"C"},"11":{"id":219135,"text":"This chapter shall be construed liberally to accomplish these purposes.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B3"}},"ancestry":[{"id":15651,"edition_id":1,"name":"Natural Gas Conservation and Ratemaking Efficiency Act","identifier":"25","label":"chapter","depth":2,"order_by":1,"parent_id":12881,"metadata":{},"date_created":"2026-06-26 03:57:24","date_modified":"2026-06-26 03:57:24","permalink":{"id":250873,"object_type":"structure","relational_id":15651,"identifier":"25","token":"56\/25","url":"\/56\/25\/","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":76005,"structure_id":15651,"section_number":"56-600","catch_line":"Definitions","url":"\/56-600\/","token":"56\/25\/56-600","metadata":false},{"id":59830,"structure_id":15651,"section_number":"56-601","catch_line":"Natural gas conservation and ratemaking efficiency","url":"\/56-601\/","token":"56\/25\/56-601","metadata":false},{"id":77174,"structure_id":15651,"section_number":"56-602","catch_line":"Conservation and ratemaking efficiency plans","url":"\/56-602\/","token":"56\/25\/56-602","metadata":false}],"previous_section":{"id":76005,"structure_id":15651,"section_number":"56-600","catch_line":"Definitions","url":"\/56-600\/","token":"56\/25\/56-600","metadata":false},"next_section":{"id":77174,"structure_id":15651,"section_number":"56-602","catch_line":"Conservation and ratemaking efficiency plans","url":"\/56-602\/","token":"56\/25\/56-602","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-601\/","history_text":"

This law was first created in 2008. The record of its establishment is cataloged in chapter 639<\/a> of that year\u2019s edition of \u201cActs of Assembly,\u201d the annual state publication listing all changes made to the Code of Virginia in that year. It has been modified 1 time. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. That modification is as follows: in 2022, chapters 728<\/a> and 759<\/a>.<\/p>","references":false,"refers_to":[{"id":84117,"section_number":"45.2-1706.1","catch_line":" Commonwealth Clean Energy Policy","order_by":null,"url":"\/45.2-1706.1\/"},{"id":78018,"section_number":"45.2-1710","catch_line":" Development of the Virginia Energy Plan","order_by":null,"url":"\/45.2-1710\/"},{"id":62621,"section_number":"56-235.2","catch_line":"All rates, tolls, etc., to be just and reasonable to jurisdictional customers; findings and conclusions to be set forth; alternative forms of regulation for electric companies","order_by":null,"url":"\/56-235.2\/"},{"id":71641,"section_number":"56-235.6","catch_line":"Optional performance-based regulation of certain utilities","order_by":null,"url":"\/56-235.6\/"}],"permalink":{"id":250879,"object_type":"law","relational_id":59830,"identifier":"56-601","token":"56\/25\/56-601","url":"\/56-601\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-601\/","token":"56\/25\/56-601","dublin_core":{"Title":"Natural gas conservation and ratemaking efficiency","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-601","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Consistent with the objectives pertaining to the energy issues<\/span> and policy elements stated in \u00a7 45.2-1706.1<\/a>, it is in the public interest to authorize and encourage the adoption of natural gas conservation and ratemaking efficiency plans<\/span> that promote the wise use of natural gas and natural gas infrastructure through the development of alternative rate<\/span> designs and other mechanisms that more closely align the interests of natural gas utilities, their customers, and the Commonwealth generally, and improve the efficiency of ratemaking to more closely reflect the dynamic nature of the natural gas market, the economy, and public policy regarding conservation and energy efficiency. Such alternative rate<\/span> designs and other mechanisms should, where feasible: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Provide utilities with better tools to work with customers to decrease the average customer’s annual average weather-normalized consumption of energy; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Provide reasonable assurance of a utility<\/span>’s ability to recover costs of serving the public, including its cost-effective investments in conservation and energy efficiency as well as infrastructure needed to provide or maintain reliable service to the public; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Reward utilities for meeting or exceeding conservation and energy efficiency goals that may be established pursuant to the Virginia Energy Plan (§ 45.2-1710<\/a> et seq.); <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Provide customers with long-term, meaningful opportunities to more efficiently consume energy, while ensuring that the rate<\/span> design methodology used to set a utility<\/span>’s revenue recovery is not inconsistent with such conservation and energy efficiency goals; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Recognize the economic and environmental benefits of efficient use of natural gas, biogas, and lower-carbon gases; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Preserve or enhance the utility<\/span> bill savings that customers receive when they reduce their energy use. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> Natural gas utilities are authorized pursuant to this chapter to file natural gas conservation and ratemaking efficiency plans<\/span> that implement alternative natural gas utility<\/span> rate<\/span> designs and other mechanisms, in addition to or in conjunction with the cost of service methodology set forth in \u00a7 56-235.2<\/a> and performance-based regulation plans authorized by \u00a7 56-235.6<\/a>, that: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Replace existing utility rate<\/span> designs or other mechanisms that promote inefficient use of natural gas with rate<\/span> designs or other mechanisms that ensure a utility’s recovery of its authorized revenues is independent of the amount of customers’ natural gas consumption; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> Provide incentives for natural gas utilities to promote conservation and energy efficiency by granting recovery of the costs associated with cost-effective conservation and energy efficiency programs<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Reward utilities that meet or exceed conservation and energy efficiency goals on a weather-normalized, annualized average customer basis through the implementation of cost-effective conservation and energy efficiency programs<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> This chapter shall be construed liberally to accomplish these purposes. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nNATURAL GAS CONSERVATION AND RATEMAKING EFFICIENCY (\u00a7 56-601)\n\nA. Consistent with the objectives pertaining to the energy issues and policy\nelements stated in \u00a7 45.2-1706.1, it is in the public interest to authorize and\nencourage the adoption of natural gas conservation and ratemaking efficiency\nplans that promote the wise use of natural gas and natural gas infrastructure\nthrough the development of alternative rate designs and other mechanisms that\nmore closely align the interests of natural gas utilities, their customers, and\nthe Commonwealth generally, and improve the efficiency of ratemaking to more\nclosely reflect the dynamic nature of the natural gas market, the economy, and\npublic policy regarding conservation and energy efficiency. Such alternative\nrate designs and other mechanisms should, where feasible:\n\n 1. Provide utilities with better tools to work with customers to decrease the\n average customer’s annual average weather-normalized consumption of\n energy;\n\n 2. Provide reasonable assurance of a utility’s ability to recover costs\n of serving the public, including its cost-effective investments in\n conservation and energy efficiency as well as infrastructure needed to provide\n or maintain reliable service to the public;\n\n 3. Reward utilities for meeting or exceeding conservation and energy\n efficiency goals that may be established pursuant to the Virginia Energy Plan\n (§ 45.2-1710 et seq.);\n\n 4. Provide customers with long-term, meaningful opportunities to more\n efficiently consume energy, while ensuring that the rate design methodology\n used to set a utility’s revenue recovery is not inconsistent with such\n conservation and energy efficiency goals;\n\n 5. Recognize the economic and environmental benefits of efficient use of\n natural gas, biogas, and lower-carbon gases; and\n\n 6. Preserve or enhance the utility bill savings that customers receive when\n they reduce their energy use.\n\nB. Natural gas utilities are authorized pursuant to this chapter to file natural\ngas conservation and ratemaking efficiency plans that implement alternative\nnatural gas utility rate designs and other mechanisms, in addition to or in\nconjunction with the cost of service methodology set forth in \u00a7 56-235.2 and\nperformance-based regulation plans authorized by \u00a7 56-235.6, that:\n\n 1. Replace existing utility rate designs or other mechanisms that promote\n inefficient use of natural gas with rate designs or other mechanisms that\n ensure a utility’s recovery of its authorized revenues is independent of\n the amount of customers’ natural gas consumption;\n\n 2. Provide incentives for natural gas utilities to promote conservation and\n energy efficiency by granting recovery of the costs associated with\n cost-effective conservation and energy efficiency programs; and\n\n 3. Reward utilities that meet or exceed conservation and energy efficiency\n goals on a weather-normalized, annualized average customer basis through the\n implementation of cost-effective conservation and energy efficiency programs.\n\nC. This chapter shall be construed liberally to accomplish these purposes.\n\nHISTORY: 2008, c. 639; 2021, Sp. Sess. I, c. 327; 2022, cc. 728, 759.","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}}