{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-603.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-603.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-603.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-603.html"}],"law_id":60555,"edition_id":1,"section_id":60555,"structure_id":15753,"section_number":"56-603","catch_line":"Definitions","history":"2010, cc. 142, 514; 2022, cc. 728, 759.","full_text":"As used in this chapter:\n\t\t“Commission” means the State Corporation Commission.\n\t\t“Eligible infrastructure replacement” means natural gas utility facility replacement projects that: (i) enhance safety or reliability by reducing system integrity risks associated with customer outages, corrosion, equipment failures, material failures, or natural forces; (ii) do not increase revenues by directly connecting the infrastructure replacement to new customers; (iii) reduce or have the potential to reduce greenhouse gas emissions; (iv) are commenced on or after January 1, 2010; and (v) are not included in the natural gas utility’s rate base in its most recent rate case using the cost of service methodology set forth in \u00a7 56-235.2, or the natural gas utility’s rate base included in the rate base schedules filed with a performance-based regulation plan authorized by \u00a7 56-235.6, if the plan did not include the rate base. “Eligible infrastructure replacement” includes natural gas utility facility replacement projects that are identified as a result of an enhanced leak detection and repair program.\n\t\t“Eligible infrastructure replacement costs” includes the following:\n\n1\n\nReturn on the investment. In calculating the return on the investment, the Commission shall use the natural gas utility’s regulatory capital structure as calculated utilizing the weighted average cost of capital, including the cost of debt and the cost of equity used in determining the natural gas utility’s base rates in effect during the construction period of the eligible infrastructure replacement project. If the natural gas utility’s cost of capital underlying the base rates in effect at the time its proposed SAVE plan is filed has not been changed by order of the Commission within the preceding five years, the Commission may require the natural gas utility to file an updated weighted average cost of capital, and the natural gas utility may propose an updated weighted average cost of capital. The natural gas utility may recover the external costs associated with establishing its updated weighted average cost of capital through the SAVE rider. Such external costs shall include legal costs and consultant costs;2\n\nA revenue conversion factor, including income taxes and an allowance for bad debt expense, shall be applied to the required operating income resulting from the eligible infrastructure replacement costs;3\n\nDepreciation. In calculating depreciation, the Commission shall use the natural gas utility’s current depreciation rates;4\n\nProperty taxes;5\n\nCarrying costs on the over- or under-recovery of the eligible infrastructure replacement costs. In calculating the carrying costs, the Commission shall use the natural gas utility’s regulatory capital structure as determined in subdivision 1 of the definition of eligible infrastructure replacement costs; and6\n\nEnhanced leak detection and repair program costs. Such costs shall include the costs of operating an enhanced leak detection and repair program.\n\t\t\t“Enhanced leak detection and repair program” means a program that is designed to allow a natural gas utility to deploy advanced leak detection technologies to more accurately identify active leaks as part of the natural gas utility’s leak management program and to prioritize the repair of leaks that present a risk to safety or the environment. A natural gas utility may amend its SAVE plan to include an enhanced leak detection and repair program by filing an application to amend its previously approved SAVE plan, as set forth in subsection B of § 56-604.\n\t\t\t“Investment” means costs incurred on eligible infrastructure replacement projects including planning, development, and construction costs; costs of infrastructure associated therewith; and an allowance for funds used during construction. In calculating the allowance for funds used during construction, the Commission shall use the natural gas utility’s actual regulatory capital structure as determined in subdivision 1 of the definition of eligible infrastructure replacement costs.\n\t\t\t“Natural gas utility” means any investor-owned public service company engaged in the business of furnishing natural gas service to the public.\n\t\t\t“Natural gas utility facility replacement project” means the replacement of storage, peak shaving, transmission or distribution facilities used in the delivery of natural gas, or supplemental or substitute forms of gas sources by a natural gas utility.\n\t\t\t“SAVE” means Steps to Advance Virginia’s Energy Plan.\n\t\t\t“SAVE plan” means a plan filed by a natural gas utility that identifies proposed eligible infrastructure replacement projects and a SAVE rider.\n\t\t\t“SAVE rider” means a recovery mechanism that will allow for recovery of the eligible infrastructure replacement costs, through a separate mechanism from the customer rates established in a rate case using the cost of service methodology set forth in § 56-235.2, or a performance-based regulation plan authorized by § 56-235.6.","order_by":null,"text":{"0":{"id":221358,"text":"As used in this chapter:\n\t\t“Commission” means the State Corporation Commission.\n\t\t“Eligible infrastructure replacement” means natural gas utility facility replacement projects that: (i) enhance safety or reliability by reducing system integrity risks associated with customer outages, corrosion, equipment failures, material failures, or natural forces; (ii) do not increase revenues by directly connecting the infrastructure replacement to new customers; (iii) reduce or have the potential to reduce greenhouse gas emissions; (iv) are commenced on or after January 1, 2010; and (v) are not included in the natural gas utility’s rate base in its most recent rate case using the cost of service methodology set forth in \u00a7 56-235.2, or the natural gas utility’s rate base included in the rate base schedules filed with a performance-based regulation plan authorized by \u00a7 56-235.6, if the plan did not include the rate base. “Eligible infrastructure replacement” includes natural gas utility facility replacement projects that are identified as a result of an enhanced leak detection and repair program.\n\t\t“Eligible infrastructure replacement costs” includes the following:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":221359,"text":"Return on the investment. In calculating the return on the investment, the Commission shall use the natural gas utility’s regulatory capital structure as calculated utilizing the weighted average cost of capital, including the cost of debt and the cost of equity used in determining the natural gas utility’s base rates in effect during the construction period of the eligible infrastructure replacement project. If the natural gas utility’s cost of capital underlying the base rates in effect at the time its proposed SAVE plan is filed has not been changed by order of the Commission within the preceding five years, the Commission may require the natural gas utility to file an updated weighted average cost of capital, and the natural gas utility may propose an updated weighted average cost of capital. The natural gas utility may recover the external costs associated with establishing its updated weighted average cost of capital through the SAVE rider. Such external costs shall include legal costs and consultant costs;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":221360,"text":"A revenue conversion factor, including income taxes and an allowance for bad debt expense, shall be applied to the required operating income resulting from the eligible infrastructure replacement costs;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":221361,"text":"Depreciation. In calculating depreciation, the Commission shall use the natural gas utility’s current depreciation rates;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":221362,"text":"Property taxes;","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":221363,"text":"Carrying costs on the over- or under-recovery of the eligible infrastructure replacement costs. In calculating the carrying costs, the Commission shall use the natural gas utility’s regulatory capital structure as determined in subdivision 1 of the definition of eligible infrastructure replacement costs; and","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4","next_prefix":"6"},"6":{"id":221364,"text":"Enhanced leak detection and repair program costs. Such costs shall include the costs of operating an enhanced leak detection and repair program.\n\t\t\t“Enhanced leak detection and repair program” means a program that is designed to allow a natural gas utility to deploy advanced leak detection technologies to more accurately identify active leaks as part of the natural gas utility’s leak management program and to prioritize the repair of leaks that present a risk to safety or the environment. A natural gas utility may amend its SAVE plan to include an enhanced leak detection and repair program by filing an application to amend its previously approved SAVE plan, as set forth in subsection B of § 56-604.\n\t\t\t“Investment” means costs incurred on eligible infrastructure replacement projects including planning, development, and construction costs; costs of infrastructure associated therewith; and an allowance for funds used during construction. In calculating the allowance for funds used during construction, the Commission shall use the natural gas utility’s actual regulatory capital structure as determined in subdivision 1 of the definition of eligible infrastructure replacement costs.\n\t\t\t“Natural gas utility” means any investor-owned public service company engaged in the business of furnishing natural gas service to the public.\n\t\t\t“Natural gas utility facility replacement project” means the replacement of storage, peak shaving, transmission or distribution facilities used in the delivery of natural gas, or supplemental or substitute forms of gas sources by a natural gas utility.\n\t\t\t“SAVE” means Steps to Advance Virginia’s Energy Plan.\n\t\t\t“SAVE plan” means a plan filed by a natural gas utility that identifies proposed eligible infrastructure replacement projects and a SAVE rider.\n\t\t\t“SAVE rider” means a recovery mechanism that will allow for recovery of the eligible infrastructure replacement costs, through a separate mechanism from the customer rates established in a rate case using the cost of service methodology set forth in § 56-235.2, or a performance-based regulation plan authorized by § 56-235.6.","type":"section","prefixes":["6"],"prefix":"6","entire_prefix":"6","prefix_anchor":"6","level":1,"prior_prefix":"5"}},"ancestry":[{"id":15753,"edition_id":1,"name":"Steps to Advance Virginia's Energy Plan (SAVE) Act","identifier":"26","label":"chapter","depth":2,"order_by":1,"parent_id":12881,"metadata":{},"date_created":"2026-06-26 03:58:57","date_modified":"2026-06-26 03:58:57","permalink":{"id":250887,"object_type":"structure","relational_id":15753,"identifier":"26","token":"56\/26","url":"\/56\/26\/","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":60555,"structure_id":15753,"section_number":"56-603","catch_line":"Definitions","url":"\/56-603\/","token":"56\/26\/56-603","metadata":false},{"id":61559,"structure_id":15753,"section_number":"56-604","catch_line":"Filing of petition with Commission to establish or amend a SAVE plan; recovery of certain costs; procedure","url":"\/56-604\/","token":"56\/26\/56-604","metadata":false}],"next_section":{"id":61559,"structure_id":15753,"section_number":"56-604","catch_line":"Filing of petition with Commission to establish or amend a SAVE plan; recovery of certain costs; procedure","url":"\/56-604\/","token":"56\/26\/56-604","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-603\/","history_text":"

This law was first created in 2010. The record of its establishment is cataloged in chapters 142<\/a> and 514<\/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":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\/"},{"id":61559,"section_number":"56-604","catch_line":"Filing of petition with Commission to establish or amend a SAVE plan; recovery of certain costs; procedure","order_by":null,"url":"\/56-604\/"}],"permalink":{"id":250889,"object_type":"law","relational_id":60555,"identifier":"56-603","token":"56\/26\/56-603","url":"\/56-603\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-603\/","token":"56\/26\/56-603","dublin_core":{"Title":"Definitions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-603","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

As used in this chapter:\n\t\t“Commission<\/span>” means the State Corporation<\/span> Commission<\/span>.\n\t\t“Eligible infrastructure replacement<\/span>” means natural gas utility<\/span> facility replacement projects<\/span> that: (i) enhance safety or reliability by reducing system integrity risks associated with customer outages, corrosion, equipment failures, material<\/span> failures, or natural forces; (ii) do not increase revenues by directly connecting the infrastructure replacement to new customers; (iii) reduce or have the potential to reduce greenhouse gas emissions; (iv) are commenced on or after January 1, 2010; and (v) are not included in the natural gas utility<\/span>’s rate<\/span> base in its most recent rate<\/span> case using the cost of service methodology set forth in \u00a7 56-235.2<\/a>, or the natural gas utility<\/span>’s rate<\/span> base included in the rate<\/span> base schedules<\/span> filed with a performance-based regulation plan authorized by \u00a7 56-235.6<\/a>, if the plan did not include the rate<\/span> base. “Eligible infrastructure replacement<\/span>” includes natural gas utility<\/span> facility replacement projects<\/span> that are identified as a result of an enhanced leak detection and repair program<\/span>.\n\t\t“Eligible infrastructure replacement<\/span> costs<\/span>” includes the following:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Return on the investment<\/span>. In calculating the return on the investment<\/span>, the Commission<\/span> shall use the natural gas utility<\/span>’s regulatory capital structure as calculated utilizing the weighted average cost of capital, including the cost of debt and the cost of equity<\/span> used in determining the natural gas utility<\/span>’s base rates<\/span> in effect during the construction period of the eligible infrastructure replacement<\/span> project. If the natural gas utility<\/span>’s cost of capital underlying the base rates<\/span> in effect at the time its proposed SAVE plan<\/span> is filed has not been changed by order<\/span> of the Commission<\/span> within the preceding five years, the Commission<\/span> may require the natural gas utility<\/span> to file an updated weighted average cost of capital, and the natural gas utility<\/span> may propose an updated weighted average cost of capital. The natural gas utility<\/span> may recover the external costs associated with establishing its updated weighted average cost of capital through the SAVE rider<\/span>. Such external costs shall include legal costs and consultant costs; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> A revenue conversion factor, including income taxes and an allowance for bad debt expense, shall be applied to the required operating income resulting from the eligible infrastructure replacement<\/span> costs<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> Depreciation. In calculating depreciation, the Commission<\/span> shall use the natural gas utility<\/span>’s current depreciation rates<\/span>; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Property taxes; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Carrying costs on the over- or under-recovery of the eligible infrastructure replacement<\/span> costs<\/span>. In calculating the carrying costs, the Commission<\/span> shall use the natural gas utility<\/span>’s regulatory capital structure as determined in subdivision 1 of the definition of eligible infrastructure replacement<\/span> costs<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

6.<\/span> Enhanced leak detection and repair program<\/span> costs. Such costs shall include the costs of operating an enhanced leak detection and repair program<\/span>.\n\t\t\t“Enhanced leak detection and repair program<\/span>” means a program that is designed to allow a natural gas utility<\/span> to deploy advanced leak detection technologies to more accurately identify active leaks as part of the natural gas utility<\/span>’s leak management program and to prioritize the repair of leaks that present a risk to safety or the environment. A natural gas utility<\/span> may amend<\/span> its SAVE plan<\/span> to include an enhanced leak detection and repair program<\/span> by filing an application to amend<\/span> its previously approved SAVE plan<\/span>, as set forth in subsection B of § 56-604<\/a>.\n\t\t\t“Investment<\/span>” means costs incurred on eligible infrastructure replacement<\/span> projects including planning, development, and construction costs; costs of infrastructure associated therewith; and an allowance for funds used during construction. In calculating the allowance for funds used during construction, the Commission<\/span> shall use the natural gas utility<\/span>’s actual regulatory capital structure as determined in subdivision 1 of the definition of eligible infrastructure replacement<\/span> costs<\/span>.\n\t\t\t“Natural gas utility<\/span>” means any investor-owned public service company<\/span> engaged in the business of furnishing natural gas service to the public.\n\t\t\t“Natural gas utility<\/span> facility replacement project<\/span>” means the replacement of storage, peak shaving, transmission or distribution facilities used in the delivery of natural gas, or supplemental or substitute forms of gas sources by a natural gas utility<\/span>.\n\t\t\t“SAVE” means Steps to Advance Virginia’s Energy Plan.\n\t\t\t“SAVE plan<\/span>” means a plan filed by a natural gas utility<\/span> that identifies proposed eligible infrastructure replacement<\/span> projects and a SAVE rider<\/span>.\n\t\t\t“SAVE rider<\/span>” means a recovery mechanism that will allow for recovery of the eligible infrastructure replacement<\/span> costs<\/span>, through a separate mechanism from the customer rates<\/span> established in a rate<\/span> case using the cost of service methodology set forth in § 56-235.2<\/a>, or a performance-based regulation plan authorized by § 56-235.6<\/a>. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEFINITIONS (\u00a7 56-603)\n\nAs used in this chapter:\n\t\t“Commission” means the State Corporation Commission.\n\t\t“Eligible infrastructure replacement” means natural gas utility\nfacility replacement projects that: (i) enhance safety or reliability by\nreducing system integrity risks associated with customer outages, corrosion,\nequipment failures, material failures, or natural forces; (ii) do not increase\nrevenues by directly connecting the infrastructure replacement to new customers;\n(iii) reduce or have the potential to reduce greenhouse gas emissions; (iv) are\ncommenced on or after January 1, 2010; and (v) are not included in the natural\ngas utility’s rate base in its most recent rate case using the cost of\nservice methodology set forth in \u00a7 56-235.2, or the natural gas utility’s\nrate base included in the rate base schedules filed with a performance-based\nregulation plan authorized by \u00a7 56-235.6, if the plan did not include the rate\nbase. “Eligible infrastructure replacement” includes natural gas\nutility facility replacement projects that are identified as a result of an\nenhanced leak detection and repair program.\n\t\t“Eligible infrastructure replacement costs” includes the\nfollowing:\n\n1. Return on the investment. In calculating the return on the investment, the\nCommission shall use the natural gas utility’s regulatory capital\nstructure as calculated utilizing the weighted average cost of capital,\nincluding the cost of debt and the cost of equity used in determining the\nnatural gas utility’s base rates in effect during the construction period\nof the eligible infrastructure replacement project. If the natural gas\nutility’s cost of capital underlying the base rates in effect at the time\nits proposed SAVE plan is filed has not been changed by order of the Commission\nwithin the preceding five years, the Commission may require the natural gas\nutility to file an updated weighted average cost of capital, and the natural gas\nutility may propose an updated weighted average cost of capital. The natural gas\nutility may recover the external costs associated with establishing its updated\nweighted average cost of capital through the SAVE rider. Such external costs\nshall include legal costs and consultant costs;\n\n2. A revenue conversion factor, including income taxes and an allowance for bad\ndebt expense, shall be applied to the required operating income resulting from\nthe eligible infrastructure replacement costs;\n\n3. Depreciation. In calculating depreciation, the Commission shall use the\nnatural gas utility’s current depreciation rates;\n\n4. Property taxes;\n\n5. Carrying costs on the over- or under-recovery of the eligible infrastructure\nreplacement costs. In calculating the carrying costs, the Commission shall use\nthe natural gas utility’s regulatory capital structure as determined in\nsubdivision 1 of the definition of eligible infrastructure replacement costs;\nand\n\n6. Enhanced leak detection and repair program costs. Such costs shall include\nthe costs of operating an enhanced leak detection and repair program.\n\t\t\t“Enhanced leak detection and repair program” means a program that\nis designed to allow a natural gas utility to deploy advanced leak detection\ntechnologies to more accurately identify active leaks as part of the natural gas\nutility’s leak management program and to prioritize the repair of leaks\nthat present a risk to safety or the environment. A natural gas utility may\namend its SAVE plan to include an enhanced leak detection and repair program by\nfiling an application to amend its previously approved SAVE plan, as set forth\nin subsection B of § 56-604.\n\t\t\t“Investment” means costs incurred on eligible infrastructure\nreplacement projects including planning, development, and construction costs;\ncosts of infrastructure associated therewith; and an allowance for funds used\nduring construction. In calculating the allowance for funds used during\nconstruction, the Commission shall use the natural gas utility’s actual\nregulatory capital structure as determined in subdivision 1 of the definition of\neligible infrastructure replacement costs.\n\t\t\t“Natural gas utility” means any investor-owned public service\ncompany engaged in the business of furnishing natural gas service to the public.\n\t\t\t“Natural gas utility facility replacement project” means the\nreplacement of storage, peak shaving, transmission or distribution facilities\nused in the delivery of natural gas, or supplemental or substitute forms of gas\nsources by a natural gas utility.\n\t\t\t“SAVE” means Steps to Advance Virginia’s Energy Plan.\n\t\t\t“SAVE plan” means a plan filed by a natural gas utility that\nidentifies proposed eligible infrastructure replacement projects and a SAVE\nrider.\n\t\t\t“SAVE rider” means a recovery mechanism that will allow for\nrecovery of the eligible infrastructure replacement costs, through a separate\nmechanism from the customer rates established in a rate case using the cost of\nservice methodology set forth in § 56-235.2, or a performance-based\nregulation plan authorized by § 56-235.6.\n\nHISTORY: 2010, cc. 142, 514; 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}}