{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-604.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-604.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-604.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-604.html"}],"law_id":61559,"edition_id":1,"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","history":"2010, cc. 142, 514; 2022, cc. 728, 759.","full_text":"A\n\nNotwithstanding any provisions of law to the contrary, a natural gas utility may file a SAVE plan as provided in this chapter. Such a plan shall provide for a timeline for completion of the proposed eligible infrastructure replacement projects, the estimated costs of the proposed eligible infrastructure projects, and a schedule for recovery of the related eligible infrastructure replacement costs through the SAVE rider, and demonstrate that the plan is prudent and reasonable. Such a plan may also include an enhanced leak detection and repair program, which shall include a description and an estimate of the associated enhanced leak detection and repair program costs. The Commission may approve such a plan after such notice and opportunity for hearing as the Commission may prescribe, subject to the provisions of this chapter.B\n\nThe Commission shall approve or deny, within 180 days, a natural gas utility’s initial application for a SAVE plan. A plan filed pursuant to this section shall not require the filing of rate case schedules. The Commission shall approve or deny, within 120 days, a natural gas utility’s application to amend a previously approved plan. If the Commission denies such a plan or amendment, it shall set forth with specificity the reasons for such denial, and the utility shall have the right to refile, without prejudice, an amended plan or amendment within 60 days, and the Commission shall thereafter have 60 days to approve or deny the amended plan or amendment. The time period for Commission review provided for in this subsection shall not apply if the SAVE plan is filed in conjunction with 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.C\n\nAny SAVE plan and any SAVE rider that is submitted to and approved by the Commission shall be allocated and charged in accordance with appropriate cost causation principles in order to avoid any undue cross-subsidization between rate classes.D\n\nNo other revenue requirement or ratemaking issues may be examined in consideration of the application filed pursuant to the provisions of this chapter.E\n\nAt the end of each 12-month period the SAVE rider is in effect, the natural gas utility shall reconcile the difference between the recognized eligible infrastructure replacement costs and the amounts recovered under the SAVE rider, and shall submit the reconciliation and a proposed SAVE rider adjustment to the Commission to recover or refund the difference, as appropriate, through an adjustment to the SAVE rider. The Commission shall approve or deny, within 90 days, a natural gas utility’s proposed SAVE rider adjustment.F\n\nA natural gas utility that has implemented a SAVE rider pursuant to this chapter shall file revised rate schedules to reset the SAVE rider to zero, when new base rates and charges that incorporate eligible infrastructure replacement costs previously reflected in the currently effective SAVE rider become effective for the natural gas utility, following a Commission order establishing customer rates 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.G\n\nCosts recovered pursuant to this chapter shall be in addition to all other costs that the natural gas utility is permitted to recover, shall not be considered an offset to other Commission-approved costs of service or revenue requirements, and shall not be included in any computation relative to a performance-based regulation plan revenue-sharing mechanism. Further, if the Commission approves (i) an updated weighted average cost of capital for use in calculating the return on investment, (ii) the carrying costs on the over- or under-recovery of the eligible infrastructure replacement costs, (iii) the allowance for funds used during construction, or (iv) any combination thereof, such weighted average cost of capital shall be used only for the purpose of the eligible infrastructure replacement costs for the SAVE rider and shall not be used for any purpose in any other proceeding.","order_by":null,"text":{"0":{"id":224791,"text":"Notwithstanding any provisions of law to the contrary, a natural gas utility may file a SAVE plan as provided in this chapter. Such a plan shall provide for a timeline for completion of the proposed eligible infrastructure replacement projects, the estimated costs of the proposed eligible infrastructure projects, and a schedule for recovery of the related eligible infrastructure replacement costs through the SAVE rider, and demonstrate that the plan is prudent and reasonable. Such a plan may also include an enhanced leak detection and repair program, which shall include a description and an estimate of the associated enhanced leak detection and repair program costs. The Commission may approve such a plan after such notice and opportunity for hearing as the Commission may prescribe, subject to the provisions of this chapter.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":224792,"text":"The Commission shall approve or deny, within 180 days, a natural gas utility’s initial application for a SAVE plan. A plan filed pursuant to this section shall not require the filing of rate case schedules. The Commission shall approve or deny, within 120 days, a natural gas utility’s application to amend a previously approved plan. If the Commission denies such a plan or amendment, it shall set forth with specificity the reasons for such denial, and the utility shall have the right to refile, without prejudice, an amended plan or amendment within 60 days, and the Commission shall thereafter have 60 days to approve or deny the amended plan or amendment. The time period for Commission review provided for in this subsection shall not apply if the SAVE plan is filed in conjunction with 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":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":224793,"text":"Any SAVE plan and any SAVE rider that is submitted to and approved by the Commission shall be allocated and charged in accordance with appropriate cost causation principles in order to avoid any undue cross-subsidization between rate classes.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":224794,"text":"No other revenue requirement or ratemaking issues may be examined in consideration of the application filed pursuant to the provisions of this chapter.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":224795,"text":"At the end of each 12-month period the SAVE rider is in effect, the natural gas utility shall reconcile the difference between the recognized eligible infrastructure replacement costs and the amounts recovered under the SAVE rider, and shall submit the reconciliation and a proposed SAVE rider adjustment to the Commission to recover or refund the difference, as appropriate, through an adjustment to the SAVE rider. The Commission shall approve or deny, within 90 days, a natural gas utility’s proposed SAVE rider adjustment.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":224796,"text":"A natural gas utility that has implemented a SAVE rider pursuant to this chapter shall file revised rate schedules to reset the SAVE rider to zero, when new base rates and charges that incorporate eligible infrastructure replacement costs previously reflected in the currently effective SAVE rider become effective for the natural gas utility, following a Commission order establishing customer rates 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":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":224797,"text":"Costs recovered pursuant to this chapter shall be in addition to all other costs that the natural gas utility is permitted to recover, shall not be considered an offset to other Commission-approved costs of service or revenue requirements, and shall not be included in any computation relative to a performance-based regulation plan revenue-sharing mechanism. Further, if the Commission approves (i) an updated weighted average cost of capital for use in calculating the return on investment, (ii) the carrying costs on the over- or under-recovery of the eligible infrastructure replacement costs, (iii) the allowance for funds used during construction, or (iv) any combination thereof, such weighted average cost of capital shall be used only for the purpose of the eligible infrastructure replacement costs for the SAVE rider and shall not be used for any purpose in any other proceeding.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F"}},"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}],"previous_section":{"id":60555,"structure_id":15753,"section_number":"56-603","catch_line":"Definitions","url":"\/56-603\/","token":"56\/26\/56-603","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-604\/","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":[{"id":60555,"section_number":"56-603","catch_line":"Definitions","order_by":null,"url":"\/56-603\/"}],"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\/"}],"permalink":{"id":250893,"object_type":"law","relational_id":61559,"identifier":"56-604","token":"56\/26\/56-604","url":"\/56-604\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-604\/","token":"56\/26\/56-604","dublin_core":{"Title":"Filing of petition with Commission to establish or amend a SAVE plan; recovery of certain costs; procedure","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-604","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Notwithstanding any provisions of law<\/span> to the contrary, a natural gas utility<\/span> may file a SAVE plan<\/span> as provided in this chapter. Such a plan shall provide for a timeline for completion of the proposed eligible infrastructure replacement<\/span> projects, the estimated costs of the proposed eligible infrastructure projects, and a schedule for recovery of the related eligible infrastructure replacement<\/span> costs<\/span> through the SAVE rider<\/span>, and demonstrate that the plan is prudent and reasonable. Such a plan may also include an enhanced leak detection and repair program<\/span>, which shall include a description and an estimate of the associated enhanced leak detection and repair program<\/span> costs. The Commission<\/span> may approve such a plan after such notice and opportunity for hearing<\/span> as the Commission<\/span> may prescribe, subject to the provisions of this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The Commission<\/span> shall approve or deny, within 180 days, a natural gas utility<\/span>’s initial application for a SAVE plan<\/span>. A plan filed pursuant to this section shall not require the filing of rate<\/span> case schedules<\/span>. The Commission<\/span> shall approve or deny, within 120 days, a natural gas utility<\/span>’s application to amend<\/span> a previously approved plan. If the Commission<\/span> denies such a plan or amendment, it shall set forth with specificity the reasons for such denial, and the utility shall have the right to refile, without prejudice, an amended plan or amendment within 60 days, and the Commission<\/span> shall thereafter have 60 days to approve or deny the amended plan or amendment. The time period for Commission<\/span> review provided for in this subsection shall not apply if the SAVE plan<\/span> is filed in conjunction with 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>\n\t\t\t\t\t\t

C.<\/span> Any SAVE plan<\/span> and any SAVE rider<\/span> that is submitted to and approved by the Commission<\/span> shall be allocated and charged in accordance with appropriate cost causation principles in order<\/span> to avoid any undue cross-subsidization between rate<\/span> classes. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

D.<\/span> No other revenue requirement or ratemaking issues<\/span> may be examined in consideration of the application filed pursuant to the provisions of this chapter. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

E.<\/span> At the end of each 12-month period the SAVE rider<\/span> is in effect, the natural gas utility<\/span> shall reconcile the difference between the recognized eligible infrastructure replacement<\/span> costs<\/span> and the amounts recovered under the SAVE rider<\/span>, and shall submit the reconciliation and a proposed SAVE rider<\/span> adjustment to the Commission<\/span> to recover or refund the difference, as appropriate, through an adjustment to the SAVE rider<\/span>. The Commission<\/span> shall approve or deny, within 90 days, a natural gas utility<\/span>’s proposed SAVE rider<\/span> adjustment. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> A natural gas utility<\/span> that has implemented a SAVE rider<\/span> pursuant to this chapter shall file revised rate<\/span> schedules<\/span> to reset the SAVE rider<\/span> to zero, when new base rates<\/span> and charges that incorporate eligible infrastructure replacement<\/span> costs<\/span> previously reflected in the currently effective SAVE rider<\/span> become effective for the natural gas utility<\/span>, following a Commission<\/span> order<\/span> establishing customer rates<\/span> 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>\n\t\t\t\t\t\t

G.<\/span> Costs recovered pursuant to this chapter shall be in addition to all other costs that the natural gas utility<\/span> is permitted to recover, shall not be considered an offset to other Commission<\/span>-approved costs of service or revenue requirements, and shall not be included in any computation relative to a performance-based regulation plan revenue-sharing mechanism. Further, if the Commission<\/span> approves (i) an updated weighted average cost of capital for use in calculating the return on investment<\/span>, (ii) the carrying costs on the over- or under-recovery of the eligible infrastructure replacement<\/span> costs<\/span>, (iii) the allowance for funds used during construction, or (iv) any combination thereof, such weighted average cost of capital shall be used only for the purpose of the eligible infrastructure replacement<\/span> costs<\/span> for the SAVE rider<\/span> and shall not be used for any purpose in any other proceeding. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nFILING OF PETITION WITH COMMISSION TO ESTABLISH OR AMEND A SAVE PLAN; RECOVERY\nOF CERTAIN COSTS; PROCEDURE (\u00a7 56-604)\n\nA. Notwithstanding any provisions of law to the contrary, a natural gas utility\nmay file a SAVE plan as provided in this chapter. Such a plan shall provide for\na timeline for completion of the proposed eligible infrastructure replacement\nprojects, the estimated costs of the proposed eligible infrastructure projects,\nand a schedule for recovery of the related eligible infrastructure replacement\ncosts through the SAVE rider, and demonstrate that the plan is prudent and\nreasonable. Such a plan may also include an enhanced leak detection and repair\nprogram, which shall include a description and an estimate of the associated\nenhanced leak detection and repair program costs. The Commission may approve\nsuch a plan after such notice and opportunity for hearing as the Commission may\nprescribe, subject to the provisions of this chapter.\n\nB. The Commission shall approve or deny, within 180 days, a natural gas\nutility’s initial application for a SAVE plan. A plan filed pursuant to\nthis section shall not require the filing of rate case schedules. The Commission\nshall approve or deny, within 120 days, a natural gas utility’s\napplication to amend a previously approved plan. If the Commission denies such a\nplan or amendment, it shall set forth with specificity the reasons for such\ndenial, and the utility shall have the right to refile, without prejudice, an\namended plan or amendment within 60 days, and the Commission shall thereafter\nhave 60 days to approve or deny the amended plan or amendment. The time period\nfor Commission review provided for in this subsection shall not apply if the\nSAVE plan is filed in conjunction with a rate case using the cost of service\nmethodology set forth in § 56-235.2, or a performance-based regulation plan\nauthorized by § 56-235.6.\n\nC. Any SAVE plan and any SAVE rider that is submitted to and approved by the\nCommission shall be allocated and charged in accordance with appropriate cost\ncausation principles in order to avoid any undue cross-subsidization between\nrate classes.\n\nD. No other revenue requirement or ratemaking issues may be examined in\nconsideration of the application filed pursuant to the provisions of this\nchapter.\n\nE. At the end of each 12-month period the SAVE rider is in effect, the natural\ngas utility shall reconcile the difference between the recognized eligible\ninfrastructure replacement costs and the amounts recovered under the SAVE rider,\nand shall submit the reconciliation and a proposed SAVE rider adjustment to the\nCommission to recover or refund the difference, as appropriate, through an\nadjustment to the SAVE rider. The Commission shall approve or deny, within 90\ndays, a natural gas utility’s proposed SAVE rider adjustment.\n\nF. A natural gas utility that has implemented a SAVE rider pursuant to this\nchapter shall file revised rate schedules to reset the SAVE rider to zero, when\nnew base rates and charges that incorporate eligible infrastructure replacement\ncosts previously reflected in the currently effective SAVE rider become\neffective for the natural gas utility, following a Commission order establishing\ncustomer rates in a rate case using the cost of service methodology set forth in\n§ 56-235.2, or a performance-based regulation plan authorized by §\n56-235.6.\n\nG. Costs recovered pursuant to this chapter shall be in addition to all other\ncosts that the natural gas utility is permitted to recover, shall not be\nconsidered an offset to other Commission-approved costs of service or revenue\nrequirements, and shall not be included in any computation relative to a\nperformance-based regulation plan revenue-sharing mechanism. Further, if the\nCommission approves (i) an updated weighted average cost of capital for use in\ncalculating the return on investment, (ii) the carrying costs on the over- or\nunder-recovery of the eligible infrastructure replacement costs, (iii) the\nallowance for funds used during construction, or (iv) any combination thereof,\nsuch weighted average cost of capital shall be used only for the purpose of the\neligible infrastructure replacement costs for the SAVE rider and shall not be\nused for any purpose in any other proceeding.\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}}