{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-607.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-607.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-607.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-607.html"}],"law_id":70852,"edition_id":1,"section_id":70852,"structure_id":16545,"section_number":"56-607","catch_line":"Application and administration","history":"2012, cc. 51, 202; 2013, c. 284; 2017, cc. 253, 780.","full_text":"A\n\nA natural gas utility shall account for the actual monthly EIDC incurred on the cumulative investment in eligible infrastructure in excess of any aid to construction contributed by the developer of the project or the person that will occupy the proposed project as a deferred cost until new base rates and charges that incorporate EIDC become effective for the natural gas utility, following a Commission order establishing or confirming 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. Such deferred cost shall be accounted for as a regulatory asset and shall not be subject to write-off or write-down by the Commission in an earnings test filing made pursuant to Commission rules governing utility rate increases and annual informational filings.B\n\nThe investment for all qualifying projects of a natural gas utility in any year shall not exceed one percent of the natural gas utility’s net plant investment that was utilized in establishing base rates in the natural gas utility’s most recent rate case. The provisions of this subsection shall not apply, however, to any natural gas utility serving fewer than 2,000 residential customers and fewer than 350 commercial and industrial customers in the year in which it makes an investment for qualifying projects.C\n\nDeferral of costs recovered pursuant to this chapter shall have no effect on the recovery of any other cost by the natural gas utility and shall not be included in any computation relative to a performance-based regulation plan revenue-sharing mechanism.","order_by":null,"text":{"0":{"id":255495,"text":"A natural gas utility shall account for the actual monthly EIDC incurred on the cumulative investment in eligible infrastructure in excess of any aid to construction contributed by the developer of the project or the person that will occupy the proposed project as a deferred cost until new base rates and charges that incorporate EIDC become effective for the natural gas utility, following a Commission order establishing or confirming 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. Such deferred cost shall be accounted for as a regulatory asset and shall not be subject to write-off or write-down by the Commission in an earnings test filing made pursuant to Commission rules governing utility rate increases and annual informational filings.","type":"section","prefixes":["A"],"prefix":"A","entire_prefix":"A","prefix_anchor":"A","level":1,"next_prefix":"B"},"1":{"id":255496,"text":"The investment for all qualifying projects of a natural gas utility in any year shall not exceed one percent of the natural gas utility’s net plant investment that was utilized in establishing base rates in the natural gas utility’s most recent rate case. The provisions of this subsection shall not apply, however, to any natural gas utility serving fewer than 2,000 residential customers and fewer than 350 commercial and industrial customers in the year in which it makes an investment for qualifying projects.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":255497,"text":"Deferral of costs recovered pursuant to this chapter shall have no effect on the recovery of any other cost by the natural gas utility and shall not be included in any computation relative to a performance-based regulation plan revenue-sharing mechanism.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B"}},"ancestry":[{"id":16545,"edition_id":1,"name":"Qualified Projects of Natural Gas Utilities","identifier":"27","label":"chapter","depth":2,"order_by":1,"parent_id":12881,"metadata":{},"date_created":"2026-06-26 04:23:24","date_modified":"2026-06-26 04:23:24","permalink":{"id":250897,"object_type":"structure","relational_id":16545,"identifier":"27","token":"56\/27","url":"\/56\/27\/","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":86694,"structure_id":16545,"section_number":"56-605","catch_line":"Definitions","url":"\/56-605\/","token":"56\/27\/56-605","metadata":false},{"id":83776,"structure_id":16545,"section_number":"56-606","catch_line":"Infrastructure development","url":"\/56-606\/","token":"56\/27\/56-606","metadata":false},{"id":70852,"structure_id":16545,"section_number":"56-607","catch_line":"Application and administration","url":"\/56-607\/","token":"56\/27\/56-607","metadata":false},{"id":80798,"structure_id":16545,"section_number":"56-608","catch_line":"Certain contracts deemed prudent and reasonable","url":"\/56-608\/","token":"56\/27\/56-608","metadata":false},{"id":86601,"structure_id":16545,"section_number":"56-609","catch_line":"Upstream natural gas supply infrastructure projects","url":"\/56-609\/","token":"56\/27\/56-609","metadata":false}],"previous_section":{"id":83776,"structure_id":16545,"section_number":"56-606","catch_line":"Infrastructure development","url":"\/56-606\/","token":"56\/27\/56-606","metadata":false},"next_section":{"id":80798,"structure_id":16545,"section_number":"56-608","catch_line":"Certain contracts deemed prudent and reasonable","url":"\/56-608\/","token":"56\/27\/56-608","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-607\/","history_text":"

This law was first created in 2012. The record of its establishment is cataloged in chapters 51<\/a> and 202<\/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 2 times. 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. Those modifications are as follows: in 2013, chapter 284<\/a>; in 2017, chapters 253<\/a> and 780<\/a>.<\/p>","references":[{"id":83776,"section_number":"56-606","catch_line":"Infrastructure development","order_by":null,"url":"\/56-606\/"}],"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\/"}],"permalink":{"id":250907,"object_type":"law","relational_id":70852,"identifier":"56-607","token":"56\/27\/56-607","url":"\/56-607\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-607\/","token":"56\/27\/56-607","dublin_core":{"Title":"Application and administration","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-607","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> A natural gas utility<\/span> shall account for the actual monthly EIDC incurred on the cumulative investment<\/span> in eligible infrastructure<\/span> in excess of any aid to construction contributed by the developer of the project or the person<\/span> that will occupy the proposed project as a deferred cost until new base rates<\/span> and charges that incorporate EIDC become effective for the natural gas utility<\/span>, following a Commission<\/span> order<\/span> establishing or confirming 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>. Such deferred cost shall be accounted for as a regulatory asset and shall not be subject to write-off or write-down by the Commission<\/span> in an earnings test filing made pursuant to Commission<\/span> rules governing utility rate<\/span> increases and annual informational filings. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

B.<\/span> The investment<\/span> for all qualifying projects<\/span> of a natural gas utility<\/span> in any year shall not exceed one percent of the natural gas utility<\/span>’s net plant investment<\/span> that was utilized in establishing base rates<\/span> in the natural gas utility<\/span>’s most recent rate<\/span> case. The provisions of this subsection shall not apply, however, to any natural gas utility<\/span> serving fewer than 2,000 residential customers and fewer than 350 commercial and industrial customers in the year in which it makes an investment<\/span> for qualifying projects<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Deferral of costs recovered pursuant to this chapter shall have no effect on the recovery of any other cost by the natural gas utility<\/span> and shall not be included in any computation relative to a performance-based regulation plan revenue-sharing mechanism. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nAPPLICATION AND ADMINISTRATION (\u00a7 56-607)\n\nA. A natural gas utility shall account for the actual monthly EIDC incurred on\nthe cumulative investment in eligible infrastructure in excess of any aid to\nconstruction contributed by the developer of the project or the person that will\noccupy the proposed project as a deferred cost until new base rates and charges\nthat incorporate EIDC become effective for the natural gas utility, following a\nCommission order establishing or confirming customer rates in a rate case using\nthe cost of service methodology set forth in § 56-235.2 or a\nperformance-based regulation plan authorized by § 56-235.6. Such deferred\ncost shall be accounted for as a regulatory asset and shall not be subject to\nwrite-off or write-down by the Commission in an earnings test filing made\npursuant to Commission rules governing utility rate increases and annual\ninformational filings.\n\nB. The investment for all qualifying projects of a natural gas utility in any\nyear shall not exceed one percent of the natural gas utility’s net plant\ninvestment that was utilized in establishing base rates in the natural gas\nutility’s most recent rate case. The provisions of this subsection shall\nnot apply, however, to any natural gas utility serving fewer than 2,000\nresidential customers and fewer than 350 commercial and industrial customers in\nthe year in which it makes an investment for qualifying projects.\n\nC. Deferral of costs recovered pursuant to this chapter shall have no effect on\nthe recovery of any other cost by the natural gas utility and shall not be\nincluded in any computation relative to a performance-based regulation plan\nrevenue-sharing mechanism.\n\nHISTORY: 2012, cc. 51, 202; 2013, c. 284; 2017, cc. 253, 780.","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}}