{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-610.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-610.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-610.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-610.html"}],"law_id":63713,"edition_id":1,"section_id":63713,"structure_id":16046,"section_number":"56-610","catch_line":"Definitions","history":"2015, cc. 28, 231.","full_text":"As used in this chapter, unless the context requires otherwise:\n\t\t“Affected customer” means any customer of a natural gas utility receiving service at a premises served by eligible system expansion infrastructure. Any customer receiving natural gas service for which the natural gas utility has received the entire amount required to cover the cost of the eligible system expansion infrastructure as a contribution in aid to construction shall not be considered an affected customer.\n\t\t“Eligible expansion investment” means that portion of the total capital investment made by a natural gas utility in constructing eligible system expansion infrastructure that is in excess of those costs that would be considered economic under a natural gas utility’s economic test, net of any contributions in aid of construction, up to the maximum level of investment per affected customer specified in a system expansion plan.\n\t\t“Eligible system expansion infrastructure” means natural gas main pipelines and associated facilities, including service lines, meters, and other pertinent facilities, that are constructed and operated by a natural gas utility to deliver natural gas service to affected customers located in an unserved area.\n\t\t“Eligible system expansion infrastructure costs” includes:\n\n1\n\nReturn on investment. In calculating the return on investment, the Commission shall use the natural gas utility’s weighted average cost of capital, including the cost of debt and equity, based on its regulatory capital structure used in determining the natural gas utility’s base rates in effect during the construction period of the eligible system expansion, applied to eligible expansion investment. The investment, as adjusted for the reserve for depreciation and accumulated deferred income taxes, shall be multiplied by the weighted average cost of capital to determine the return on investment;2\n\nA revenue conversion factor, which factor, including income taxes and an allowance for bad debt expense, shall be applied to the required operating income resulting from the eligible system infrastructure expansion costs;3\n\nEducation and outreach expense. Such expense shall include costs for education and outreach for increasing program awareness;4\n\nDepreciation, the calculation of which by the Commission shall be based on the natural gas utility’s current depreciation rates applied to eligible expansion investment; and5\n\nProperty taxes attributable to eligible expansion investment.\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“System expansion plan” means a plan filed by a natural gas utility that identifies the level of eligible system expansion infrastructure costs that are projected to be incurred over the term of the plan and provides the calculation of a system expansion rider.\n\t\t\t“System expansion rider” means a recovery mechanism that will allow for recovery of the eligible system expansion infrastructure costs from affected customers, 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. A system expansion rider shall be designed to recover eligible system expansion infrastructure costs.","order_by":null,"text":{"0":{"id":232098,"text":"As used in this chapter, unless the context requires otherwise:\n\t\t“Affected customer” means any customer of a natural gas utility receiving service at a premises served by eligible system expansion infrastructure. Any customer receiving natural gas service for which the natural gas utility has received the entire amount required to cover the cost of the eligible system expansion infrastructure as a contribution in aid to construction shall not be considered an affected customer.\n\t\t“Eligible expansion investment” means that portion of the total capital investment made by a natural gas utility in constructing eligible system expansion infrastructure that is in excess of those costs that would be considered economic under a natural gas utility’s economic test, net of any contributions in aid of construction, up to the maximum level of investment per affected customer specified in a system expansion plan.\n\t\t“Eligible system expansion infrastructure” means natural gas main pipelines and associated facilities, including service lines, meters, and other pertinent facilities, that are constructed and operated by a natural gas utility to deliver natural gas service to affected customers located in an unserved area.\n\t\t“Eligible system expansion infrastructure costs” includes:","type":"section","prefixes":[""],"prefix":"","entire_prefix":"","prefix_anchor":"","level":1,"next_prefix":"1"},"1":{"id":232099,"text":"Return on investment. In calculating the return on investment, the Commission shall use the natural gas utility’s weighted average cost of capital, including the cost of debt and equity, based on its regulatory capital structure used in determining the natural gas utility’s base rates in effect during the construction period of the eligible system expansion, applied to eligible expansion investment. The investment, as adjusted for the reserve for depreciation and accumulated deferred income taxes, shall be multiplied by the weighted average cost of capital to determine the return on investment;","type":"section","prefixes":["1"],"prefix":"1","entire_prefix":"1","prefix_anchor":"1","level":1,"prior_prefix":"","next_prefix":"2"},"2":{"id":232100,"text":"A revenue conversion factor, which factor, including income taxes and an allowance for bad debt expense, shall be applied to the required operating income resulting from the eligible system infrastructure expansion costs;","type":"section","prefixes":["2"],"prefix":"2","entire_prefix":"2","prefix_anchor":"2","level":1,"prior_prefix":"1","next_prefix":"3"},"3":{"id":232101,"text":"Education and outreach expense. Such expense shall include costs for education and outreach for increasing program awareness;","type":"section","prefixes":["3"],"prefix":"3","entire_prefix":"3","prefix_anchor":"3","level":1,"prior_prefix":"2","next_prefix":"4"},"4":{"id":232102,"text":"Depreciation, the calculation of which by the Commission shall be based on the natural gas utility’s current depreciation rates applied to eligible expansion investment; and","type":"section","prefixes":["4"],"prefix":"4","entire_prefix":"4","prefix_anchor":"4","level":1,"prior_prefix":"3","next_prefix":"5"},"5":{"id":232103,"text":"Property taxes attributable to eligible expansion investment.\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“System expansion plan” means a plan filed by a natural gas utility that identifies the level of eligible system expansion infrastructure costs that are projected to be incurred over the term of the plan and provides the calculation of a system expansion rider.\n\t\t\t“System expansion rider” means a recovery mechanism that will allow for recovery of the eligible system expansion infrastructure costs from affected customers, 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. A system expansion rider shall be designed to recover eligible system expansion infrastructure costs.","type":"section","prefixes":["5"],"prefix":"5","entire_prefix":"5","prefix_anchor":"5","level":1,"prior_prefix":"4"}},"ancestry":[{"id":16046,"edition_id":1,"name":"Natural Gas System Expansion Infrastructure","identifier":"28","label":"chapter","depth":2,"order_by":1,"parent_id":12881,"metadata":{},"date_created":"2026-06-26 04:04:37","date_modified":"2026-06-26 04:04:37","permalink":{"id":250919,"object_type":"structure","relational_id":16046,"identifier":"28","token":"56\/28","url":"\/56\/28\/","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":63713,"structure_id":16046,"section_number":"56-610","catch_line":"Definitions","url":"\/56-610\/","token":"56\/28\/56-610","metadata":false},{"id":81639,"structure_id":16046,"section_number":"56-611","catch_line":"Petition to establish or amend expansion plan; cost recovery; procedures","url":"\/56-611\/","token":"56\/28\/56-611","metadata":false},{"id":81463,"structure_id":16046,"section_number":"56-612","catch_line":"Deferral of eligible system expansion infrastructure costs","url":"\/56-612\/","token":"56\/28\/56-612","metadata":false},{"id":62958,"structure_id":16046,"section_number":"56-613","catch_line":"Construction project compliance","url":"\/56-613\/","token":"56\/28\/56-613","metadata":false}],"next_section":{"id":81639,"structure_id":16046,"section_number":"56-611","catch_line":"Petition to establish or amend expansion plan; cost recovery; procedures","url":"\/56-611\/","token":"56\/28\/56-611","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-610\/","history_text":"

This law was first created in 2015. The record of its establishment is cataloged in chapters 28<\/a> and 231<\/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":[{"id":67388,"section_number":"59.1-607","catch_line":"Definitions","order_by":null,"url":"\/59.1-607\/"}],"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":250921,"object_type":"law","relational_id":63713,"identifier":"56-610","token":"56\/28\/56-610","url":"\/56-610\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-610\/","token":"56\/28\/56-610","dublin_core":{"Title":"Definitions","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-610","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

As used in this chapter, unless the context requires otherwise:\n\t\t“Affected customer<\/span>” means any customer of a natural gas utility<\/span> receiving service at a premises served by eligible system expansion infrastructure<\/span>. Any customer receiving natural gas service for which the natural gas utility<\/span> has received the entire amount required to cover the cost of the eligible system expansion infrastructure<\/span> as a contribution in aid to construction shall not be considered an affected customer<\/span>.\n\t\t“Eligible expansion investment<\/span>” means that portion of the total capital investment made by a natural gas utility<\/span> in constructing eligible system expansion infrastructure<\/span> that is in excess of those costs that would be considered economic under a natural gas utility<\/span>’s economic test, net of any contributions in aid of construction, up to the maximum level of investment per affected customer<\/span> specified in a system expansion plan<\/span>.\n\t\t“Eligible system expansion infrastructure<\/span>” means natural gas main pipelines and associated facilities, including service lines, meters, and other pertinent facilities, that are constructed and operated by a natural gas utility<\/span> to deliver natural gas service to affected customers<\/span> located in an unserved area.\n\t\t“Eligible system expansion infrastructure<\/span> costs” includes:<\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> Return on investment. In calculating the return on investment, the Commission<\/span> shall use the natural gas utility<\/span>’s weighted average cost of capital, including the cost of debt and equity<\/span>, based on its regulatory capital structure used in determining the natural gas utility<\/span>’s base rates<\/span> in effect during the construction period of the eligible system expansion, applied to eligible expansion investment<\/span>. The investment, as adjusted for the reserve for depreciation and accumulated deferred income taxes, shall be multiplied by the weighted average cost of capital to determine the return on investment; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

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

3.<\/span> Education and outreach expense. Such expense shall include costs for education and outreach for increasing program awareness; <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

4.<\/span> Depreciation, the calculation of which by the Commission<\/span> shall be based on the natural gas utility<\/span>’s current depreciation rates<\/span> applied to eligible expansion investment<\/span>; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

5.<\/span> Property taxes attributable to eligible expansion investment<\/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“System expansion plan<\/span>” means a plan filed by a natural gas utility<\/span> that identifies the level of eligible system expansion infrastructure<\/span> costs that are projected to be incurred over the term of the plan and provides the calculation of a system expansion rider<\/span>.\n\t\t\t“System expansion rider<\/span>” means a recovery mechanism that will allow for recovery of the eligible system expansion infrastructure<\/span> costs from affected customers<\/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>. A system expansion rider<\/span> shall be designed to recover eligible system expansion infrastructure<\/span> costs. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nDEFINITIONS (\u00a7 56-610)\n\nAs used in this chapter, unless the context requires otherwise:\n\t\t“Affected customer” means any customer of a natural gas utility\nreceiving service at a premises served by eligible system expansion\ninfrastructure. Any customer receiving natural gas service for which the natural\ngas utility has received the entire amount required to cover the cost of the\neligible system expansion infrastructure as a contribution in aid to\nconstruction shall not be considered an affected customer.\n\t\t“Eligible expansion investment” means that portion of the total\ncapital investment made by a natural gas utility in constructing eligible system\nexpansion infrastructure that is in excess of those costs that would be\nconsidered economic under a natural gas utility’s economic test, net of\nany contributions in aid of construction, up to the maximum level of investment\nper affected customer specified in a system expansion plan.\n\t\t“Eligible system expansion infrastructure” means natural gas main\npipelines and associated facilities, including service lines, meters, and other\npertinent facilities, that are constructed and operated by a natural gas utility\nto deliver natural gas service to affected customers located in an unserved\narea.\n\t\t“Eligible system expansion infrastructure costs” includes:\n\n1. Return on investment. In calculating the return on investment, the Commission\nshall use the natural gas utility’s weighted average cost of capital,\nincluding the cost of debt and equity, based on its regulatory capital structure\nused in determining the natural gas utility’s base rates in effect during\nthe construction period of the eligible system expansion, applied to eligible\nexpansion investment. The investment, as adjusted for the reserve for\ndepreciation and accumulated deferred income taxes, shall be multiplied by the\nweighted average cost of capital to determine the return on investment;\n\n2. A revenue conversion factor, which factor, including income taxes and an\nallowance for bad debt expense, shall be applied to the required operating\nincome resulting from the eligible system infrastructure expansion costs;\n\n3. Education and outreach expense. Such expense shall include costs for\neducation and outreach for increasing program awareness;\n\n4. Depreciation, the calculation of which by the Commission shall be based on\nthe natural gas utility’s current depreciation rates applied to eligible\nexpansion investment; and\n\n5. Property taxes attributable to eligible expansion investment.\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“System expansion plan” means a plan filed by a natural gas\nutility that identifies the level of eligible system expansion infrastructure\ncosts that are projected to be incurred over the term of the plan and provides\nthe calculation of a system expansion rider.\n\t\t\t“System expansion rider” means a recovery mechanism that will\nallow for recovery of the eligible system expansion infrastructure costs from\naffected customers, through a separate mechanism from the customer rates\nestablished 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. A system expansion rider shall be designed to recover eligible system\nexpansion infrastructure costs.\n\nHISTORY: 2015, cc. 28, 231.","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}}