{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-611.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-611.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-611.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-611.html"}],"law_id":81639,"edition_id":1,"section_id":81639,"structure_id":16046,"section_number":"56-611","catch_line":"Petition to establish or amend expansion plan; cost recovery; procedures","history":"2015, cc. 28, 231.","full_text":"A\n\nNotwithstanding the provisions of &#xA7; 56-235.4, a natural gas utility may file a system expansion plan as provided in this chapter. Such a plan shall provide for (i) a business rationale explaining that the expansion plan is in the public interest and of benefit to the affected customers served under the system expansion plan, (ii) the period the system expansion rider is proposed to be in effect, (iii) the estimated eligible system expansion infrastructure costs and a maximum level of investment to be included in the program, (iv) a maximum level of investment per affected customer, (v) the projected number of customers by rate class that will be served by the proposed investment, (vi) a schedule for recovery of the related eligible system expansion infrastructure costs through a system expansion rider, (vii) a methodology for deferral of unrecovered eligible system expansion infrastructure costs, calculated as determined pursuant to &#xA7; 56-612, (viii) the class or classes of customers eligible to participate in a system expansion plan, and (ix) the period of time that a customer at a premises receiving natural gas service from eligible system expansion infrastructure will be considered an affected customer for purposes of this chapter. The natural gas utility shall demonstrate that the system expansion plan is prudent and reasonable. The Commission may approve such a plan after such notice and opportunity for a hearing as the Commission may prescribe, subject to the provisions of this chapter.B\n\nThe Commission shall approve a natural gas utility&#8217;s system expansion plan if it finds that the plan (i) includes the components set forth in subsection A, (ii) provides for the recovery of eligible system expansion infrastructure costs in accordance with the provisions of this chapter, and (iii) is prudent and reasonable. In a final order approving a natural gas utility&#8217;s system expansion plan, the Commission may require the natural gas utility to file an annual report with the Commission demonstrating whether the natural gas utility&#8217;s recovery of eligible system expansion infrastructure costs pursuant to its system expansion plan complies with the requirements of clause (ii). Upon a finding by the Commission that a natural gas utility&#8217;s system expansion plan does not comply with the requirements of clause (ii), the Commission may direct, by order, the natural gas utility to exclude from deferral any unrecovered costs in excess of costs that may be recovered by a system expansion rider.C\n\nThe Commission shall act on a natural gas utility&#8217;s initial application for a system expansion plan within 180 days. Within that time period, the Commission shall approve, deny, or modify the plan as required by the public interest. A plan filed pursuant to this section shall not require the filing of rate schedules typically filed in conjunction with a rate case using the cost-of-service methodology set forth in &#xA7; 56-235.2 or a performance-based rate regulation plan authorized by &#xA7; 56-235.6. The Commission shall act on a natural gas utility&#8217;s application to amend a previously approved plan within 120 days. Within that time period, the Commission shall approve, deny, or modify the amended plan as required by the public interest. If the Commission denies such a plan or amendment or any part thereof, 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 90 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 system expansion plan is filed in conjunction with a rate case using the cost-of-service methodology set forth in &#xA7; 56-235.2 or a performance-based rate regulation plan authorized by &#xA7; 56-235.6.D\n\nAny system expansion plan and any system expansion rider that is submitted to and approved by the Commission shall allocate and charge costs in accordance with the appropriate cost causation principles in order to avoid any undue cross-subsidization between rate classes.E\n\nNo other revenue requirement or ratemaking issues may be examined in consideration of the application filed pursuant to the provisions of this chapter.F\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.G\n\nA natural gas utility shall have the opportunity to seek recovery of any costs associated with eligible expansion investment not yet recovered at the end of a system expansion plan in a rate case using the cost-of-service methodology set forth in &#xA7; 56-235.2 or performance-based regulation plan authorized by &#xA7; 56-235.6. Such recovery shall be subject to Commission approval based upon a determination that the benefits provided by affected customers added under the system expansion plan or plans equal or exceed the impact of recovering such costs from existing customers of the natural gas utility.H\n\nThe provisions of this chapter shall not preclude the filing of other plans or tariff provisions related to extending natural gas infrastructure.I\n\nThe provisions of this chapter shall not apply to interstate pipeline companies regulated by the Federal Energy Regulatory Commission.","order_by":null,"text":{"0":{"id":292405,"text":"Notwithstanding the provisions of &#xA7; 56-235.4, a natural gas utility may file a system expansion plan as provided in this chapter. Such a plan shall provide for (i) a business rationale explaining that the expansion plan is in the public interest and of benefit to the affected customers served under the system expansion plan, (ii) the period the system expansion rider is proposed to be in effect, (iii) the estimated eligible system expansion infrastructure costs and a maximum level of investment to be included in the program, (iv) a maximum level of investment per affected customer, (v) the projected number of customers by rate class that will be served by the proposed investment, (vi) a schedule for recovery of the related eligible system expansion infrastructure costs through a system expansion rider, (vii) a methodology for deferral of unrecovered eligible system expansion infrastructure costs, calculated as determined pursuant to &#xA7; 56-612, (viii) the class or classes of customers eligible to participate in a system expansion plan, and (ix) the period of time that a customer at a premises receiving natural gas service from eligible system expansion infrastructure will be considered an affected customer for purposes of this chapter. The natural gas utility shall demonstrate that the system expansion plan is prudent and reasonable. The Commission may approve such a plan after such notice and opportunity for a 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":292406,"text":"The Commission shall approve a natural gas utility&#8217;s system expansion plan if it finds that the plan (i) includes the components set forth in subsection A, (ii) provides for the recovery of eligible system expansion infrastructure costs in accordance with the provisions of this chapter, and (iii) is prudent and reasonable. In a final order approving a natural gas utility&#8217;s system expansion plan, the Commission may require the natural gas utility to file an annual report with the Commission demonstrating whether the natural gas utility&#8217;s recovery of eligible system expansion infrastructure costs pursuant to its system expansion plan complies with the requirements of clause (ii). Upon a finding by the Commission that a natural gas utility&#8217;s system expansion plan does not comply with the requirements of clause (ii), the Commission may direct, by order, the natural gas utility to exclude from deferral any unrecovered costs in excess of costs that may be recovered by a system expansion rider.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":292407,"text":"The Commission shall act on a natural gas utility&#8217;s initial application for a system expansion plan within 180 days. Within that time period, the Commission shall approve, deny, or modify the plan as required by the public interest. A plan filed pursuant to this section shall not require the filing of rate schedules typically filed in conjunction with a rate case using the cost-of-service methodology set forth in &#xA7; 56-235.2 or a performance-based rate regulation plan authorized by &#xA7; 56-235.6. The Commission shall act on a natural gas utility&#8217;s application to amend a previously approved plan within 120 days. Within that time period, the Commission shall approve, deny, or modify the amended plan as required by the public interest. If the Commission denies such a plan or amendment or any part thereof, 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 90 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 system expansion plan is filed in conjunction with a rate case using the cost-of-service methodology set forth in &#xA7; 56-235.2 or a performance-based rate regulation plan authorized by &#xA7; 56-235.6.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":292408,"text":"Any system expansion plan and any system expansion rider that is submitted to and approved by the Commission shall allocate and charge costs in accordance with the appropriate cost causation principles in order to avoid any undue cross-subsidization between rate classes.","type":"section","prefixes":["D"],"prefix":"D","entire_prefix":"D","prefix_anchor":"D","level":1,"prior_prefix":"C","next_prefix":"E"},"4":{"id":292409,"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":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":292410,"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.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":292411,"text":"A natural gas utility shall have the opportunity to seek recovery of any costs associated with eligible expansion investment not yet recovered at the end of a system expansion plan in a rate case using the cost-of-service methodology set forth in &#xA7; 56-235.2 or performance-based regulation plan authorized by &#xA7; 56-235.6. Such recovery shall be subject to Commission approval based upon a determination that the benefits provided by affected customers added under the system expansion plan or plans equal or exceed the impact of recovering such costs from existing customers of the natural gas utility.","type":"section","prefixes":["G"],"prefix":"G","entire_prefix":"G","prefix_anchor":"G","level":1,"prior_prefix":"F","next_prefix":"H"},"7":{"id":292412,"text":"The provisions of this chapter shall not preclude the filing of other plans or tariff provisions related to extending natural gas infrastructure.","type":"section","prefixes":["H"],"prefix":"H","entire_prefix":"H","prefix_anchor":"H","level":1,"prior_prefix":"G","next_prefix":"I"},"8":{"id":292413,"text":"The provisions of this chapter shall not apply to interstate pipeline companies regulated by the Federal Energy Regulatory Commission.","type":"section","prefixes":["I"],"prefix":"I","entire_prefix":"I","prefix_anchor":"I","level":1,"prior_prefix":"H"}},"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}],"previous_section":{"id":63713,"structure_id":16046,"section_number":"56-610","catch_line":"Definitions","url":"\/56-610\/","token":"56\/28\/56-610","metadata":false},"next_section":{"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},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-611\/","history_text":"<p>This law was first created in 2015. The record of its establishment is cataloged in chapters <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?151+ful+CHAP0028\">28<\/a> and <a href=\"https:\/\/legacylis.virginia.gov\/cgi-bin\/legp604.exe?151+ful+CHAP0231\">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":81463,"section_number":"56-612","catch_line":"Deferral of eligible system expansion infrastructure costs","order_by":null,"url":"\/56-612\/"}],"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":63163,"section_number":"56-235.4","catch_line":"Prohibition of multiple rate increases within any twelve-month period; exception","order_by":null,"url":"\/56-235.4\/"},{"id":71641,"section_number":"56-235.6","catch_line":"Optional performance-based regulation of certain utilities","order_by":null,"url":"\/56-235.6\/"},{"id":81463,"section_number":"56-612","catch_line":"Deferral of eligible system expansion infrastructure costs","order_by":null,"url":"\/56-612\/"}],"permalink":{"id":250925,"object_type":"law","relational_id":81639,"identifier":"56-611","token":"56\/28\/56-611","url":"\/56-611\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-611\/","token":"56\/28\/56-611","dublin_core":{"Title":"Petition to establish or amend expansion plan; cost recovery; procedures","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-611","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t<section id=\"A\"><p><span class=\"prefix-number\">A.<\/span> Notwithstanding the provisions of &#xA7; <a class=\"law\" title=\"Prohibition of multiple rate increases within any twelve-month period; exception\" href=\"\/56-235.4\/\">56-235.4<\/a>, a <span class=\"dictionary\">natural gas utility<\/span> may file a <span class=\"dictionary\">system expansion plan<\/span> as provided in this chapter. Such a plan shall provide for (i) a business rationale explaining that the expansion plan is in the public interest and of benefit to the <span class=\"dictionary\">affected customers<\/span> served under the <span class=\"dictionary\">system expansion plan<\/span>, (ii) the period the <span class=\"dictionary\">system expansion rider<\/span> is proposed to be in effect, (iii) the estimated <span class=\"dictionary\">eligible system expansion infrastructure<\/span> costs and a maximum level of investment to be included in the program, (iv) a maximum level of investment per <span class=\"dictionary\">affected customer<\/span>, (v) the projected number of customers by <span class=\"dictionary\">rate<\/span> class that will be served by the proposed investment, (vi) a schedule for recovery of the related <span class=\"dictionary\">eligible system expansion infrastructure<\/span> costs through a <span class=\"dictionary\">system expansion rider<\/span>, (vii) a methodology for deferral of unrecovered <span class=\"dictionary\">eligible system expansion infrastructure<\/span> costs, calculated as determined pursuant to &#xA7; <a class=\"law\" title=\"Deferral of eligible system expansion infrastructure costs\" href=\"\/56-612\/\">56-612<\/a>, (viii) the class or classes of customers eligible to participate in a <span class=\"dictionary\">system expansion plan<\/span>, and (ix) the period of time that a customer at a premises receiving natural gas service from <span class=\"dictionary\">eligible system expansion infrastructure<\/span> will be considered an <span class=\"dictionary\">affected customer<\/span> for purposes of this chapter. The <span class=\"dictionary\">natural gas utility<\/span> shall demonstrate that the <span class=\"dictionary\">system expansion plan<\/span> is prudent and reasonable. The <span class=\"dictionary\">Commission<\/span> may approve such a plan after such notice and opportunity for a <span class=\"dictionary\">hearing<\/span> as the <span class=\"dictionary\">Commission<\/span> may prescribe, subject to the provisions of this chapter. <a id=\"paragraph-292405\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-611\/#A\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"B\"><p><span class=\"prefix-number\">B.<\/span> The <span class=\"dictionary\">Commission<\/span> shall approve a <span class=\"dictionary\">natural gas utility<\/span>&#8217;s <span class=\"dictionary\">system expansion plan<\/span> if it finds that the plan (i) includes the components set forth in subsection A, (ii) provides for the recovery of <span class=\"dictionary\">eligible system expansion infrastructure<\/span> costs in accordance with the provisions of this chapter, and (iii) is prudent and reasonable. In a <span class=\"dictionary\">final order<\/span> approving a <span class=\"dictionary\">natural gas utility<\/span>&#8217;s <span class=\"dictionary\">system expansion plan<\/span>, the <span class=\"dictionary\">Commission<\/span> may require the <span class=\"dictionary\">natural gas utility<\/span> to file an annual report with the <span class=\"dictionary\">Commission<\/span> demonstrating whether the <span class=\"dictionary\">natural gas utility<\/span>&#8217;s recovery of <span class=\"dictionary\">eligible system expansion infrastructure<\/span> costs pursuant to its <span class=\"dictionary\">system expansion plan<\/span> complies with the requirements of clause (ii). Upon a <span class=\"dictionary\">finding<\/span> by the <span class=\"dictionary\">Commission<\/span> that a <span class=\"dictionary\">natural gas utility<\/span>&#8217;s <span class=\"dictionary\">system expansion plan<\/span> does not comply with the requirements of clause (ii), the <span class=\"dictionary\">Commission<\/span> may direct, by order, the <span class=\"dictionary\">natural gas utility<\/span> to exclude from deferral any unrecovered costs in excess of costs that may be recovered by a <span class=\"dictionary\">system expansion rider<\/span>. <a id=\"paragraph-292406\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-611\/#B\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"C\"><p><span class=\"prefix-number\">C.<\/span> The <span class=\"dictionary\">Commission<\/span> shall act on a <span class=\"dictionary\">natural gas utility<\/span>&#8217;s initial application for a <span class=\"dictionary\">system expansion plan<\/span> within 180 days. Within that time period, the <span class=\"dictionary\">Commission<\/span> shall approve, deny, or modify the plan as required by the public interest. A plan filed pursuant to this section shall not require the filing of <span class=\"dictionary\">rate<\/span> <span class=\"dictionary\">schedules<\/span> typically filed in conjunction with a <span class=\"dictionary\">rate<\/span> case using the cost-of-service methodology set forth in &#xA7; <a class=\"law\" title=\"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\" href=\"\/56-235.2\/\">56-235.2<\/a> or a performance-based <span class=\"dictionary\">rate<\/span> regulation plan authorized by &#xA7; <a class=\"law\" title=\"Optional performance-based regulation of certain utilities\" href=\"\/56-235.6\/\">56-235.6<\/a>. The <span class=\"dictionary\">Commission<\/span> shall act on a <span class=\"dictionary\">natural gas utility<\/span>&#8217;s application to <span class=\"dictionary\">amend<\/span> a previously approved plan within 120 days. Within that time period, the <span class=\"dictionary\">Commission<\/span> shall approve, deny, or modify the amended plan as required by the public interest. If the <span class=\"dictionary\">Commission<\/span> denies such a plan or amendment or any part thereof, 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 <span class=\"dictionary\">Commission<\/span> shall thereafter have 90 days to approve or deny the amended plan or amendment. The time period for <span class=\"dictionary\">Commission<\/span> review provided for in this subsection shall not apply if the <span class=\"dictionary\">system expansion plan<\/span> is filed in conjunction with a <span class=\"dictionary\">rate<\/span> case using the cost-of-service methodology set forth in &#xA7; <a class=\"law\" title=\"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\" href=\"\/56-235.2\/\">56-235.2<\/a> or a performance-based <span class=\"dictionary\">rate<\/span> regulation plan authorized by &#xA7; <a class=\"law\" title=\"Optional performance-based regulation of certain utilities\" href=\"\/56-235.6\/\">56-235.6<\/a>. <a id=\"paragraph-292407\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-611\/#C\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"D\"><p><span class=\"prefix-number\">D.<\/span> Any <span class=\"dictionary\">system expansion plan<\/span> and any <span class=\"dictionary\">system expansion rider<\/span> that is submitted to and approved by the <span class=\"dictionary\">Commission<\/span> shall allocate and charge costs in accordance with the appropriate cost causation principles in order to avoid any undue cross-subsidization between <span class=\"dictionary\">rate<\/span> classes. <a id=\"paragraph-292408\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-611\/#D\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"E\"><p><span class=\"prefix-number\">E.<\/span> No other revenue requirement or ratemaking <span class=\"dictionary\">issues<\/span> may be examined in consideration of the application filed pursuant to the provisions of this chapter. <a id=\"paragraph-292409\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-611\/#E\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"F\"><p><span class=\"prefix-number\">F.<\/span> Costs recovered pursuant to this chapter shall be in addition to all other costs that the <span class=\"dictionary\">natural gas utility<\/span> is permitted to recover, shall not be considered an offset to other <span class=\"dictionary\">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. <a id=\"paragraph-292410\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-611\/#F\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"G\"><p><span class=\"prefix-number\">G.<\/span> A <span class=\"dictionary\">natural gas utility<\/span> shall have the opportunity to seek recovery of any costs associated with <span class=\"dictionary\">eligible expansion investment<\/span> not yet recovered at the end of a <span class=\"dictionary\">system expansion plan<\/span> in a <span class=\"dictionary\">rate<\/span> case using the cost-of-service methodology set forth in &#xA7; <a class=\"law\" title=\"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\" href=\"\/56-235.2\/\">56-235.2<\/a> or performance-based regulation plan authorized by &#xA7; <a class=\"law\" title=\"Optional performance-based regulation of certain utilities\" href=\"\/56-235.6\/\">56-235.6<\/a>. Such recovery shall be subject to <span class=\"dictionary\">Commission<\/span> approval based upon a determination that the benefits provided by <span class=\"dictionary\">affected customers<\/span> added under the <span class=\"dictionary\">system expansion plan<\/span> or plans equal or exceed the impact of recovering such costs from existing customers of the <span class=\"dictionary\">natural gas utility<\/span>. <a id=\"paragraph-292411\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-611\/#G\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"H\"><p><span class=\"prefix-number\">H.<\/span> The provisions of this chapter shall not preclude the filing of other plans or tariff provisions related to extending natural gas infrastructure. <a id=\"paragraph-292412\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-611\/#H\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t<section id=\"I\"><p><span class=\"prefix-number\">I.<\/span> The provisions of this chapter shall not apply to interstate pipeline companies regulated by the Federal Energy Regulatory <span class=\"dictionary\">Commission<\/span>. <a id=\"paragraph-292413\" class=\"section-permalink\" href=\"https:\/\/vacode.org\/56-611\/#I\"><i class=\"fa fa-link\"><\/i><\/a><\/p><\/section>","plain_text":"                                 CODE OF VIRGINIA\n\nPETITION TO ESTABLISH OR AMEND EXPANSION PLAN; COST RECOVERY; PROCEDURES (\u00a7\n56-611)\n\nA. Notwithstanding the provisions of &#xA7; 56-235.4, a natural gas utility may\nfile a system expansion plan as provided in this chapter. Such a plan shall\nprovide for (i) a business rationale explaining that the expansion plan is in\nthe public interest and of benefit to the affected customers served under the\nsystem expansion plan, (ii) the period the system expansion rider is proposed to\nbe in effect, (iii) the estimated eligible system expansion infrastructure costs\nand a maximum level of investment to be included in the program, (iv) a maximum\nlevel of investment per affected customer, (v) the projected number of customers\nby rate class that will be served by the proposed investment, (vi) a schedule\nfor recovery of the related eligible system expansion infrastructure costs\nthrough a system expansion rider, (vii) a methodology for deferral of\nunrecovered eligible system expansion infrastructure costs, calculated as\ndetermined pursuant to &#xA7; 56-612, (viii) the class or classes of customers\neligible to participate in a system expansion plan, and (ix) the period of time\nthat a customer at a premises receiving natural gas service from eligible system\nexpansion infrastructure will be considered an affected customer for purposes of\nthis chapter. The natural gas utility shall demonstrate that the system\nexpansion plan is prudent and reasonable. The Commission may approve such a plan\nafter such notice and opportunity for a hearing as the Commission may prescribe,\nsubject to the provisions of this chapter.\n\nB. The Commission shall approve a natural gas utility&#8217;s system expansion\nplan if it finds that the plan (i) includes the components set forth in\nsubsection A, (ii) provides for the recovery of eligible system expansion\ninfrastructure costs in accordance with the provisions of this chapter, and\n(iii) is prudent and reasonable. In a final order approving a natural gas\nutility&#8217;s system expansion plan, the Commission may require the natural\ngas utility to file an annual report with the Commission demonstrating whether\nthe natural gas utility&#8217;s recovery of eligible system expansion\ninfrastructure costs pursuant to its system expansion plan complies with the\nrequirements of clause (ii). Upon a finding by the Commission that a natural gas\nutility&#8217;s system expansion plan does not comply with the requirements of\nclause (ii), the Commission may direct, by order, the natural gas utility to\nexclude from deferral any unrecovered costs in excess of costs that may be\nrecovered by a system expansion rider.\n\nC. The Commission shall act on a natural gas utility&#8217;s initial application\nfor a system expansion plan within 180 days. Within that time period, the\nCommission shall approve, deny, or modify the plan as required by the public\ninterest. A plan filed pursuant to this section shall not require the filing of\nrate schedules typically filed in conjunction with a rate case using the\ncost-of-service methodology set forth in &#xA7; 56-235.2 or a performance-based\nrate regulation plan authorized by &#xA7; 56-235.6. The Commission shall act on\na natural gas utility&#8217;s application to amend a previously approved plan\nwithin 120 days. Within that time period, the Commission shall approve, deny, or\nmodify the amended plan as required by the public interest. If the Commission\ndenies such a plan or amendment or any part thereof, it shall set forth with\nspecificity the reasons for such denial, and the utility shall have the right to\nrefile, without prejudice, an amended plan or amendment within 60 days, and the\nCommission shall thereafter have 90 days to approve or deny the amended plan or\namendment. The time period for Commission review provided for in this subsection\nshall not apply if the system expansion plan is filed in conjunction with a rate\ncase using the cost-of-service methodology set forth in &#xA7; 56-235.2 or a\nperformance-based rate regulation plan authorized by &#xA7; 56-235.6.\n\nD. Any system expansion plan and any system expansion rider that is submitted to\nand approved by the Commission shall allocate and charge costs in accordance\nwith the appropriate cost causation principles in order to avoid any undue\ncross-subsidization between rate classes.\n\nE. No other revenue requirement or ratemaking issues may be examined in\nconsideration of the application filed pursuant to the provisions of this\nchapter.\n\nF. 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.\n\nG. A natural gas utility shall have the opportunity to seek recovery of any\ncosts associated with eligible expansion investment not yet recovered at the end\nof a system expansion plan in a rate case using the cost-of-service methodology\nset forth in &#xA7; 56-235.2 or performance-based regulation plan authorized by\n&#xA7; 56-235.6. Such recovery shall be subject to Commission approval based\nupon a determination that the benefits provided by affected customers added\nunder the system expansion plan or plans equal or exceed the impact of\nrecovering such costs from existing customers of the natural gas utility.\n\nH. The provisions of this chapter shall not preclude the filing of other plans\nor tariff provisions related to extending natural gas infrastructure.\n\nI. The provisions of this chapter shall not apply to interstate pipeline\ncompanies regulated by the Federal Energy Regulatory Commission.\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}}