{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/56-627.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/56-627.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/56-627.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/56-627.html"}],"law_id":63984,"edition_id":1,"section_id":63984,"structure_id":16131,"section_number":"56-627","catch_line":"(Expires July 1, 2035) Filing of petition with Commission to establish or amend EIRE plan and rider; cost recovery; procedure","history":"2025, cc. 501, 599.","full_text":"A\n\nNotwithstanding any provision of law to the contrary, a utility may petition the Commission for the approval of an EIRE plan as provided in this chapter. Such a plan shall (i) provide for a timeline for completion of the proposed eligible infrastructure projects, the estimated costs of the eligible infrastructure projects, and a schedule for recovery of the related eligible infrastructure costs through the EIRE rider and (ii) demonstrate that the EIRE plan is prudent and reasonable. The Commission may approve the initial petition for establishment of an EIRE plan and EIRE rider 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 utility’s initial petition for approval of an EIRE plan. A petition filed pursuant to this section shall not require the filing of rate case schedules. The Commission shall approve or deny, within 120 days, a 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 after such denial. 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 EIRE plan is filed in conjunction with a rate case using the cost of service methodology pursuant to § 56-235.2.C\n\nAny EIRE plan and EIRE rider that is submitted to and approved by the Commission shall be allocated and charged in accordance with § 56-235.11 and appropriate cost causation principles to avoid any undue cross subsidization between rate classes not otherwise permitted by statute.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 during which the EIRE rider is in effect, the utility shall reconcile the difference between the recognized eligible infrastructure costs and the amounts recovered under the EIRE rider and shall submit the reconciliation and a proposed EIRE rider adjustment to the Commission to recover or refund the difference, as appropriate, through an adjustment to the EIRE rider. The Commission shall approve or deny, within 90 days, a utility’s proposed EIRE rider adjustment.F\n\nA utility that has an approved EIRE petition pursuant to this section shall file revised rate schedules to reset the EIRE rider to zero when new base rates and charges that incorporate eligible infrastructure costs previously reflected in the currently effective EIRE rider become effective.G\n\nIf 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-recovery or under-recovery of the eligible infrastructure 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 costs for the EIRE rider and shall not be used for any purpose in any other proceeding.","order_by":null,"text":{"0":{"id":232987,"text":"Notwithstanding any provision of law to the contrary, a utility may petition the Commission for the approval of an EIRE plan as provided in this chapter. Such a plan shall (i) provide for a timeline for completion of the proposed eligible infrastructure projects, the estimated costs of the eligible infrastructure projects, and a schedule for recovery of the related eligible infrastructure costs through the EIRE rider and (ii) demonstrate that the EIRE plan is prudent and reasonable. The Commission may approve the initial petition for establishment of an EIRE plan and EIRE rider 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":232988,"text":"The Commission shall approve or deny, within 180 days, a utility’s initial petition for approval of an EIRE plan. A petition filed pursuant to this section shall not require the filing of rate case schedules. The Commission shall approve or deny, within 120 days, a 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 after such denial. 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 EIRE plan is filed in conjunction with a rate case using the cost of service methodology pursuant to § 56-235.2.","type":"section","prefixes":["B"],"prefix":"B","entire_prefix":"B","prefix_anchor":"B","level":1,"prior_prefix":"A","next_prefix":"C"},"2":{"id":232989,"text":"Any EIRE plan and EIRE rider that is submitted to and approved by the Commission shall be allocated and charged in accordance with § 56-235.11 and appropriate cost causation principles to avoid any undue cross subsidization between rate classes not otherwise permitted by statute.","type":"section","prefixes":["C"],"prefix":"C","entire_prefix":"C","prefix_anchor":"C","level":1,"prior_prefix":"B","next_prefix":"D"},"3":{"id":232990,"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":232991,"text":"At the end of each 12-month period during which the EIRE rider is in effect, the utility shall reconcile the difference between the recognized eligible infrastructure costs and the amounts recovered under the EIRE rider and shall submit the reconciliation and a proposed EIRE rider adjustment to the Commission to recover or refund the difference, as appropriate, through an adjustment to the EIRE rider. The Commission shall approve or deny, within 90 days, a utility’s proposed EIRE rider adjustment.","type":"section","prefixes":["E"],"prefix":"E","entire_prefix":"E","prefix_anchor":"E","level":1,"prior_prefix":"D","next_prefix":"F"},"5":{"id":232992,"text":"A utility that has an approved EIRE petition pursuant to this section shall file revised rate schedules to reset the EIRE rider to zero when new base rates and charges that incorporate eligible infrastructure costs previously reflected in the currently effective EIRE rider become effective.","type":"section","prefixes":["F"],"prefix":"F","entire_prefix":"F","prefix_anchor":"F","level":1,"prior_prefix":"E","next_prefix":"G"},"6":{"id":232993,"text":"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-recovery or under-recovery of the eligible infrastructure 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 costs for the EIRE 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":16131,"edition_id":1,"name":"Eligible Infrastructure Replacement and Enhancement","identifier":"31","label":"chapter","depth":2,"order_by":1,"parent_id":12881,"metadata":{},"date_created":"2026-06-26 04:07:04","date_modified":"2026-06-26 04:07:04","permalink":{"id":251087,"object_type":"structure","relational_id":16131,"identifier":"31","token":"56\/31","url":"\/56\/31\/","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":78400,"structure_id":16131,"section_number":"56-626","catch_line":"(Expires July 1, 2035) Definitions","url":"\/56-626\/","token":"56\/31\/56-626","metadata":false},{"id":63984,"structure_id":16131,"section_number":"56-627","catch_line":"(Expires July 1, 2035) Filing of petition with Commission to establish or amend EIRE plan and rider; cost recovery; procedure","url":"\/56-627\/","token":"56\/31\/56-627","metadata":false}],"previous_section":{"id":78400,"structure_id":16131,"section_number":"56-626","catch_line":"(Expires July 1, 2035) Definitions","url":"\/56-626\/","token":"56\/31\/56-626","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/56-627\/","history_text":"

This law was first created in 2025. The record of its establishment is cataloged in chapters 501<\/a> and 599<\/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":false,"refers_to":[{"id":68057,"section_number":"56-235.11","catch_line":"Retail rates of affiliated water utilities","order_by":null,"url":"\/56-235.11\/"}],"permalink":{"id":251093,"object_type":"law","relational_id":63984,"identifier":"56-627","token":"56\/31\/56-627","url":"\/56-627\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/56-627\/","token":"56\/31\/56-627","dublin_core":{"Title":"(Expires July 1, 2035) Filing of petition with Commission to establish or amend EIRE plan and rider; cost recovery; procedure","Type":"Text","Format":"text\/html","Identifier":"\u00a7 56-627","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

A.<\/span> Notwithstanding any provision of law<\/span> to the contrary, a utility<\/span> may petition<\/span> the Commission<\/span> for the approval of an EIRE plan<\/span> as provided in this chapter. Such a plan shall (i) provide for a timeline for completion of the proposed eligible infrastructure projects, the estimated costs of the eligible infrastructure projects, and a schedule for recovery of the related eligible infrastructure costs<\/span> through the EIRE rider<\/span> and (ii) demonstrate that the EIRE plan<\/span> is prudent and reasonable. The Commission<\/span> may approve the initial petition<\/span> for establishment of an EIRE plan<\/span> and EIRE rider<\/span> 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 utility<\/span>’s initial petition<\/span> for approval of an EIRE plan<\/span>. A petition<\/span> 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 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<\/span> shall have the right to refile, without prejudice, an amended plan or amendment within 60 days after such denial. 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 EIRE plan<\/span> is filed in conjunction with a rate<\/span> case using the cost of service methodology pursuant to § 56-235.2<\/a>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

C.<\/span> Any EIRE plan<\/span> and EIRE rider<\/span> that is submitted to and approved by the Commission<\/span> shall be allocated and charged in accordance with § 56-235.11<\/a> and appropriate cost causation principles to avoid any undue cross subsidization between rate<\/span> classes not otherwise permitted by statute<\/span>. <\/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 during which the EIRE rider<\/span> is in effect, the utility<\/span> shall reconcile the difference between the recognized eligible infrastructure costs<\/span> and the amounts recovered under the EIRE rider<\/span> and shall submit the reconciliation and a proposed EIRE rider<\/span> adjustment to the Commission<\/span> to recover or refund the difference, as appropriate, through an adjustment to the EIRE rider<\/span>. The Commission<\/span> shall approve or deny, within 90 days, a utility<\/span>’s proposed EIRE rider<\/span> adjustment. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

F.<\/span> A utility<\/span> that has an approved EIRE petition<\/span> pursuant to this section shall file revised rate<\/span> schedules<\/span> to reset the EIRE rider<\/span> to zero when new base rates<\/span> and charges that incorporate eligible infrastructure costs<\/span> previously reflected in the currently effective EIRE rider<\/span> become effective. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

G.<\/span> 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-recovery or under-recovery of the eligible infrastructure 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 costs<\/span> for the EIRE rider<\/span> and shall not be used for any purpose in any other proceeding. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\n(EXPIRES JULY 1, 2035) FILING OF PETITION WITH COMMISSION TO ESTABLISH OR AMEND\nEIRE PLAN AND RIDER; COST RECOVERY; PROCEDURE (\u00a7 56-627)\n\nA. Notwithstanding any provision of law to the contrary, a utility may petition\nthe Commission for the approval of an EIRE plan as provided in this chapter.\nSuch a plan shall (i) provide for a timeline for completion of the proposed\neligible infrastructure projects, the estimated costs of the eligible\ninfrastructure projects, and a schedule for recovery of the related eligible\ninfrastructure costs through the EIRE rider and (ii) demonstrate that the EIRE\nplan is prudent and reasonable. The Commission may approve the initial petition\nfor establishment of an EIRE plan and EIRE rider after such notice and\nopportunity for hearing as the Commission may prescribe, subject to the\nprovisions of this chapter.\n\nB. The Commission shall approve or deny, within 180 days, a utility’s\ninitial petition for approval of an EIRE plan. A petition filed pursuant to this\nsection shall not require the filing of rate case schedules. The Commission\nshall approve or deny, within 120 days, a utility’s application to amend a\npreviously approved plan. If the Commission denies such a plan or amendment, it\nshall set forth with specificity the reasons for such denial, and the utility\nshall have the right to refile, without prejudice, an amended plan or amendment\nwithin 60 days after such denial. The Commission shall thereafter have 60 days\nto approve or deny the amended plan or amendment. The time period for Commission\nreview provided for in this subsection shall not apply if the EIRE plan is filed\nin conjunction with a rate case using the cost of service methodology pursuant\nto § 56-235.2.\n\nC. Any EIRE plan and EIRE rider that is submitted to and approved by the\nCommission shall be allocated and charged in accordance with § 56-235.11\nand appropriate cost causation principles to avoid any undue cross subsidization\nbetween rate classes not otherwise permitted by statute.\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 during which the EIRE rider is in effect,\nthe utility shall reconcile the difference between the recognized eligible\ninfrastructure costs and the amounts recovered under the EIRE rider and shall\nsubmit the reconciliation and a proposed EIRE rider adjustment to the Commission\nto recover or refund the difference, as appropriate, through an adjustment to\nthe EIRE rider. The Commission shall approve or deny, within 90 days, a\nutility’s proposed EIRE rider adjustment.\n\nF. A utility that has an approved EIRE petition pursuant to this section shall\nfile revised rate schedules to reset the EIRE rider to zero when new base rates\nand charges that incorporate eligible infrastructure costs previously reflected\nin the currently effective EIRE rider become effective.\n\nG. If the Commission approves (i) an updated weighted average cost of capital\nfor use in calculating the return on investment, (ii) the carrying costs on the\nover-recovery or under-recovery of the eligible infrastructure 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 costs for the EIRE rider and shall not be used for any\npurpose in any other proceeding.\n\nHISTORY: 2025, cc. 501, 599.","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}}