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<law><site_title>Virginia Decoded</site_title><site_url>https://vacode.org</site_url><law_id>71119</law_id><section_number>56-231.34:1</section_number><catch_line>Separation of regulated and unregulated businesses</catch_line><edition url="https://vacode.org/2025/" slug="2025" current="TRUE" last_updated="">2025</edition><referred_to_by><reference>55.1-306.1</reference><reference>56-231.34</reference><reference>56-231.34:2</reference></referred_to_by><structure><unit label="title" level="1" order_by="1" identifier="56">Public Service Companies</unit><unit label="chapter" level="2" order_by="1" identifier="9.1">Utility Consumer Services Cooperatives and Utility Aggregation Cooperatives</unit><unit label="article" level="3" order_by="1" identifier="1">Utility Consumer Services Cooperatives Act</unit></structure><text>
						<section id="A"><p><span class="prefix-number">A.</span> No <span class="dictionary">cooperative</span> that engages in a regulated utility service shall conduct any unregulated business activity, other than traditional <span class="dictionary">cooperative</span> activities, except in or through one or more <span class="dictionary">affiliates</span> of such <span class="dictionary">cooperative</span>, provided that a <span class="dictionary">cooperative</span> that provides <span class="dictionary">regulated utility services</span>, or one or more of its <span class="dictionary">affiliates</span>, shall have the right to offer and make unregulated sales of electric power to <span class="dictionary">members</span> of the <span class="dictionary">cooperative</span> that are served at or by dedicated or excess facilities within the <span class="dictionary">cooperative</span>&#x2019;s certificated service territory and that <span class="dictionary">contract</span> for electric utility services to serve a demand that is reasonably expected to exceed 90 megawatts. No such <span class="dictionary">affiliates</span>, formed to engage in any business that is not a regulated utility service, shall engage in <span class="dictionary">regulated utility services</span>. <a id="paragraph-256410" class="section-permalink" href="https://vacode.org/56-231.34_1/#A"><i class="fa fa-link"/></a></p></section>
						<section id="B"><p><span class="prefix-number">B.</span> The <span class="dictionary">Commission</span> shall promulgate rules and regulations, governing the conduct of the <span class="dictionary">cooperatives</span>, to promote effective and fair competition between (i) <span class="dictionary">affiliates</span> of <span class="dictionary">cooperatives</span> that are engaged in business activities which are not <span class="dictionary">regulated utility services</span> and (ii) other <span class="dictionary">persons</span> engaged in the same or similar businesses. The rules and regulations shall be effective by July 1, 2000, and shall include provisions: <a id="paragraph-256411" class="section-permalink" href="https://vacode.org/56-231.34_1/#B"><i class="fa fa-link"/></a></p></section>
						<section id="B1" class="indent-1"><p><span class="prefix-number">1.</span> Prohibiting cost-shifting or cross-subsidies between a <span class="dictionary">cooperative</span> and its <span class="dictionary">affiliates</span>; <a id="paragraph-256412" class="section-permalink" href="https://vacode.org/56-231.34_1/#B1"><i class="fa fa-link"/></a></p></section>
						<section id="B2" class="indent-1"><p><span class="prefix-number">2.</span> Prohibiting anticompetitive behavior or self-dealing between a <span class="dictionary">cooperative</span> and its <span class="dictionary">affiliates</span>; <a id="paragraph-256413" class="section-permalink" href="https://vacode.org/56-231.34_1/#B2"><i class="fa fa-link"/></a></p></section>
						<section id="B3" class="indent-1"><p><span class="prefix-number">3.</span> Prohibiting a <span class="dictionary">cooperative</span> from engaging in discriminatory behavior towards nonaffiliated entities; and <a id="paragraph-256414" class="section-permalink" href="https://vacode.org/56-231.34_1/#B3"><i class="fa fa-link"/></a></p></section>
						<section id="B4" class="indent-1"><p><span class="prefix-number">4.</span> Establishing codes of conduct detailing permissible relations between a <span class="dictionary">cooperative</span> and its <span class="dictionary">affiliates</span>. In establishing such codes, the <span class="dictionary">Commission</span> shall consider, among other things, whether and, if so, under what circumstances and conditions (i) a <span class="dictionary">cooperative</span> may provide its <span class="dictionary">affiliates</span> with customer lists or other customer information, sales leads, procurement advice, joint promotions, and access to billing or mailing <span class="dictionary">systems</span> unless such information or services are made available to third parties under the same terms and conditions, (ii) the <span class="dictionary">cooperative</span>&#x2019;s name, logos or trademarks may be used in promotional, advertising or sales activities conducted by its <span class="dictionary">affiliates</span>, and (iii) the <span class="dictionary">cooperative</span>&#x2019;s vehicles, equipment, office space and employees may be used by its <span class="dictionary">affiliates</span>. <a id="paragraph-256415" class="section-permalink" href="https://vacode.org/56-231.34_1/#B4"><i class="fa fa-link"/></a></p></section>
						<section id="C"><p><span class="prefix-number">C.</span> Nothing in this article shall be deemed to abrogate or modify the <span class="dictionary">Commission</span>&#x2019;s authority under Chapter 4 (&#xA7; <a class="law" title="Definitions" href="/56-76/">56-76</a> et seq.) of this title. <a id="paragraph-256416" class="section-permalink" href="https://vacode.org/56-231.34_1/#C"><i class="fa fa-link"/></a></p></section></text><history>1999, c. 874; 2000, cc. 944, 999; 2025, cc. 499, 598.</history><metadata></metadata></law>
