                                 CODE OF VIRGINIA

SEPARATION OF REGULATED AND UNREGULATED BUSINESSES (§ 56-231.34:1)

A. No cooperative that engages in a regulated utility service shall conduct any
unregulated business activity, other than traditional cooperative activities,
except in or through one or more affiliates of such cooperative, provided that a
cooperative that provides regulated utility services, or one or more of its
affiliates, shall have the right to offer and make unregulated sales of electric
power to members of the cooperative that are served at or by dedicated or excess
facilities within the cooperative&#8217;s certificated service territory and
that contract for electric utility services to serve a demand that is reasonably
expected to exceed 90 megawatts. No such affiliates, formed to engage in any
business that is not a regulated utility service, shall engage in regulated
utility services.

B. The Commission shall promulgate rules and regulations, governing the conduct
of the cooperatives, to promote effective and fair competition between (i)
affiliates of cooperatives that are engaged in business activities which are not
regulated utility services and (ii) other persons engaged in the same or similar
businesses. The rules and regulations shall be effective by July 1, 2000, and
shall include provisions:

   1. Prohibiting cost-shifting or cross-subsidies between a cooperative and its
   affiliates;

   2. Prohibiting anticompetitive behavior or self-dealing between a cooperative
   and its affiliates;

   3. Prohibiting a cooperative from engaging in discriminatory behavior towards
   nonaffiliated entities; and

   4. Establishing codes of conduct detailing permissible relations between a
   cooperative and its affiliates. In establishing such codes, the Commission
   shall consider, among other things, whether and, if so, under what
   circumstances and conditions (i) a cooperative may provide its affiliates with
   customer lists or other customer information, sales leads, procurement advice,
   joint promotions, and access to billing or mailing systems unless such
   information or services are made available to third parties under the same
   terms and conditions, (ii) the cooperative&#8217;s name, logos or trademarks
   may be used in promotional, advertising or sales activities conducted by its
   affiliates, and (iii) the cooperative&#8217;s vehicles, equipment, office
   space and employees may be used by its affiliates.

C. Nothing in this article shall be deemed to abrogate or modify the
Commission&#8217;s authority under Chapter 4 (&#xA7; 56-76 et seq.) of this
title.

HISTORY: 1999, c. 874; 2000, cc. 944, 999; 2025, cc. 499, 598.