                                 CODE OF VIRGINIA

RATES AND SERVICES (§ 56-265.13:4)

A small water or sewer utility shall be required to furnish reasonably adequate
services and facilities, subject to the regulation of the Commission. The
charges made by any small water or sewer utility for any service rendered shall
be (i) uniform as to all persons or corporations using such service under like
conditions and (ii) nondiscriminatory, reasonable and just. Every charge for
service found to be otherwise shall be unlawful. Reasonable and just charges for
service within the meaning of this section shall be the lowest charges as shall
produce sufficient revenues to pay all lawful and necessary expenses incident
to:

1. The operation of the system, including maintenance costs, operating charges,
and interest charges on bonds or other obligations;

2. The providing for the liquidation of bonds or other evidence of indebtedness
and the attraction of capital;

3. The providing of adequate funds to be used as working capital, as well as
reasonable reserves and funds for making replacements, which may be escrowed and
used only as working capital if the Commission so directs as a result of a
proceeding conducted pursuant to &#xA7; 56-265.13:6;

4. The providing for the payment of taxes that may be assessed against the small
water or sewer utility or its property; and

5. Compensation of owners of the utility for their capital or property invested
in the system, if any, and for their time and other resources expended in the
operation of the system not otherwise recovered under subdivisions 1 through 4
of this section.

HISTORY: 1986, c. 323.