                                 CODE OF VIRGINIA

(EFFECTIVE UNTIL DECEMBER 31, 2029) RECOVERY OF DEVELOPMENT COSTS ASSOCIATED
WITH SMALL MODULAR REACTOR (§ 56-585.1:14)

A. As used in this section:
			&#8220;Small modular reactor&#8221; or &#8220;SMR&#8221; means a nuclear
reactor that produces nuclear power and has a nameplate capacity that does not
exceed 500 megawatts of generating capacity per reactor.
			&#8220;SMR facility&#8221; means an SMR or multiple SMRs that generate
electricity at a single site.
			&#8220;SMR project development costs&#8221; or &#8220;project costs&#8221;
means all costs associated with the development of one or more SMRs, including
costs of evaluation, design, engineering, federal approvals and licensing,
environmental analysis and permitting, early site permitting, equipment
procurement, and authorized rate of return.
			&#8220;Utility&#8221; means a Phase II Utility, as that term is defined in
subdivision A 1 of &#xA7; 56-585.1.

B. Notwithstanding any limitation under subdivision A 6 of &#xA7; 56-585.1, the
utility may petition the Commission at any time for approval of a rate
adjustment clause pursuant to subdivision A 6 of &#xA7; 56-585.1 for the
recovery of SMR project development costs. The utility may petition the
Commission for up to one SMR facility pursuant to this section. Such utilities
may petition the Commission for SMR project development cost recovery along
separate development phases and, if the Commission determines such projected or
actual project costs to be reasonable and prudent, such project costs may be
recovered by such utility on a timely and current basis from customers prior to
any approval pursuant to subsection D of &#xA7; 56-580 or the commercial
operation date of any such SMR facility. Any SMR project development costs
incurred prior to July 1, 2024, and 20 percent of SMR project development costs
incurred after July 1, 2024, shall not be eligible for accelerated cost recovery
pursuant to this section and may be recovered through the utility&#8217;s rates
for generation and distribution services pursuant to subdivision A 1 of &#xA7;
56-585.1. The utility that petitions the Commission for recovery of SMR project
development costs shall demonstrate that such utility has evaluated funding
opportunities from the U.S. Department of Energy. Nothing in this section shall
limit the Commission&#8217;s discretion to determine whether the proposed SMR
project development costs are reasonable and prudent. As part of a final order
approving such cost recovery, the Commission may impose a deadline by which the
relevant utility shall either (i) place an SMR into commercial operation or (ii)
sell the permitted site, unless it is at a previously existing nuclear site, and
return the proceeds of the sale to customers. The length of such deadline shall
be at the Commission&#8217;s discretion; however, it shall provide the utility a
reasonable timeframe in which to obtain all necessary permits and approvals,
including allowing for approval by federal agencies such as the Nuclear
Regulatory Commission, and completing construction of an SMR.

C. Nothing in this section shall limit the Commission&#8217;s authority to
approve or deny a petition for recovery of SMR project development costs or to
require a utility to demonstrate that such utility made reasonable good-faith
efforts to secure appropriate funding opportunities from the U.S. Department of
Energy. The annual revenue requirement for any rate adjustment clause authorized
pursuant to this section shall not exceed an amount that would increase the
monthly bill of the utility&#8217;s typical Virginia residential customer,
utilizing 1,000 kilowatt hours of electricity monthly, by more than $1.40.

HISTORY: 2024, c. 789.