                                 CODE OF VIRGINIA

PROVISION OF BROADBAND CAPACITY TO UNSERVED AREAS OF THE COMMONWEALTH (§
56-585.1:9)

A. Each Phase I Utility and each Phase II Utility, as such terms are defined in
subdivision A 1 of &#xA7; 56-585.1, may submit one or more petitions to provide
or make available broadband capacity to Internet service providers in areas of
the Commonwealth unserved by broadband. The provision of such broadband capacity
to Internet service providers in areas of the Commonwealth unserved by broadband
pursuant to this section is in the public interest.

B. The costs of providing broadband capacity pursuant to any such petition, net
of revenue generated therefrom, shall be eligible for recovery from customers as
an electric grid transformation project pursuant to clause (vi) of subdivision A
6 of &#xA7; 56-585.1 filed on or after July 1, 2021, as a non-bypassable charge.
Notwithstanding any provision of subdivision A 6 or 7 of &#xA7; 56-585.1, the
utility may file one or more petitions for approval of such a rate adjustment
clause, on a stand-alone basis, seeking recovery of the costs of providing
broadband capacity at any time on or after July 1, 2021, and the Commission
shall issue its final order regarding such petition within six months following
the date of filing.

C. Notwithstanding the provisions of &#xA7; 13.1-620 or the articles of
incorporation of an investor-owned utility, an investor-owned utility may,
either directly or through an affiliate or subsidiary, pursuant to a petition
that the Commissioner approves pursuant to this section, (i) own, manage, or
control any broadband capacity equipment and electronics, including any plant,
works, system, lines, facilities, or properties, or any part or parts thereof,
together with all appurtenances thereto, used or useful in connection with the
provision and extension of such broadband services; (ii) lease indefeasible
rights of use in such broadband capacity equipment and electronics to Internet
service providers in areas of the Commonwealth unserved by broadband pursuant to
this section; and (iii) provide access points that are outside the
utility&#8217;s energized zone to allow connection between the utility&#8217;s
broadband capacity system and the Internet service provider&#8217;s system.

D. Each petition to provide broadband capacity pursuant to this section that an
investor-owned utility submits to the Commission shall identify the Internet
service provider to which the utility shall lease such capacity, together with
the area to be served using such capacity. The Commission shall, after notice
and opportunity for hearing, initiate proceedings to review each petition
submitted. The Commission shall condition any approval of such petition on the
requirement that construction shall commence within 18 months of such approval.
If the utility fails to commence construction within such time period, the
utility may resubmit the petition for conditional approval. The Commission shall
also condition any approval of such petition on the requirement that the utility
and its Internet service provider submit annual public reports on construction
progress by the utility and delivery of broadband services by the Internet
service provider until construction is completed. The Commission&#8217;s final
order regarding any such petition shall be entered by the Commission no more
than six months after the date of filing of such petition. An area shall be
determined to be unserved by broadband if (i) the Department of Housing and
Community Development has certified within the last 18 months that the
designated area is unserved; (ii) the Virginia Telecommunication Initiative of
the Department of Housing and Community Development has issued a grant or loan
to construct a broadband service project within the last 18 months, and the
grant or loan recipient is the Internet service provider to which the utility
proposes to lease capacity; (iii) the federal government has issued a grant or
loan or has provided support to construct a broadband service project in the
designated area within the last 18 months, and the grant or loan recipient is
the Internet service provider to which the utility proposes to lease capacity;
or (iv) the Commission determines the area is unserved on the basis of other
competent evidence. The determination of the Department of Housing and Community
Development that an area is unserved shall be made following public notice of
the proposed finding and an opportunity for third parties to challenge such
finding, and such determination shall be presumed sufficient for the Commission
to find the area to be unserved. The Commission may determine that an area is
unserved on the basis of other competent evidence.

E. An investor-owned utility shall be responsible for obtaining all necessary
rights-of-way or other easements or real property rights to permit leasing of
broadband capacity to Internet service providers. An Internet service provider
shall be responsible for obtaining all necessary rights-of-way or other
easements or real property rights from utility access point to permit the
provision of broadband services to end-user customers.

F. As used in this section:
			&#8220;Broadband&#8221; means Internet access at speeds equal to or greater
than the adequate speed as determined by the broadband guidelines set out by the
Department of Housing and Community Development for its Virginia
Telecommunication Initiative from time to time.
			&#8220;Unserved by broadband&#8221; means a designated area in which less
than 10 percent of residential and commercial units are capable of receiving
broadband service, provided that the Department of Housing and Community
Development for its Virginia Telecommunication Initiative may by guideline
increase such percentage from time to time.

G. No investor-owned utility nor any affiliate thereof may offer broadband or
Internet service provider services to residential or commercial end-user
customers in the Commonwealth pursuant to this section. Nothing in this section
shall be construed to prevent an investor-owned utility or an affiliate thereof
from providing transport of or capacity for broadband or Internet service in the
Commonwealth as a wholesaler or intermediate vendor, provided that an
unaffiliated third party is the provider of broadband or Internet services to
the end-user customer.

H. The provision and extension of broadband capacity by an incumbent electric
utility to an area of the Commonwealth unserved by broadband pursuant to a
petition that the Commission approves pursuant to this section, including any
business activity related to the construction or leasing of broadband capacity
facilities, shall be exempt from any rules and regulations that the Commission
has promulgated or may promulgate governing functional separation of generation,
retail transmission, and distribution of incumbent electric utilities.
Investor-owned electric utilities may for the purposes of this section engage in
such coordination between and among their various corporate divisions as
necessary for the purposes of providing broadband capacity to an area of the
Commonwealth unserved by broadband.

I. Notwithstanding the provisions of &#xA7; 13.1-620 or the articles of
incorporation of an investor-owned utility, an investor-owned utility may,
either directly or through an affiliate or subsidiary, lease broadband-related
assets or capacity to any third party. The revenues generated from such leases
shall offset (i) the costs of the petition recovered through the rate adjustment
clause described in subsection B or (ii) the utility&#8217;s electric cost of
service.

HISTORY: 2019, c. 619; 2020, c. 752; 2021, Sp. Sess. I, cc. 356, 357, 369, 370.