                                 CODE OF VIRGINIA

FILING OF PETITION WITH COMMISSION TO ESTABLISH OR AMEND A SAVE PLAN; RECOVERY
OF CERTAIN COSTS; PROCEDURE (§ 56-604)

A. Notwithstanding any provisions of law to the contrary, a natural gas utility
may file a SAVE plan as provided in this chapter. Such a plan shall provide for
a timeline for completion of the proposed eligible infrastructure replacement
projects, the estimated costs of the proposed eligible infrastructure projects,
and a schedule for recovery of the related eligible infrastructure replacement
costs through the SAVE rider, and demonstrate that the plan is prudent and
reasonable. Such a plan may also include an enhanced leak detection and repair
program, which shall include a description and an estimate of the associated
enhanced leak detection and repair program costs. The Commission may approve
such a plan after such notice and opportunity for hearing as the Commission may
prescribe, subject to the provisions of this chapter.

B. The Commission shall approve or deny, within 180 days, a natural gas
utility&#8217;s initial application for a SAVE plan. A plan filed pursuant to
this section shall not require the filing of rate case schedules. The Commission
shall approve or deny, within 120 days, a natural gas utility&#8217;s
application to amend a previously approved plan. If the Commission denies such a
plan or amendment, it shall set forth with specificity the reasons for such
denial, and the utility shall have the right to refile, without prejudice, an
amended plan or amendment within 60 days, and the Commission shall thereafter
have 60 days to approve or deny the amended plan or amendment. The time period
for Commission review provided for in this subsection shall not apply if the
SAVE plan is filed in conjunction with a rate case using the cost of service
methodology set forth in &#xA7; 56-235.2, or a performance-based regulation plan
authorized by &#xA7; 56-235.6.

C. Any SAVE plan and any SAVE rider that is submitted to and approved by the
Commission shall be allocated and charged in accordance with appropriate cost
causation principles in order to avoid any undue cross-subsidization between
rate classes.

D. No other revenue requirement or ratemaking issues may be examined in
consideration of the application filed pursuant to the provisions of this
chapter.

E. At the end of each 12-month period the SAVE rider is in effect, the natural
gas utility shall reconcile the difference between the recognized eligible
infrastructure replacement costs and the amounts recovered under the SAVE rider,
and shall submit the reconciliation and a proposed SAVE rider adjustment to the
Commission to recover or refund the difference, as appropriate, through an
adjustment to the SAVE rider. The Commission shall approve or deny, within 90
days, a natural gas utility&#8217;s proposed SAVE rider adjustment.

F. A natural gas utility that has implemented a SAVE rider pursuant to this
chapter shall file revised rate schedules to reset the SAVE rider to zero, when
new base rates and charges that incorporate eligible infrastructure replacement
costs previously reflected in the currently effective SAVE rider become
effective for the natural gas utility, following a Commission order establishing
customer rates in a rate case using the cost of service methodology set forth in
&#xA7; 56-235.2, or a performance-based regulation plan authorized by &#xA7;
56-235.6.

G. Costs recovered pursuant to this chapter shall be in addition to all other
costs that the natural gas utility is permitted to recover, shall not be
considered an offset to other Commission-approved costs of service or revenue
requirements, and shall not be included in any computation relative to a
performance-based regulation plan revenue-sharing mechanism. Further, if the
Commission approves (i) an updated weighted average cost of capital for use in
calculating the return on investment, (ii) the carrying costs on the over- or
under-recovery of the eligible infrastructure replacement costs, (iii) the
allowance for funds used during construction, or (iv) any combination thereof,
such weighted average cost of capital shall be used only for the purpose of the
eligible infrastructure replacement costs for the SAVE rider and shall not be
used for any purpose in any other proceeding.

HISTORY: 2010, cc. 142, 514; 2022, cc. 728, 759.