                                 CODE OF VIRGINIA

APPLICATION AND ADMINISTRATION (§ 56-607)

A. A natural gas utility shall account for the actual monthly EIDC incurred on
the cumulative investment in eligible infrastructure in excess of any aid to
construction contributed by the developer of the project or the person that will
occupy the proposed project as a deferred cost until new base rates and charges
that incorporate EIDC become effective for the natural gas utility, following a
Commission order establishing or confirming 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. Such deferred
cost shall be accounted for as a regulatory asset and shall not be subject to
write-off or write-down by the Commission in an earnings test filing made
pursuant to Commission rules governing utility rate increases and annual
informational filings.

B. The investment for all qualifying projects of a natural gas utility in any
year shall not exceed one percent of the natural gas utility&#8217;s net plant
investment that was utilized in establishing base rates in the natural gas
utility&#8217;s most recent rate case. The provisions of this subsection shall
not apply, however, to any natural gas utility serving fewer than 2,000
residential customers and fewer than 350 commercial and industrial customers in
the year in which it makes an investment for qualifying projects.

C. Deferral of costs recovered pursuant to this chapter shall have no effect on
the recovery of any other cost by the natural gas utility and shall not be
included in any computation relative to a performance-based regulation plan
revenue-sharing mechanism.

HISTORY: 2012, cc. 51, 202; 2013, c. 284; 2017, cc. 253, 780.