                                 CODE OF VIRGINIA

DEFERRAL OF ELIGIBLE SYSTEM EXPANSION INFRASTRUCTURE COSTS (§ 56-612)

A. A natural gas utility shall account for the difference between actual monthly
eligible system expansion infrastructure costs incurred on the cumulative
investment in eligible system expansion infrastructure and revenue collected
through a system expansion rider as a deferred cost. Such deferred costs 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. If a natural gas utility collects all of the deferred eligible system
expansion infrastructure costs, as well as all eligible expansion investment,
through a system expansion rider prior to the expiration of the time period
specified in its system expansion plan pursuant to clause (ii) of subsection A
of &#xA7; 56-611, the system expansion rider shall terminate. A natural gas
utility may extend the system expansion rider beyond the period it is proposed
to be in effect if necessary to recover any uncollected deferral or eligible
system expansion infrastructure costs. A natural gas utility shall notify the
Commission of any termination or extension of a system expansion rider at least
60 days prior to its termination or extension. Such termination or extension of
the system expansion rider shall be subject to Commission approval.

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: 2015, cc. 28, 231.