                                 CODE OF VIRGINIA

(EXPIRES JULY 1, 2035) FILING OF PETITION WITH COMMISSION TO ESTABLISH OR AMEND
EIRE PLAN AND RIDER; COST RECOVERY; PROCEDURE (§ 56-627)

A. Notwithstanding any provision of law to the contrary, a utility may petition
the Commission for the approval of an EIRE plan as provided in this chapter.
Such a plan shall (i) provide for a timeline for completion of the proposed
eligible infrastructure projects, the estimated costs of the eligible
infrastructure projects, and a schedule for recovery of the related eligible
infrastructure costs through the EIRE rider and (ii) demonstrate that the EIRE
plan is prudent and reasonable. The Commission may approve the initial petition
for establishment of an EIRE plan and EIRE rider 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 utility&#8217;s
initial petition for approval of an EIRE plan. A petition filed pursuant to this
section shall not require the filing of rate case schedules. The Commission
shall approve or deny, within 120 days, a 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 after such denial. 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 EIRE plan is filed
in conjunction with a rate case using the cost of service methodology pursuant
to &#xA7; 56-235.2.

C. Any EIRE plan and EIRE rider that is submitted to and approved by the
Commission shall be allocated and charged in accordance with &#xA7; 56-235.11
and appropriate cost causation principles to avoid any undue cross subsidization
between rate classes not otherwise permitted by statute.

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 during which the EIRE rider is in effect,
the utility shall reconcile the difference between the recognized eligible
infrastructure costs and the amounts recovered under the EIRE rider and shall
submit the reconciliation and a proposed EIRE rider adjustment to the Commission
to recover or refund the difference, as appropriate, through an adjustment to
the EIRE rider. The Commission shall approve or deny, within 90 days, a
utility&#8217;s proposed EIRE rider adjustment.

F. A utility that has an approved EIRE petition pursuant to this section shall
file revised rate schedules to reset the EIRE rider to zero when new base rates
and charges that incorporate eligible infrastructure costs previously reflected
in the currently effective EIRE rider become effective.

G. 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-recovery or under-recovery of the eligible infrastructure 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 costs for the EIRE rider and shall not be used for any
purpose in any other proceeding.

HISTORY: 2025, cc. 501, 599.