A. As used in this section:
"Eligible safety activity costs" means a natural gas utility's operation and maintenance expenditures that are related to (i) the development, implementation, or execution of the natural gas utility's integrity management program developed in conformance with 49 CFR Part 192, Subpart P -- Gas Distribution Pipeline Integrity Management or (ii) programs or measures implemented to comply with regulations issued by the Commission or a federal regulatory body with jurisdiction over pipeline safety.
"Natural gas utility" means any investor-owned public service company engaged in the business of furnishing natural gas service to the public.
B. In order to enhance pipeline safety in the Commonwealth, when the requirements of this section have been satisfied, a natural gas utility shall be permitted to recover eligible safety activity costs incurred on and after January 1, 2013, in future rates as provided in this section. The natural gas utility shall maintain the burden of demonstrating that the eligible safety activity costs have been reasonably and prudently incurred and that the criteria of this section have been satisfied.
C. A natural gas utility may account for eligible safety activity costs to be recovered pursuant to this section as deferred costs. The accumulated unrecovered balance of eligible safety activity costs deferred pursuant to this section shall not exceed four percent of the natural gas utility's net plant investment that was utilized in establishing or confirming base rates in the natural gas utility's most recent rate case using the cost of service methodology set forth in § 56-235.2 or performance-based regulation plan authorized by § 56-235.6. The eligible safety activity costs deferred hereunder shall be included in new base rates and charges instituted pursuant to a Commission order establishing or confirming customer rates in a rate case using the cost of service methodology set forth in § 56-235.2 or a performance-based regulation plan authorized by § 56-235.6. Such deferred costs 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 except as provided in this subsection. The natural gas utility shall be deemed to have recovered eligible safety activity costs to the extent that the return on equity earned by the natural gas utility in an earnings test filing for a given year, after consideration of the treatment of regulatory assets, is in excess of the mid-point of the rate of return on equity range specified or confirmed in the natural gas utility's most recent rate case or performance-based regulation plan. Notwithstanding the foregoing, in the event that a utility's base rates include eligible safety activity costs, the utility shall only be permitted to defer the level of eligible safety activity costs that are in excess of the level reflected in base rates.
D. Any natural gas utility that has on its books eligible safety activity costs deferred pursuant to this section shall include an earnings test filing as part of any application for an annual informational filing or rate proceeding.
2013, cc. 281, 406.
Structure Code of Virginia
Title 56 - Public Service Companies
Chapter 10 - Heat, Light, Power, Water and Other Utility Companies Generally
§ 56-232. Public utility and schedules defined
§ 56-232.1. Regulation of service by certain gas pipeline companies to municipalities
§ 56-232.2. Regulation of compressed natural gas service
§ 56-232.2:1. Regulation of electric vehicle charging service
§ 56-233.1. Public utilities purchasing practices
§ 56-234. Duty to furnish adequate service at reasonable and uniform rates
§ 56-234.4. Authority to investigate utility operations to determine efficiency
§ 56-234.5. Required disclosure by certain officers and directors of certain utilities
§ 56-235. When Commission may fix rates, schedules, etc.; conformance with chapter
§ 56-235.1. Conservation of energy and capital resources
§ 56-235.1:1. Rates for stand-by electric service at renewable cogeneration facilities
§ 56-235.1:2. Costs of using small, women-owned, or minority-owned businesses
§ 56-235.3. Procedures for investigation of rate applications
§ 56-235.4. Prohibition of multiple rate increases within any twelve-month period; exception
§ 56-235.5. Telephone regulatory alternatives
§ 56-235.5:1. Local exchange telephone service competition policy
§ 56-235.6. Optional performance-based regulation of certain utilities
§ 56-235.8. Retail supply choice for natural gas customers
§ 56-235.10. Recovery of eligible safety activity costs; administration; procedure
§ 56-235.11. Retail rates of affiliated water utilities
§ 56-235.12. Economic development programs
§ 56-236.1. Rates to be charged churches
§ 56-236.2. Suspension of service to sewerage system
§ 56-237. How changes in rates effected; notice required; changes to be indicated on schedules
§ 56-237.2. Public hearings on protests or objections to rate changes
§ 56-239. Appeal from action of Commission
§ 56-241. Rates of telephone companies
§ 56-241.1. Flat and measured telephone rates; certain rates prohibited
§ 56-241.2. Approval of rates for resale of telephone service
§ 56-242. Temporary reduction of rates
§ 56-243. Duration of such temporary reduction
§ 56-244. Increase to make up for losses due to excessive temporary reduction
§ 56-245. Temporary increase in rates
§ 56-245.1. Meters to be kept in good working condition; defective meters
§ 56-245.1:1. Customers to be notified about nuclear emergency evacuation plans
§ 56-245.1:2. Customers to be notified of renewable power options
§ 56-245.3. Commission to promulgate regulations and standards
§ 56-246. Tests and equipment therefor
§ 56-247. Commission may change regulations, measurements, practices, services, or acts
§ 56-247.1. Commission to require public utilities to follow certain procedures
§ 56-248. Commission to prescribe standard units of products or service
§ 56-248.1. Commission to monitor fuel prices and utility fuel purchases; fuel price index
§ 56-249. Reports by utilities
§ 56-249.2. Certain records to be maintained
§ 56-249.4. How reports shall be filed; reports open to public; rules and regulations
§ 56-249.6. Recovery of fuel and purchased power costs
§ 56-249.7. Certain directors and officers of utility to file shareholder information
§ 56-250. Commission may authorize action by public utility in time of emergency or shortage; plans
§ 56-253. Existing remedies retained
§ 56-254. Sale or lease of plants to cities or towns
§ 56-255. Extension of electric service to territory not being served
§ 56-256. Powers of corporations generally; rights, powers, privileges and immunities, etc.
§ 56-256.1. Height of electric power distribution lines over agricultural land
§ 56-257. Manner of installing underground utility lines
§ 56-257.1. Means of locating nonmetallic underground conduits
§ 56-257.2. Gas pipeline safety
§ 56-257.5. Manner of installing underground utility lines through agricultural operation
§ 56-258. Who to permit laying of pipelines in roads
§ 56-259.1. Instruments conveying easements to public service corporations
§ 56-260. Compensation for damages
§ 56-260.1. Contract provisions exempting company from liability unlawful
§ 56-261. Duties of companies furnishing water or sewerage facilities
§ 56-261.1. Duties of water and sewerage companies in certain counties
§ 56-261.2. Hydrant connections and water supply for fire protection in certain counties
§ 56-262. Proceeding upon failure of public service corporation to perform duties
§ 56-263. Commission may order increase in service
§ 56-264. Quo warranto in case of failure to comply with order of Commission
§ 56-264.1. Collection of rates, fees and charges