Code of Virginia
Chapter 10 - Heat, Light, Power, Water and Other Utility Companies Generally
§ 56-264.3. Cost allocation and rate design

A. The provisions of this section shall apply in any proceeding in which the Commission is required to determine, pursuant to § 56-234, if (i) rates charged by water and sewerage companies with fewer than 10,000 customer accounts, inclusive of their subsidiaries, are reasonable and just and (ii) customers using water and sewerage services under like conditions are being charged uniformly for such services.
B. Any rate application or proposal submitted to the Commission that would allocate the revenue requirement of a water or sewerage company with fewer than 10,000 customer accounts, inclusive of their subsidiaries, among more than one class of customers shall be supported by a class cost-of-service study that is designed to allocate revenues on the basis of cost causation and to assign credit for contributions in aid of construction, not previously addressed in a utility acquisition transaction or the most recent approved rate case application, to the customer class that made the contributions.
C. In setting rates, the Commission shall not find that any allocation of the revenue requirement to a particular class of customers that is greater than the portion of the revenue requirement that can be attributed to that class on the basis of a cost-of-service study of the type described in subsection B is just and reasonable unless the allocation is otherwise supported by substantial evidence.
D. In any proceeding pursuant to § 56-234 regarding the rates charged by water and sewerage companies, the revenues to be produced by rates as designed for any particular class of customers shall not provide an anticipated return on equity more than 25 percent greater or less than the return on equity used to set rates for the company as a whole, unless otherwise supported by clear and convincing evidence. The effect of this provision on class rate design shall not be considered in establishing the return on equity used to set rates for the company as a whole.
2019, c. 715.

Structure Code of Virginia

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

§ 56-232.3. Regulation of service by certain gas distribution companies to federal, state and local governmental facilities

§ 56-233. Service defined

§ 56-233.1. Public utilities purchasing practices

§ 56-234. Duty to furnish adequate service at reasonable and uniform rates

§ 56-234.1. Liability to customer for violation of duty to determine and charge lowest rate applicable

§ 56-234.2. Review of rates

§ 56-234.3. Approval of expenditures for and monitoring of new generation facilities and projected operation programs of electric utilities

§ 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

§ 56-235.2. All rates, tolls, etc., to be just and reasonable to jurisdictional customers; findings and conclusions to be set forth; alternative forms of regulation for electric companies

§ 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

§ 56-235.7. Jurisdiction of Commission when federal governmental facility ceases to be retail customer of electric utility

§ 56-235.8. Retail supply choice for natural gas customers

§ 56-235.9. Recovery of funds used for capital projects prior to a rate case for strategic natural gas facilities

§ 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. Public utilities required to file schedules of rates and charges; rules and regulations; when detariffing of telephone services to be permitted

§ 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

§ 56-237.1. Notification of intent to seek rate change in schedules required to be filed under § 56-236

§ 56-237.2. Public hearings on protests or objections to rate changes

§ 56-238. Suspension of proposed rates, etc.; investigation; effectiveness of rates pending investigation and subject to bond; fixing reasonable rates, etc.

§ 56-239. Appeal from action of Commission

§ 56-240. Proposed rates, etc., or changes thereof, not suspended effective subject to later change by Commission; refund or credit; appeal; investor-owned public utilities required to show increase complies with § 56-235.2

§ 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

§ 56-245.2. Definitions

§ 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

§ 56-249.1. Commission may require transfer of gas, water or electricity by one utility to another; compensation

§ 56-249.2. Certain records to be maintained

§ 56-249.3. Certain electric utilities to file reports in relation to fuel transactions, fuel purchases, fuel adjustment clauses, etc.

§ 56-249.4. How reports shall be filed; reports open to public; rules and regulations

§ 56-249.5. Repealed

§ 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

§ 56-251. Repealed

§ 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

§ 56-257.2:1. Projects presenting material risk to public safety; licensed professional engineers; regulations

§ 56-257.3. Repealed

§ 56-257.4. Report by the State Corporation Commission on investigation of natural gas utilities incident

§ 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

§ 56-259. Rights-of-way, etc., may be contracted for; location of easements of 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

§ 56-264.2. Governing board of multistate entities operating certain sewage treatment facilities; arbitration of issues; condemnation of facilities

§ 56-264.3. Cost allocation and rate design

§ 56-265. Certain sections not to limit Commission's powers