summary
Introduced
12/24/2019
12/24/2019
In Committee
02/24/2020
02/24/2020
Crossed Over
02/04/2020
02/04/2020
Passed
03/04/2020
03/04/2020
Dead
Signed/Enacted/Adopted
04/06/2020
04/06/2020
Introduced Session
2020 Regular Session
Bill Summary
Electric utilities; fuel cost recovery. Requires an electric utility, as a condition of approval of any request by an electric utility for recovery through its fuel factor of costs incurred under a natural gas capacity contract not previously subject to review in a fuel factor case, to prove by a preponderance of the evidence that the utility has (i) determined that the utility cannot meet its service obligations, giving due regard, in the Commission's sole discretion, to reliability of service and the need to maintain reliable sources of supply, without an additional fuel resource; (ii) reasonably identified and determined the date and amount of the new fuel resource it needs; (iii) objectively studied available alternative fuel resource options, as verified by the Commission, including options other than a new natural gas capacity contract or contracts to meet the identified and determined need; and (iv) determined that the natural gas capacity contract or contracts are the lowest-cost available option, taking into consideration fixed and variable costs and a reasonable projection of utilization.
AI Summary
This bill amends a law governing the recovery of fuel and purchased power costs by electric utilities in Virginia. The key provisions require electric utilities seeking to recover costs under a long-term natural gas capacity contract to prove by a preponderance of evidence that the utility has determined it needs the additional fuel resource, identified the required amount and timing, objectively studied alternative fuel options, and determined the natural gas contract is the lowest-cost option. Absent the utility meeting these requirements, the State Corporation Commission must deny recovery of such costs. The bill also authorizes the Commission to promulgate regulations to allow the prompt and precise recovery of prudently incurred fuel costs by utilities, with limited over- or under-recovery, to maintain public confidence and stable charges for consumers.
Committee Categories
Business and Industry
Sponsors (11)
Lee Ware (R)*,
Jeffrey Bourne (D),
Jennifer Carroll Foy (D),
Stephen Heretick (D),
Sally Hudson (D),
Terry Kilgore (R),
Sam Rasoul (D),
Danica Roem (D),
Ibraheem Samirah (D),
Michael Webert (R),
Tony Wilt (R),
Last Action
Governor: Acts of Assembly Chapter text (CHAP0661) (on 04/06/2020)
Official Document
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