Virginia Senate Bill SB267

Virginia 2022 Regular Session

• Introduced: 1/11/22
• Refer: 1/11/22

Caption

Electric cooperatives; rate adjustment clause, provision of broadband.

Impact

The bill significantly affects the operation of electric cooperatives in Virginia by allowing them greater autonomy in adjusting rates in response to their financial needs. Post-capped rates, the cooperatives can petition the Commission for timely cost recovery without being hindered by previous financial restrictions, thereby making it easier for them to undertake and manage new infrastructure projects, particularly in expanding broadband services. This could lead to improved services for members where cooperatives are active.

Summary

Senate Bill 267, also known as the regulation of electric cooperatives and the provision of broadband, seeks to amend existing statutes to enhance the ability of electric cooperatives to adjust their rates and recover costs effectively. The bill allows cooperatives to create rate adjustment clauses to recover costs related to broadband projects, including construction and operational expenses, while providing them with a more straightforward mechanism to manage financial aspects post-capped rates. The bill's provisions also emphasize that costs must benefit all cooperative members and are subject to approval by the Commission.

Contention

However, there are points of contention surrounding SB267. Critics may argue that providing such flexibility to electric cooperatives without stringent oversight could lead to increased rates for customers. The concern is that cooperatives might exploit their ability to adjust rates to recover costs that were not communicated transparently to the members. Furthermore, the bill's provisions may face scrutiny on the grounds of maintaining consumer protection and ensuring that the interests of all cooperative members are adequately represented and safeguarded against potential abuses of this new regulatory flexibility.