Virginia House Bill HB1670

Virginia 2023 Regular Session

• Introduced: 1/9/23
• Refer: 1/9/23

Caption

Electric utilities; schedule for rate review proceedings.

Impact

The implementation of HB 1670 could significantly affect electric utility regulation, ensuring that rates reflect a fair return on investment while also protecting consumer interests. Utilities that achieve earnings above a certain threshold may provide credits to customers, thereby directly impacting ratepayers financially. The bill emphasizes the importance of maintaining an equilibrium where utilities can recover costs and invest in infrastructure while also ensuring customer benefits, which may lead to enhanced regulatory scrutiny.

Summary

House Bill 1670 addresses the procedures for rate review proceedings for electric utilities in the Commonwealth. It establishes a systematic schedule for utilities to file for rate adjustments and outlines the parameters under which the Commission must evaluate these requests. The bill mandates triennial and biennial reviews, requiring utilities to submit earnings reports for specific periods. It also stipulates that adjustments to rates can only be made if they align with the utility's fair rate of return as determined by the Commission.

Contention

Points of contention regarding this bill stem from its implications for both utility companies and consumers. Proponents argue that the structured review process will foster transparency and accountability within the utility sector, encouraging investments in renewable energy technologies. On the contrary, there are concerns from various stakeholders that the bill might unduly favor utilities, permitting them to raise rates under certain conditions without adequate protections for consumers against potentially excessive rate hikes.