56-580 - Transmission and distribution of electric energy.
§ 56-580. Transmission and distribution of electric energy.
A. Subject to the provisions of § 56-585.1, the Commission shall continue toregulate pursuant to this title the distribution of retail electric energy toretail customers in the Commonwealth and, to the extent not prohibited byfederal law, the transmission of electric energy in the Commonwealth.
B. The Commission shall continue to regulate, to the extent not prohibited byfederal law, the reliability, quality and maintenance by transmitters anddistributors of their transmission and retail distribution systems.
C. The Commission shall develop codes of conduct governing the conduct ofincumbent electric utilities and affiliates thereof when any such affiliatesprovide, or control any entity that provides, generation, distribution, ortransmission services, to the extent necessary to prevent impairment ofcompetition. Nothing in this chapter shall prevent an incumbent electricutility from offering metering options to its customers.
D. The Commission shall permit the construction and operation of electricalgenerating facilities in Virginia upon a finding that such generatingfacility and associated facilities (i) will have no material adverse effectupon reliability of electric service provided by any regulated publicutility, (ii) are required by the public convenience and necessity, if apetition for such permit is filed after July 1, 2007, and if they are to beconstructed and operated by any regulated utility whose rates are regulatedpursuant to § 56-585.1, and (iii) are not otherwise contrary to the publicinterest. In review of a petition for a certificate to construct and operatea generating facility described in this subsection, the Commission shall giveconsideration to the effect of the facility and associated facilities on theenvironment and establish such conditions as may be desirable or necessary tominimize adverse environmental impact as provided in § 56-46.1, unless exemptas a small renewable energy project for which the Department of EnvironmentalQuality has issued a permit by rule pursuant to Article 5 (§ 10.1-1197.5 etseq.) of Chapter 11.1 of Title 10.1. In order to avoid duplication ofgovernmental activities, any valid permit or approval required for anelectric generating plant and associated facilities issued or granted by afederal, state or local governmental entity charged by law withresponsibility for issuing permits or approvals regulating environmentalimpact and mitigation of adverse environmental impact or for other specificpublic interest issues such as building codes, transportation plans, andpublic safety, whether such permit or approval is prior to or after theCommission's decision, shall be deemed to satisfy the requirements of thissection with respect to all matters that (i) are governed by the permit orapproval or (ii) are within the authority of, and were considered by, thegovernmental entity in issuing such permit or approval, and the Commissionshall impose no additional conditions with respect to such matters. Nothingin this section shall affect the ability of the Commission to keep the recordof a case open. Nothing in this section shall affect any right to appeal suchpermits or approvals in accordance with applicable law. In the case of aproposed facility located in a region that was designated as of July 1, 2001,as serious nonattainment for the one-hour ozone standard as set forth in thefederal Clean Air Act, the Commission shall not issue a decision approvingsuch proposed facility that is conditioned upon issuance of any environmentalpermit or approval. The Commission shall complete any proceeding under thissection, or under any provision of the Utility Facilities Act (§ 56-265.1 etseq.), involving an application for a certificate, permit, or approvalrequired for the construction or operation by a public utility of a smallrenewable energy project as defined in § 10.1-1197.5, within nine monthsfollowing the utility's submission of a complete application therefore. Smallrenewable energy projects as defined in § 10.1-1197.5 are in the publicinterest and in determining whether to approve such project, the Commissionshall liberally construe the provisions of this title.
E. Nothing in this section shall impair the distribution service territorialrights of incumbent electric utilities, and incumbent electric utilitiesshall continue to provide distribution services within their exclusiveservice territories as established by the Commission. Subject to theprovisions of § 56-585.1, the Commission shall continue to exercise itsexisting authority over the provision of electric distribution services toretail customers in the Commonwealth including, but not limited to, theauthority contained in Chapters 10 (§ 56-232 et seq.) and 10.1 (§ 56-265.1 etseq.) of this title.
F. Nothing in this chapter shall impair the exclusive territorial rights ofan electric utility owned or operated by a municipality as of July 1, 1999,or by an authority created by a governmental unit exempt from the referendumrequirement of § 15.2-5403. Nor shall any provision of this chapter apply toany such electric utility unless (i) that municipality or that authoritycreated by a governmental unit exempt from the referendum requirement of §15.2-5403 elects to have this chapter apply to that utility or (ii) thatutility, directly or indirectly, sells, offers to sell or seeks to sellelectric energy to any retail customer eligible to purchase electric energyfrom any supplier in accordance with § 56-577 if that retail customer isoutside the geographic area that was served by such municipality as of July1, 1999, except (a) any area within the municipality that was served by anincumbent public utility as of that date but was thereafter served by anelectric utility owned or operated by a municipality or by an authoritycreated by a governmental unit exempt from the referendum requirement of §15.2-5403 pursuant to the terms of a franchise agreement between themunicipality and the incumbent public utility, or (b) where the geographicarea served by an electric utility owned or operated by a municipality ischanged pursuant to mutual agreement between the municipality and theaffected incumbent public utility in accordance with § 56-265.4:1. If anelectric utility owned or operated by a municipality as of July 1, 1999, orby an authority created by a governmental unit exempt from the referendumrequirement of § 15.2-5403 is made subject to the provisions of this chapterpursuant to clause (i) or (ii) of this subsection, then in such event theprovisions of this chapter applicable to incumbent electric utilities shallalso apply to any such utility, mutatis mutandis.
G. The applicability of all provisions of this chapter except § 56-594 to anyinvestor-owned incumbent electric utility supplying electric service toretail customers on January 1, 2003, whose service territory assigned to itby the Commission is located entirely within Dickenson, Lee, Russell, Scott,and Wise Counties shall be suspended effective July 1, 2003, so long as suchutility does not provide retail electric services in any other serviceterritory in any jurisdiction to customers who have the right to receiveretail electric energy from another supplier. During any such suspensionperiod, the utility's rates shall be (i) its capped rates establishedpursuant to § 56-582 for the duration of the capped rate period establishedthereunder, and (ii) determined thereafter by the Commission on the basis ofsuch utility's prudently incurred costs pursuant to Chapter 10 (§ 56-232 etseq.) of this title.
H. The expiration date of any certificates granted by the Commission pursuantto subsection D, for which applications were filed with the Commission priorto July 1, 2002, shall be extended for an additional two years from theexpiration date that otherwise would apply.
(1999, c. 411; 2000, c. 991; 2001, cc. 738, 748, 755; 2002, c. 483; 2003, c.719; 2004, cc. 262, 827; 2006, cc. 811, 819, 929, 941; 2007, cc. 877, 888,933; 2009, cc. 808, 854.)