SB 1420 — Business park electric infrastructure program; makes permanent and amends certain provisions.

LargeAs generalused service customers shall be exempt from requirements that they participate in energythis efficiencysubdivision, programs"large if the Commission finds that the large general service customercustomer" has,means ata theEcustomer customer's own expense, implemented energy efficiency programs that havehas produceda orverifiable willhistory produceof measuredhaving andused verifiedmore resultsthan consistentone withmegawatt industryof standardsdemand andfrom othera regulatorysingle criteriasite. stated in this section.

TheLarge Commissiongeneral shall,service nocustomers latershall thanbe Juneexempt 30,from 2021,requirements adoptthat rulesthey orparticipate regulationsin (a)energy establishingof 14 efficiency programs if the processCommission forfinds that the large general service customerscustomer tohas, applyat forthe suchcustomer's anown exemption,expense, (b)implemented definingenergy theefficiency standardprograms criteria that shallhave beproduced satisfiedor bywill anproduce applicantmeasured inand orderverified toresults notifyconsistent thewith utility,)industry includingstandards meansand ofother evaluationregulatory measurementcriteria andstated verificationin andthis confidentialitysection. requirements.

AtThe aCommission minimum,shall, suchno later than June 30, 2021, adopt rules andor regulations shall(a) requireestablishing thatthe eachprocess exemptedfor large general service customercustomers certify to apply for such an exemption, (b) establishing the utilityadministrative procedures by which eligible customers will notify the utility, and Commission(c) thatdefining itsthe implementedstandard energycriteria efficiencythat programsshall havebe deliSeredsatisfied measuredby andan verifiedapplicant savingsin withinorder to notify the priorutility, fiveincluding years.means of evaluation measurement and verification and confidentiality requirements.

InAt adoptinga minimum, such rules orand regulation1,regulations the Commission shall alsorequire specifythat theeach timingexempted aslarge togeneral whenservice acustomer utilitycertify shallto accept and act on such noti2e, taking into consideration the utility'sutility integratedand resourceCommission planningthat process, as well as its administrEtionimplemented of energy efficiency programs thathave aredelivered approvedmeasured forand costverified recoverysavings bywithin the Commission.prior five years.

SavingsIn fromadopting Rargesuch generalrules serviceor customersregulations, the Commission shall bealso accountedspecify forthe intiming as to when a utility reportingshall inaccept and act on such notice, taking into consideration the standardsutility's inintegrated §resource 56-596.2.planning process, as well as its administration of energy efficiency programs that are approved for cost recovery by the Commission.

TheSavings noticefrom of nonparticipation by a large general service customercustomers shall be accounted for thein durationutility ofreporting thein initiate steps necessary to verify such nonparticipant's achievement of energy efficiency if the Commissionstandards hasin a§ body56-596.2. of evidence that the nonparticipant has knowingly misrepresented its energy efficiency achievement.

The notice of nonparticipation by a large general service customer shall be for the duration of the service life of the customer's energy efficiency measures.

The Commission may on its own motion initiate steps necessary to verify such nonparticipant's achievement of energy efficiency if the Commission has a body of evidence that the nonparticipant has knowingly misrepresented its energy efficiency achievement.

pursuantd. to § 56-585.5 that are not recoverable under subdivision 6.

Projected and actual costs of compliance with renewable energy portfolio standard requirements pursuant to § 56-585.5 that are not recoverable under subdivision 6.

The Commission shall approve such a petition if it finds that such costs are necessary to comply with such environmental laws or f.regulations;

f.

Projected and actual costs, not currently in rates, for the utility to design, implement, and operate programs approved by the Commission to provide incentives to (i) low-income, elderly, and disabled individuals or (ii) organizations providing residential services to low-income, elderly, and disabled individuals for the installation of, or access to, equipment to generate electric energy derived from sunlight, provided the low-income, elderly, and disabled individuals, or organizations providing residential services to low-income, elderly, and disabled individuals, first participate in incentive programs for the installation of measures that reduce heating or cooling costs.

of 15 Any rate adjustment clause approved under subdivision 5 c by the Commission shall remain in effect until the utility exhausts the approved budget for the energy efficiency program.

To ensure the generation and delivery of a reliable and adequate supply of electricity, to meet the utility's projected native load obligations and to promote economic development, a utility may at any time, after the expiration or termination of capped rates, petition the Commission for approval of a rate adjustment clause for recovery on a timely and current basis from customers of the costs of (i) a coal-fueled generation facility that utilizes Virginia coal and is located in the coalfield region of the Commonwealth as described in § 15.2-6002, regardless of whether such facility is located within or without the utility's service territory, (ii) one or more other generation facilities, (iii) one or more major unit modifications of generation facilities, including the costs of any system or equipment upgrade, system or equipment replacement, or other cost reasonably appropriate to extend the combined operating license for or the operating life of one or more generation facilities utilizing nuclear power, (iv) one or of 14 more new underground facilities to replace one or more existing overhead distribution facilities of 69 kilovolts or less located within the Commonwealth, (v) one or more pumped hydroelectricity generation and storage facilities that utilize on-site or off-site renewable energy resources as all or a portion of their power source and such facilities and associated resources are located in the coalfield region of the Commonwealth as described in § 15.2-6002, regardless of whether such facility is located within or without the utility's service territory, or (vi) one or more electric distribution grid transformation projects;

The costs of the facility, other than return on projected construction work in progress and allowance for funds used during construction, shall not be recovered prior to the date a facility constructed by the of 15 utility and described in clause (i), (ii), (iii) or (v) begins commercial operation, the date the utility becomes the owner of a purchased generation facility consisting of at least one megawatt of genEratinggenerating capacity using energy derived from sunlight and located in the Commonwealth and that utilizes goods or services sourced, in whole or in part, from one or more Virginia businesses, or the date new N underground facilities are classified by the utility as plant in service.

In any application toRconstructto construct a new generating facility, the utility shall include, and the Commission shall consider, the social cost of Commissioncarbon, shallas ensuredetermined thatby the developmentCommission, ofas new,a orbenefit expansion of existing, energy resources or facilitiescost, doeswhichever notis haveappropriate. a disproportionate adverse impact on historically economically disadvantaged communities.

The Commission mayshall adoptensure anythat rulesthe itdevelopment deemsof necessarynew, toor determineexpansion theof socialexisting, costenergy ofresources carbonor andfacilities shalldoes usenot thehave besta availabledisproportionate scienceadverse andimpact technology,on includinghistorically theeconomically Technicaldisadvantaged SupportLcommunities. Document:

TechnicalThe UpdateCommission ofmay theadopt Socialany Costrules ofit Carbondeems fornecessary Regulatoryto Impactdetermine Analysisthe Undersocial Ecost Executiveof Ordercarbon 12866,and publishedshall byuse the Interagencybest Workingavailable Groupscience onand Socialtechnology, Costincluding of Greenhouse Gases from the UnitedTechnical StatesSupport GovernmentDocument: in August 2016, as guidance.

Technical Update of the Social Cost of Carbon for Regulatory Impact Analysis Under Executive Order 12866, published by the Interagency Working Group on Social Cost of Greenhouse Gases from the United States Government in August 2016, as guidance.

Such enhanced rate of return on common equity shall be applied to allowance for funds used during construction and to construction work in progress during the construction phase of the facility and shall of 14 thereafter be applied to the entire facility during the first portion of the service life of the facility.

however, the Commission shall determine the duration of the first portion of the service life of any facility, within the range specified in the table below, which determination shall be consistent with the public interest and shall refSectreflect the Commission's determinations regarding how critical the facility may be in meeting the energy ne1dsneeds of the citizens of the Commonwealth and the risks involved in the development of the facility.

Aft2rAfter the first portion of the service life of the facility is concluded, the utility's general rate of rEturnreturn shall be applied to such facility for the remainder of its service life.

As used herein, the service lifRlife of the facility shall be deemed to begin on the date a facility constructed by the utility and described in clause (i), (ii), (iii) or (v) begins commercial operation, the date the utility becomes the owner of a purchased generation facility consisting of at least one megawatt of generating capacity using energy derived from sunlight and located in the Commonwealth and that utilizes goods or services sourced, in whole or infromin part, from one or more Virginia businesses, or the date new underground facilities or new electric distribution grid transformation projects are classified by the utility as plant in service, and such service life shall be deemed equal in years to the life of that facility as used to calculate the utility's depreciation expense.

Allowance for funds used during construction shall be calculated for any such facility utilizing the utility's actual capital structure and overall cost of capital, including an enhanced rate of return on common equity as Thedetermined constructionpursuant ofto anythis facilitysubdivision, describeduntil insuch clauseconstruction (i)work orin (v)progress is inincluded the public interest, and in determiningrates. whether to approve such facility, the Commission shall liberally construe the provisions of this title.

The construction or purchase by a utility of oneany orfacility moredescribed generation facilities with at least one megawatt of generating capacity, and with an aggregate rated capacity that does not exceed 16,100 megawatts, including rooftop solar installations with a capacity of not less than 50 kilowatts, and with an aggregate capacity of 100 megawatts, that use energy derived from sunlight or from onshore wind and are located in theclause Commonwealth(i) or off(v) the Commonwealth's Atlantic shoreline, regardless of whether any of such facilities are located within or without the utility's service territory, is in the public interest, and in determining whether to approve such facility, the Commission shall liberally construe the provisions of derivedthis fromtitle. sunlight generated by such generation facility prior to purchasing the generation facility.

The construction or purchase by a utility of one or more generation facilities with at least one megawatt of generating capacity, and with an aggregate rated capacity that does not exceed 16,100 megawatts, including rooftop solar installations with a capacity of not less than 50 kilowatts, and with an aggregate capacity of 100 megawatts, that use energy derived from sunlight or from onshore wind and are located in the Commonwealth or off the Commonwealth's Atlantic shoreline, regardless of whether any of such facilities are located within or without the utility's service territory, is in the public interest, and in determining whether to approve such facility, the Commission shall liberally construe the provisions of this title.

A utility may enter into short-term or long-term power purchase contracts for the power derived from sunlight generated by such generation facility prior to purchasing the generation facility.

The conversion of any such facilities on or after September 1, 2016, is deemed to provide local and system-wide benefits and to be cost beneficial, and the costs associated with such new underground facilities are deemed to be reasonably and prudently incurred and, notwithstanding the provisions of subsection C or D, shall be approved for recovery by the Commission pursuant to this subdivision, provided that the total costs associated with the replacement of any subset of existing overhead,overhead distribution tap lines proposed by the utility with new underground facilities, exclusive of financing of 15 costs, shall not exceed an average cost per customer of $20,000, with such customers, including those served directly by or downline of the tap lines proposed for conversion, and, further, such total costs shall not exceed an average cost per mile of tap lines converted, exclusive of financing costs, of $750,000.

and without regard to whether such costs will be the subject of a customer credit offset, as applicable, pursuant to subdivision 8 d.

The basis points to be added to the utility's general rate of return to calculate the enhanced rate of 14 of return on common equity, and the first portion of that facility's service life to which such enhanced rate of return shall be applied, shall vary by type of facility, as specified in the following table:

Type of Generation Facility Basis Points First Portion of Service Life Nuclear-powered 200 Between 12 and 25 years Carbon capture compatible, clean-200lclean-co200 Between 10 and 20 years powered Renewable powered, other than 200 Between 5 and 15 years landfill gas powered Coalbed methane gas powered 150 Between 5 and 15 years Landfill gas poweredpoweredpowered 200 Between 5 and 15 years Conventional coal or combined-cyc100combined-cycle100 Between 10 and 20 years combustion turbine Only those facilities as to which a rate adjustment clause under this subdivision has been previously approved by the Commission, or as to which a petition for approval of such rate adjustment clause was filed with the Commission, on or before January 1, 2013, shall be entitled to the enhanced rate of return on common equity as specified in the above table during the construction phase of the facility and the approved first portion of its service life.

Notwithstanding any provision of Chapter 296 of the Acts of Assembly of 2018, construction, purchasing, or leasing activities for a new utility-owned and utility-operated generating facility or facilities utilizing energy derived from sunlight or from onshore wind with an aggregate capacity of 16,100 megawatts, including rooftop solar installations with a capacity of not less than 50 kilowatts, and of 15 with an aggregate capacity of 100 megawatts, together with a utility-owned and utility-operated generating facility or facilities utilizing energy derived from offshore wind with an aggregateEcapacityaggregate capacity of not more than 3,000 megawatts, are in the public interest.

To the extent that a utility elects to recover the costs of any such new generation or energy storage facility or facilities through iRsits rates for generation and distribution services and does not petition and receive approval from the Commission for recovery of such costs through a rate adjustment clause described in clause (ii), the Commission shall, upon the request of the utility in a triennial review proceeding, provide for a customer creditOcredit shall, reinvestment offset, as applicable, pursuant to subdivision 8 d with respect to all costs deemed reasonable and prudent by the Commission in a proceeding pursuant to subsection D of § 56-580 or in a triennial review proceeding.

L Electric distribution grid transformation projects are in the public interest.

To the extentEthatextent that a utility elects to recover the costs of such electric distribution grid transformation projects through its rates for generation and distribution services, and does not petition and receive approval from the Commission for recovery of such costs through a rate adjustment clause described in clause (vi), the Commission shall, upon the request of the utility in a triennial review proceeding, provide for a customer credit reinvestment offset, as applicable, pursuant to subdivision 8 d with respect to all costs deemed reasonable and prudent by the Commission in a proceeding for approval of a plan for electricemedelectric distribution grid transformation projects pursuant to subdivision 6 or in a triennial review proceeding.

Neither generation facilities described in clause (ii) that utilize simple-cycle combustion turbines nor new underground facilities shall receive an enhanced rate of return on common equity as describSddescribed herein, but instead shall receive the utility's general rate of return during the construction 1hasephase of the facility and, thereafter, for the entire service life of the facility.

No rate adjustment claus2clause for new of 14 underground facilities shall allocate costs to, or provide for the recovery of costs from, custEmerscustomers that are served within the large power service rate class for a Phase I Utility and the large generaRgeneral service rate classes for a Phase II Utility.

As used in this subdivision, a generation facility is (1) "coalbed methane gas powered" if the facility is fired at least 50 percent by coalbed methane gas, as such term is defined in § 45.2-1600, producedilityproduced from wells located in the Commonwealth, and (2) "landfill gas powered" if the facility is fired by methane or other combustible gas produced by the anaerobic digestion or decomposition of biodegradable materials in a solid waste management facility licensed by the Waste Management Board.

For purposes of this subdivision, "general rate of return" means the fair combined rate of return on comNotwithstandingcommon anyequity otheras provisionit ofis thisdetermined subdivision,by if the Commission finds during the triennial review conducted for a Phase II Utility in 2021 that such utility haspursuant not filed applications for all necessary federal and state regulatory approvals to constructsubdivision one2. or more nuclear-powered or coal-fueled generation facilities that would add a total capacity of at least 1500 megawatts to the amount of the utility's generating resources as such resources existed on July 1, 2007, or that, if all such approvals have been received, that the utility has not made reasonable and good faith efforts to construct one or more such facilities that will provide such additional total capacity within a reasonable time after obtaining such approvals, then the Commission, if it finds it in the public interest, may reduce on a prospective basis any enhanced rate of return on common equity previously applied to any such facility rate of return to any such facility for which the utility seeks approval in the future under thisy's general subdivision.

Notwithstanding any other provision of this subdivision, if the Commission finds during the triennial review conducted for a Phase II Utility in 2021 that such utility obtainshas approvalnot fromfiled theapplications Commissionfor ofall anecessary ratefederal adjustmentand clausestate pursuantregulatory approvals to subdivisionconstruct 6one associatedor withmore anuclear-powered test or demonstrationcoal-fueled projectgeneration involvingfacilities that would add a generationtotal facilitycapacity utilizingof energyat fromleast offshore1500 wind,megawatts andto suchthe utilityamount hasof not,the utility's generating resources as ofsuch resources existed on July 1, 2023,2007, commencedor constructionthat, asif definedall forsuch federalapprovals incomehave taxbeen purposesreceived, ofthat anthe offshoreutility windhas generationnot facilitymade reasonable and good faith efforts to construct one or more such facilities withthat awill minimumprovide aggregatesuch additional total capacity ofwithin 250a megawatts,reasonable time after obtaining such approvals, then the Commission, if it finds it in the public interest, may directreduce thaton thea costsprospective associatedbasis with any suchenhanced rate adjustmentof clausereturn involvingon saidcommon testequity orpreviously demonstrationapplied projectto shallany thereaftersuch nofacility longerto beno recoveredless throughthan athe general rate adjustmentof clausereturn pursuantfor tosuch subdivisionutility 6 and shallmay insteadapply beno forless generationthan andthe distributionutility's servicesgeneral asrate a result of thereturn combinationto ofany such costsfacility withfor which the otherutility costs,sseeks revenues,approval and investments included in the utility'sfuture ratesunder forthis generationsubdivision. and distribution services.

AnyNotwithstanding any other provision of 15this subdivision, if a Phase II utility obtains approval from the Commission of a rate adjustment clause pursuant to subdivision 6 associated with a test or demonstration project involving a generation facility utilizing energy from offshore wind, and such utility has not, as of July 1, 2023, commenced construction as defined for federal income tax purposes of an offshore wind generation facility or facilities with a minimum aggregate capacity of 250 megawatts, then the Commission, if it finds it in the public interest, may direct that the costs associated with any such rate adjustment clause involving said test or demonstration project shall remainthereafter combinedno withlonger be recovered through a rate adjustment clause pursuant to subdivision 6 and shall instead be recovered through the utility's otherrates costs,for revenues,generation and investmentsdistribution includedservices, with no change in itssuch rates for generation and distribution services untilas a result of the combination of such costs arewith fullythe recovered.other costs, revenues, and investments included in the utility's rates for generation and distribution services.

Any such costs shall remain combined with the utility's other costs, revenues, and investments included in its rates for generation and distribution services until such costs are fully recovered.

The utility shall amortize such deferred costs over the refueling cycle, but in no case more than 18 months, beginning of 14 with the month in which such plant resumes operation after such refueling.

In such cases, the Commission shall, in such triennial review proceeding, authorize of 15 deferred recovery of such costs and allow the utility to amortize and recover such deferred costs over future periods as determined by the Commission.

The aggregate amount of such deferred costs shaElshall not exceed an amount that would, together with the utility's other costs, revenues, and investments to be recovered through rates for generation and distribution services, cause the utility's earned return on its generation and distribution services to exceed the fair rate of return authorized under subdiviRionsubdivision 2, less 50 basis points, for the combined test periods under review or, for any test period commencing after December 31, 2012, for a Phase II Utility and after December 31, 2013, for a Phase I Utility, to exceed the fair rate of return authorized under subdivision 2 less 70 basis points.

Nothing in this section shall limit the Commission's authority, pursuant to the provisions of Chapter 10 (§ 56-232 et seq.), including specifically § 56-235.2, following the review of combined test period earnings of the utility in a triennial review, for normalization of nonrecurring test period costs and annualized adjustments for future costs, in determining any appropriate increase or decrease in the utility's rates for generation and dEstributiondistribution services pursuant to subdivision 8 a or 8 c.

D a.

Revenue reductions related to energy efficiency measures or programs approved and deployed since the utility's previous triennial review have caused the utility, as verified by the Commission, during the test period or periods under review, considered as a whole, to earn more than 50 basis points below a fair combined rate of return on its generation and distribution services or, for any test period commencing after December 31, 2012, for a Phase II Utility and after December 31, 2013, for a Phase I Utility, more than 70 basis points below a fair combined rate of return on its generation and distribution services, as determined in subdivision 2, without regard to any return on common equity or otheSother matters determined with respect to facilities described in subdivision 6, the Commission shall 1rderorder increases to the utility's rates for generation and distribution services necessary to recover 2uchsuch revenue reductions.

If the Commission finds, for reasons other than revenue reductions related to energEenergy efficiency measures, that the utility has, during the test period or periods under review, consRderedconsidered as a whole, earned more than 50 basis points below a fair combined rate of return on its generation and distribution services or, for any test period commencing after December 31, 2012, for a Phase II Utility and after December 31, 2013, for a Phase I Utility, more than 70 basis points below a fair combined rate of return on its generation and distribution services, as determined in subdivision 2, without regard of 14 to any return on common equity or other matters determined with respect to facilities described in subdivision 6, the Commission shall order increases to the utility's rates necessary to provide the opportunity to fully recover the costs of providing the utility's services and to earn not less than such fair combined rate of return, using the most recently ended 12-month test period as the basis for determining the amount of the rate increase necessary.

However, in the first triennial review proceeding conducted after January 1, 2021, for a Phase II Utility, the Commission may not order a rate increase, and in all triennial reviews of a Phase I or Phase II utility, the Commission may not order such rate increase unless it finds that the resulting rates are necessary to provide the utility with the opportunity to fully recover its costs of providing its services and to earn not less than a fair combined rate of return on both its generation and distribution services, as determined in subdivision 2, without regard to anyurnany return on common equity or other matters determined with respect to facilities described in subdivision 6, using the most recently ended 12-month test period as the basis for determining the permissibility of any rate increase under the standards of this sentence, and the amount thereof;

The utility has, during the test period or test periods under review, considered as a whole, earned more than 50 basis points above a fair combined rate of return on its generation and distribution services or, for any test period commencing after December 31, 2012, for a Phase II Utility and after December 31, 2013, for a Phase I Utility, more than 70 basis points above a fair combined rate of return on its generation and distribution services, as determined in subdivision 2, without regard to any return on common equity or other matters determined with respect to facilities described in subdivision 6, the Commission shall, subject to the provisions of subdivisions 8 d and 9, direct that 60 percent of the amount of such earnings that were more than 50 basis points, or, for any test period commencing after December 31, 2012, for a Phase II Utility and after December 31, 2013, for a Phase I Utility, that 70 percent of the amount of such earnings that were more than 70 basis points, above such fair combined rate of return for the test period or periods under review, considered as a whole, shall be credited to customers' bills.

Any such credits shall be amortized over a period of six to 12 months, as determined at the discretion of the Commission, following the effective date of the Commission's order, and shall be allocated among customer classes such that the relationship between the specific customer,customer class rates of return to the overall target rate of return will have the same relationship as the last of 15 approved allocation of revenues used to design base rates;

(Expires July 1, 2028) In any triennial review proceeding conducted after December 31, 2017, upon the request of the utility, the Commission shall determine, prior to directing that 70 percent of earnings that are more than 70 basis points above the utility's fair combined rate of return on its generation and distribution services for the test period or periods under review be credited to customer of 14 bills pursuant to subdivision 8 b, the aggregate level of prior capital investment that the Commission has approved other than those capital investments that the Commission has approved for recovery pursuant to a rate adjustment clause pursuant to subdivision 6 made by the utility during the test period or periods under review in both (i) new utility-owned generation facilities utilizing energy derived from sunlight, or from onshore or offshore wind, and (ii) electric distribution grid transformation projects, as determined by the utility's plant in service and construction work in progress balances related to such investments as recorded per books by the utility for financial reporting purposes as of the end of the most recent test period under review.

The portion of any costs associated with new utility-owned generation facilities utilizing energy derived from sunlight, or from wind, or electric distribution grid transformation projects that is the subject of any customer credit reinvestment offset pursuant to this subdivision shall not thereafter be recovered through the utility's rates for generation and distribution services over the service life of such facilities and shall not thereafter be included in the utility's costs, revenues, and investments in future triennial review proceedings conducted pursuant to subdivision 2 and shall not be the subject of a rate adjustment clause petition pursuant to of 15 subdivision 6.

The portion of any costs associated with new utility-owned generation facilities utilizing energy derived from sunlight, or from wind, or electric distribution grid transformation projecEsprojects that is not the subject of any customer credit reinvestment offset pursuant to this subdivision may be recovered through the utility's rates for generation and distribution services over the service life of such facilities and shall be included in the utility's costs, revenues, and investments in future triennial revRewreview proceedings conducted pursuant to subdivision 2 until such costs are fully recovered, and if such costs are recovered through the utility's rates for generation and distribution services, they shall not be the subject of a rate adjustment clause petition pursuant to subdivision 6.

Only the portion of such costs of new utility-owned generation facilities utilizing energy derived from sunlight, or from wind, or electric distribution grid transformation projects that has not been included in any customer credit reinvestment offset pursuant to this subdivision, and not otherwise recovered through the utility's rates for generation and distribution services, may be the subject of a rate adjustment clause petition by the utiliEyutility pursuant to subdivision 6.

The fair combined rate of return on common equity determined pursuant to subdivision 2 in such triennial review shall apply, for purposes of reviewing the utility's earnings on its rates for generation and distribution services, to the entire three successive 12-month test periods ending December 31 immediately preceding the year of the utility's subsequent triennial review filing under subdivision 3 and shall apply to applicable rate adjustment clauses under subdivisions 5 and 6 prospectively from the date the Commission's final order in the triennial review proceeding, Stilizingutilizing rate adjustment clause true-up protocols as the Commission in its discretion may determine.

1 9.

If, as a result of a triennial review required under this subsection and conducted with r2spectrespect to any test period or periods under review ending later than December 31, 2010 (or, if the CommissEonCommission has elected to stagger its biennial reviews of utilities as provided in subdivision 1, under reviewRendingreview ending later than December 31, 2010, for a Phase I Utility, or December 31, 2011, for a Phase II Utility), the Commission finds, with respect to such test period or periods considered as a whole, that (i) any utility has, during the test period or periods under review, considered as a whole, earned more than 50 basis points above a fair combined rate of return on its generation and distribution services or, for any test period commencing after December 31, 2012, for a Phase II Utility and after December 31, 2013, for a Phase I Utility, more than 70 basis points above a fair combined rate of return on its generation and distribution services, as determined in subdivision 2, without regard to any return on common equity or other matters determined with respect to facilities described in subdivision 6, and (ii) the total aggregate regulated rates of such utility at the end of the most recently ended 12-month test period exceeded the annual increases in the United States Average Consumer Price Index for all items, all urban consumers of 14 (CPI-U), as published by the Bureau of Labor Statistics of the United States Department of Labor, compounded annually, when compared to the total aggregate regulated rates of such utility as determined pursuant to the review conducted for the base period, the Commission shall, unless it finds that such action is not in the public interest or that the provisions of subdivisions 8 b and c are more consistent with the public interest, direct that any or all earnings for such test period or periods under review, considered as a whole that were more than 50 basis points, or, for any test period commencing after December 31, 2012, for a Phase II Utility and after December 31, 2013, for a Phase I Utility, more than 70 basis points, above such fair combined rate of return shall be credited to customers' bills, in lieu of the provisions of subdivisions 8 b and c, provided that no credits shall be provided pursuant to this subdivision in connection with any triennial review unless such bill credits would be payable pursuant to the provisions of subdivision 8 d, and any credits under this subdivision shall be calculated net of any customer credit reinvestment offset amounts under subdivision 8 d.

Any such credits shall be amortized subdivision:dand allocated among customer classes in the manner provided by subdivision 8 b.

For purposes of this "Basesubdivision: period" means (i) the test period ending December 31, 2010 (or, if the Commission has elected to stagger its biennial reviews of utilities as provided in subdivision 1, the test period ending December 31, 2010, for a Phase I Utility, or December 31, 2011, for a Phase II Utility), or (ii) the most recent test period with respect to which credits have been applied to customers' bills under the provisions of this subdivision, whichever is later.

"Base period" means (i) the test period ending December 31, 2010 (or, if the Commission has elected to stagger its biennial reviews of utilities as provided in subdivision 1, the test period ending December 31, 2010, for a Phase I Utility, or December 31, 2011, for a Phase II Utility), or (ii) the most recent test period with respect to which credits have been applied to customers' bills under the provisions of this subdivision, whichever is later.

(iii) revisions to the utility's rates pursuant to subdivision 8 applications,a; as permitted by subsection B, occurring after July 1, 2009;

and(iv) (v)revisions baseto the utility's rates inpursuant effectto assethe ofCommission's rules governing utility rate increase applications, as permitted by subsection B, occurring after July 1, 2009.2009;

and (v) base rates in effect as of 15July 10.1, 2009.

10.

(ii) of 14 establish a recovery period that best serves ratepayers;

The costs incurred by the Pilot Utility a Phase I or Phase II Utility after January 1, 2019, to construct, operate, and maintain transmission lines and associated substations installed the business park electric infrastructure in order to provide service to a business park participating in the pilot program of 15 outlined by this section shall be recovered by the Pilot Utility utility pursuant to a rate adjustment clause approved by the Commission in subdivision A 4 of § 56-585.1.

E 2.

N outlined by this section is to certify that up to three two petitions per year for each Pilot Utility Phase I and Phase II utility address the eligibility criteria for participation in the pilot program seO forth in § 56-576 and in this section.

For3. construction of business park electric infrastructure, a utility shall either (i) obtain a an ordinary extension or improvement in the usual course of business or (ii) obtain approval pursuant is to the requirements of § 15.2-2232 and any applicable zoning ordinances by the locality or locaEities in which the business park electric infrastructure will be located.

IfThe role of the utilityVirginia seeksEconomic aDevelopment certificatePartnership pursuantin toconducting subdivisionthe Apilot 1program ofoutlined §by 56-265.2,this thesection Commissionis shallto issuecertify itsthat decisionup onto thethree expeditedtwo certificatepetitions infrastructureper shallyear befor satisfiedeach ifPilot theUtility businessPhase parkI toand bePhase servedII isutility approvedaddress the eligibility criteria for participation in the pilot program byset theforth Virginiain Economic§ Development56-576 Partnership.and in this section.

4.

For construction of business park electric infrastructure, a utility shall either (i) obtain a certificate from the Commission pursuant to subdivision A 1 of § 56-265.2, unless such infrastructure is an ordinary extension or improvement in the usual course of business or (ii) obtain approval pursuant to the requirements of § 15.2-2232 and any applicable zoning ordinances by the locality or localities in which the business park electric infrastructure will be located.

If the utility seeks a certificate pursuant to subdivision A 1 of § 56-265.2, the Commission shall issue its decision on the expedited certificate application no later than six months from the date of filing.

The need for any business park electric infrastructure shall be satisfied if the business park to be served is approved for the program by the Virginia Economic Development Partnership.

That the State Corporation Commission shall institute a rulemaking proceeding by September 1, 2023, to allow for the establishment of requirements for applications and expedited certificates and the timeline for Department of Environmental Quality staff to review such applications that are submitted for the construction of business park electric infrastructure pursuant toonsto thatS § 56-585.1:10 of the Code of Virginia, as amended by this act.

B 3.

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