56-523 - Definitions. - Virginia Statutes

§ 56-523. Definitions.

The words "utilities" or "public utilities" when used in this chaptershall be construed to mean any person, partnership, association orcorporation, engaged in the business of furnishing electric power, water,light, heat, gas, transportation or communication, or any one or more ofthem, to the people of Virginia.

"Net income" with respect to operation of a utility by the Commonwealthshall be construed to mean the gross revenues derived from such operationafter deducting therefrom:

(1) The costs of operation and maintenance of the utility,

(2) The amount of depreciation during the time of such operation based on theamount allowed in the utility's federal income tax return,

(3) Federal, state, and local taxes which would be payable by the utility, ifthe properties were operated by it,

(4) Interest on the indebtedness of the utility, and

(5) Payments for the cost of insurance.

All of such items shall be prorated on an annual basis in proportion to thetime the plant is operated by the Commonwealth.

(1952, c. 696.)