56-600 - Definitions. - Virginia Statutes

§ 56-600. Definitions.

As used in this chapter:

"Allowed distribution revenue" means the average annual,weather-normalized, nongas commodity revenue per customer associated with therates in effect as adopted in the applicable utility's lastCommission-approved rate case or performance-based regulation plan,multiplied by the average number of customers served.

"Conservation and ratemaking efficiency plan" means a plan filed by anatural gas utility pursuant to this chapter that includes a decouplingmechanism.

"Cost-effective conservation and energy efficiency program" means a programapproved by the Commission that is designed to decrease the averagecustomer's annual, weather-normalized consumption or total gas bill, for gasand nongas elements combined, or avoid energy costs or consumption thecustomer may otherwise have incurred, and is determined by the Commission tobe cost-effective after analyzing such program using the Total Resource CostTest, the Societal Test, the Program Administrator Test, the ParticipantTest, the Rate Impact Measure Test, and any other test the Commissionreasonably deems appropriate. The Commission may determine the weight to begiven to a test. Without limitation, rate designs or rate mechanisms,customer education, customer incentives, and weatherization programs areexamples of conservation and energy efficiency programs that the Commissionmay consider.

"Decoupling mechanism" means a rate, tariff design or mechanism thatdecouples the recovery of a utility's allowed distribution revenue from thelevel of consumption of natural gas by its customers, including (i) amechanism that adjusts actual nongas distribution revenues per customer toallowed distribution revenues per customer, such as a sales adjustmentclause, (ii) rate design changes that substantially align the percentage offixed charge revenue recovery with the percentage of the utility's fixedcosts, such as straight fixed variable rates, provided such mechanismincludes a substantial demand component based on a customer's peak usage, or(iii) a combination of clauses (i) and (ii) that substantially decreases therelative amount of nongas distribution revenue affected by changes in percustomer consumption of gas.

"Fixed costs" means any and all of the utility's nongas costs of service,together with an authorized return thereon, that are not associated with thecost of the natural gas commodity flowing through and measured by thecustomer's meter.

"Natural gas utility" or "utility" means any investor-owned publicservice company engaged in the business of furnishing natural gas service tothe public.

"Revenue-neutral" means a change in a rate, tariff design or mechanism as acomponent of a conservation and ratemaking efficiency plan that does notshift annualized allowed distribution revenue between customer classes, anddoes not increase or decrease the utility's average, weather-normalizednongas utility revenue per customer for any given rate class by more than0.25 percent when compared to (i) the rate, tariff design or mechanism ineffect at the time a conservation and ratemaking efficiency plan is filedpursuant to this chapter or (ii) the allocation of costs approved by theCommission in a rate case using the cost of service methodology set forth in§ 56-235.2 or a performance-based regulation plan authorized by § 56-235.6,where a plan is filed in conjunction with such case.

(2008, c. 639.)