Companies supplying nearby electricity would qualify for Virginia utility exemption

Virginia would exclude qualifying local electricity providers from the public utility definition in the Utility Facilities Act. The exemption would cover companies owning or operating facilities that generate, distribute, or store electricity for customers on-site or on adjoining property. The facilities must serve only those customers, connect on the customer's side of the meter, and deliver electricity without using public utility lines. Parcels separated by a public road or right-of-way count as adjoining property if those parcels are zoned for industrial use. After a facility operates in an electric utility's assigned service area for five years, the company may offer to sell it to that utility at its value after depreciation under utility accounting rules.

The State Corporation Commission's power-plant approval rule would apply to plants for which its approval is required. This rule would cover electricity-generating plants in Virginia that require State Corporation Commission approval. Approval requires findings that the plant would not materially harm utility service reliability and would not be contrary to the public interest. For a regulated utility covered by section 56-585.1, a permit request filed after July 1, 2007, also requires a finding that the plant is needed to serve the public.