Virginia Code 56-584: Stranded costs
Just and reasonable net stranded costs, to the extent that they exceed zero value in total for the incumbent electric utility, shall be recoverable by each incumbent electric utility provided each incumbent electric utility shall only recover its just and reasonable net stranded costs through either capped rates as provided in § 56-582. To the extent not preempted by federal law, the establishment by the Commission of wires charges for any distribution cooperative shall be conditioned upon such cooperative entering into binding commitments by which it will pay to any power supply cooperative of which such distribution cooperative is or was a member, as compensation for such power supply cooperative’s stranded costs, all or part of the proceeds of such wires charges, as determined by the Commission.
Terms Used In Virginia Code 56-584
- Commission: means the State Corporation Commission. See Virginia Code 56-576
- Cooperative: means a utility formed under or subject to Chapter 9. See Virginia Code 56-576
- Electric utility: means any person that generates, transmits, or distributes electric energy for use by retail customers in the Commonwealth, including any investor-owned electric utility, cooperative electric utility, or electric utility owned or operated by a municipality. See Virginia Code 56-576
- Incumbent electric utility: means each electric utility in the Commonwealth that, prior to July 1, 1999, supplied electric energy to retail customers located in an exclusive service territory established by the Commission. See Virginia Code 56-576