TITLE 20. PUBLIC UTILITIES AND TELECOMMUNICATIONS

STATE CORPORATION COMMISSION

Final Regulation

Title of Regulation: 20VAC5-340. Rules Governing Shared Solar Program (amending 20VAC5-340-10 through 20VAC5-340-90, 20VAC5-340-110; adding 20VAC5-340-65; repealing 20VAC5-340-100).

Statutory Authority: §§ 12.1-13 and 56-594.3 of the Code of Virginia.

Effective Date: January 1, 2025.

Agency Contact: Matthew Unger, Senior Analyst, Division of Public Utility Regulation, State Corporation Commission, P.O. Box 1197, Richmond, VA 23218, telephone (804) 371-9849, FAX (804) 371-9350, or email matthew.unger@scc.virginia.gov.

Summary:

This action implements Chapters 715, 716, 763, and 765 of the 2024 Acts of Assembly and (i) extends the existing program to customers of a Phase I Utility, (ii) increases the caps on participation by customers of a Phase II Utility, and (iii) requires the commission to recalculate the minimum bill that prescribes the amount a participating customer must pay the utility each month after accounting for any bill credits.

Changes to the proposed regulation modify the definition of "substantial completion" and require a Phase II Utility to notify the commission when 90% of the part one aggregate shared solar capacity has been subscribed and the related project construction is substantially complete.

AT RICHMOND, NOVEMBER 25, 2024

COMMONWEALTH OF VIRGINIA, ex rel.

STATE CORPORATION COMMISSION

CASE NO. PUR-2024-00122

Ex Parte: In the matter of amending regulations

governing shared solar programs

ORDER ADOPTING REGULATIONS

The Regulations Governing Shared Solar Program, 20VAC5-340-10 et seq. ("Shared Solar Rules"), adopted by the State Corporation Commission ("Commission") pursuant to Code § 56-594.3, establish the requirements for customers of Virginia Electric and Power Company d/b/a Dominion Energy Virginia ("Dominion") to participate in shared solar projects.¹ The Shared Solar Rules include, inter alia, requirements for licensing and registration of subscriber organizations, billing and payment, and dispute resolution.

Chapters 715, 716, 763 and 765 of the Virginia Acts of Assembly, 2024 Session (collectively, "2024 Shared Solar Legislation") amended Code § 56-594.3 and enacted new Code § 56-594.4, effective July 1, 2024. The 2024 Shared Solar Legislation modified certain statutory provisions applicable to Dominion's shared solar program and directed the establishment of a similar program for customers of Appalachian Power Company ("APCo"). Additionally, the 2024 Shared Solar Legislation directs the Commission to recalculate the minimum bill that prescribes the amount a participating customer must pay to the utility each month after accounting for any bill credits.

In consideration of the 2024 Shared Solar Legislation, the Commission established this proceeding on August 8, 2024. Commission Staff ("Staff") proposed amendments to the Shared Solar Rules ("Proposed Amendments"). Interested persons were provided an opportunity to file written comments on, propose modifications or supplements to, or request a hearing on the Proposed Amendments on or before September 26, 2024. Staff was required to file a report on or response to any comments, proposals, or requests for hearing submitted to the Commission on the Proposed Amendments on or before October 10, 2024.

NOW THE COMMISSION, upon consideration of the matter,² is of the opinion and finds that a Final Rule should be adopted. The Commission appreciates the time and thought that went into the many comments received. While the Commission has fully considered the record, it will only address herein the primary issues they raised and how they are considered in the appended Final Rule.³

The Commission first wishes to echo Staff's observation that the 2024 Shared Solar Legislation is designed to get these shared solar projects online, rather than simply hold a spot in the queue.⁴ To accomplish this, Staff's Proposed Amendments, among other things, proposed a definition of "substantial completion" in 20VAC5-340-20 and suggested corresponding revisions in 20VAC5-340-40 to avoid what one commenter accurately described as "queue squatting."⁵

Substantial Completion

The Proposed Amendments included this definition:

"Substantial Completion" means all requirements for interconnection with the electric transmission or distribution system have been met and it is signified by a letter from the utility authorizing the shared solar facility to interconnect, energize, and operate. The utility must provide this letter to the shared solar facility as soon as reasonably practical, but no later than 30 days after final interconnection.

Additionally, the Proposed Amendments revised the timeframes in 20VAC5-340-40 E applicable to projects in the queue by tying them to substantial completion rather than mechanical completion as follows:

E. If a project approved January 1, 2025 or after fails to reach mechanical substantial completion within 24 months of the date it was awarded capacity, the utility shall remove the project from the program queue unless the subscriber organization of the project provides to the utility an additional deposit of $275 per kW to maintain its position within the program queue. If, after paying the additional deposit, the project still fails to reach mechanical substantial completion within an additional 124 months, the utility shall remove the project from the program queue.

Some commenters expressed concern that this framework would: (1) unfairly "change the game" for developers currently in the queue by shortening the applicable timeframes;⁶ and (2) possibly penalize developers for things beyond their control if the utility does not act expeditiously to provide a letter from the utility authorizing the shared solar facility to interconnect, energize, and operate after final interconnection.⁷ These commenters expressed a preference for maintaining the two separate standards, one tying to substantial completion and one tying to mechanical completion, to address these concerns. Instead, the Commission will: (1) use "substantial completion" as a benchmark; (2) define the term so as to contemplate validation by the utility that the project may be interconnected but not require "final interconnection;" (3) provide an additional year to developers in the program queue as of January 1, 2025 and earlier; and (4) provide for tolling of the time in the queue if the utility must delay proceeding with the interconnection for reasons beyond the utility's control.⁸ Specifically, as compared to the Proposed Amendment definition, the Final Rule states:

"Substantial Completion" means all requirements for interconnection with the electric transmission or distribution system have been met by the shared solar facility and it is signified by a letter or comparable written document from the utility authorizingsignifying that the shared solar facility has been constructed consistent with applicable standards for to interconnection, energize, and operate. The utility must provide this letter to the shared solar facility as soon as reasonably practical, but no later than 30 days after the Commissioning Test, as set forth in 20VAC5-314-90, or comparable project milestonefinal interconnection.

Further, 20VAC5-340-40 E in the Final Rule now provides:

E. If a project approved January 1, 2025 or after fails to reach mechanical substantial completion within 24 months of the date it was awarded capacity, the utility shall remove the project from the program queue unless the subscriber organization of the project provides to the utility an additional deposit of $75 per kW to maintain its position within the program queue. If, after paying the additional deposit, the project still fails to reach mechanical substantial completion within an additional 912 months, the utility shall remove the project from the program queue. However, if the subscriber organization notifies the utility that it is prepared to proceed with Commissioning Tests, as set forth in 20VAC5-314-90, or comparable project milestone, and the utility must delay proceeding with the interconnection for reasons beyond the utility's control, the time periods above and in subsection -40 E 1 are tolled until the utility is able to proceed with the interconnection.

1. If projects approved prior to January 1, 2025, fail to reach substantial completion within 36 months of the date it was awarded capacity, the utility shall remove the project from the program queue unless the subscriber organization of the project provides to the utility an additional deposit of $25 per kW to maintain its position within the program queue for up to an additional 12 months.

Opening Up Additional Capacity

Commenters expressed concern that the Proposed Amendments did not provide enough specificity as to the process for how up to 150 megawatts of additional capacity will be made available in Dominion's service territory.⁹ To address this, the Final Rule includes a new 20VAC5-340-40 G, which requires Dominion to notify the Commission when 90% of the part one aggregate capacity has been subscribed and the related project construction is substantially complete. Additionally, 20VAC5-340-40 F now requires that the anticipated or achieved substantial completion date for these projects will be provided in the publicly available information maintained on the Company's website.

Minimum Bill¹⁰

In response to comments requesting further detail as to how the minimum bill will be

quantified, the Final Rule explicitly recognizes that avoided costs, among other things already identified in 20VAC5-340-80, should be considered in the Commission's determination of costs and benefits. However, the Commission declines to further limit the factors it may consider at this time. Given the nascent stages of shared solar development and implementation of this program, the Commission will instead fully investigate these factual issues, as required by law, in the context of a fully litigated proceeding.

More specifically, Chapter 715 of the Shared Solar Legislation directed this Commission to initiate a proceeding to recalculate the minimum bill consistent with additional factors prescribed therein. Chapter 715 further prescribes when these proceedings must occur for the Commonwealth's two largest utilities, APCo and Dominion. As required by Va. Code § 56-594 E, the Commission is currently conducting a net metering proceeding for APCo in Case No. PUR-2024-00161. Within 30 days of the final order in such proceeding, the Commission will initiate the required separate proceeding to establish APCo's minimum bill. The Commission will similarly conduct a net metering proceeding for Dominion pursuant to the same statute in 2025. Within 30 days of the final order in Dominion's net metering proceeding, the Commission will initiate a separate proceeding to establish Dominion's own minimum bill.

Accordingly, IT IS ORDERED THAT:

(1) The Commission's Rules Governing Shared Solar Program, 20VAC5-340-10 et seq. are amended as shown in Attachment A to this Order and shall become effective on January 1, 2025.

(2) The Commission's Division of Information Resources shall forward a copy of this Order to the Office of the Registrar for publication in the Virginia Register of Regulations.

(3) An electronic copy of this Order with Attachment A shall be made available on the Division of Public Utility Regulation's section of the Commission's website: scc.virginia.gov/pages/Rulemaking.

(4) On or before December 31, 2024, Dominion and APCo shall file in this docket, with the Clerk of the Commission, any revised tariff provisions necessary to implement the regulations adopted herein and shall also provide a copy of the document containing the revised tariff provisions with the Commission's Division of Public Utility Regulation. The Clerk of the Commission need not distribute copies but shall make such filings available for public inspection in the Clerk's Office and post them on the Commission's website at: scc.virginia.gov/pages/Case-lnformation.

(5) This docket shall remain open to receive the filings from electric utilities pursuant to Ordering Paragraph (4).

(6) The Motions of the Coalition for Community Solar Access and Summit Ridge Energy, LLC are denied.

A COPY hereof shall be sent electronically by the Clerk of the Commission to all persons on the official Service List in this matter. The Service List is available from the Clerk of the Commission.

20VAC5-340-10. Applicability.

A. This chapter is promulgated pursuant to § §§ 56-594.3 and 56-594.4 of the Code of Virginia. The provisions of this chapter apply to Phase I Utilities, Phase II Utilities, subscriber organizations, and subscribers. The provisions of this chapter govern the development of shared solar facilities and participation in the shared solar program.

B. The maximum cumulative size For a Phase I Utility, the maximum aggregate capacity of the shared solar program shall be 50 megawatts or 6.0% of peak load, whichever is less.

C. For a Phase II Utility, part one aggregate capacity of the shared solar program initially shall not exceed 150 be 200 megawatts, at least 30% of which must be comprised of low-income customers. The program shall be expanded as part two by 50 up to 150 megawatts upon qualification of satisfying the 30% requirement of low-income participation a State Corporation Commission determination [ in response to a notification filed consistent with 20VAC5-340-40 G ] that at least 90% of the part one aggregate capacity has been subscribed and that project construction is substantially complete. In part two of the shared solar program, no more than 51% of up to 75 megawatts of aggregated capacity shall serve low-income customers.

C. D. Any shared solar facility may colocate on the same parcel of land as another shared solar facility only if such facilities are owned by the same entity and do not exceed an accumulative maximum capacity of 5,000 kilowatts among all such facilities. Such facilities will also be responsible for any special interconnection arrangements with the utility.

D. E. Customers participating in this program shall remain in their the customer's present customer class but may not participate in the multi-family solar program, pursuant to Chapters 1187, 1188, 1189, and 1239 of the 2020 Acts of Assembly, or the net metering program, pursuant to 20VAC5-315, while participating in this program.

E. Each utility F. A Phase I Utility must file any tariffs, agreements, or forms necessary for implementation of the program within 60 days of the utility's full implementation of a new customer information platform or by July 1, 2023, whichever occurs first, to process customer subscriptions 2025. A Phase II Utility must file updated tariffs, agreements, or forms necessary for implementation of the program by December 1, 2025. Subscriber organizations may apply for licenses, register projects, interact with potential customers, and otherwise develop shared solar projects beginning in 2021.

F. G. The provisions of this chapter shall be deemed not to prohibit the Phase I Utility or Phase II Utility, in emergency situations, from taking actions it is otherwise authorized to take that are necessary to ensure public safety and reliability of the distribution system. The commission State Corporation Commission, upon a claim of inappropriate action or its own motion, may investigate and take such corrective actions as may be appropriate.

G. H. A request for a waiver of any of the provisions in this chapter shall be considered by the State Corporation Commission on a case-by-case basis and may be granted upon such terms and conditions as the State Corporation Commission may impose require.

20VAC5-340-20. Definitions.

The following terms when used in this chapter shall have the following meanings, unless the context clearly indicates otherwise:

"Administrative cost" means the reasonable incremental cost to the investor-owned utility to process subscriber bills for the program.

"Affordable housing provider" means any multi-family residential housing project that is one or more of the following:

1. A federal, state, or local financing program requiring that the real estate remains subject to land use restriction and rental housing affordability covenants that limit allowable rents charged to individuals or families;

2. A federal low-income housing tax credit project, as defined in § 42 of the Internal Revenue Code of 1986;

3. A project funded with federal grants made to states for low-income housing tax credits under § 1602 of the American Recovery and Reinvestment Act of 2009;

4. A rental assistance demonstration public housing conversion under the federal Consolidated and Further Continuing Appropriations Act of 2020; or

5. Affordable housing meeting the applicable requirements of another federal, state, or local program.

"Applicable bill credit rate" means the dollar-per-kilowatt-hour rate used to calculate the subscriber's bill credit.

"Bill credit" means the monetary value of the electricity, in kilowatt-hours, generated by the shared solar facility allocated to a subscriber to offset that subscriber's electricity bill.

"Commission" means the State Corporation Commission.

"Dual-use agricultural facility" means agricultural production and electricity production from solar photovoltaic panels occurring simultaneously on the same property.

"Gross bill" means the amount that a customer would pay to the utility based on the customer's monthly energy consumption before any bill credits are applied.

"Incremental cost" means any cost directly caused by the implementation of the shared solar program that would not have occurred absent the implementation of the shared solar program.

"Low-income customer" means any person or household whose income is no more than 80% of the median income of the locality in which the customer resides. The median income of the locality is determined by the U.S. Department of Housing and Urban Development.

"Low-income service organization" means a nonresidential customer of an investor-owned utility whose primary purpose is to serve low-income individuals and households.

"Low-income shared solar facility" means a shared solar facility at least 30% of the capacity of which is subscribed by low-income customers or low-income service organizations.

"Low-income subscription plan" means a plan submitted to the commission by an applicant providing a commitment for low-income subscription and demonstrating the ability to subscribe low-income customers.

"Minimum bill" means a dollar per month amount determined by the commission under § 56-594.3 D of the Code of Virginia that subscribers are a subscriber is required to pay, at a minimum, on their the subscriber's utility bill each month after accounting for any bill credits.

"Net bill" means the resulting amount a customer must pay the utility after deducting the bill credit from the customer's monthly gross bill.

"Non-ministerial permit" permits" means all necessary governmental permits and approvals to construct the project (other than ministerial permits, such as electrical and building permits), notwithstanding any pending legal challenges to one or more permits or approvals.

"Person" means any individual, corporation, partnership, association, company, business, trust, joint venture, or other private legal entity, and the Commonwealth or any municipality.

"Phase I Utility" has the same meaning as provided in subdivision A 1 of § 56-585.1 of the Code of Virginia.

"Phase II Utility" has the same meaning as provided in subdivision A 1 of § 56-585.1 of the Code of Virginia.

"REC" means a Renewable Energy Certificate originating from a renewable energy [ portfolio ] standard eligible source as defined in subdivision C of § 56-585.5 of the Code of Virginia.

"Shared solar facility" means a facility that:

1. Generates electricity by means of a solar photovoltaic device with a nameplate capacity rating that does not exceed 5,000 kilowatts of alternating current;

2. Is located in the service territory of an investor-owned electric utility interconnected with the distribution system of a Phase I Utility or Phase II Utility in the Commonwealth;

3. Is connected to the electric distribution grid serving the Commonwealth Has at least three subscribers;

4. Has at least three subscribers; 40% of its capacity subscribed by customers with subscriptions of 25 kilowatts or less; and

5. Has at least 40% of its capacity subscribed by customers with subscriptions of 25 kilowatts or less; and

6. 5. Is located on a single parcel of land.

"Shared solar program" or "program" means the program created through this chapter to allow for the development of shared solar facilities.

"Subscriber" means a retail customer of a utility that (i) owns one or more subscriptions of a shared solar facility that is interconnected with the utility and (ii) receives service in the service territory of the same utility in whose service territory the shared solar facility is located interconnected.

"Subscriber organization" means any for-profit or nonprofit entity that owns or operates one or more shared solar facilities. A subscriber organization shall not be considered a utility solely as a result of its ownership or operation of a shared solar facility. A subscriber organization licensed with the commission, unless otherwise exempt or granted a waiver from the commission, shall be eligible to own or operate shared solar facilities in more than one investor-owned utility service territory. A Phase I Utility or Phase II Utility shall not be a subscriber organization.

"Subscribed" means, in relation to a subscription, that a subscriber has made initial payments or provided a deposit to the owner of a shared solar facility for such subscription.

"Subscription" means a contract or other agreement between a subscriber and the owner of a shared solar facility. A subscription shall be sized such that the estimated bill credits do not exceed the subscriber's average annual bill for the customer account to which the subscription is attributed.

"Substantial completion" means all requirements for interconnection with the electric transmission or distribution system have been met [ . Substantial completion by the shared solar facility and ] is signified by a letter [ or comparable written document ] from the utility [ authorizing signifying that ] the shared solar facility [ to interconnect, energize, and operate has been constructed consistent with applicable standards for interconnection. ] The utility must provide this letter to the shared solar facility as soon as reasonably practical, but no later than 30 days after [ final interconnection the commissioning test, as set forth in 20VAC5-314-90, or comparable project milestone. ]

"Utility" means a the respective Phase I Utility or Phase II Utility.

20VAC5-340-30. Licensing of subscriber organizations.

A. Each entity seeking to conduct business as a subscriber organization, unless otherwise exempt or granted a waiver from the commission, shall obtain a license from the commission prior to commencing business operations. Each entity applying for a license to conduct business as a subscriber organization shall file an application with the clerk of the commission and contemporaneously provide a copy of the application to the utility. Applications for licensure shall be filed by the legal entity with control of, or prospective control of, shared solar projects rather than each individual project needing a separate license. If the applicant becomes aware of any material changes to any information while the application is still pending, the applicant shall inform the commission within 10 calendar days. Applications shall include the following information:

1. Legal name of the applicant, as well as any trade names.

2. Physical business addresses and telephone numbers of the applicant's principal office and all offices in Virginia.

3. A description of the applicant's authorized business structure, identifying the state authorizing such structure and the associated date (e.g., if incorporated, the state and date of incorporation; if a limited liability company, the state issuing the certificate of organization and the date of issuance).

4. Name and business address of all principal corporate officers and directors, partners, and limited liability company (LLC) members, as appropriate.

5. If a foreign corporation, a copy of the applicant's authorization to conduct business in Virginia from the commission or if a domestic corporation, a copy of the certificate of incorporation from the commission.

6. A list of the states in which the applicant and the applicant's affiliates conduct business related to participation in a shared solar program, the names under which such business is conducted, and a description of the business conducted.

7. The applicant shall disclose if it is an affiliate of the incumbent utility. If it is, it shall further provide a description of internal controls the applicant has designed to ensure that it the applicant and its employees, contractors, and agents that are engaged in the (i) merchant:

a. Merchant, operations, transmission, or reliability functions of the electric generation systems; or

(ii) customer b. Customer service, sales, marketing, metering, accounting, or billing functions, do not receive information from the utility or from entities that provide similar functions for or on behalf of the utility as would give the affiliated subscriber organization an undue advantage over nonaffiliated subscriber organizations.

8. Name, title, and address of the applicant's registered agent in Virginia for service of process.

9. Name, title, address, telephone number, and email address of the applicant's liaison with the commission.

10. Sufficient information to demonstrate, for purposes of licensure with the commission, financial fitness commensurate with the services proposed to be provided. Applicant shall submit the following information related to general financial fitness:

a. If available, proof of a minimum bond rating or other senior debt of at least "BBB-" or an equivalent rating by a major rating agency, or a guarantee with a guarantor possessing a credit rating of "BBB-" or higher from a major rating agency. If not available, other evidence that will demonstrate the applicant's financial responsibility.

b. If available, the applicant's audited balance sheet, income and cash flow statements for the most recent fiscal year, or published financial information such as the most recent Securities and Exchange Commission forms 10-K and 10-Q. If not available, other financial information for the applicant or any other entity that provide financial resources to the applicant may be provided.

c. If applicable, information to demonstrate that the applicant is a bona fide nonprofit entity. The information provided shall establish that the applicant (i) has the status of a tax-exempt organization under § 501(C)(3) of the Internal Revenue Code of 1986; (ii) conducts its the applicant's activities in a manner that serves public or charitable purposes rather than commercial purposes; (iii) will apply for qualification of projects that serve primarily or exclusively low-income customers; and (iv) was not created for the purpose of avoiding the financial fitness requirements or otherwise under the control of a for profit entity.

11. Sufficient information to demonstrate technical fitness commensurate with the service to be provided, to include:

a. A description of the applicant's experience developing solar facilities and engaging as a subscriber organization or other relevant services. Provide a discussion of the applicant's qualifications, including a summary of other projects developed and managed by the applicant with location, status, and operational history.

b. The names and a description of the managerial and technical experience of each principal officer and appropriate senior management person with direct responsibility for the business operations conducted in Virginia. Include a description of their the person's experience related to developing solar facilities and providing shared solar services.

c. Billing service options the applicant intends to offer and a description of the applicant's billing capability, including a description of any related experience.

d. A copy of the applicant's dispute resolution procedure, including the business website, email address, mailing address, and toll-free number for the customer service department.

12. A copy of the applicant's dispute resolution procedure, including the toll-free number for the customer service department.

13. 12. A copy of the applicant's proposed standard agreement it plans to use with prospective subscribers.

14. 13. A $250 registration fee payable to the commission.

15. 14. The following information related to the applicant's fitness to operate as a subscriber organization:

a. Disclosure of any (i) civil, criminal, or regulatory sanctions or penalties imposed or in place within the previous five years against the applicant, any of its the applicant's affiliates, or any officer, director, partner, or member of an LLC or any of its the LLC's affiliates, pursuant to any state or federal law or regulation; and (ii) felony convictions within the previous five years that relate to the business of the company or to an affiliate thereof, of any officer, director, partner, or member of an LLC.

b. Disclosure of whether any application for license or authority to conduct a similar type of business as it the applicant proposes to offer in Virginia has ever been denied, and whether any license or authority issued to it the applicant or an affiliate has ever been suspended or revoked and whether other sanctions have been imposed.

16. 15. A copy of the applicant's low-income subscription plan, as applicable.

B. An officer with appropriate authority shall attest that all information supplied on the application for licensure is true and correct and that, if a license is granted, the applicant will abide by all applicable laws of the Commonwealth and regulations of the commission.

C. Any application that fails to provide all required information in this section shall be regarded as incomplete. No action shall be taken on any application until deemed complete and filed.

D. Upon receipt of an application for a license to conduct business as a subscriber organization, the commission shall enter an order providing notice to appropriate persons and an opportunity for comments on the application. The commission shall issue a license to conduct business as a subscriber organization upon finding the applicant satisfies the requirements established by this chapter.

E. A license granted pursuant to this chapter is valid until revoked or suspended by the commission after providing due notice and an opportunity for a hearing, or until the subscriber organization abandons its license.

F. Commission approval Approval of the commission is required for transfer or assignment of a license issued under this section to any third party. The commission may condition its approval on any terms it determines appropriate to protect customers.

20VAC5-340-40. Registration with the utility.

A. Subscriber organizations, that are licensed or otherwise, exempted, or granted a waiver from the commission consistent with 20VAC5-340-30 shall register each proposed shared solar facility with the utility by entering into an agreement containing information as prescribed in this section. B. A subscriber organization shall provide:

1. Providing proof of licensure, exemption, or waiver by the commission, as applicable.

C. A subscriber organization shall submit 2. Submitting to the utility the full name of the subscriber organization, address, and type of entity (e.g. partnership, corporation, etc.).

D. Subscriber organizations shall provide 3. Providing the identity of the shared solar facility participating in the shared solar program, including an address of record and a copy of the executed interconnection agreement Small [ Generation Generator ] Interconnection Agreement or an Interconnection Service Agreement [ as defined by the regional transmission operator ] for the shared solar facility. Subscriber organizations also shall state the amount of capacity for the facility, meeting or exceeding the minimum of 30%, including any percentage that will be subscribed by low-income subscribers and provide proof that non-ministerial permits have been obtained for the shared solar facility. Subscriber organizations shall also state the facility's anticipated substantial completion date.

E. 4. For a low-income shared solar facility, the subscriber organization shall provide a copy of its low-income subscription plan, as applicable.

F. Subscriber organizations and the utility shall exchange 5. Providing the names, telephone numbers, and email addresses of appropriate internal points of contact to address operational, business coordination, and customer account issues, and the names and addresses of their registered agents in Virginia.

G. 6. In the event a license granted under 20VAC5-340-30 is transferred to another entity with approval from the commission, the subscriber organization must notify the utility within five business days of approval by the commission.

H. The utility may require 7. Providing reasonable financial security from the subscriber organization if required by the utility to safeguard the utility and its customers from the reasonably expected net financial impact due to the nonperformance of the subscriber organization. The amount of such financial security shall be commensurate with the level of risk assumed by the utility [ but shall not be greater than $50 per kilowatt (kW) alternating current ]. Such financial security may include a letter of credit, a deposit in an escrow account, a prepayment arrangement, a surety bond, or other arrangements that may be mutually agreed upon by the utility and the subscriber organization. I. Subscriber organizations deemed bona fide nonprofits shall be exempt from [ the $50 per kilowatt alternating current any ] security deposit or [ surety ] bond.

B. The utility shall provide to the subscriber organization the names, telephone numbers, and email addresses of appropriate internal points of contact to address operational, business coordination, and customer account issues.

C. The utility shall notify the subscriber organization within 30 days after the subscriber organization submits a shared solar facility registration to the utility whether the shared solar facility has been awarded capacity in the program queue or placed on a waiting list. When awarded capacity in the program queue, [ if required by the utility, ] the subscriber organization shall pay to the utility a security deposit or [ surety ] bond, [ whichever the subscriber organization chooses, ] in [ the an ] amount [ determined by the utility ] of [ up to ] $50 per [ kilowatt (kW) kW ] of alternating-current (AC) rated capacity of the shared solar facility within 10 days. This deposit Security deposits shall be held by the utility in an interest-bearing account. Deposits shall be returned in full, including interest, upon commercial operation of the shared solar facility and demonstration that [ the subscriber organization has satisfied its ] low-income subscription [ requirements have been met plan commitments ]. As program capacity is awarded, the utility shall ensure that the cumulative capacity of such projects meets or exceeds 30% of project capacity (or savings equivalent) for low-income customers as demonstrated by approved low-income subscription plans. Subscriber organizations deemed bona fide nonprofits shall be exempt from the $50 per kW alternating current (AC) utility deposit.

J. D. Shared solar facility meter requirements. A shared solar facility must have a utility-provided meter capable of measuring output of the facility on a 30-minute interval basis.

1. The shared solar facility's meter shall not be located behind another utility customer account.

2. Costs of installation, maintenance, and reading of the meter shall be billed to the subscriber organization.

E. If a project [ approved January 1, 2025, or later ] fails to reach mechanical substantial completion within 24 months of the date it the project was awarded capacity, the utility shall remove the project from the program queue unless the subscriber organization of the project provides to the utility an additional deposit of $25 $75 per kW to maintain its position within the program queue. If, after paying the additional deposit, the project still fails to reach mechanical substantial completion within an additional 12 [ four nine ] months, the utility shall remove the project from the program queue. [ However, if the subscriber organization notifies the utility that the subscriber organization is prepared to proceed with the commissioning tests, as set forth in 20VAC5-314-90, or comparable project milestone, and the utility must delay proceeding with the interconnection for reasons beyond the utility's control, the time periods in this subsection will be tolled until the utility is able to proceed with the interconnection.

If a project approved prior to January 1, 2025, fails to reach substantial completion within 36 months of the date it was awarded capacity, the utility shall remove the project from the program queue unless the subscriber organization of the project provides to the utility an additional deposit of $25 per kW to maintain its position within the program queue for an additional 12 months. ]

K. F. The utility shall maintain, on a publicly available website, a list of projects accepted into the program queue and those projects that are on the wait list. This project list shall rank projects primarily by the date of the awarded capacity and secondarily by the date of a fully executed interconnection agreement. The utility shall update the list within two business days of any change to the projects in the program queue. The list shall include project applicant name, project location, the alternating current capacity rating of the project, the date the application was accepted into the program queue, and whether the project is a low-income shared solar facility. L. [ either ] the date [ the project is anticipated to reach substantial completion or the date ] the project reached substantial completion.

1. For each accepted project in the program queue, the project list shall rank projects primarily by the date of the awarded capacity and secondarily by the date of anticipated substantial completion. [ Any subscriber organization with a project in the program queue shall notify the utility within 10 days of any reduction in a project's anticipated installed AC capacity or its ability to achieve the anticipated substantial completion date. ] The utility shall update the list within two business days of any change to the [ primary project dates date of awarded capacity ] in the program queue, and within 14 business days of any change to the [ secondary project ] date [ of substantial completion ].

2. For each wait-listed project in the program queue, the list shall rank projects by the date the project was placed on the wait list. [ For a Phase II Utility's program, a single project may have some portion of its capacity allocated to the utility's part one aggregate capacity and the remaining portion allocated to the utility's part two aggregate capacity. ]

G. [ Once 90% of the part one aggregate capacity for a Phase II Utility has been subscribed and the related project construction is substantially complete, the Phase II Utility shall file a notification of this occurrence with the commission.

H. ] Any project on the wait list that is moved off the wait list and receives a capacity award in the program queue shall have 10 business days to make the required deposit of $50 per kW of alternating-current rated capacity to retain the project's award.

M. [ H. I. ] As part of its public program queue, the utility shall monitor and report the amount of capacity that has been allocated to low-income customers, which also shall be published on the utility's website. Upon qualification of 45 megawatts (MW) of alternating current (AC) of capacity committed to low-income subscribers as demonstrated by the approved low-income subscription plans of projects that have secured capacity in the program, the utility shall submit a request to the commission to release an additional 50 MW of capacity for the program, which Capacity shall be released without undue delay and allocated first to projects on the wait list and, if capacity remains, to new applicants on a first-come, first-served basis following the registration requirements and process set forth in this section.

[ I. J. ] Certain shared solar program projects shall be entitled to receive incentives, as established by the Virginia Department of Energy, when they are located on rooftops, brownfields, or landfills; are dual-use agricultural facilities; or meet the definition of another category established by the Department of Energy.

20VAC5-340-50. Marketing and enrollment.

A. A subscriber organization shall not conduct any marketing activities related to participation in the shared solar program until after the subscriber organization (i) receives:

1. Receives a license, exemption, or waiver from the commission; and

(ii) has 2. Has begun registration with the utility, as set forth in 20VAC5-340-40.

B. A subscriber organization shall not enroll subscribers until after the earlier of when the utility's customer information system is operating or July 1, 2023, and the project receives the executed Small Generator Interconnection Agreement pursuant to 20VAC5-314-40 through 20VAC5-314-70 and any other applicable local and state permits for the shared solar facility. the project receives the executed Small Generator Interconnection Agreement pursuant to 20VAC5-314-40 through 20VAC5-314-70, [ non-ministerial permits, and any ministerial all required ] permits for the shared solar facility, and:

1. For a Phase I Utility, after July 1, 2025; or

2. For a Phase II Utility, after July 1, 2023.

C. A subscriber organization shall not use credit checks as a means to establish the eligibility of a residential customer to become a subscriber.

D. A subscriber organization is prohibited from credit reporting and charging early termination fees for any low-income customer receiving service from a Phase II Utility.

E. A subscriber organization shall maintain adequate records allowing it to verify the customer's enrollment authorization. Authorization shall be in the form of a written contract with affirmed written signature, electronic signature, or recorded verbal affirmation. The subscriber organization shall maintain a copy of the contract for at least one year after the date of expiration. Such enrollment contracts shall be provided within five business days to the customer, the utility, or the commission staff upon request.

E. F. A subscriber organization shall provide accurate and understandable information in any advertisements, solicitations, marketing materials, or customer service contracts. All such materials shall, in a manner that is not misleading, include a statement that price for the subscription does not include charges to be billed by the utility.

F. G. A subscriber organization shall provide to prospective subscribers, prior to executing a written contract, consumer disclosure information and a description of how the shared solar program will function. Such description shall include explanations of the respective roles of the subscriber organization and the utility, and a detailed description of how customers will be billed, frequency of contract reviews, and methods of continued customer education and engagement.

G. H. Subscriber contracts shall include, at a minimum, the following information:

1. Contract price expressed in per kilowatt-hour, or if price is not easily specified, an explanation of how the subscription price will be calculated.

2. Size of the subscriber subscription. The contract must address modification of subscriptions in the event a shared solar facility underperforms during a period.

3. Length of the contract.

4. Provisions for terminating the contract, including any termination fees.

5. Location of the shared solar facility.

6. Size of the shared solar facility.

7. Description of billing terms and conditions.

8. List of applicable fees, including start up fees, cancellation fees, late payment fees, and fees for returned payments for insufficient funds.

9. Clear descriptions of the responsibilities of the subscriber organization and the utility, consistent with this chapter.

10. Toll-free number and address for complaints and inquiries.

11. A clear statement that (i) the:

a. The maximum size of the subscriber's subscription shall not exceed their estimated annual usage;

(ii) each b. Each customer may [ only participate in one shared solar facility or one multi-family solar facility; and own one or more subscriptions of a shared solar facility;

c. A shared solar subscriber may not also participate in a multi-family solar facility; and ]

(iii) a [ c. d. ] A net metering customer may not participate in this program.

12. In a conspicuous location, confirmation of the customer's authorization for the utility and subscriber organization to exchange, at a minimum, the following billing information:

a. Customer name;

b. Billing address and premise address;

c. Utility account number; and

d. Share solar subscription information, including, at a minimum:

(1) Pricing;

(2) Subscription size;

(3) Contract start date and length; and

(4) Terms of subscription.

13. In a conspicuous location, signatures confirming the customer's request to enroll and the approximate date the enrollment will be effective.

H. I. Upon a subscriber's request, the subscriber organization may transfer the subscription to a new address under the existing contract without restriction provided the new address is also located in the utility's service territory. An existing subscriber may transfer the subscription to a new subscriber so long as the new subscriber meets applicable requirements established by the utility and subscriber organizations that exist at the time of transfer. The subscriber organization must provide the utility with updated billing information set forth in subdivision F H 12 of this section.

I. J. The subscriber organization shall provide to the utility, in a format acceptable to the utility, an initial list of subscribers enrolled in the shared solar facility and their subscription information at least 60 days prior to the shared solar facility supplying service to any customer.

J. K. In the event multiple enrollment requests are submitted for the same customer, the utility shall process the request with the earliest dated contract and shall notify the customer within five business days of receipt of the enrollment request of such enrollment. The utility shall only terminate enrollment with sufficient proof of termination presented by either the customer or the subscriber organization.

K. L. At least 60 days prior to the termination or abandonment of a shared solar facility, a subscriber organization must provide advanced written notice to the customer, the utility, and the commission.

L. M. A subscriber organization shall safeguard adequately safeguard all customer information and shall not disclose such information unless the customer authorizes disclosure or unless the information to be disclosed is already in the public domain. This provision, however, shall not restrict the disclosure of credit and payment information as permitted currently or required by federal and state statutes.

M. A subscriber may remain subscribed to the program even if the subscriber moves to another location within the utility's territory and may transfer the subscription to a new subscriber so long as the new subscriber meets applicable requirements established by the utility and subscriber organizations that exist at the time of transfer. N. Phase I Utility low-income customer net financial savings. The subscriber organization must ensure net financial savings of at least 10% relative to the subscription fee throughout the life of the subscription for a low-income customer. Any contract not meeting the 10% minimum on an annual basis must have the financial savings difference returned to the low-income customer in a lump sum payment.

20VAC5-340-60. Billing Phase I Utility: billing and payment.

A. Subscriber organizations shall provide subscriber information to the utility as follows:

1. Subscriber organizations must provide, on a monthly basis and in a standard electronic format and pursuant to this chapter, a subscriber list indicating the kilowatt-hours of generation attributable to each of the subscribers participating in a shared solar facility in accordance with the subscriber's portion of the output of the shared solar facility.

2. Subscriber lists may be updated monthly to reflect canceling subscribers and to add new subscribers.

3. Monthly subscriber information must be provided by the fifth business day of the month.

4. Data transfer protocols for exchange of data between the subscriber organization and the utility shall be established to include:

a. Data components;

b. Data format;

c. Timing of monthly data exchanges;

d. Encryption level; and

e. Channel of data submission.

B. A subscriber organization may offer separate billing or consolidated billing service (net crediting) in which the utility will be the billing party to the customer shall separately bill the subscriber for any applicable portion of the shared solar subscription fee.

1. Where a subscriber organization chooses to use consolidated billing, the subscriber organization's marketing materials and contracts must identify clearly that the utility may charge a net crediting fee not to exceed 1.0% of the bill credit value.

2. Where a subscriber organization chooses to use net crediting, any shared solar subscription fees charged via the net crediting model shall be set to ensure that subscribers do not pay more in subscription fees than they receive in bill credits.

3. All billing of the customer shall occur and comply with the utility's normal billing and credit cycles.

C. Credits to subscriber's subscriber bills shall occur within two billing cycles following the cycle during which the energy was generated by the shared solar facility.

D. Each The utility shall, on a monthly basis and in a standardized electronic format, provide the subscriber organization a report indicating the total value of bill credits generated by the shared solar facility in the prior month, as well as the amount of the bill credit applied to each subscriber.

E. Failure Except for low-income customers, failure of a subscriber to pay any regulated charges shall subject the subscriber to the same credit consequences set forth in the utility's commission-approved terms and conditions of service, including the potential requirement to post a security or disconnection of service. The utility shall advise provide a notice of intent to terminate service to the subscriber directly of any pending disconnection action for nonpayment, consistent with current the utility's practice, separate as found in its approved tariff and 20VAC5-330, and this notice will occur separately from the customer bill. Such notice The bill shall clearly identify clearly the amount that must be paid and the date by which such amount must be received and provide instructions for direct payment to the utility to avoid disconnection. A subscriber may not be disconnected for nonpayment of unregulated service charges.

F. Bill credits.

1. Bill credits shall be for a particular calendar month, regardless of the billing period or billing cycle of the individual customer's account.

2. Bill credits shall be calculated by multiplying the subscriber's portion of the kilowatt-hour electricity production from the shared solar facility by the applicable bill credit rate for the subscriber. Any portion of a bill credit that exceeds the subscriber's monthly bill, minus the minimum bill, shall be carried over and applied to subsequent bills until the earlier of when the credit is satisfied or up to 12 months.

3. In the event that all of the electricity generated by a shared solar facility is not allocated to subscribers in a given month, a subscriber organization may accumulate bill credits. The subscriber organization shall provide the utility allocation instructions for distributing excess bill credits to subscribers on an annual basis.

4. The commission shall establish the yearly applicable bill credit rate for the subscriber's residential, commercial, or industrial rate class.

5. The utility shall provide bill credits to a shared solar facility's subscribers for not less than 25 years from the date the shared solar facility becomes commercially operational.

6. The bill credits associated with the shared solar program shall be applied through the utility's fuel factor.

G. Minimum bill. 1. In a proceeding, as prescribed in 20VAC5-340-80, the commission will a determine the specific costs and formula to determine the minimum bill for program participants.

2. Low-income customers shall be exempt from the minimum bill. Costs associated with such customers' participation shall be recovered by the utility in a manner to be determined by the commission in the proceeding set forth in 20VAC5-340-80.

H. Net crediting.

1. Net crediting functionality shall be part of any new customer information platform approved by the commission.

2. Under net crediting, the utility shall include the shared solar subscription fee on the customer's utility bill and provide the customer with a net credit equivalent to the total bill credit value for that generation period minus the shared solar subscription fee as set by the subscriber organization.

3. The net crediting fee shall not exceed 1.0% of the bill credit value.

4. Net crediting shall be optional for subscriber organizations, and any shared solar subscription fees charged via the net crediting model shall be set to ensure that subscribers do not pay more in subscription fees than they receive in bill credits.

I. Shared solar facility requirements. A shared solar facility must have a utility-provided meter capable of measuring output of the facility on a 30-minute interval basis.

1. The shared solar facility's meter shall not be located behind another utility customer account.

2. Costs of installation, maintenance, and reading of the meter shall be billed to the subscriber organization.

H. Termination fees and credit reporting. Early termination fees and credit reporting are prohibited for any low-income customer.

I. Environmental attributes associated with a shared solar facility, including renewable energy [ credits certificates ] or RECs.

1. Any renewable energy certificates associated with a shared solar facility shall be distributed to a Phase I Utility to be retired for compliance with such Phase I Utility's renewable portfolio standard obligations pursuant to § 56-585.5 C of the Code of Virginia. [ Any contract between a subscriber organization and a participating customer must make clear that all RECs associated with a shared solar facility belong to the Phase I Utility only for compliance with such Phase I Utility's renewable portfolio standard obligation pursuant to § 56-585.5 C of the Code of Virginia. ]

2. As directed by § 56-594.4 B 7 of the Code of Virginia, mandatory distribution or transfer to the utility of the previous calendar year's RECs, ending December 31, shall take place prior to the annual report filing date for FERC Form 1 as defined in 18 CFR [ § ] 141.1.

20VAC5-340-65. Phase II Utility: billing and payment.

A. Subscriber organizations shall provide subscriber information to the utility as follows:

1. Subscriber organizations must provide, on a monthly basis and in a standard electronic format and pursuant to this chapter, a subscriber list indicating the kilowatt-hours of generation attributable to each of the subscribers participating in a shared solar facility in accordance with the subscriber's portion of the output of the shared solar facility.

2. Subscriber lists may be updated monthly to reflect canceling subscribers and to add new subscribers.

3. Monthly subscriber information must be provided by the fifth business day of the month.

4. Data transfer protocols for exchange of data between the subscriber organization and the utility shall be established to include:

a. Data components;

b. Data format;

c. Timing of monthly data exchanges;

d. Encryption level; and

e. Channel of data submission.

B. A subscriber organization may offer separate billing of its subscription fees or choose to use the utility's consolidated billing service.

C. Consolidated billing will reflect net crediting, as set forth in subsection I of this section, and the utility will be the billing party to the customer.

1. Where a subscriber organization chooses to use consolidated billing, the subscriber organization's marketing materials and contracts must identify clearly that the utility may charge a net crediting fee not to exceed 1.0% of the bill credit value.

2. Where a subscriber organization chooses to use net crediting, any shared solar subscription fees charged via the net crediting model shall be set to ensure that subscribers do not pay more in subscription fees than they receive in bill credits.

3. All billing of the customer shall occur and comply with the utility's normal billing and credit cycles.

D. Credits to subscriber bills shall occur within two billing cycles following the cycle during which the energy was generated by the shared solar facility.

E. The utility shall, on a monthly basis and in a standardized electronic format, provide the subscriber organization a report indicating the total value of bill credits generated by the shared solar facility in the prior month, as well as the amount of the bill credit applied to each subscriber.

F. [ Except for low income customers, failure Failure ] of a subscriber to pay any regulated charges shall subject the subscriber to the same credit consequences set forth in the utility's commission-approved terms and conditions of service, including the potential requirement to post a security or disconnection of service. The utility shall provide a notice of intent to terminate service to the subscriber directly of any pending disconnection action for nonpayment consistent with the utility's practice as found in its approved tariff and 20VAC5-330, and this notice of intent to terminate service will occur separately from the customer bill. The bill shall clearly identify the amount that must be paid and the date by which such amount must be received and provide instructions for direct payment to the utility to avoid disconnection. A subscriber may not be disconnected for nonpayment of unregulated service charges. [ Low-income customers shall not be subject to early termination fees or credit reporting by the utility or a subscriber organization. ]

G. Bill credits.

1. Bill credits shall be for a particular calendar month, regardless of the billing period or billing cycle of the individual customer's account.

2. Bill credits shall be calculated by multiplying the subscriber's portion of the kilowatt-hour electricity production from the shared solar facility by the applicable bill credit rate for the subscriber. Any portion of a bill credit that exceeds the subscriber's monthly bill, minus the minimum bill, shall be carried over and applied to subsequent bills until the earlier of when the credit is satisfied or up to 12 months.

3. In the event that all of the electricity generated by a shared solar facility is not allocated to subscribers in a given month, a subscriber organization may accumulate bill credits. The subscriber organization shall provide the utility allocation instructions for distributing excess bill credits to subscribers on an annual basis.

4. The commission shall establish the yearly applicable bill credit rate for the subscriber's residential, commercial, or industrial rate class.

5. The utility shall provide bill credits to a shared solar facility's subscribers for not less than 25 years from the date the shared solar facility becomes commercially operational.

6. The bill credits associated with the shared solar program shall be applied through the utility's fuel factor.

H. Minimum bill.

1. In a proceeding, as prescribed in 20VAC5-340-80, the commission will determine the specific costs and formula to determine the minimum bill for program participants.

2. Low-income customers shall be exempt from the minimum bill. Costs associated with low-income customer participation shall be recovered by the utility in a manner to be determined by the commission in the proceeding set forth in 20VAC5-340-80.

I. Net crediting.

1. Net crediting functionality shall be part of any new customer information platform approved by the commission.

2. Under net crediting, the utility shall include the shared solar subscription fee on the customer's utility bill and provide the customer with a net credit equivalent to the total bill credit value for that generation period minus the shared solar subscription fee as set by the subscriber organization.

3. The net crediting fee shall not exceed 1.0% of the bill credit value.

4. Net crediting shall be optional for subscriber organizations, and any shared solar subscription fees charged via the net crediting model shall be set to ensure that subscribers do not pay more in subscription fees than they receive in bill credits.

J. Environmental attributes associated with a shared solar facility, including renewable energy certificates or RECs.

1. A subscriber organization that registers a shared solar facility in the program within the first 200 megawatts alternating current of awarded capacity shall own all environmental attributes. At such subscriber organization's discretion, such environmental attributes may be distributed to subscribers, sold to load-serving entities with compliance obligations or other buyers, accumulated, or retired.

2. For a shared solar facility registered in the program after the first 200 megawatts alternating current of awarded capacity, the registering subscriber organization shall transfer renewable energy certificates to a Phase II Utility to be retired for compliance with such Phase II Utility's renewable portfolio standard obligations pursuant to § 56-858.5 C of the Code of Virginia. [ Any contract between a subscriber organization and a participating customer must make clear that all RECs associated with a shared solar facility belong to the Phase II Utility only for compliance with such Phase II Utility's renewable portfolio standard obligations pursuant to § 56-585.5 C of the Code of Virginia. ]

3. As directed by § 56-594.3 B 7 of the Code of Virginia mandatory distribution or transfer to the utility of the previous calendar year's RECs, ending December 31, shall take place prior to the annual report filing date for FERC Form 1 as defined in 18 CFR [ § ] 141.1.

20VAC5-340-70. Disputes.

A. The parties agree to attempt to resolve all disputes arising out of the shared solar program process according to the provisions of this section.

B. A subscriber organization shall establish an explicit dispute resolution procedure that identifies clearly identifies the process that shall be followed when resolving customer disputes. A copy of such dispute resolution procedure shall be provided to a customer or the commission upon request.

C. If the dispute remains unresolved, either party may petition the commission to handle the dispute as a formal complaint or may exercise whatever rights and remedies it the party may have in equity or law.

D. A subscriber organization shall furnish to customers an a website, email address, and mailing address and a 24-hour toll-free telephone number for customer inquiries and complaints regarding services provided by the subscriber organization. The 24-hour toll-free telephone number shall be stated on all customer-billing statements and shall provide customers the opportunity to speak to a customer representative during normal business hours. Outside of normal business hours, a recorded message shall direct customers how to obtain customer assistance.

E. A subscriber organization shall direct a customer to contact the utility immediately if the customer has a service emergency. Such direction may be given either by a customer service representative or by a recorded message on its the subscriber organization's 24-hour toll-free telephone number.

F. A subscriber organization shall retain customer billing and account records and complaint records for at least three years and provide copies of such records to a customer or the commission upon request.

G. In the event that a customer has been referred to the utility by a subscriber organization, or to a subscriber organization by the utility, for response to an inquiry or a complaint, the party that is contacted second shall (i) resolve:

1. Resolve the inquiry or complaint in a timely fashion; or

(ii) contact 2. Contact the other party to determine responsibility for resolving the inquiry or complaint.

H. In the event a subscriber organization and customer cannot resolve a dispute, the subscriber organization shall provide the customer with the toll-free number and address of the commission.

20VAC5-340-80. Minimum bill composition.

A. The commission shall convene a proceeding to determine any monthly administrative charge and the components of the minimum bill.

With respect to the minimum bill:

1. Each subscriber, other than a low-income customer of a Phase II Utility, shall pay a minimum monthly bill, which shall, as approved by the commission, include the costs of all utility infrastructure and services used to provide electric service and administrative costs of the shared solar program. The commission may modify the minimum bill over time. In establishing the minimum bill, the commission shall (i) consider further costs the commission deems relevant to ensure subscribing customers pay a fair share of the costs of providing electric services to the subscribers, and (ii) minimize the costs shifted to customers not in a shared solar program.

2. In establishing the minimum bill for a Phase I Utility, the commission shall:

a. Consider further costs the commission deems relevant to ensure subscribing customers pay a fair share of the costs of providing electric services;

b. Minimize the costs shifted to customers not in a shared solar program; and

c. Calculate the benefits of shared solar to the electric grid and to the Commonwealth [ , including avoided costs, ] and deduct such benefits from other costs.

3. In establishing the minimum bill for a Phase II Utility, the commission shall:

a. Consider further costs the commission deems relevant to ensure subscribing customers pay a fair share of the costs of providing electric services and generation sufficient to meet customer needs at all times;

b. Minimize the costs shifted to customers not in a shared solar program;

c. Calculate the benefits of shared solar to the electric grid and to the Commonwealth [ , including avoided costs, ] and deduct such benefits from other costs; and

d. Exempt low-income customers from the minimum bill.

4. The minimum bill components established as set forth in subdivision 1 subdivisions 2 and 3 of this subsection and updated as deemed necessary by the commission shall be limited to such costs as determined by the commission to be just and reasonable based on evidence provided by the parties to the evidentiary hearing process. Such costs must reflect incremental costs of the shared solar program and not otherwise recovered by the utility from participating subscribers. The following factors shall be considered by the commission in determining whether costs proposed by the utility are incremental to the shared solar program and eligible for inclusion in the minimum bill:

a. The extent to which the costs are utility infrastructure and services used to provide electric service for the shared solar program;

b. The extent to which the costs are administrative costs of the shared solar program;

c. Whether including the cost in the minimum bill is necessary to ensure subscribing customers pay a fair share of the costs of providing electric services to the subscribers;

d. Whether including the cost in the minimum bill will minimize the costs shifted to customers not in a shared solar program; and

e. Whether including the cost in the minimum bill is otherwise consistent with the requirements of § §§ 56-594.3 and 56-594.4 of the Code of Virginia.

3. 5. The commission shall also consider how the utility will recover the minimum bill charges for exempt low-income customers.

B. The bill credit shall be calculated in accordance with 20VAC5-340-60 F, and § 56-594.3 C of the Code of Virginia.

6. The commission shall explicitly set forth its findings as to each cost and benefit or other value used to determine the minimum bill.

20VAC5-340-90. Recordkeeping and reporting requirements.

A. Subscriber organizations. Prior to commercial operation of any shared solar facility, each subscriber organization shall report to the commission and the applicable utility its achievement of contracting with low-income customers. Thereafter, this report shall be updated and filed semi-annually with the commission by January 31 and July 31, respectively, of each calendar year for the previous calendar year, commencing in 2024. When making the annual report, the subscriber organization shall provide the following information:

1. Total number of subscribers and the amount of kilowatts subscribed to by each subscriber;

2. Total number of low-income customers and the amount of kilowatts subscribed to by each low-income customer;

3. Detailed plan for meeting its the organization's low-income customer target in the upcoming year if the target was not met for the annual period covered by the report; and

4. Certification that there is no subscriber whose subscription size exceeds the subscriber's average annual bill over the past 12 months for the customer account to which the subscription is attributed.

[ The utility shall maintain a list of requests from active subscriber organizations associated with providing access to customer billing and usage data. The utility Each subscriber organization ] shall keep complete documentation of the customer's affirmative consent [ for the utility to provide to the subscriber organization access to the subscriber's billing and usage data ] and duration of consent by written or electronic signature [ as provided by the subscriber organization to the utility ]. If the affirmative consent documentation is in the form of a copy of the customer's contract with the subscriber organization, the [ utility subscriber organization ] shall maintain a copy of the contract for at least one year after the date of expiration. Such affirmative consent contracts shall be provided within five business days to the customer, the [ active subscriber organization utility ], or the commission staff upon request.

The utility shall maintain a consolidated list of active subscriber organizations, including the number of low-income customers for each organization.

Each subscriber organization shall retain a record of all disclosure forms, low-income customer proof of eligibility, and subscriber allocation lists for a period of at least three years. Each subscriber organization shall retain copies of subscriber contracts for a period of at least one year from the date of their expiration. Each of these documents must be made available immediately upon request from the commission or commission staff.

A subscriber organization shall retain customer billing and account records and complaint records for at least three years.

B. Affordable housing providers. Affordable housing providers subscribing on behalf of their low-income tenants shall annually, on or before January 31, commencing in 2024, submit a written report for the shared solar program to the commission staff describing how bill savings or other tangible benefits were provided to the tenants in the last year. The report shall include a detailed accounting and expense report for the bill savings achieved.

C. Utility. The utility shall maintain conformance with the commission's Regulations Governing Interconnection of Small Electric Generators (20VAC5-314), and specifically, 20VAC5-314-130.

20VAC5-340-100. Low-income participation stakeholder process. (Repealed.)

The Commission shall initiate a stakeholder process including low-income community representatives and community solar providers to facilitate low-income customer and low-income service organization participation in the program.

20VAC5-340-110. Licensing exemption process for subscriber organizations.

A. Each entity seeking to conduct business as a subscriber organization that provides less than a total of 500 kW AC solar at any one location or multiple locations shall provide notice to the commission prior to commencing any business operations. Each entity must notify the commission by electronic mail to PURUtilityReports@scc.virginia.gov sharedsolarproject@scc.virginia.gov and contemporaneously provide a copy of the information to the investor-owned utility. Phase I Utility or Phase II Utility, as applicable. If the applicant becomes aware of any material changes to any information within the application, the applicant shall inform the commission within 10 calendar days. Notices shall include the following information:

1. Legal name of the applicant, as well as any trade names.

2. Physical business addresses and telephone numbers of the applicant's principal office and all offices in Virginia.

3. A description of the applicant's authorized business structure.

4. Name and business address of all principal entity officers and directors.

5. If a foreign corporation, a copy of the applicant's authorization to conduct business in Virginia from the commission or if a domestic corporation, a copy of the certificate of incorporation from the commission.

6. A list of the states, if any, in which the applicant and the applicant's affiliates conduct business related to participation in a multi-family shared solar program, the names under which such business is conducted, and a description of the business conducted.

7. Name, title, and address of the applicant's registered agent in Virginia for service of process.

8. Name, title, address, telephone number, and email address of the applicant's liaison with the commission.

9. Sufficient information to demonstrate viability to provide said service to its subscribers. (i.e., location and size of the solar installation, expected number of subscribers, expected in-service date, identity of solar developer and operator, contract term, facility maintenance agreement, revenue source, description of facility financing, and nonprofit certification, etc.).

10. A copy of the applicant's dispute resolution procedure, including a telephone number.

11. A copy of the applicant's proposed standard agreement it plans to use with prospective subscribers.

12. A $100 notice fee payable to the commission.

13. Disclosure of any civil, criminal, or regulatory sanctions or penalties imposed or in place within the previous five years against the applicant.

14. An affidavit from an appropriate officer of the applicant certifying that the applicant will indemnify and hold harmless any and all subscribers from and against claim, damage, loss, and expense arising out of the applicant's negligence or misconduct.

15. A copy of the applicant's low-income subscription plan, as applicable.

B. An officer with appropriate authority shall attest that all information supplied on the notice is true and correct and that the applicant will abide by all applicable laws of the Commonwealth and regulations of the commission.

C. Notification to the commission is required for transfer or assignment of said services to any third party.

D. The commission may impose conditions on any terms it determines are appropriate.