Title of Regulation: 20VAC5-316. Regulations Governing Exemptions for Large General Services Customers under § 56-585.1 A 5 c of the Code of Virginia (repealing 20VAC5-316-10 through 20VAC5-316-50).

Statutory Authority: §§ 12.1-13 and 56-585.1 of the Code of Virginia.

Public Hearing Information: A public hearing will be held upon request.

Public Comment Deadline: September 17, 2018.

Agency Contact: Andrea B. Macgill, Associate General Counsel, Office of General Counsel, State Corporation Commission, P.O. Box 1197, Richmond, VA 23218, telephone (804) 371-9064, FAX (804) 371-9240, or email andrea.macgill@scc.virginia.gov.

Summary:

Chapter 296 of the 2018 Acts of Assembly repeals the provisions (i) requiring a large general service customer with a verifiable history of using more than 500 kilowatts, that does not wish to participate in an electric utility's energy efficiency program, to demonstrate that it has implemented an energy efficiency program, at the customer's expense, that has produced or will produce measured and verified results and (ii) requiring the State Corporation Commission to promulgate regulations regarding the process under which such large general service customers file notice of such exemption. Therefore, the Large General Service Customer Rules (20VAC5-316, Regulations Governing Exemptions for Large General Services Customers under § 56-585.1 A 5 C of the Code of Virginia) are repealed.

AT RICHMOND, AUGUST 13, 2018

COMMONWEALTH OF VIRGINIA, ex rel.

STATE CORPORATION COMMISSION

CASE NO. PUR-2018-00126

Ex Parte: In the matter of repealing Regulations
Governing Exemptions for Large General Service
Customers under § 56-585.1 A 5 c of the Code of Virginia

ORDER FOR NOTICE AND COMMENT

The Regulations Governing Exemptions for Large General Service Customers under § 56-585.1 A 5 c of the Code of Virginia, 20 VAC 5-316-10 et seq. ("LGS Customer Exemption Rules"), adopted by the State Corporation Commission ("Commission") pursuant to § 56-585.1 of the Virginia Electric Utility Regulation Act, Chapter 23 (§ 56-576 et seq.) of Title 56 of the Code of Virginia ("Code"), apply to the large general service customers of Virginia's electric utilities subject to the provisions of § 56-585.1 A 5 c that have verifiable histories of using more than 500 kilowatts ("kW") but no more than 10 megawatts of demand from a single metering point. The LGS Customer Exemption Rules establish requirements for such large general service customers to request exemption from any rate adjustment clause approved by the Commission pursuant to § 56-585.1 A 5 c of the Code, if the customer can demonstrate that it has implemented an energy efficiency program, at the customer's expense, that has produced or will produce measured and verified results.¹

Effective July 1, 2018, Chapter 296 of the 2018 Acts of Assembly ("Chapter 296") amended § 56-585.1 A 5 c of the Code to state, in part:

None of the costs of new energy efficiency programs of an electric utility, including recovery of revenue reductions, shall be assigned to any large general service customer. A large general service customer is a customer that has a verifiable history of having used more than 500 kilowatts of demand from a single meter of delivery.

Chapter 296 eliminated from Code § 56-585.1 A 5 c the language requiring a large general service customer with a verifiable history of using more than 500 kW, who does not wish to participate in an electric utility's energy efficiency program or programs, to demonstrate that it has implemented an energy efficiency program, at the customer's expense, that has produced or will produce measured and verified results. Chapter 296 also eliminated the language in § 56-585.1 A 5 c that required the Commission to "promulgate rules and regulations to accommodate the process under which such large general service customers shall file notice of such exemption. . . ." Accordingly, there appears to be no need to retain the LGS Customer Exemption Rules.

NOW THE COMMISSION, having considered the amendments to § 56-585.1 A 5 c of the Code by Chapter 296, finds that interested parties should be permitted to comment on the need to retain any portion of the Regulations Governing Exemptions for Large General Service Customers under § 56-585.1 A 5 c of the Code of Virginia, 20 VAC 5-316-10, et seq.

Accordingly, IT IS ORDERED THAT:

(1) This case is docketed and assigned Case No. PUR-2018-00126.

(2) The Commission's Division of Information Resources shall forward the proposed repeal of the Regulations Governing Exemptions for Large General Service Customers under § 56-585.1 A 5 c of the Code of Virginia, Appendix A hereto, to the Registrar of Virginia for publication in the Virginia Register of Regulations.

(3) The Commission's Division of Information Resources shall make a downloadable version of the proposed repeal of the Regulations Governing Exemptions for Large General Service Customers under § 56-585.1 A 5 c of the Code of Virginia, Appendix A, available for access by the public at the Commission's website, http://www.scc.virginia/gov/case. The Clerk of the Commission shall make a copy of the proposed repeal of Regulations Governing Exemptions for Large General Service Customers under § 56-585.1 A 5 c of the Code available for public inspection and provide a copy, free of charge, in response to any written request for one.

(4) On or before September 17, 2018, any interested person may comment on, propose modifications or supplements to, or request a hearing on the proposed repeal of Regulations Governing Exemptions for Large General Service Customers under § 56-585.1 A 5 c of the Code by filing an original and fifteen (15) copies of such comments or requests with Joel H. Peck, Clerk, State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218. Interested persons desiring to submit comments or hearing requests electronically may do so by following the instructions available at the Commission's website: http://www.scc.virginia/gov/case. Individuals shall be specific in their comments to the proposed repeal of Regulations Governing Exemptions for Large General Service Customers under § 56-585.1 A 5 c of the Code of Virginia and shall address only those issues pertaining to the amendment of § 56-585.1 A 5 c of the Code pursuant to Chapter 296. Issues outside the scope of implementing this amendment will not be open for consideration. Any request for hearing shall state with specificity why the issues raised in the request for hearing cannot be adequately addressed in written comments. Interested parties shall refer in their comments or requests to Case No. PUR-2018-00126.

(5) If no written request for a hearing on the proposal to repeal the Regulations Governing Exemptions for Large General Service Customers under § 56-585.1 A 5 c of the Code of Virginia, as outlined in this Order, is received on or before September 17, 2018, the Commission may, upon consideration of any comments submitted in support of or in opposition to the proposal, enter an order based upon the papers filed herein.

(6) This matter is continued.

AN ATTESTED COPY hereof shall be sent by the Clerk of the Commission to all persons on Attachment A hereto and C. Meade Browder, Jr., Senior Assistant Attorney General, Office of the Attorney General, Division of Consumer Counsel, 202 N. 9th Street, 8th Floor, Richmond, Virginia 23219-3424. A copy hereof shall be delivered to the Commission's Office of General Counsel and the Divisions of Public Utility Regulation and Utility Accounting and Finance.

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¹See 20 VAC 5-316-10.