Law creates barriers for Virginia utilities seeking to recoup gas capacity costs

摘要

A new Virginia law will require state regulators to scrutinize utilityrequests to pass on the cost of securing additional natural gas pipelinecapacity to electricity ratepayers, potentially creating a barrier toinfrastructure projects.Governor Ralph Northam signed Virginia House Bill 167 into law onApril 6 after it passed in both chambers of the state legislature withbipartisan support. The law empowers the State CorporationCommission to reject an electric power utility’s request to recover thecost of entering into a contract for new pipeline capacity. It requiresutilities to prove they need additional fuel capacity to maintain reliableservice and that reserving gas pipeline capacity is the lowest-costoption.