                                 CODE OF VIRGINIA

RETAIL RATES OF AFFILIATED WATER UTILITIES (§ 56-235.11)

A. As used in this section, unless the context requires a different meaning:
			&#8220;Affiliate&#8221; of a specific water utility or a water utility
&#8220;affiliated&#8221; with a specific water utility means a water utility
that directly or indirectly through one or more intermediaries controls, is
controlled by, or is under common control with the water utility
specified.			&#8220;Control,&#8221; including the terms
&#8220;controlling,&#8221; &#8220;controlled by,&#8221; and &#8220;under common
control with,&#8221; means direct or indirect possession of the power to direct
or cause the direction of the management and policies of a water utility through
the ownership of an equity interest. Control shall be presumed to exist with
respect to another water utility if any water utility directly or indirectly
owns, controls, or holds with the power to vote 50 percent or more of the equity
interest of the other water utility.			&#8220;Rates&#8221; includes rates,
tolls, charges, or schedules.			&#8220;Subsidiary&#8221; of a specified water
utility means an affiliate directly or indirectly controlled by that water
utility through one or more intermediaries.			&#8220;Water utility&#8221; means
an investor-owned public utility authorized to furnish water or water and sewer
service within a certificated service territory in the Commonwealth except any
such investor-owned public utility for which the Commission has approved, after
July 1, 2009, and prior to July 1, 2017, a consolidated rate structure
consisting of three or more rate groups for the same class of service and in one
or more subsequent orders has approved additional consolidation of such rate
groups.			&#8220;Water utility network&#8221; means a water utility and all
other water utilities that the water utility is an affiliate of, is affiliated
with, controls, is controlled by, is under common control with, or is a
subsidiary of. &#8220;Water utility network&#8221; also means, with respect to a
water utility that is authorized to furnish water or water and sewer service
within multiple certificated service territories in the Commonwealth, all of the
certificated service territories that the water utility is certificated to
serve.

B. In any proceeding commenced on and after July 1, 2017, to establish or
approve the rates of a water utility that is in a water utility network, the
Commission shall ensure that the rates of each water utility in the water
utility network are not unjustly discriminatory by ensuring that equal fixed and
volumetric rates are charged for each customer class of each water utility that
is in the water utility network.

C. Upon the commencement of a proceeding described in subsection B, the
Commission shall make each water utility that is a member of the applicable
water utility network a party to the proceeding and may review each member water
utility&#8217;s rates. In such proceeding:

   1. The Commission shall review the rates of each member of the applicable
   water utility network and order gradual adjustments to such water
   utility&#8217;s rates over an appropriate period in order to implement the
   provisions of subsection B; and

   2. The Commission is authorized to aggregate the revenues and costs of the
   water utilities that are members of the applicable water utility network.

HISTORY: 2017, c. 822.