VirginiaHB7702026 Regular SessionHouseWALLET

Public utilities; water and sewerage companies, discounted rates for low-income customers.

Sponsored By: Charniele L. Herring (Democratic)

Became Law

Summary

Public utilities; water and sewerage companies; discounted rates for low-income customers. Provides that a public utility engaged in the business of furnishing water or sewerage facilities may propose and the State Corporation Commission may approve rates and tariff provisions that provide discounted service to customers with an annual household income equal to or less than 200 percent of the federal poverty level. The bill permits the utility to recover the costs of providing such discounted service through its rates for commercial and industrial customers. The bill has a delayed effective date of January 1, 2027, and is identical to SB 650.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 0 costs, 2 mixed.

Guardrails on small water rates

Starting January 1, 2027, small water and sewer companies (under 10,000 customer accounts) must file a class cost-of-service study when they split revenue needs among customer classes. The Commission cannot charge a class more than its cost-based share unless there is strong evidence or to support approved low‑income discounts. Any class’s rates cannot be set to earn more than 25% above or below the company’s overall return on equity unless there is clear and convincing evidence. The class-level return rule does not set the company-wide return on equity.

New option for very large power users

Starting January 1, 2027, an electric utility under Chapter 9.1 can meet its service duty by letting an affiliate sell power directly, outside rate regulation, to a customer in a cooperative’s service territory when the contract demand is expected to exceed 90 megawatts. This applies only to very large users inside a cooperative’s certificated territory.

Lower water bills for low-income

Beginning January 1, 2027, water and sewer utilities can offer discounted rates to households with income at or below 200% of the federal poverty level, as determined by the Department of Social Services. Discounts can be in tiers and must be approved by the State Corporation Commission. Utilities can recover the cost of these discounts through their base and general rates.

Faster, safer utility rate trials

Beginning January 1, 2027, the Commission can approve voluntary rate or rate design tests after notice and a hearing if needed for the public interest. If an experimental service is approved, the price must be the lowest applicable filed rate. For investor‑owned electric utilities, the Commission must issue a final order no later than six months after filing or three months after any evidentiary hearing, whichever is earlier.

Phone service: options and limits

Beginning January 1, 2027, a phone company does not have to extend lines if other wireline or terrestrial wireless providers already offer service at prevailing market rates (similar to rates in competitive areas). Phone companies can use wireline or terrestrial wireless to serve you, but if restoring service to an existing wireline customer, they must offer a wireline option. You or the company can ask the State Corporation Commission to decide if the available service is a reasonably adequate alternative.

Sponsors & Cosponsors

Sponsor

  • Charniele L. Herring

    Democratic • House

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 161 • No: 62

Senate vote 2/26/2026

Passed Senate

Yes: 24 • No: 16

Senate vote 2/25/2026

Constitutional reading dispensed Block Vote (on 2nd reading)

Yes: 40 • No: 0

Senate vote 2/25/2026

Passed by for the day Block Vote (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/23/2026

Reported from Commerce and Labor

Yes: 10 • No: 5

House vote 2/11/2026

Read third time and passed House

Yes: 64 • No: 33

House vote 2/5/2026

Reported from Labor and Commerce with substitute

Yes: 15 • No: 7

House vote 2/3/2026

Subcommittee recommends reporting with substitute

Yes: 8 • No: 1

Actions Timeline

  1. Acts of Assembly Chapter text (CHAP0217)

    4/6/2026Governor
  2. Approved by Governor-Chapter 217 (effective 7/1/2026)

    4/6/2026Governor
  3. Governor's Action Deadline 11:59 p.m., April 13, 2026

    3/10/2026Governor
  4. Enrolled Bill communicated to Governor on March 10, 2026

    3/10/2026House
  5. Fiscal Impact Statement from State Corporation Commission (HB770)

    3/5/2026House
  6. Bill text as passed House and Senate (HB770ER)

    3/3/2026House
  7. Enrolled

    3/3/2026House
  8. Signed by President

    3/3/2026Senate
  9. Signed by Speaker

    3/3/2026House
  10. Passed Senate (24-Y 16-N 0-A)

    2/26/2026Senate
  11. Read third time

    2/26/2026Senate
  12. Passed by for the day Block Vote (Voice Vote)

    2/25/2026Senate
  13. Constitutional reading dispensed Block Vote (on 2nd reading) (40-Y 0-N 0-A)

    2/25/2026Senate
  14. Rules suspended

    2/25/2026Senate
  15. Reported from Commerce and Labor (10-Y 5-N)

    2/23/2026Senate
  16. Fiscal Impact Statement from State Corporation Commission (HB770)

    2/19/2026House
  17. Referred to Committee on Commerce and Labor

    2/12/2026Senate
  18. Constitutional reading dispensed (on 1st reading)

    2/12/2026Senate
  19. Read third time and passed House (64-Y 33-N 0-A)

    2/11/2026House
  20. Engrossed by House - committee substitute

    2/10/2026House
  21. committee substitute agreed to

    2/10/2026House
  22. Read second time

    2/10/2026House
  23. Read first time

    2/9/2026House
  24. Committee substitute printed 26106979D-H1

    2/6/2026House
  25. Reported from Labor and Commerce with substitute (15-Y 7-N)

    2/5/2026House

Bill Text

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