VirginiaSB6502026 Regular SessionSenateWALLET

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

Sponsored By: David W. Marsden (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 HB 770.

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Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

Fairer rates for small water systems

Starting January 1, 2027, small water and sewer companies (fewer than 10,000 accounts, including subsidiaries) must file a class cost-of-service study when they split costs among more than one customer group. The study must assign costs based on who causes them and credit customer or developer construction contributions if not already handled in an acquisition or the last rate case. The Commission generally cannot assign more costs to a class than the study shows without strong proof, other than approved low-income discounts. Rates for any class cannot target a return on equity more than 25% above or below the company-wide return, unless clear and convincing evidence supports it or for low-income discounts.

Water bill discounts for low-income homes

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 set by the Department of Social Services. Discounts may be tiered. Utilities may recover the cost of these discounts through their base and general rates.

Phone service rules in competitive areas

Starting January 1, 2027, phone companies may meet service duties using wireline or terrestrial wireless service. They do not have to build new lines if one or more other providers already offer similar service at prevailing market rates (rates like those in competitive areas for the same service). When restoring service for an existing wireline customer, the company must offer a wireline option. Anyone, or a phone company, can ask the State Corporation Commission to decide if the available service is a reasonably adequate alternative. Using these technologies does not give the Commission extra power over them.

Faster rulings on electric rate tests

Beginning January 1, 2027, the Commission must issue a final order on an investor-owned electric utility’s voluntary rate or rate-design test within six months of filing, or within three months after any hearing, whichever is earlier. This speeds decisions on trial rate designs.

Sponsors & Cosponsors

Sponsor

  • David W. Marsden

    Democratic • Senate

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 170 • No: 79

Senate vote 3/10/2026

House substitute agreed to by Senate

Yes: 23 • No: 17

House vote 3/6/2026

Passed House with substitute

Yes: 63 • No: 34 • Other: 1

House vote 3/3/2026

Reported from Labor and Commerce with substitute

Yes: 15 • No: 7

Senate vote 2/17/2026

Read third time and passed Senate

Yes: 23 • No: 17

Senate vote 2/16/2026

Engrossed by Senate (Voice Vote)

Yes: 0 • No: 0

Senate vote 2/13/2026

Constitutional reading dispensed Block Vote (on 1st reading)

Yes: 35 • No: 0

Senate vote 2/12/2026

Reported from Commerce and Labor

Yes: 11 • No: 4

Actions Timeline

  1. Fiscal Impact Statement from State Corporation Commission (SB650)

    4/6/2026Senate
  2. Acts of Assembly Chapter text (CHAP0218)

    4/6/2026Governor
  3. Approved by Governor-Chapter 218 (effective 7/1/2026)

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

    3/31/2026Governor
  5. Enrolled Bill communicated to Governor on March 31, 2026

    3/31/2026Senate
  6. Signed by Speaker

    3/31/2026House
  7. Bill text as passed Senate and House (SB650ER)

    3/30/2026Senate
  8. Enrolled

    3/30/2026Senate
  9. Signed by President

    3/30/2026Senate
  10. Fiscal Impact Statement from State Corporation Commission (SB650)

    3/24/2026Senate
  11. House substitute agreed to by Senate (23-Y 17-N 0-A)

    3/10/2026Senate
  12. Passed House with substitute (63-Y 34-N 1-A)

    3/6/2026House
  13. Engrossed by House - committee substitute

    3/6/2026House
  14. committee substitute agreed to

    3/6/2026House
  15. Read third time

    3/6/2026House
  16. Read second time

    3/5/2026House
  17. Committee substitute printed 26109086D-H1

    3/3/2026House
  18. Reported from Labor and Commerce with substitute (15-Y 7-N)

    3/3/2026House
  19. Referred to Committee on Labor and Commerce

    2/24/2026House
  20. Read first time

    2/24/2026House
  21. Placed on Calendar

    2/24/2026House
  22. Read third time and passed Senate (23-Y 17-N 0-A)

    2/17/2026Senate
  23. Engrossed by Senate (Voice Vote)

    2/16/2026Senate
  24. Read second time

    2/16/2026Senate
  25. Constitutional reading dispensed Block Vote (on 1st reading) (35-Y 0-N 0-A)

    2/13/2026Senate

Bill Text

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