At-a-Glance

Legislation: 
Draft language

Scope:
Municipal and private utilities providing electric, water, or gas service

Current GA Committees:

Senate Commerce and Labor
Saslaw (Chair)
Norment
Newman
Obenshain
Lucas
Spruill
Edwards
Deeds
Barker
Marsden
Ebbin
Lewis
Surovell
Mason
Bell

House Labor and Commerce
Ward (Chair)
Sullivan (Vice Chair)
Kory
Keam
Lopez
Lindsey
Bagby
Heretick
Mullin
Bourne
Guzman
Ayala
Gooditis
Kilgore
Byron
Ware
Marshall
Wilt
Webert
Ransone
O’Quinn
Head

Issue Brief / Concerns

Senator McClellan and Delegate Aird will introduce legislation to address utility disconnections.

View/Download the draft legislation here >.

Similar language is also included in the Budget Bill (SB5015) – Item 4-14 #7

Action is needed now! This special session will move exceptionally fast. This legislation could be heard as early as Wednesday August 19.

Contact committee members and your local delegation immediately to alert them to the broad impact this legislation will have on municipal utilities.

Concerns:

• This legislation represents a significant new burden for utilities of all sizes but particularly small municipal utilities many of which have already paused utility disconnections without any mandate to do so.
• Legislators need to hear from owners of these utility systems about the cost of changing existing accounting systems to accommodate these proposed changes and the fiscal impact a moratorium will have.
• This legislation could impact member bond covenants related to municipal utilities to determine what impact this legislation may have on requirements to pursue repayment.
• Members should consider whether and to what extent this legislation could impact enterprise funds.

Key Points

• This legislation would apply to all utilities and set conditions for a statewide disconnection freeze during a declaration of a state of emergency by the Governor as a result of a communicable disease as a public health threat.
• It is intended to apply to residential customers only and will apply to utilities providing electric, gas, or water. However, this must be clarified throughout the legislation.
• During a qualifying state of emergency utilities will be required to develop and offer an “Emergency Debt Repayment Plan” (EDRP) which will apply to utility debt accrued from the declaration of the emergency until either the end of the emergency declaration or the end of the disconnect moratorium as declared by the State Corporation Commission.
• Utilities must offer customers the opportunity to participate in an EDRP without fees or other charges prior to disconnection. Customers current with their EDRP and current charges cannot be disconnected from service.
• A mandated repayment period of 24 months is required for repayment of the EMDRP. Monthly payments on the EMDRP are limited to either 4.5% of the customer’s income or $45.50. Utilities must report specific data regarding the usage and repayment of accounts under their EDRP programs to the State Corporation Commission. This legislation would take effect 4 months after passage unless it passes with 4/5 of the General Assembly supporting it in which case it would take effect immediately.
• Utilities currently have the ability to implement this type of program as many municipal utilities have already suspended utility disconnections