SCC News

RICHMOND – The State Corporation Commission (SCC) has approved Dominion Energy Virginia’s request to securitize approximately $1.3 billion of unrecovered fuel costs. 

The unrecovered fuel costs accrued from higher-than-expected fuel and purchased power costs between July 1, 2020, and June 30, 2023. The proposal is expected to allow customers to pay off these unrecovered costs over approximately 7.25 years rather than over as little as 19 months. 

Dominion estimated that, as approved, customers would pay approximately $3.10 per month over 7.25 years rather than up to $14.72 per month under the traditional methodology. Final terms will not be known until the bonds are marketed and priced and are subject to change. 

The request was approved under a new statutory financing vehicle created by the 2023 General Assembly. The new statute allows Dominion, with Commission approval, to use a special-purpose entity to issue securitized bonds to finance certain unrecovered fuel costs. The proceeds from the bond issuance will be used to satisfy the unrecovered balance. The bondholders are paid through customer charges on the electric bill over the term of the securitization period. 

The Commission required that the bond issuance, once final terms are known, must provide both customer bill reductions and a net present value to customers compared to other recovery options. 

The Commission previously permitted Dominion to suspend collection of the unrecovered fuel costs on an interim basis beginning July 1, 2023, subject to the Commission’s consideration of the securitization request. Customer charges for securitization are expected to begin in Spring 2024. 

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Contact: Greg Weatherford, 804-371-9141

Case Number PUR-2023-00112 – Petition of Dominion Energy Virginia for a financing order authorizing the issuance of deferred fuel cost bonds

RICHMOND – The State Corporation Commission (SCC) is announcing the November 1 launch of Virginia’s Insurance Marketplace, which replaces HealthCare.gov as the Commonwealth’s official health benefit exchange. Virginia residents can enroll now in health insurance for 2024 on Virginia’s Insurance Marketplace during the Open Enrollment Period, which ends January 15, 2024.

Virginia’s Insurance Marketplace was created by Virginia, for Virginians. The Health Benefit Exchange, a division of the SCC, operates Virginia’s Insurance Marketplace.

“We work every day to better understand the unique needs of individuals and families in our state, and we have created a marketplace that connects them to high-quality, affordable health care coverage they can depend on,” said Keven Patchett, director of Virginia’s Insurance Marketplace. 

The goal of Virginia’s Insurance Marketplace is to increase access to affordable and reliable health coverage for Virginians.

“We have had the privilege of working closely with state agencies, health insurance carriers, insurance agents, navigators and our technology vendor, GetInsured, to make this transition a reality for Virginia,” said Patchett. “We look forward to continuing these relationships as we work together to improve access to coverage for Virginians, reduce the number of uninsured, and support the continuity of coverage for those experiencing coverage transitions.”

“Transitioning to a state-based exchange is no small feat,” said Chini Krishnan, CEO of GetInsured. “Transitioning from the federal marketplace will put the Commonwealth in a strong position for the upcoming Open Enrollment Period and beyond, allowing the state more flexibility to provide the best access to affordable coverage for Virginians.

Individual and family plans are available to eligible Virginians, including those who are unemployed, are self-employed, or have jobs that don’t provide affordable insurance options. Residents who have lost Medicaid or FAMIS coverage are also encouraged to shop for affordable insurance on the Marketplace.

The Marketplace is the only place where Virginians can apply for financial assistance to help lower their monthly insurance costs. Nearly 9 out of 10 customers qualify for financial assistance.

Every health plan offered on the Marketplace covers the 10 essential health benefits required by law, which include doctor visits, hospitalization, prescription services and more. 

To get started, Virginians can visit Marketplace.Virginia.gov to browse and compare health insurance plans. For additional help — either online or in person — Virginians can access the following resources:

• The Marketplace Help Center can connect Virginians to someone either in person or on the phone. Free translation services are also available.
• The FAQ page answers some of the most common questions about the Marketplace.

For Virginians to receive coverage during 2024 through the Marketplace, they must enroll in a health plan at Marketplace.Virginia.gov by January 15, 2024. After January 15, Virginians experiencing a Qualifying Life Event (such as having a baby or losing health insurance coverage) may be eligible to enroll during a Special Enrollment Period.

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Contact: Andy Farmer, 804-371-9141

RICHMOND – The autumn season brings shorter days and falling leaves. It also brings an increase in vehicle collisions with deer.

An increase in vehicle-deer crashes during the fall is attributed to deer mating and migration that typically takes place this time of year. In fact, next month (November) is the peak month for insurance claims related to vehicle collisions with deer. The State Corporation Commission’s (SCC’s) Bureau of Insurance offers Virginia drivers a reminder to remain alert for deer when driving on roadways.

“A deer in the roadway poses a threat to even the most careful driver,” said Virginia Insurance Commissioner Scott White. “As fall arrives, contact your insurance agent or company to find out if your automobile policy provides coverage for claims involving a crash with deer or other wildlife.”

Insurance policies with liability-only coverage may not cover damage to your auto from a deer crash. Vehicle collisions with deer typically fall under an optional coverage called “other-than-collision” (or “comprehensive”) coverage. In addition to deer crashes, other-than-collision coverage often covers other types of damage to your vehicle, such as damage resulting from theft, wind, hail, flood, fire or vandalism.

Lowering your travel speed and staying distraction-free may help you avoid a crash with deer. If a deer runs out in the road, drivers should stay in their lane and brake as carefully as possible. While startling, striking a deer is often safer for the driver and vehicle occupants than swerving sharply and putting surrounding vehicles and their occupants at risk.

If a collision with a deer happens while on the road, notify law enforcement and your insurance company as soon as possible. When safe to do so, take photos of the scene of the crash, as well as damage to the vehicle if you plan to file an insurance claim. If you see leaking fluid, tire damage, broken lights or other damage, call a tow truck.

The Bureau of Insurance is here to assist Virginians with their questions regarding auto and many other types of insurance. For more information, call the Bureau toll-free at 1-877-310-6560 or in Richmond at 804-371-9741 or visit its website at scc.virginia.gov/pages/Insurance.

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Contact: Jordan Bondurant, 804-371-9141

RICHMOND – The State Corporation Commission’s (SCC) Bureau of Financial Institutions (Bureau) is among money transmission regulators from 42 states, the District of Columbia and Puerto Rico to approve a settlement with licensed money transmitter ACI Payments Inc. and its parent company, ACI Worldwide Corp. (collectively, “ACI”) over roughly $2.3 billion in improperly processed and unauthorized electronic mortgage payments for more than 478,000 customers in April 2021.

Under the terms of the recent multistate settlement, each participating state will receive an equal portion of the more than $9.5 million civil penalty, or approximately $216,000 each. In addition, Nebraska-based ACI was ordered to pay $490,000 to reimburse 10 states for administrative costs related to the investigation. As part of the settlement and among other things, ACI also has agreed to implement changes to improve privacy and data security as well as introduce other safeguards to help protect consumers. 

A copy of the SCC order regarding the settlement is available online via the SCC’s case information page at scc.virginia.gov/DocketSearch#/caseDetails/144515.

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Contact: Katha Treanor,804-371-9141
Case Number BFI-2023-00126

RICHMOND — The State Corporation Commission (SCC) is offering time for members of the public to provide comments on an application by Appalachian Power Company to decrease its fuel factor for usage on and after November 1, 2023.

Appalachian Power’s application requests approval to recover the company's estimated Virginia jurisdictional fuel expenses of approximately $433,839,311 for the November 1, 2023, through October 31, 2024, fuel year, and its projected October 31, 2023, unrecovered fuel deferral balance of $273,125,395, subject to a mitigation proposal which would spread recovery of the unrecovered fuel deferral balance over two years.

For a residential customer using 1,000 kilowatt-hours per month, the average weighted monthly bill would decrease by $1.80, from $161.77 to $159.97, under the company’s proposal. The Commission has permitted the company to place the proposal into effect on an interim basis, subject to further modification, effective November 1, 2023.

The SCC has scheduled a public witness session to begin at 10 a.m. on January 17, 2024. Public witnesses intending to provide oral testimony must pre-register with the SCC by 5 p.m. on January 10, 2024. The hearing will be webcast at: scc.virginia.gov/pages/Webcasting.

Public witnesses wishing to provide oral testimony may preregister in one of three ways:

• Completing a public witness form for case number PUR-2023-00156 on the SCC’s website at: scc.virginia.gov/pages/Webcasting.
• Emailing the same form (PDF version on the same website as above) to SCCInfo@scc.virginia.gov.
• Calling the SCC at 804-371-9141 during normal business hours (8:15 a.m. – 5 p.m.) and providing your name and the phone number you wish the Commission to call to reach you during the hearing.

A public evidentiary hearing will follow the public witness hearing at 10 a.m. on January 17, 2024, in the SCC’s second-floor courtroom at 1300 East Main Street in Richmond to receive testimony and evidence from the company, any respondents and the SCC staff.

For those who prefer, there is also an opportunity to provide comments in writing on the Appalachian Power application. Written comments may be submitted through the SCC’s website by January 10, 2024, at scc.virginia.gov/casecomments/Submit-Public-Comments. Simply go to the SCC website, select "Cases" and then "Submit Public Comments," and scroll down to case number PUR-2023-00156. Then click SUBMIT COMMENTS.

Comments can also be submitted by U.S. mail to the Clerk of the State Corporation Commission, c/o Document Control Center, P.O. Box 2118, Richmond, Virginia 23218-2118. All comments must refer to case number PUR-2023-00156.

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Contact: Greg Weatherford, 804-371-9141

Case Number PUR-2023-00156 – Appalachian Power Company application to decrease its fuel factor

RICHMOND – From fast food and fitness to real estate, home improvement and auto repair, franchises offer something for almost any business interest. Buying and operating a franchise business can require a substantial commitment of time and money. For this reason, the State Corporation Commission’s (SCC) Division of Securities and Retail Franchising (Division) encourages Virginians who are considering buying a franchise to educate themselves before they buy.

“Assess your financial resources, abilities and goals and thoroughly understand franchise disclosures and your rights,” said Division Director Doug Joyce.

A franchisor must provide each prospective franchisee with a detailed Franchise Disclosure Document (FDD) at least 14 days before they invest in that franchise business. Required by federal and Virginia laws, the FDD consists of 23 specific items of information, including: the history of the franchise being offered; information about its officers and directors; costs to the franchisee; obligations of the franchisor and franchisee; financial statements; restrictions; franchisor operating practices, and renewal, termination or transfer of a franchise. Joyce encourages prospective franchisees to read the FDD thoroughly and make sure they fully understand it before they buy a franchise business.

Franchisors are required to register franchises operated in Virginia with the Division before offering or selling them to the public. Alternatively, some franchises may qualify for an exemption from registration. To find out if a franchise is registered in Virginia, contact the Division at 804-371-9051 in Richmond or toll-free at 1-800-552-7945 or visit its website at scc.virginia.gov/RegSearches#FRANCHISE.

Additional franchising resources are available on the North American Securities Administrators Association (NASAA) website at nasaa.org/industry-resources/franchise-resources/. 

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Contact: Katha Treanor, 804-371-9141

RICHMOND – The federal government has approved Virginia’s application to change the essential health benefits (EHB) benchmark plan for Affordable Care Act (ACA) health plans offered in the Commonwealth in the individual and small-group markets beginning January 1, 2025. The EHB benchmark plan sets the required benefits that must be provided by comprehensive fully insured individual and small-group health insurance coverage issued in Virginia. This is the first time changes have been made to Virginia’s EHB benchmark plan since 2017.

The Centers for Medicare and Medicaid Services (CMS), the federal agency primarily responsible for ACA oversight, approved Virginia’s application in late August.

The State Corporation Commission’s (SCC) Bureau of Insurance (Bureau) submitted the application pursuant to legislation passed by the 2023 Virginia General Assembly directing the Bureau to select a new EHB benchmark plan for plan year 2025.

In addition to the legislation regarding the 2025 EHB benchmark plan, the 2023 General Assembly passed legislation that establishes a new formalized process for future review and updates to Virginia’s EHB benchmark plan.

“We are pleased to announce CMS’s approval of these benefits for the 2025 EHB benchmark plan as specified by the Virginia General Assembly,” said Virginia Insurance Commissioner Scott A. White. “We look forward to our continuing future review of potential health benefit options to present to legislators for possible inclusion in the EHB benchmark plan for individuals and small groups who purchase fully insured health coverage in Virginia.”

Among the changes that have been made to Virginia’s EHB benchmark plan for qualifying health plans that begin January 1, 2025, are the following:

• Coverage for enhanced prosthetic devices and components – the new EHB benchmark plan redefines medically necessary prosthetics to include myoelectric, biomechanical or microprocessor-controlled prosthetic devices; and
• Formula and enteral nutrition products for inherited metabolic disorders as medicine – the new EHB benchmark plan requires coverage of orally administered, medically necessary formula and removes the requirement that medically necessary medical formula provide more than 51% of caloric needs.

Benefit changes to Virginia’s EHB benchmark plans do not apply to grandfathered plans or large-group plans, such as plans offered through large employers (51 or more employees).

A state’s EHB benchmark plan must include coverage for the following:

• Ambulatory patient services
• Emergency services
• Hospitalization
• Maternity and newborn care
• Mental health and substance use disorder services
• Prescription drugs
• Rehabilitative and habilitative services and devices
• Laboratory services
• Preventive and wellness services and chronic disease management
• Pediatric services, including oral and vision care

For questions or to learn more about Virginia’s 2025 EHB benchmark plan, contact the Bureau of Insurance by telephone at 804-371-9741 in Richmond or toll-free at 1-877-310-6560, by email at BureauofInsurance@scc.virginia.gov, or visit its website at Virginia SCC - Essential Health Benefits Benchmark Plan.

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Contact: Katha Treanor, 804-371-9141

RICHMOND – The State Corporation Commission (SCC) has approved Dominion Energy Virginia’s Phase III of its plan for electric distribution grid-transformation projects that the company seeks to deploy in 2024-2026, while reducing from $508.3 million to $182.7 million the amount allowable for Dominion to spend on strengthening mainfeeder lines.  

In addition to approving the continuation of several programs – including deployment of advanced metering infrastructure; a customer information platform; targeted corridor improvement; voltage optimization enablement; and telecommunications and physical security enhancements – the Commission approved an expanded mainfeeder hardening pilot, consisting of 44 mainfeeders.

The Commission also approved two new programs: an outage management system and a non-wires alternative pilot. The non-wires alternative pilot consists of up to five front-of-the-meter battery energy storage systems to be installed over five years.

In total, the Commission approved $824.1 million in capital investments through 2026 to improve the safety and security of Dominion’s electric distribution system and $58.6 million in operations and maintenance.  

In approving the hardening of 44 mainfeeders, the Commission noted that Dominion’s initial request to harden 111 mainfeeders would have cost $1.3 billion over the life of the investments when including financing costs. “Simply put, the Company has not sustained its burden of proving these costs are reasonable and prudent,” the Commission wrote.

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Contact: Greg Weatherford, 804-371-9141

Case Number PUR-2023-00051 – Petition of Dominion Energy Virginia for approval of a plan for electric distribution grid transformation projects

RICHMOND – Every three hours in the United States, a person or vehicle is hit by a train, according to Operation Lifesaver Inc. (OLI), a nonprofit organization dedicated to rail safety education.

During Rail Safety Week – September 18-24, 2023 – the State Corporation Commission (SCC) joins OLI, state Operation Lifesaver programs, and other rail safety partners throughout North America to raise awareness about the need for pedestrians, motorists, bicyclists and others to stay safe around railroad tracks and crossings.

Lauren Govoni, director of the SCC’s Division of Utility and Railroad Safety, and Virginia Operation Lifesaver Coordinator Tracey Lamb encourage Virginians to stay alert, use caution and obey signals around railroad tracks, and to always expect a train. “Rail safety is much more than just a single tip or slogan,” Govoni said. “It’s a set of guidelines for different groups of people, including children, first responders, media professionals, photographers, personal and professional drivers, and more.”

As part of this annual nationwide campaign, the SCC will partner with law enforcement and organizations throughout the state to promote daily Rail Safety Week themes that include commuter and transit safety, crossing safety and professional drivers, trespass prevention, and photographer safety. It will also share potentially life-saving information on its website and social media pages.

While the 82% decrease in collisions nationwide at highway-rail grade crossings during the past 50 years is encouraging, “there is still more rail safety awareness work to do,” Lamb said. “Trains can take a mile or more to come to a complete stop. If your vehicle ever stalls on the track, immediately exit your vehicle and call the phone number on the blue Emergency Notification System sign located at the crossing or 9-1-1,” she said. Virginia Operation Lifesaver is administered by the SCC’s Division of Utility and Railroad Safety, which offers education sessions and can be reached at 804-371-1588. To learn more about railroad safety and railroad regulation in Virginia, visit scc.virginia.gov/pages/Railroad-Regulation or oli.org.

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Contact: Jordan Bondurant, 804-371-9141

RICHMOND – Hurricanes and other natural disasters can take a huge toll on businesses, including closures or disruptions that may last for days or longer. Some businesses may never reopen following a natural disaster and others that reopen may fail within one year of the disaster due to its effects.

No business is immune to natural disasters. Even disasters far away can impact your business by disrupting supply chains and communications. Small businesses are particularly vulnerable when it comes to disasters since they often have fewer resources, locations and employees to help them become operational again.

The State Corporation Commission’s (SCC) Bureau of Insurance (Bureau) encourages businesses to review their insurance coverage regularly and adjust it, as needed, while considering the possibility of a natural disaster. Businesses should understand what their policies cover and how much they may need to make repairs, minimize disruptions, and pay business expenses – including payroll and payments to creditors – in the event of a disaster.

The Bureau reminds Virginians that advance planning is critical. “How you plan for and respond to disasters can determine whether your business survives,” said Virginia Insurance Commissioner Scott A. White. “Protect yourself and your business financially by preparing for the unexpected and having the insurance coverage you need when you need it.”

The Bureau offers the following tips to help get your business running again as quickly as possible after a natural disaster:

• Assess your risk for certain types of disasters, such as fires or floods.
• Have emergency disaster and business continuity plans in place.
• Make sure your insurance coverage is up to-date by reviewing policies and making adjustments, as needed.
• Know how to respond if disaster strikes.

Educate yourself on what your insurance policies cover and consider the following:

• What are your deductibles, coverage limits and exclusions?
• Do you need additional or separate coverages such as coverage for damage related to floods or earthquakes, which are not usually covered by standard business insurance policies?
• Do you need separate automobile insurance for business vehicles?
• Are your business and its contents insured for current replacement cost?
• Will you need business interruption insurance to cover loss of income that your business may suffer after a disaster?

Additional steps businesses can take include the following:

• Share business continuity plans with employees that include current employee contact information, backup vendors or suppliers and a temporary relocation site.
• Develop a communication plan and procedures for work processes and payroll during a disaster or business interruption.
• Keep preparedness items onsite at your workplace – including disaster provisions, maps with evacuation routes and access to a working radio and mobile apps for emergency instructions.
• Compile and safely store an inventory of assets and equipment (including computer hardware), and back up all personal and company data regularly in case information is lost during a disaster.
• Keep physical copies of important records (such as building plans, insurance policies, bank accounts and employee contact information) in a safe, waterproof and fireproof place.
• After a disaster strikes your business, contact your insurance agent or company immediately and ask what information is needed to file a claim.

The Bureau of Insurance offers free consumer guides specifically geared to businesses. To learn more, contact the Consumer Services Section of the Bureau of Insurance Property and Casualty Division toll-free at 1-877-310-6560 or in Richmond at 804-371-9185 or visit scc.virginia.gov/pages/Insurance.

For additional emergency preparedness information relating to disasters, visit vaemergency.gov.

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Contact: Katha Treanor, 804-371-9141