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RICHMOND – Individual retirement accounts (IRAs) are a popular way for many Americans to build their savings. They can take various forms including traditional IRAs, Roth IRAs, Simplified Employee Pension IRAs, self-directed IRAs and others.

To open an account, an individual must find a bank, trust company, broker-dealer or other Internal Revenue Service (IRS)-approved company to act as the account custodian.

Like other IRAs, self-directed IRAs provide another option for those looking to invest retirement funds. Before opening a self-directed IRA, the State Corporation Commission (SCC) Division of Securities and Retail Franchising (Securities Division) encourages Virginians to consider how self-directed IRAs work and how they differ from IRAs offered by banks, registered broker-dealers, investment advisors and other IRS-approved custodians.

“With self-directed IRAs, it is up to the investor to evaluate and understand the investments in his or her account,” said Doug Joyce, director of the SCC’s Securities Division. “Custodians are only responsible for holding and administering the assets in an account and typically do not check the safety or legitimacy of an investment or accuracy of any financial information that is provided for an investment in their account. Custodians of those accounts have limited duties to investors. A self-directed IRA investor has sole responsibility for investment decisions,” he said.

Self-directed IRAs generally allow investment in a broader range of assets than is permitted by most other IRA custodians. These investments may include non-traditional assets such as real estate, precious metals, crypto assets, private placement securities and promissory notes.

Additionally, promoters of self-directed IRAs may not be licensed investment professionals and may not be subject to the same regulatory oversight and investor protection rules that govern the securities industry.

Fees for self-directed IRAs may be higher than those for other types of IRAs and may include transaction fees, account opening fees, annual account fees, administrative fees and asset-specific fees in the account. Self-directed IRAs are also subject to more complicated IRS tax rules than other types of IRAs.

“Understand the benefits and risks of any investment,” Joyce said. “Ask questions, get details in writing and make sure that the investment and the person offering it are licensed or registered, if necessary.” Joyce encourages Virginians to independently verify information such as prices and asset values in self-directed IRA account statements; avoid unsolicited investment offers and claims of “guaranteed” returns or “risk-free” investments, and consult with a licensed, unbiased investment professional or attorney before investing.

Virginians can contact the Securities Division with certain securities-related questions, including any questions about possible investment fraud, at 804-371-9051 in Richmond or toll-free at 1-800-552-7945. For more information, visit the Division’s website at scc.virginia.gov/pages/Consumer-Investments or the North American Securities Administrators Association at nasaa.org.

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Contact: Katha Treanor, 804-371-9141

RICHMOND – The State Corporation Commission (SCC) approved a revised fuel rate for customers of Appalachian Power Company (APCo) that includes a mitigation proposal that would spread the recovery of its $361,411,867 deferred fuel balance over two years. The fuel rate increase has been in effect on an interim basis, subject to further modification, since November 1, 2022, and no additional changes were approved. For a residential customer using 1,000 kilowatt-hours of electricity per month, it represents an increase to the average monthly bill of $20.17. Without the mitigation proposal, however, the increase would have been $33.24 per month for the same usage.

The fuel rate is the portion of the electric bill that pays for the fuel used to generate electricity and costs associated with power purchased by the utility company to serve its customers.

In its final order, the Commission stated: “… we are deeply concerned about the significant rate increase requested in this case, and its impact on customer bills. The impact of the increase is worsened by its introduction during the winter months, which are typically higher usage months, and by other recent APCo rate increases. We are mindful of the numerous public comments and concerns expressed about the impact of such rate increases on APCo’s customers and have reviewed this matter carefully. APCo is, however, entitled by law to recover its prudently incurred fuel costs…”

The Commission directed the SCC staff to conduct a fuel audit for the period from January 1, 2019, to December 31, 2022, and to include the results of the fuel audit in its pre-filed testimony in APCo’s next fuel factor proceeding. As part of the fuel audit, the Commission directed Staff to analyze the reasonableness of APCo’s coal procurement activities.

The Commission also directed APCo to take additional steps within 60 days of its order to advise customers how they may contact APCo for bill assistance and to set up budget billing for their accounts.

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Contact: Ford Carson, 804-371-9141

Case Number PUR-2022-00139
View Final Order

RICHMOND – Helping Americans understand their consumer rights and make informed choices – that’s the goal of National Consumer Protection Week. The State Corporation Commission (SCC) is pleased to join the Federal Trade Commission and other federal, state and local agencies and organizations for this annual awareness campaign, which runs from March 5-11, 2023.

Whether you are shopping for a mortgage or automobile loan, have questions about your insurance policies or want to understand charges on your utility bill, the SCC may be able to help. SCC staff may provide information as well as assist with questions and concerns involving entities that the SCC regulates including insurance companies and agents, state-chartered financial institutions, investment firms and their representatives, retail franchises, and investor-owned utilities providing electric, natural gas, water, sewer and landline telecommunications service.

The SCC provides outreach and consumer guides in addition to other materials on topics such as understanding mortgage loans, investing wisely, saving energy, explaining various types of insurance, and more.

When it comes to regulated businesses and services, the SCC encourages Virginians to shop around and understand their options; thoroughly evaluate any offer; keep written records of all transactions; find products and services that suit their particular needs; review statements and bills regularly; learn to spot scams, and verify that an individual or company is properly licensed or registered.

Consumers should attempt to resolve issues directly with a regulated individual or company first. If the issue is not resolved to the consumer’s satisfaction, however, they can contact the SCC through its toll-free number at 1-800-552-7945 or call the appropriate SCC division in Richmond using the numbers below:

  • Bureau of Insurance – 804-371-9741
  • Bureau of Financial Institutions – 804-371-9657
  • Division of Securities and Retail Franchising – 804-371-9051
  • Division of Public Utility Regulation – 804-371-9611
  • Office of the Clerk – 804-371-9733
  • Division of Information Resources – 804-371-9141

Information about the complaint process, along with related forms, are available from the Consumers section of the SCC website at scc.virginia.gov.

If the SCC does not have regulatory authority over a particular company, individual, product or transaction, its staff will assist consumers whenever possible by providing a referral to any appropriate local, state or federal authority for assistance. These authorities may include the Office of the Attorney General, law enforcement agencies, or the Federal Trade Commission (which consumers can also contact directly through its toll-free helpline at 1-877-FTC-HELP (1-877-382-4357)).

To learn more about National Consumer Protection Week, visit consumer.ftc.gov.

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Contact: Jordan Bondurant, 804-371-9141

RICHMOND – The State Corporation Commission (SCC) reminds Virginia consumers that they can sign up for health insurance coverage or make changes to an existing plan now through HealthCare.gov. This open enrollment period ends January 15, 2023.

Coverage will start February 1, 2023 for all enrollments occurring through January 15 at HealthCare.gov. Open enrollment – which usually runs from November through January – is the only time consumers can enroll in coverage without a qualifying life event that makes them eligible for a special enrollment period.

For 2023, the federal government has continued enhanced premium credits to help cover premium costs for health insurance purchased through HealthCare.gov and more Virginians are now eligible for financial assistance. The federal government also recently finalized a new rule which makes this financial assistance available to family members of certain workers whose employer-provided insurance may not be affordable for spouses and dependents.

Health insurance plans sold through the federal marketplace, known as qualified health plans, must provide coverage for 10 essential health benefits which include:

  • Ambulatory care
  • Emergency services
  • Hospitalization
  • Pregnancy, maternity and newborn care
  • Mental health, behavioral 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

Qualified health plans generally prohibit denial of coverage for pre-existing conditions, require zero copays on a range of preventive care, and have no dollar limits on covered benefits.

Through HealthCare.gov, Virginia residents may access financial assistance to lower costs for health insurance for plan year 2023. There are now at least two health carriers participating in the marketplace in every county and region across the Commonwealth.

To begin an application or to make changes to existing coverage, consumers can visit HealthCare.gov or call the Marketplace Call Center at 1-800-318-2596, TTY: 1-855-889-4325. For free in-person or online help, or help over the phone, Virginia residents have several options.

Virginia is on track to complete the transition to a Virginia-based health insurance marketplace by fall of 2023. To learn more about the Virginia Exchange or to obtain additional contact information, visit the SCC Exchange website at HBE Consumer Contact.

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Contact: Katha Treanor, 804-371-9141
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