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HB242 • 2026

Public utilities; budget plan payment increases.

An Act to amend the Code of Virginia by adding a section numbered 56-247.2, relating to public utilities; multiple budget plan payment increases within 12 months prohibited; notice required.

Budget
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Cole, J.G.
Last action
2026-04-08
Official status
Acts of Assembly Chapter
Effective date
Not listed

Plain English Breakdown

Checked against official source text during the last sync.

Rules for Public Utility Budget Plan Payments

This law stops public utilities from raising monthly payments more than once a year and requires written notice at least two months before any increase for residential customers on budget plans.

What This Bill Does

  • Defines 'budget plan' as an option where the total service cost is estimated for a year and divided into equal monthly bills.
  • Stops public utilities from increasing monthly payments more than once in 12 months for customers on budget plans.
  • Requires public utilities to give written notice at least two months before any payment increase takes effect.

Who It Names or Affects

  • Residential customers who are enrolled in a budget plan with a public utility.
  • Public utilities that offer budget plans to residential customers.

Terms To Know

budget plan
A fixed billing option where the total service cost for a year is estimated and divided into equal monthly bills.

Limits and Unknowns

  • The law does not apply to public utilities that provide water or sewerage services.
  • It only applies to residential customers, not commercial or industrial ones.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

HB242AHC1

2026-01-20

Subcommittee #3 Subcommittee Amendment

Plain English: The amendment removes certain phrases related to notice requirements for payment increases from a bill about public utilities.

  • Removes '; notice required' after 'prohibited' and 'increase'.
  • Strikes the remainder of line 16 through 'option' on line 17.
  • The amendment text does not provide full context, so it's unclear what specific sections are being removed.
  • It is not clear how this change will affect customer notification requirements for payment increases.
HB242AHC2

2026-01-20 • Committee

Subcommittee #3 Subcommittee Amendment

Plain English: The amendment removes certain phrases related to notice requirements for payment increases from a bill about public utilities.

  • Removes '; notice required' after 'prohibited' in the title of the bill.
  • Removes '; notice required' after 'increase'.
  • Strikes out part of line 16 and through 'option' on line 17, removing a specific notice requirement.
  • Eliminates language about notifying customers at least 30 days before payment increases take effect.
  • The exact impact of these changes is not fully explained in the provided amendment text.
HB242AH1

2026-01-22 • Committee

Labor and Commerce Amendment

Plain English: The amendment changes the rules for public utility budget plans by increasing the notice period and limiting payment increases.

  • Increases the required notice period from 30 days to 60 days before a public utility can change its budget plan payments.
  • Prohibits multiple payment increase notices within a 12-month period.
  • The amendment text does not specify all details about how these changes will be implemented or enforced, which may leave some questions unanswered.
HB242ASC1

2026-03-02 • Committee

Commerce and Labor Amendment

Plain English: The amendment excludes public utilities that provide water or sewerage facilities from a new law about multiple budget plan payment increases within 12 months.

  • Public utilities providing water or sewerage services are exempted from the provisions of the bill.
  • The amendment does not specify what other parts of the bill remain unchanged for these public utilities, such as notice requirements.
HB242AS1

2026-03-03 • Committee

Commerce and Labor Amendment

Plain English: The amendment adds an exception for water and sewerage utilities, meaning they are not subject to certain rules about payment increases.

  • Adds a new clause (C) that excludes public utilities providing water or sewerage services from the provisions of the bill.
  • The amendment does not specify what exact provisions it is excluding for these utilities, so more context about the original bill's rules would be needed to fully understand its impact.
HB242EDOC

2026-03-05 • Senate

Senate Amendment

Plain English: The amendment adds an exception for water and sewerage utilities, meaning they are not subject to a new rule about multiple budget plan payment increases within 12 months.

  • Adds an exemption for public utilities that provide water or sewerage facilities from the provisions of the bill.
  • The amendment does not specify what the original provisions are, only that they do not apply to water and sewerage utilities.

Bill History

  1. 2026-04-08 Governor

    Approved by Governor-Chapter 373 (effective 7/1/2026)

  2. 2026-04-08 Governor

    Acts of Assembly Chapter text (CHAP0373)

  3. 2026-03-25 House

    Enrolled Bill communicated to Governor on March 25, 2026

  4. 2026-03-25 Governor

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

  5. 2026-03-25 House

    Fiscal Impact statement From DPB (3/25/2026 2:39 pm)

  6. 2026-03-14 House

    Signed by Speaker

  7. 2026-03-14 Senate

    Signed by President

  8. 2026-03-14 House

    Enrolled

  9. 2026-03-14 House

    Bill text as passed House and Senate (HB242ER)

  10. 2026-03-09 House

    Senate amendment agreed to by House (93-Y 4-N 0-A)

  11. 2026-03-05 Senate

    Read third time

  12. 2026-03-05 Senate

    Engrossed by Senate as amended

  13. 2026-03-05 Senate

    Engrossed by Senate - committee substitute

  14. 2026-03-05 Commerce and Labor

    Commerce and Labor Amendment agreed to

  15. 2026-03-05 Senate

    Passed Senate with amendment (37-Y 2-N 0-A)

  16. 2026-03-04 Senate

    Rules suspended

  17. 2026-03-04 Senate

    Passed by for the day

  18. 2026-03-04 Senate

    Constitutional reading dispensed Block Vote (on 2nd reading) (39-Y 0-N 0-A)

  19. 2026-03-04 Senate

    Passed by for the day Block Vote (Voice Vote)

  20. 2026-03-02 Commerce and Labor

    Reported from Commerce and Labor with amendment (12-Y 1-N)

  21. 2026-03-02 Senate

    Senate committee offered

  22. 2026-01-29 Senate

    Constitutional reading dispensed (on 1st reading)

  23. 2026-01-29 Commerce and Labor

    Referred to Committee on Commerce and Labor

  24. 2026-01-28 House

    Read third time and passed House Block Vote (97-Y 0-N 0-A)

  25. 2026-01-27 House

    Read second time

  26. 2026-01-27 House

    committee amendments agreed to

  27. 2026-01-27 House

    Engrossed by House as amended

  28. 2026-01-27 House

    Fiscal Impact Statement from State Corporation Commission (HB242)

  29. 2026-01-26 House

    Read first time

  30. 2026-01-22 Labor and Commerce

    Reported from Labor and Commerce with amendment(s) (22-Y 0-N)

  31. 2026-01-20 Subcommittee #3

    Subcommittee recommends reporting with amendment(s) (8-Y 1-N)

  32. 2026-01-20 Subcommittee #3

    House subcommittee offered

  33. 2026-01-20 Subcommittee #3

    House subcommittee offered

  34. 2026-01-15 Subcommittee #3

    Assigned HCL sub: Subcommittee #3

  35. 2026-01-08 House

    Prefiled and ordered printed; Offered 01-14-2026 26103219D

  36. 2026-01-08 Labor and Commerce

    Referred to Committee on Labor and Commerce

Official Summary Text

Public utilities; budget plan payment increases.
Prohibits a public utility from, for any residential customer who is enrolled in a budget plan, increasing the amount of such customer's monthly payment more than once within any 12-month period or without notifying the customer in writing at least 60 days before such increase takes effect. The bill defines "budget plan" as a fixed billing option offered by a public utility to a customer whereby the total service for the succeeding 12-month period is estimated in advance and bills are rendered monthly on the basis of one-twelfth of the 12-month estimate. The provisions of the bill do not apply to any public utility engaged in the business of furnishing water or sewerage facilities.

Current Bill Text

Read the full stored bill text 
An Act to amend the Code of Virginia by adding a section numbered
56-247.2
, relating to public utilities; multiple budget plan payment increases within 12 months prohibited; notice required.
Be it enacted by the General Assembly of Virginia:
1. That the Code of Virginia is amended by adding a section numbered
56-247.2
as follows:
§
56-247.2
. Budget plan payment increase; notice required.
A. As used in this section, "budget plan" means a fixed billing option offered by a public utility to a customer whereby the total service for the succeeding 12-month period is estimated in advance and bills are rendered monthly on the basis of one-twelfth of the 12-month estimate.
B. No public utility shall, for any residential customer who is enrolled in a budget plan, increase the amount of such customer's monthly payment more than once within any 12-month period or without notifying the customer in writing at least 60 days before such increase takes effect.
C. The provisions of this section shall not apply to any public utility engaged in the business of furnishing water or sewerage facilities.