Revision History: HB242 Public utilities budget plan payment increases
2026-03-09 17:37:14
Edited by: 198.246.136.35
Edited by: 198.246.136.35
= HB242 Public utilities; budget plan payment increases. = == Status == [https://house.vga.virginia.gov/subcommittees/H14003/agendas/5165 Labor and Commerce | Subcommittee — 1/20/2026] <hr> == Overview == === Summary as Introduced === Public utilities; budget plan payment increases. Prohibits a public utility from, for any residential customer who is enrolled in a budget plan or similar billing option, 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 30 days before such increase takes effect. The bill defines a “budget plan” as a fixed billing option offered by a public utility 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. <hr> === Patrons === ==== House Patrons ==== • Joshua G. Cole (chief patron) ==== Senate Patrons ==== • None <hr> == Language == The language of [https://lis.virginia.gov/bill-details/20261/HB242/text/HB242 HB242] can be viewed here. <hr> == Proposed Amendment == === Amendment === We have peace in the valley with these technical changes: <blockquote> on lines 16 through 17 strike "or similar billing option" on line 18 strike "without" and insert "by" on line 18 strike "30" and insert "60" </blockquote> These changes are a work of stakeholders reaching an agreement to find a balance for all parties. === Purpose of the Amendment === To reinforce the core policy objective of the bill by ensuring that residential customers enrolled in budget plans are not subject to mid-cycle payment increases during a 12-month budget period, rather than permitting increases so long as notice is provided. The amendment clarifies that budget plans are intended to provide predictability and stability over a full year. Stakeholder discussions are ongoing to ensure the bill’s protections are clear, workable, and balanced for both customers and utilities. <hr> == Opening Statement == === House Subcommittee Statement === Madam Chair, members of the subcommittee— HB 242 is a consumer-protection measure focused on predictability and transparency for residential utility customers who choose budget billing plans. Budget plans are marketed as a way to smooth costs by estimating a year of service in advance and spreading that cost evenly over twelve months. For many households—particularly those on fixed or limited incomes—the value of these plans is stability and the ability to plan around a consistent monthly bill. This bill establishes a clear rule: if a residential customer enrolls in a budget plan or similar billing option, the utility may not increase that customer’s monthly payment more than once within a 12-month period. The bill also defines “budget plan” in statute to ensure clarity and consistency across utilities, anchoring the concept to an annual estimate divided evenly over the year. We are continuing conversations with utilities, advocates, and other stakeholders to ensure the bill strikes the right balance and delivers on its core purpose—protecting customers from unexpected mid-year increases while preserving workable billing practices. I ask that the subcommittee favorably report HB 242. <hr> === House Committee Statement === n/a === Floor Statement === Mr. Speaker— HB 242 protects residential customers who use budget billing plans. These plans are meant to provide stable, predictable monthly bills. This bill ensures utilities cannot increase those payments more than once in a year and must give 60 days’ notice before any increase. It adds transparency, protects families on fixed incomes, and preserves fair billing practices. I would ask that this bill be engrossed and moved along to its third reading. === Senate Subcommittee Statement === n/a === Senate Committee Statement === ==== Amendment ==== We have an amendment to this bill. Speaking to the amendment. After Line 17 insert: "C. The provisions of this section shall not apply to any public utility engaged in the business of furnishing water or sewerage facilities." This simply pulls public utilities who do water and sewer; most Virginians are covered by water and sewage handled by their locality. This allows the small public utility water and sewer companies the ability to continue payment plans without burden. ==== Amended language ==== 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. + 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. ==== Bill ==== HB 242 is a straightforward <i>and short</i> consumer-protection bill. Budget billing plans are marketed as a way to provide stability, estimating a year of service and dividing it evenly over twelve months. For many families, especially those on fixed incomes, that predictability is the entire point. This bill simply says that if a residential customer enrolls in a budget plan, the utility may not increase that monthly payment more than once in a 12-month period and must provide 60 days’ written notice before any increase takes effect. I hope it will be the will of the committee to report the bill. <hr> == Support and Opposition == === Support === • (to be updated) === Opposition === • (to be updated) === No Recommendation === • (to be updated) <hr> == Fiscal Impact == There is no fiscal impact statement for HB242. <hr> == Possible Questions == === TL;DR === <b>Q1: “Does this prevent utilities from ever adjusting budget plans?”</b> TL;DR: No. It limits increases to once per 12-month budget period to preserve predictability. <br> <b>Q2: “Why remove the 30-day notice language?”</b> TL;DR: Because notice alone does not protect customers from mid-year increases that undermine the purpose of budget plans. <br> <b>Q3: “Does this affect non-residential customers?”</b> TL;DR: No. The bill applies only to residential customers. <br> === Q1: “Does this prevent utilities from adjusting budget plans?” === <b>What’s true:</b> Utilities rely on estimates and true-ups to manage billing accuracy. <b>What’s misleading:</b> The bill does not eliminate adjustments entirely; it limits how often payment amounts may be increased. <b>Answer you can use:</b> HB 242 allows utilities to set a budget plan based on a 12-month estimate, as they do now. It simply ensures that customers are not surprised by repeated increases during the same budget cycle. Adjustments can still occur at the annual reset. <br> === Q2: “Why strike the 30-day notice provision?” === <b>What’s true:</b> Notice requirements improve transparency. <b>What’s incomplete:</b> Notice does not solve the underlying problem of instability for customers who enrolled in a plan specifically to avoid fluctuating bills. <b>Answer you can use:</b> The purpose of a budget plan is predictability over a full year. Allowing mid-year increases with notice still defeats that purpose. The amendment clarifies that once a customer enters a budget plan, the payment amount should remain stable for the duration of the 12-month period. <br> === Q3: “Who benefits most from this bill?” === <b>Answer you can use:</b> Customers on fixed incomes, seniors, families living paycheck-to-paycheck, and anyone who relies on budget billing to manage household expenses benefit from knowing their utility payment will not change unexpectedly mid-year. <hr> == Additional Information == <b>1. Budget plans are marketed as stability tools</b> • Customers enroll to avoid seasonal spikes • Predictable monthly payments are the core selling point <b>Policy implication:</b> Mid-cycle increases undermine consumer expectations. <br> <b>2. Mid-year increases create household budgeting risk</b> • Unexpected increases can force trade-offs with rent, food, or medicine • Low-income and fixed-income households are most exposed <b>Policy implication:</b> Stability is a consumer-protection issue, not merely a billing preference. <br> <b>3. The bill creates a clear, uniform standard</b> • One increase per 12-month period • Applies only to residential customers <b>Policy implication:</b> Clear rules reduce confusion, disputes, and inconsistent utility practices. <br> [[Category:2026 Session]]
2026-03-02 20:28:42
Edited by: 198.246.136.35
Edited by: 198.246.136.35
= HB242 Public utilities; budget plan payment increases. = == Status == [https://house.vga.virginia.gov/subcommittees/H14003/agendas/5165 Labor and Commerce | Subcommittee — 1/20/2026] <hr> == Overview == === Summary as Introduced === Public utilities; budget plan payment increases. Prohibits a public utility from, for any residential customer who is enrolled in a budget plan or similar billing option, 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 30 days before such increase takes effect. The bill defines a “budget plan” as a fixed billing option offered by a public utility 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. <hr> === Patrons === ==== House Patrons ==== • Joshua G. Cole (chief patron) ==== Senate Patrons ==== • None <hr> == Language == The language of [https://lis.virginia.gov/bill-details/20261/HB242/text/HB242 HB242] can be viewed here. <hr> == Proposed Amendment == === Amendment === We have peace in the valley with these technical changes: <blockquote> on lines 16 through 17 strike "or similar billing option" on line 18 strike "without" and insert "by" on line 18 strike "30" and insert "60" </blockquote> These changes are a work of stakeholders reaching an agreement to find a balance for all parties. === Purpose of the Amendment === To reinforce the core policy objective of the bill by ensuring that residential customers enrolled in budget plans are not subject to mid-cycle payment increases during a 12-month budget period, rather than permitting increases so long as notice is provided. The amendment clarifies that budget plans are intended to provide predictability and stability over a full year. Stakeholder discussions are ongoing to ensure the bill’s protections are clear, workable, and balanced for both customers and utilities. <hr> == Opening Statement == === House Subcommittee Statement === Madam Chair, members of the subcommittee— HB 242 is a consumer-protection measure focused on predictability and transparency for residential utility customers who choose budget billing plans. Budget plans are marketed as a way to smooth costs by estimating a year of service in advance and spreading that cost evenly over twelve months. For many households—particularly those on fixed or limited incomes—the value of these plans is stability and the ability to plan around a consistent monthly bill. This bill establishes a clear rule: if a residential customer enrolls in a budget plan or similar billing option, the utility may not increase that customer’s monthly payment more than once within a 12-month period. The bill also defines “budget plan” in statute to ensure clarity and consistency across utilities, anchoring the concept to an annual estimate divided evenly over the year. We are continuing conversations with utilities, advocates, and other stakeholders to ensure the bill strikes the right balance and delivers on its core purpose—protecting customers from unexpected mid-year increases while preserving workable billing practices. I ask that the subcommittee favorably report HB 242. <hr> === House Committee Statement === n/a === Floor Statement === Mr. Speaker— HB 242 protects residential customers who use budget billing plans. These plans are meant to provide stable, predictable monthly bills. This bill ensures utilities cannot increase those payments more than once in a year and must give 60 days’ notice before any increase. It adds transparency, protects families on fixed incomes, and preserves fair billing practices. I would ask that this bill be engrossed and moved along to its third reading. === Senate Subcommittee Statement === n/a === Senate Committee Statement === ==== Amendment ==== We have an amendment to this bill. Speaking to the amendment. - After Line 17 insert: "The provisions of this section shall not apply to any public utility engaged in the business of furnishing water or sewerage facilities." + After Line 17 insert: "C. The provisions of this section shall not apply to any public utility engaged in the business of furnishing water or sewerage facilities." This simply pulls public utilities who do water and sewer; most Virginians are covered by water and sewage handled by their locality. This allows the small public utility water and sewer companies the ability to continue payment plans without burden. - ==== Bill ==== + ==== Amended language ==== - HB 242 is a straightforward <i>and short</i> consumer-protection bill. + 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. - Budget billing plans are marketed as a way to provide stability, estimating a year of service and dividing it evenly over twelve months. For many families, especially those on fixed incomes, that predictability is the entire point. + 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. - This bill simply says that if a residential customer enrolls in a budget plan, the utility may not increase that monthly payment more than once in a 12-month period and must provide 60 days’ written notice before any 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. - I hope it will be the will of the committee to report the bill. + - + ==== Bill ==== - <hr> + - + HB 242 is a straightforward <i>and short</i> consumer-protection bill. - == Support and Opposition == + - + Budget billing plans are marketed as a way to provide stability, estimating a year of service and dividing it evenly over twelve months. For many families, especially those on fixed incomes, that predictability is the entire point. - === Support === + - • (to be updated) + This bill simply says that if a residential customer enrolls in a budget plan, the utility may not increase that monthly payment more than once in a 12-month period and must provide 60 days’ written notice before any increase takes effect. - === Opposition === + I hope it will be the will of the committee to report the bill. - • (to be updated) + - + <hr> - === No Recommendation === + - • (to be updated) + == Support and Opposition == - <hr> + === Support === - + • (to be updated) - == Fiscal Impact == + - There is no fiscal impact statement for HB242. + === Opposition === - + • (to be updated) - <hr> + - + === No Recommendation === - == Possible Questions == + • (to be updated) - === TL;DR === + <hr> - <b>Q1: “Does this prevent utilities from ever adjusting budget plans?”</b> + - TL;DR: No. It limits increases to once per 12-month budget period to preserve predictability. <br> + == Fiscal Impact == - + There is no fiscal impact statement for HB242. - <b>Q2: “Why remove the 30-day notice language?”</b> + - TL;DR: Because notice alone does not protect customers from mid-year increases that undermine the purpose of budget plans. <br> + <hr> - <b>Q3: “Does this affect non-residential customers?”</b> + == Possible Questions == - TL;DR: No. The bill applies only to residential customers. <br> + - + === TL;DR === - === Q1: “Does this prevent utilities from adjusting budget plans?” === + <b>Q1: “Does this prevent utilities from ever adjusting budget plans?”</b> - <b>What’s true:</b> Utilities rely on estimates and true-ups to manage billing accuracy. + TL;DR: No. It limits increases to once per 12-month budget period to preserve predictability. <br> - <b>What’s misleading:</b> The bill does not eliminate adjustments entirely; it limits how often payment amounts may be increased. + - <b>Answer you can use:</b> HB 242 allows utilities to set a budget plan based on a 12-month estimate, as they do now. It simply ensures that customers are not surprised by repeated increases during the same budget cycle. Adjustments can still occur at the annual reset. + <b>Q2: “Why remove the 30-day notice language?”</b> - + TL;DR: Because notice alone does not protect customers from mid-year increases that undermine the purpose of budget plans. <br> - <br> + - + <b>Q3: “Does this affect non-residential customers?”</b> - === Q2: “Why strike the 30-day notice provision?” === + TL;DR: No. The bill applies only to residential customers. <br> - <b>What’s true:</b> Notice requirements improve transparency. + - <b>What’s incomplete:</b> Notice does not solve the underlying problem of instability for customers who enrolled in a plan specifically to avoid fluctuating bills. + === Q1: “Does this prevent utilities from adjusting budget plans?” === - <b>Answer you can use:</b> The purpose of a budget plan is predictability over a full year. Allowing mid-year increases with notice still defeats that purpose. The amendment clarifies that once a customer enters a budget plan, the payment amount should remain stable for the duration of the 12-month period. + <b>What’s true:</b> Utilities rely on estimates and true-ups to manage billing accuracy. - + <b>What’s misleading:</b> The bill does not eliminate adjustments entirely; it limits how often payment amounts may be increased. - <br> + <b>Answer you can use:</b> HB 242 allows utilities to set a budget plan based on a 12-month estimate, as they do now. It simply ensures that customers are not surprised by repeated increases during the same budget cycle. Adjustments can still occur at the annual reset. - === Q3: “Who benefits most from this bill?” === + <br> - <b>Answer you can use:</b> Customers on fixed incomes, seniors, families living paycheck-to-paycheck, and anyone who relies on budget billing to manage household expenses benefit from knowing their utility payment will not change unexpectedly mid-year. + - + === Q2: “Why strike the 30-day notice provision?” === - <hr> + <b>What’s true:</b> Notice requirements improve transparency. - + <b>What’s incomplete:</b> Notice does not solve the underlying problem of instability for customers who enrolled in a plan specifically to avoid fluctuating bills. - == Additional Information == + <b>Answer you can use:</b> The purpose of a budget plan is predictability over a full year. Allowing mid-year increases with notice still defeats that purpose. The amendment clarifies that once a customer enters a budget plan, the payment amount should remain stable for the duration of the 12-month period. - <b>1. Budget plans are marketed as stability tools</b> + <br> - • Customers enroll to avoid seasonal spikes + - • Predictable monthly payments are the core selling point + === Q3: “Who benefits most from this bill?” === - <b>Policy implication:</b> Mid-cycle increases undermine consumer expectations. + <b>Answer you can use:</b> Customers on fixed incomes, seniors, families living paycheck-to-paycheck, and anyone who relies on budget billing to manage household expenses benefit from knowing their utility payment will not change unexpectedly mid-year. - <br> + <hr> - <b>2. Mid-year increases create household budgeting risk</b> + == Additional Information == - • Unexpected increases can force trade-offs with rent, food, or medicine + - • Low-income and fixed-income households are most exposed + <b>1. Budget plans are marketed as stability tools</b> - <b>Policy implication:</b> Stability is a consumer-protection issue, not merely a billing preference. + • Customers enroll to avoid seasonal spikes - + • Predictable monthly payments are the core selling point - <br> + <b>Policy implication:</b> Mid-cycle increases undermine consumer expectations. - <b>3. The bill creates a clear, uniform standard</b> + <br> - • One increase per 12-month period + - • Applies only to residential customers + <b>2. Mid-year increases create household budgeting risk</b> - <b>Policy implication:</b> Clear rules reduce confusion, disputes, and inconsistent utility practices. + • Unexpected increases can force trade-offs with rent, food, or medicine - + • Low-income and fixed-income households are most exposed - <br> + <b>Policy implication:</b> Stability is a consumer-protection issue, not merely a billing preference. - [[Category:2026 Session]] + <br> - + + <b>3. The bill creates a clear, uniform standard</b> + • One increase per 12-month period + • Applies only to residential customers + <b>Policy implication:</b> Clear rules reduce confusion, disputes, and inconsistent utility practices. + + <br> + + [[Category:2026 Session]] +
2026-03-02 20:28:27
Edited by: 198.246.136.35
Edited by: 198.246.136.35
= HB242 Public utilities; budget plan payment increases. = == Status == [https://house.vga.virginia.gov/subcommittees/H14003/agendas/5165 Labor and Commerce | Subcommittee — 1/20/2026] <hr> == Overview == === Summary as Introduced === Public utilities; budget plan payment increases. Prohibits a public utility from, for any residential customer who is enrolled in a budget plan or similar billing option, 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 30 days before such increase takes effect. The bill defines a “budget plan” as a fixed billing option offered by a public utility 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. <hr> === Patrons === ==== House Patrons ==== • Joshua G. Cole (chief patron) ==== Senate Patrons ==== • None <hr> == Language == The language of [https://lis.virginia.gov/bill-details/20261/HB242/text/HB242 HB242] can be viewed here. <hr> == Proposed Amendment == === Amendment === We have peace in the valley with these technical changes: <blockquote> on lines 16 through 17 strike "or similar billing option" on line 18 strike "without" and insert "by" on line 18 strike "30" and insert "60" </blockquote> These changes are a work of stakeholders reaching an agreement to find a balance for all parties. === Purpose of the Amendment === To reinforce the core policy objective of the bill by ensuring that residential customers enrolled in budget plans are not subject to mid-cycle payment increases during a 12-month budget period, rather than permitting increases so long as notice is provided. The amendment clarifies that budget plans are intended to provide predictability and stability over a full year. Stakeholder discussions are ongoing to ensure the bill’s protections are clear, workable, and balanced for both customers and utilities. <hr> == Opening Statement == === House Subcommittee Statement === Madam Chair, members of the subcommittee— HB 242 is a consumer-protection measure focused on predictability and transparency for residential utility customers who choose budget billing plans. Budget plans are marketed as a way to smooth costs by estimating a year of service in advance and spreading that cost evenly over twelve months. For many households—particularly those on fixed or limited incomes—the value of these plans is stability and the ability to plan around a consistent monthly bill. This bill establishes a clear rule: if a residential customer enrolls in a budget plan or similar billing option, the utility may not increase that customer’s monthly payment more than once within a 12-month period. The bill also defines “budget plan” in statute to ensure clarity and consistency across utilities, anchoring the concept to an annual estimate divided evenly over the year. We are continuing conversations with utilities, advocates, and other stakeholders to ensure the bill strikes the right balance and delivers on its core purpose—protecting customers from unexpected mid-year increases while preserving workable billing practices. I ask that the subcommittee favorably report HB 242. <hr> === House Committee Statement === n/a === Floor Statement === Mr. Speaker— HB 242 protects residential customers who use budget billing plans. These plans are meant to provide stable, predictable monthly bills. This bill ensures utilities cannot increase those payments more than once in a year and must give 60 days’ notice before any increase. It adds transparency, protects families on fixed incomes, and preserves fair billing practices. I would ask that this bill be engrossed and moved along to its third reading. === Senate Subcommittee Statement === n/a === Senate Committee Statement === ==== Amendment ==== We have an amendment to this bill. Speaking to the amendment. After Line 17 insert: "The provisions of this section shall not apply to any public utility engaged in the business of furnishing water or sewerage facilities." This simply pulls public utilities who do water and sewer; most Virginians are covered by water and sewage handled by their locality. This allows the small public utility water and sewer companies the ability to continue payment plans without burden. ==== Bill ==== - HB 242 is a straightforward consumer-protection bill. + HB 242 is a straightforward <i>and short</i> consumer-protection bill. Budget billing plans are marketed as a way to provide stability, estimating a year of service and dividing it evenly over twelve months. For many families, especially those on fixed incomes, that predictability is the entire point. This bill simply says that if a residential customer enrolls in a budget plan, the utility may not increase that monthly payment more than once in a 12-month period and must provide 60 days’ written notice before any increase takes effect. I hope it will be the will of the committee to report the bill. <hr> == Support and Opposition == === Support === • (to be updated) === Opposition === • (to be updated) === No Recommendation === • (to be updated) <hr> == Fiscal Impact == There is no fiscal impact statement for HB242. <hr> == Possible Questions == === TL;DR === <b>Q1: “Does this prevent utilities from ever adjusting budget plans?”</b> TL;DR: No. It limits increases to once per 12-month budget period to preserve predictability. <br> <b>Q2: “Why remove the 30-day notice language?”</b> TL;DR: Because notice alone does not protect customers from mid-year increases that undermine the purpose of budget plans. <br> <b>Q3: “Does this affect non-residential customers?”</b> TL;DR: No. The bill applies only to residential customers. <br> === Q1: “Does this prevent utilities from adjusting budget plans?” === <b>What’s true:</b> Utilities rely on estimates and true-ups to manage billing accuracy. <b>What’s misleading:</b> The bill does not eliminate adjustments entirely; it limits how often payment amounts may be increased. <b>Answer you can use:</b> HB 242 allows utilities to set a budget plan based on a 12-month estimate, as they do now. It simply ensures that customers are not surprised by repeated increases during the same budget cycle. Adjustments can still occur at the annual reset. <br> === Q2: “Why strike the 30-day notice provision?” === <b>What’s true:</b> Notice requirements improve transparency. <b>What’s incomplete:</b> Notice does not solve the underlying problem of instability for customers who enrolled in a plan specifically to avoid fluctuating bills. <b>Answer you can use:</b> The purpose of a budget plan is predictability over a full year. Allowing mid-year increases with notice still defeats that purpose. The amendment clarifies that once a customer enters a budget plan, the payment amount should remain stable for the duration of the 12-month period. <br> === Q3: “Who benefits most from this bill?” === <b>Answer you can use:</b> Customers on fixed incomes, seniors, families living paycheck-to-paycheck, and anyone who relies on budget billing to manage household expenses benefit from knowing their utility payment will not change unexpectedly mid-year. <hr> == Additional Information == <b>1. Budget plans are marketed as stability tools</b> • Customers enroll to avoid seasonal spikes • Predictable monthly payments are the core selling point <b>Policy implication:</b> Mid-cycle increases undermine consumer expectations. <br> <b>2. Mid-year increases create household budgeting risk</b> • Unexpected increases can force trade-offs with rent, food, or medicine • Low-income and fixed-income households are most exposed <b>Policy implication:</b> Stability is a consumer-protection issue, not merely a billing preference. <br> <b>3. The bill creates a clear, uniform standard</b> • One increase per 12-month period • Applies only to residential customers <b>Policy implication:</b> Clear rules reduce confusion, disputes, and inconsistent utility practices. <br> [[Category:2026 Session]]
2026-03-02 20:18:57
Edited by: 198.246.136.35
Edited by: 198.246.136.35
= HB242 Public utilities; budget plan payment increases. = == Status == [https://house.vga.virginia.gov/subcommittees/H14003/agendas/5165 Labor and Commerce | Subcommittee — 1/20/2026] <hr> == Overview == === Summary as Introduced === Public utilities; budget plan payment increases. Prohibits a public utility from, for any residential customer who is enrolled in a budget plan or similar billing option, 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 30 days before such increase takes effect. The bill defines a “budget plan” as a fixed billing option offered by a public utility 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. <hr> === Patrons === ==== House Patrons ==== • Joshua G. Cole (chief patron) ==== Senate Patrons ==== • None <hr> == Language == The language of [https://lis.virginia.gov/bill-details/20261/HB242/text/HB242 HB242] can be viewed here. <hr> == Proposed Amendment == === Amendment === We have peace in the valley with these technical changes: <blockquote> on lines 16 through 17 strike "or similar billing option" on line 18 strike "without" and insert "by" on line 18 strike "30" and insert "60" </blockquote> These changes are a work of stakeholders reaching an agreement to find a balance for all parties. === Purpose of the Amendment === To reinforce the core policy objective of the bill by ensuring that residential customers enrolled in budget plans are not subject to mid-cycle payment increases during a 12-month budget period, rather than permitting increases so long as notice is provided. The amendment clarifies that budget plans are intended to provide predictability and stability over a full year. Stakeholder discussions are ongoing to ensure the bill’s protections are clear, workable, and balanced for both customers and utilities. <hr> == Opening Statement == === House Subcommittee Statement === Madam Chair, members of the subcommittee— HB 242 is a consumer-protection measure focused on predictability and transparency for residential utility customers who choose budget billing plans. Budget plans are marketed as a way to smooth costs by estimating a year of service in advance and spreading that cost evenly over twelve months. For many households—particularly those on fixed or limited incomes—the value of these plans is stability and the ability to plan around a consistent monthly bill. This bill establishes a clear rule: if a residential customer enrolls in a budget plan or similar billing option, the utility may not increase that customer’s monthly payment more than once within a 12-month period. The bill also defines “budget plan” in statute to ensure clarity and consistency across utilities, anchoring the concept to an annual estimate divided evenly over the year. We are continuing conversations with utilities, advocates, and other stakeholders to ensure the bill strikes the right balance and delivers on its core purpose—protecting customers from unexpected mid-year increases while preserving workable billing practices. I ask that the subcommittee favorably report HB 242. <hr> === House Committee Statement === n/a === Floor Statement === Mr. Speaker— HB 242 protects residential customers who use budget billing plans. These plans are meant to provide stable, predictable monthly bills. This bill ensures utilities cannot increase those payments more than once in a year and must give 60 days’ notice before any increase. It adds transparency, protects families on fixed incomes, and preserves fair billing practices. I would ask that this bill be engrossed and moved along to its third reading. === Senate Subcommittee Statement === n/a === Senate Committee Statement === - n/a + - + ==== Amendment ==== - <hr> + - + We have an amendment to this bill. Speaking to the amendment. - == Support and Opposition == + - + After Line 17 insert: "The provisions of this section shall not apply to any public utility engaged in the business of furnishing water or sewerage facilities." - === Support === + - • (to be updated) + This simply pulls public utilities who do water and sewer; most Virginians are covered by water and sewage handled by their locality. This allows the small public utility water and sewer companies the ability to continue payment plans without burden. - === Opposition === + - • (to be updated) + ==== Bill ==== - === No Recommendation === + HB 242 is a straightforward consumer-protection bill. - • (to be updated) + - + Budget billing plans are marketed as a way to provide stability, estimating a year of service and dividing it evenly over twelve months. For many families, especially those on fixed incomes, that predictability is the entire point. - <hr> + - + This bill simply says that if a residential customer enrolls in a budget plan, the utility may not increase that monthly payment more than once in a 12-month period and must provide 60 days’ written notice before any increase takes effect. - == Fiscal Impact == + - There is no fiscal impact statement for HB242. + I hope it will be the will of the committee to report the bill. <hr> - == Possible Questions == + == Support and Opposition == - === TL;DR === + === Support === - <b>Q1: “Does this prevent utilities from ever adjusting budget plans?”</b> + • (to be updated) - TL;DR: No. It limits increases to once per 12-month budget period to preserve predictability. <br> + - + === Opposition === - <b>Q2: “Why remove the 30-day notice language?”</b> + • (to be updated) - TL;DR: Because notice alone does not protect customers from mid-year increases that undermine the purpose of budget plans. <br> + - + === No Recommendation === - <b>Q3: “Does this affect non-residential customers?”</b> + • (to be updated) - TL;DR: No. The bill applies only to residential customers. <br> + - + <hr> - === Q1: “Does this prevent utilities from adjusting budget plans?” === + - <b>What’s true:</b> Utilities rely on estimates and true-ups to manage billing accuracy. + == Fiscal Impact == - <b>What’s misleading:</b> The bill does not eliminate adjustments entirely; it limits how often payment amounts may be increased. + There is no fiscal impact statement for HB242. - <b>Answer you can use:</b> HB 242 allows utilities to set a budget plan based on a 12-month estimate, as they do now. It simply ensures that customers are not surprised by repeated increases during the same budget cycle. Adjustments can still occur at the annual reset. + - + <hr> - <br> + - + == Possible Questions == - === Q2: “Why strike the 30-day notice provision?” === + - <b>What’s true:</b> Notice requirements improve transparency. + === TL;DR === - <b>What’s incomplete:</b> Notice does not solve the underlying problem of instability for customers who enrolled in a plan specifically to avoid fluctuating bills. + <b>Q1: “Does this prevent utilities from ever adjusting budget plans?”</b> - <b>Answer you can use:</b> The purpose of a budget plan is predictability over a full year. Allowing mid-year increases with notice still defeats that purpose. The amendment clarifies that once a customer enters a budget plan, the payment amount should remain stable for the duration of the 12-month period. + TL;DR: No. It limits increases to once per 12-month budget period to preserve predictability. <br> - <br> + <b>Q2: “Why remove the 30-day notice language?”</b> - + TL;DR: Because notice alone does not protect customers from mid-year increases that undermine the purpose of budget plans. <br> - === Q3: “Who benefits most from this bill?” === + - <b>Answer you can use:</b> Customers on fixed incomes, seniors, families living paycheck-to-paycheck, and anyone who relies on budget billing to manage household expenses benefit from knowing their utility payment will not change unexpectedly mid-year. + <b>Q3: “Does this affect non-residential customers?”</b> - + TL;DR: No. The bill applies only to residential customers. <br> - <hr> + - + === Q1: “Does this prevent utilities from adjusting budget plans?” === - == Additional Information == + <b>What’s true:</b> Utilities rely on estimates and true-ups to manage billing accuracy. - + <b>What’s misleading:</b> The bill does not eliminate adjustments entirely; it limits how often payment amounts may be increased. - <b>1. Budget plans are marketed as stability tools</b> + <b>Answer you can use:</b> HB 242 allows utilities to set a budget plan based on a 12-month estimate, as they do now. It simply ensures that customers are not surprised by repeated increases during the same budget cycle. Adjustments can still occur at the annual reset. - • Customers enroll to avoid seasonal spikes + - • Predictable monthly payments are the core selling point + <br> - <b>Policy implication:</b> Mid-cycle increases undermine consumer expectations. + - + === Q2: “Why strike the 30-day notice provision?” === - <br> + <b>What’s true:</b> Notice requirements improve transparency. - + <b>What’s incomplete:</b> Notice does not solve the underlying problem of instability for customers who enrolled in a plan specifically to avoid fluctuating bills. - <b>2. Mid-year increases create household budgeting risk</b> + <b>Answer you can use:</b> The purpose of a budget plan is predictability over a full year. Allowing mid-year increases with notice still defeats that purpose. The amendment clarifies that once a customer enters a budget plan, the payment amount should remain stable for the duration of the 12-month period. - • Unexpected increases can force trade-offs with rent, food, or medicine + - • Low-income and fixed-income households are most exposed + <br> - <b>Policy implication:</b> Stability is a consumer-protection issue, not merely a billing preference. + - + === Q3: “Who benefits most from this bill?” === - <br> + <b>Answer you can use:</b> Customers on fixed incomes, seniors, families living paycheck-to-paycheck, and anyone who relies on budget billing to manage household expenses benefit from knowing their utility payment will not change unexpectedly mid-year. - <b>3. The bill creates a clear, uniform standard</b> + <hr> - • One increase per 12-month period + - • Applies only to residential customers + == Additional Information == - <b>Policy implication:</b> Clear rules reduce confusion, disputes, and inconsistent utility practices. + - + <b>1. Budget plans are marketed as stability tools</b> - <br> + • Customers enroll to avoid seasonal spikes - + • Predictable monthly payments are the core selling point - [[Category:2026 Session]] + <b>Policy implication:</b> Mid-cycle increases undermine consumer expectations. - + + <br> + + <b>2. Mid-year increases create household budgeting risk</b> + • Unexpected increases can force trade-offs with rent, food, or medicine + • Low-income and fixed-income households are most exposed + <b>Policy implication:</b> Stability is a consumer-protection issue, not merely a billing preference. + + <br> + + <b>3. The bill creates a clear, uniform standard</b> + • One increase per 12-month period + • Applies only to residential customers + <b>Policy implication:</b> Clear rules reduce confusion, disputes, and inconsistent utility practices. + + <br> + + [[Category:2026 Session]] +
2026-03-02 20:17:46
Edited by: 198.246.136.35
Edited by: 198.246.136.35
= HB242 Public utilities; budget plan payment increases. = == Status == [https://house.vga.virginia.gov/subcommittees/H14003/agendas/5165 Labor and Commerce | Subcommittee — 1/20/2026] <hr> == Overview == === Summary as Introduced === Public utilities; budget plan payment increases. Prohibits a public utility from, for any residential customer who is enrolled in a budget plan or similar billing option, 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 30 days before such increase takes effect. The bill defines a “budget plan” as a fixed billing option offered by a public utility 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. <hr> === Patrons === ==== House Patrons ==== • Joshua G. Cole (chief patron) ==== Senate Patrons ==== • None <hr> == Language == The language of [https://lis.virginia.gov/bill-details/20261/HB242/text/HB242 HB242] can be viewed here. <hr> == Proposed Amendment == === Amendment === We have peace in the valley with these technical changes: <blockquote> on lines 16 through 17 strike "or similar billing option" on line 18 strike "without" and insert "by" on line 18 strike "30" and insert "60" </blockquote> These changes are a work of stakeholders reaching an agreement to find a balance for all parties. === Purpose of the Amendment === To reinforce the core policy objective of the bill by ensuring that residential customers enrolled in budget plans are not subject to mid-cycle payment increases during a 12-month budget period, rather than permitting increases so long as notice is provided. The amendment clarifies that budget plans are intended to provide predictability and stability over a full year. Stakeholder discussions are ongoing to ensure the bill’s protections are clear, workable, and balanced for both customers and utilities. <hr> == Opening Statement == === House Subcommittee Statement === Madam Chair, members of the subcommittee— HB 242 is a consumer-protection measure focused on predictability and transparency for residential utility customers who choose budget billing plans. Budget plans are marketed as a way to smooth costs by estimating a year of service in advance and spreading that cost evenly over twelve months. For many households—particularly those on fixed or limited incomes—the value of these plans is stability and the ability to plan around a consistent monthly bill. This bill establishes a clear rule: if a residential customer enrolls in a budget plan or similar billing option, the utility may not increase that customer’s monthly payment more than once within a 12-month period. The bill also defines “budget plan” in statute to ensure clarity and consistency across utilities, anchoring the concept to an annual estimate divided evenly over the year. We are continuing conversations with utilities, advocates, and other stakeholders to ensure the bill strikes the right balance and delivers on its core purpose—protecting customers from unexpected mid-year increases while preserving workable billing practices. I ask that the subcommittee favorably report HB 242. <hr> === House Committee Statement === n/a === Floor Statement === - n/a + - + Mr. Speaker— - === Senate Subcommittee Statement === + - n/a + HB 242 protects residential customers who use budget billing plans. - === Senate Committee Statement === + These plans are meant to provide stable, predictable monthly bills. This bill ensures utilities cannot increase those payments more than once in a year and must give 60 days’ notice before any increase. - n/a + - + It adds transparency, protects families on fixed incomes, and preserves fair billing practices. - <hr> + - + I would ask that this bill be engrossed and moved along to its third reading. - == Support and Opposition == + - + === Senate Subcommittee Statement === - === Support === + n/a - • (to be updated) + - + === Senate Committee Statement === - === Opposition === + n/a - • (to be updated) + - + <hr> - === No Recommendation === + - • (to be updated) + == Support and Opposition == - <hr> + === Support === - + • (to be updated) - == Fiscal Impact == + - There is no fiscal impact statement for HB242. + === Opposition === - + • (to be updated) - <hr> + - + === No Recommendation === - == Possible Questions == + • (to be updated) - === TL;DR === + <hr> - <b>Q1: “Does this prevent utilities from ever adjusting budget plans?”</b> + - TL;DR: No. It limits increases to once per 12-month budget period to preserve predictability. <br> + == Fiscal Impact == - + There is no fiscal impact statement for HB242. - <b>Q2: “Why remove the 30-day notice language?”</b> + - TL;DR: Because notice alone does not protect customers from mid-year increases that undermine the purpose of budget plans. <br> + <hr> - <b>Q3: “Does this affect non-residential customers?”</b> + == Possible Questions == - TL;DR: No. The bill applies only to residential customers. <br> + - + === TL;DR === - === Q1: “Does this prevent utilities from adjusting budget plans?” === + <b>Q1: “Does this prevent utilities from ever adjusting budget plans?”</b> - <b>What’s true:</b> Utilities rely on estimates and true-ups to manage billing accuracy. + TL;DR: No. It limits increases to once per 12-month budget period to preserve predictability. <br> - <b>What’s misleading:</b> The bill does not eliminate adjustments entirely; it limits how often payment amounts may be increased. + - <b>Answer you can use:</b> HB 242 allows utilities to set a budget plan based on a 12-month estimate, as they do now. It simply ensures that customers are not surprised by repeated increases during the same budget cycle. Adjustments can still occur at the annual reset. + <b>Q2: “Why remove the 30-day notice language?”</b> - + TL;DR: Because notice alone does not protect customers from mid-year increases that undermine the purpose of budget plans. <br> - <br> + - + <b>Q3: “Does this affect non-residential customers?”</b> - === Q2: “Why strike the 30-day notice provision?” === + TL;DR: No. The bill applies only to residential customers. <br> - <b>What’s true:</b> Notice requirements improve transparency. + - <b>What’s incomplete:</b> Notice does not solve the underlying problem of instability for customers who enrolled in a plan specifically to avoid fluctuating bills. + === Q1: “Does this prevent utilities from adjusting budget plans?” === - <b>Answer you can use:</b> The purpose of a budget plan is predictability over a full year. Allowing mid-year increases with notice still defeats that purpose. The amendment clarifies that once a customer enters a budget plan, the payment amount should remain stable for the duration of the 12-month period. + <b>What’s true:</b> Utilities rely on estimates and true-ups to manage billing accuracy. - + <b>What’s misleading:</b> The bill does not eliminate adjustments entirely; it limits how often payment amounts may be increased. - <br> + <b>Answer you can use:</b> HB 242 allows utilities to set a budget plan based on a 12-month estimate, as they do now. It simply ensures that customers are not surprised by repeated increases during the same budget cycle. Adjustments can still occur at the annual reset. - === Q3: “Who benefits most from this bill?” === + <br> - <b>Answer you can use:</b> Customers on fixed incomes, seniors, families living paycheck-to-paycheck, and anyone who relies on budget billing to manage household expenses benefit from knowing their utility payment will not change unexpectedly mid-year. + - + === Q2: “Why strike the 30-day notice provision?” === - <hr> + <b>What’s true:</b> Notice requirements improve transparency. - + <b>What’s incomplete:</b> Notice does not solve the underlying problem of instability for customers who enrolled in a plan specifically to avoid fluctuating bills. - == Additional Information == + <b>Answer you can use:</b> The purpose of a budget plan is predictability over a full year. Allowing mid-year increases with notice still defeats that purpose. The amendment clarifies that once a customer enters a budget plan, the payment amount should remain stable for the duration of the 12-month period. - <b>1. Budget plans are marketed as stability tools</b> + <br> - • Customers enroll to avoid seasonal spikes + - • Predictable monthly payments are the core selling point + === Q3: “Who benefits most from this bill?” === - <b>Policy implication:</b> Mid-cycle increases undermine consumer expectations. + <b>Answer you can use:</b> Customers on fixed incomes, seniors, families living paycheck-to-paycheck, and anyone who relies on budget billing to manage household expenses benefit from knowing their utility payment will not change unexpectedly mid-year. - <br> + <hr> - <b>2. Mid-year increases create household budgeting risk</b> + == Additional Information == - • Unexpected increases can force trade-offs with rent, food, or medicine + - • Low-income and fixed-income households are most exposed + <b>1. Budget plans are marketed as stability tools</b> - <b>Policy implication:</b> Stability is a consumer-protection issue, not merely a billing preference. + • Customers enroll to avoid seasonal spikes - + • Predictable monthly payments are the core selling point - <br> + <b>Policy implication:</b> Mid-cycle increases undermine consumer expectations. - <b>3. The bill creates a clear, uniform standard</b> + <br> - • One increase per 12-month period + - • Applies only to residential customers + <b>2. Mid-year increases create household budgeting risk</b> - <b>Policy implication:</b> Clear rules reduce confusion, disputes, and inconsistent utility practices. + • Unexpected increases can force trade-offs with rent, food, or medicine - + • Low-income and fixed-income households are most exposed - <br> + <b>Policy implication:</b> Stability is a consumer-protection issue, not merely a billing preference. - [[Category:2026 Session]] + <br> - + + <b>3. The bill creates a clear, uniform standard</b> + • One increase per 12-month period + • Applies only to residential customers + <b>Policy implication:</b> Clear rules reduce confusion, disputes, and inconsistent utility practices. + + <br> + + [[Category:2026 Session]] +
2026-01-27 14:58:16
Edited by: 198.246.136.35
Edited by: 198.246.136.35
= HB242 Public utilities; budget plan payment increases. = == Status == [https://house.vga.virginia.gov/subcommittees/H14003/agendas/5165 Labor and Commerce | Subcommittee — 1/20/2026] <hr> == Overview == === Summary as Introduced === Public utilities; budget plan payment increases. Prohibits a public utility from, for any residential customer who is enrolled in a budget plan or similar billing option, 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 30 days before such increase takes effect. The bill defines a “budget plan” as a fixed billing option offered by a public utility 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. <hr> === Patrons === ==== House Patrons ==== • Joshua G. Cole (chief patron) ==== Senate Patrons ==== • None <hr> == Language == The language of [https://lis.virginia.gov/bill-details/20261/HB242/text/HB242 HB242] can be viewed here. <hr> == Proposed Amendment == - === Amendment Under Consideration === + === Amendment === - Strike the following language from subsection B (line 18), leaving the period: + We have peace in the valley with these technical changes: <blockquote> - or without notifying the customer in writing at least 30 days before such increase takes effect + on lines 16 through 17 strike "or similar billing option" - </blockquote> + - + on line 18 strike "without" and insert "by" - === Purpose of the Amendment === + - To reinforce the core policy objective of the bill by ensuring that residential customers enrolled in budget plans are not subject to mid-cycle payment increases during a 12-month budget period, rather than permitting increases so long as notice is provided. The amendment clarifies that budget plans are intended to provide predictability and stability over a full year. + on line 18 strike "30" and insert "60" - + </blockquote> - Stakeholder discussions are ongoing to ensure the bill’s protections are clear, workable, and balanced for both customers and utilities. + - + These changes are a work of stakeholders reaching an agreement to find a balance for all parties. - <hr> + - + === Purpose of the Amendment === - == Opening Statement == + To reinforce the core policy objective of the bill by ensuring that residential customers enrolled in budget plans are not subject to mid-cycle payment increases during a 12-month budget period, rather than permitting increases so long as notice is provided. The amendment clarifies that budget plans are intended to provide predictability and stability over a full year. - === House Subcommittee Statement === + Stakeholder discussions are ongoing to ensure the bill’s protections are clear, workable, and balanced for both customers and utilities. - Madam Chair, members of the subcommittee— + <hr> - HB 242 is a consumer-protection measure focused on predictability and transparency for residential utility customers who choose budget billing plans. + == Opening Statement == - Budget plans are marketed as a way to smooth costs by estimating a year of service in advance and spreading that cost evenly over twelve months. For many households—particularly those on fixed or limited incomes—the value of these plans is stability and the ability to plan around a consistent monthly bill. + === House Subcommittee Statement === - This bill establishes a clear rule: if a residential customer enrolls in a budget plan or similar billing option, the utility may not increase that customer’s monthly payment more than once within a 12-month period. + Madam Chair, members of the subcommittee— - The bill also defines “budget plan” in statute to ensure clarity and consistency across utilities, anchoring the concept to an annual estimate divided evenly over the year. + HB 242 is a consumer-protection measure focused on predictability and transparency for residential utility customers who choose budget billing plans. - We are continuing conversations with utilities, advocates, and other stakeholders to ensure the bill strikes the right balance and delivers on its core purpose—protecting customers from unexpected mid-year increases while preserving workable billing practices. + Budget plans are marketed as a way to smooth costs by estimating a year of service in advance and spreading that cost evenly over twelve months. For many households—particularly those on fixed or limited incomes—the value of these plans is stability and the ability to plan around a consistent monthly bill. - I ask that the subcommittee favorably report HB 242. + This bill establishes a clear rule: if a residential customer enrolls in a budget plan or similar billing option, the utility may not increase that customer’s monthly payment more than once within a 12-month period. - <hr> + The bill also defines “budget plan” in statute to ensure clarity and consistency across utilities, anchoring the concept to an annual estimate divided evenly over the year. - === House Committee Statement === + We are continuing conversations with utilities, advocates, and other stakeholders to ensure the bill strikes the right balance and delivers on its core purpose—protecting customers from unexpected mid-year increases while preserving workable billing practices. - n/a + - + I ask that the subcommittee favorably report HB 242. - === Floor Statement === + - n/a + <hr> - === Senate Subcommittee Statement === + === House Committee Statement === n/a - === Senate Committee Statement === + === Floor Statement === n/a - <hr> + === Senate Subcommittee Statement === - + n/a - == Support and Opposition == + - + === Senate Committee Statement === - === Support === + n/a - • (to be updated) + - + <hr> - === Opposition === + - • (to be updated) + == Support and Opposition == - === No Recommendation === + === Support === • (to be updated) - <hr> + === Opposition === - + • (to be updated) - == Fiscal Impact == + - There is no fiscal impact statement for HB242. + === No Recommendation === - + • (to be updated) - <hr> + - + <hr> - == Possible Questions == + - + == Fiscal Impact == - === TL;DR === + There is no fiscal impact statement for HB242. - <b>Q1: “Does this prevent utilities from ever adjusting budget plans?”</b> + - TL;DR: No. It limits increases to once per 12-month budget period to preserve predictability. <br> + <hr> - <b>Q2: “Why remove the 30-day notice language?”</b> + == Possible Questions == - TL;DR: Because notice alone does not protect customers from mid-year increases that undermine the purpose of budget plans. <br> + - + === TL;DR === - <b>Q3: “Does this affect non-residential customers?”</b> + <b>Q1: “Does this prevent utilities from ever adjusting budget plans?”</b> - TL;DR: No. The bill applies only to residential customers. <br> + TL;DR: No. It limits increases to once per 12-month budget period to preserve predictability. <br> - === Q1: “Does this prevent utilities from adjusting budget plans?” === + <b>Q2: “Why remove the 30-day notice language?”</b> - <b>What’s true:</b> Utilities rely on estimates and true-ups to manage billing accuracy. + TL;DR: Because notice alone does not protect customers from mid-year increases that undermine the purpose of budget plans. <br> - <b>What’s misleading:</b> The bill does not eliminate adjustments entirely; it limits how often payment amounts may be increased. + - <b>Answer you can use:</b> HB 242 allows utilities to set a budget plan based on a 12-month estimate, as they do now. It simply ensures that customers are not surprised by repeated increases during the same budget cycle. Adjustments can still occur at the annual reset. + <b>Q3: “Does this affect non-residential customers?”</b> - + TL;DR: No. The bill applies only to residential customers. <br> - <br> + - + === Q1: “Does this prevent utilities from adjusting budget plans?” === - === Q2: “Why strike the 30-day notice provision?” === + <b>What’s true:</b> Utilities rely on estimates and true-ups to manage billing accuracy. - <b>What’s true:</b> Notice requirements improve transparency. + <b>What’s misleading:</b> The bill does not eliminate adjustments entirely; it limits how often payment amounts may be increased. - <b>What’s incomplete:</b> Notice does not solve the underlying problem of instability for customers who enrolled in a plan specifically to avoid fluctuating bills. + <b>Answer you can use:</b> HB 242 allows utilities to set a budget plan based on a 12-month estimate, as they do now. It simply ensures that customers are not surprised by repeated increases during the same budget cycle. Adjustments can still occur at the annual reset. - <b>Answer you can use:</b> The purpose of a budget plan is predictability over a full year. Allowing mid-year increases with notice still defeats that purpose. The amendment clarifies that once a customer enters a budget plan, the payment amount should remain stable for the duration of the 12-month period. + - + <br> - <br> + - + === Q2: “Why strike the 30-day notice provision?” === - === Q3: “Who benefits most from this bill?” === + <b>What’s true:</b> Notice requirements improve transparency. - <b>Answer you can use:</b> Customers on fixed incomes, seniors, families living paycheck-to-paycheck, and anyone who relies on budget billing to manage household expenses benefit from knowing their utility payment will not change unexpectedly mid-year. + <b>What’s incomplete:</b> Notice does not solve the underlying problem of instability for customers who enrolled in a plan specifically to avoid fluctuating bills. - + <b>Answer you can use:</b> The purpose of a budget plan is predictability over a full year. Allowing mid-year increases with notice still defeats that purpose. The amendment clarifies that once a customer enters a budget plan, the payment amount should remain stable for the duration of the 12-month period. - <hr> + - + <br> - == Additional Information == + - + === Q3: “Who benefits most from this bill?” === - <b>1. Budget plans are marketed as stability tools</b> + <b>Answer you can use:</b> Customers on fixed incomes, seniors, families living paycheck-to-paycheck, and anyone who relies on budget billing to manage household expenses benefit from knowing their utility payment will not change unexpectedly mid-year. - • Customers enroll to avoid seasonal spikes + - • Predictable monthly payments are the core selling point + <hr> - <b>Policy implication:</b> Mid-cycle increases undermine consumer expectations. + - + == Additional Information == - <br> + - + <b>1. Budget plans are marketed as stability tools</b> - <b>2. Mid-year increases create household budgeting risk</b> + • Customers enroll to avoid seasonal spikes - • Unexpected increases can force trade-offs with rent, food, or medicine + • Predictable monthly payments are the core selling point - • Low-income and fixed-income households are most exposed + <b>Policy implication:</b> Mid-cycle increases undermine consumer expectations. - <b>Policy implication:</b> Stability is a consumer-protection issue, not merely a billing preference. + - + <br> - <br> + - + <b>2. Mid-year increases create household budgeting risk</b> - <b>3. The bill creates a clear, uniform standard</b> + • Unexpected increases can force trade-offs with rent, food, or medicine - • One increase per 12-month period + • Low-income and fixed-income households are most exposed - • Applies only to residential customers + <b>Policy implication:</b> Stability is a consumer-protection issue, not merely a billing preference. - <b>Policy implication:</b> Clear rules reduce confusion, disputes, and inconsistent utility practices. + - + <br> - <br> + - + <b>3. The bill creates a clear, uniform standard</b> - [[Category:2026 Session]] + • One increase per 12-month period - + • Applies only to residential customers + <b>Policy implication:</b> Clear rules reduce confusion, disputes, and inconsistent utility practices. + + <br> + + [[Category:2026 Session]] +
2026-01-22 18:45:05
Edited by: 198.246.136.35
Edited by: 198.246.136.35
= HB242 Public utilities; budget plan payment increases. = == Status == [https://house.vga.virginia.gov/subcommittees/H14003/agendas/5165 Labor and Commerce | Subcommittee — 1/20/2026] <hr> == Overview == === Summary as Introduced === Public utilities; budget plan payment increases. Prohibits a public utility from, for any residential customer who is enrolled in a budget plan or similar billing option, 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 30 days before such increase takes effect. The bill defines a “budget plan” as a fixed billing option offered by a public utility 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. <hr> === Patrons === ==== House Patrons ==== • Joshua G. Cole (chief patron) ==== Senate Patrons ==== • None <hr> == Language == The language of [https://lis.virginia.gov/bill-details/20261/HB242/text/HB242 HB242] can be viewed here. <hr> == Proposed Amendment == === Amendment Under Consideration === Strike the following language from subsection B (line 18), leaving the period: <blockquote> or without notifying the customer in writing at least 30 days before such increase takes effect </blockquote> === Purpose of the Amendment === To reinforce the core policy objective of the bill by ensuring that residential customers enrolled in budget plans are not subject to mid-cycle payment increases during a 12-month budget period, rather than permitting increases so long as notice is provided. The amendment clarifies that budget plans are intended to provide predictability and stability over a full year. Stakeholder discussions are ongoing to ensure the bill’s protections are clear, workable, and balanced for both customers and utilities. <hr> == Opening Statement == === House Subcommittee Statement === Madam Chair, members of the subcommittee— HB 242 is a consumer-protection measure focused on predictability and transparency for residential utility customers who choose budget billing plans. Budget plans are marketed as a way to smooth costs by estimating a year of service in advance and spreading that cost evenly over twelve months. For many households—particularly those on fixed or limited incomes—the value of these plans is stability and the ability to plan around a consistent monthly bill. This bill establishes a clear rule: if a residential customer enrolls in a budget plan or similar billing option, the utility may not increase that customer’s monthly payment more than once within a 12-month period. The bill also defines “budget plan” in statute to ensure clarity and consistency across utilities, anchoring the concept to an annual estimate divided evenly over the year. We are continuing conversations with utilities, advocates, and other stakeholders to ensure the bill strikes the right balance and delivers on its core purpose—protecting customers from unexpected mid-year increases while preserving workable billing practices. I ask that the subcommittee favorably report HB 242. <hr> === House Committee Statement === n/a === Floor Statement === n/a === Senate Subcommittee Statement === n/a === Senate Committee Statement === n/a <hr> == Support and Opposition == === Support === - • BigMoneyOutVA + • (to be updated) - • Network NOVA + - + === Opposition === - === Opposition === + • (to be updated) - • (to be updated) + - + === No Recommendation === - === No Recommendation === + • (to be updated) - • (to be updated) + - + <hr> - <hr> + - + == Fiscal Impact == - == Fiscal Impact == + There is no fiscal impact statement for HB242. - There is no fiscal impact statement for HB242. + - + <hr> - <hr> + - + == Possible Questions == - == Possible Questions == + - + === TL;DR === - === TL;DR === + <b>Q1: “Does this prevent utilities from ever adjusting budget plans?”</b> - <b>Q1: “Does this prevent utilities from ever adjusting budget plans?”</b> + TL;DR: No. It limits increases to once per 12-month budget period to preserve predictability. <br> - TL;DR: No. It limits increases to once per 12-month budget period to preserve predictability. <br> + - + <b>Q2: “Why remove the 30-day notice language?”</b> - <b>Q2: “Why remove the 30-day notice language?”</b> + TL;DR: Because notice alone does not protect customers from mid-year increases that undermine the purpose of budget plans. <br> - TL;DR: Because notice alone does not protect customers from mid-year increases that undermine the purpose of budget plans. <br> + - + <b>Q3: “Does this affect non-residential customers?”</b> - <b>Q3: “Does this affect non-residential customers?”</b> + TL;DR: No. The bill applies only to residential customers. <br> - TL;DR: No. The bill applies only to residential customers. <br> + - + === Q1: “Does this prevent utilities from adjusting budget plans?” === - === Q1: “Does this prevent utilities from adjusting budget plans?” === + <b>What’s true:</b> Utilities rely on estimates and true-ups to manage billing accuracy. - <b>What’s true:</b> Utilities rely on estimates and true-ups to manage billing accuracy. + <b>What’s misleading:</b> The bill does not eliminate adjustments entirely; it limits how often payment amounts may be increased. - <b>What’s misleading:</b> The bill does not eliminate adjustments entirely; it limits how often payment amounts may be increased. + <b>Answer you can use:</b> HB 242 allows utilities to set a budget plan based on a 12-month estimate, as they do now. It simply ensures that customers are not surprised by repeated increases during the same budget cycle. Adjustments can still occur at the annual reset. - <b>Answer you can use:</b> HB 242 allows utilities to set a budget plan based on a 12-month estimate, as they do now. It simply ensures that customers are not surprised by repeated increases during the same budget cycle. Adjustments can still occur at the annual reset. + - + <br> - <br> + - + === Q2: “Why strike the 30-day notice provision?” === - === Q2: “Why strike the 30-day notice provision?” === + <b>What’s true:</b> Notice requirements improve transparency. - <b>What’s true:</b> Notice requirements improve transparency. + <b>What’s incomplete:</b> Notice does not solve the underlying problem of instability for customers who enrolled in a plan specifically to avoid fluctuating bills. - <b>What’s incomplete:</b> Notice does not solve the underlying problem of instability for customers who enrolled in a plan specifically to avoid fluctuating bills. + <b>Answer you can use:</b> The purpose of a budget plan is predictability over a full year. Allowing mid-year increases with notice still defeats that purpose. The amendment clarifies that once a customer enters a budget plan, the payment amount should remain stable for the duration of the 12-month period. - <b>Answer you can use:</b> The purpose of a budget plan is predictability over a full year. Allowing mid-year increases with notice still defeats that purpose. The amendment clarifies that once a customer enters a budget plan, the payment amount should remain stable for the duration of the 12-month period. + - + <br> - <br> + - + === Q3: “Who benefits most from this bill?” === - === Q3: “Who benefits most from this bill?” === + <b>Answer you can use:</b> Customers on fixed incomes, seniors, families living paycheck-to-paycheck, and anyone who relies on budget billing to manage household expenses benefit from knowing their utility payment will not change unexpectedly mid-year. - <b>Answer you can use:</b> Customers on fixed incomes, seniors, families living paycheck-to-paycheck, and anyone who relies on budget billing to manage household expenses benefit from knowing their utility payment will not change unexpectedly mid-year. + - + <hr> - <hr> + - + == Additional Information == - == Additional Information == + - + <b>1. Budget plans are marketed as stability tools</b> - <b>1. Budget plans are marketed as stability tools</b> + • Customers enroll to avoid seasonal spikes - • Customers enroll to avoid seasonal spikes + • Predictable monthly payments are the core selling point - • Predictable monthly payments are the core selling point + <b>Policy implication:</b> Mid-cycle increases undermine consumer expectations. - <b>Policy implication:</b> Mid-cycle increases undermine consumer expectations. + - + <br> - <br> + - + <b>2. Mid-year increases create household budgeting risk</b> - <b>2. Mid-year increases create household budgeting risk</b> + • Unexpected increases can force trade-offs with rent, food, or medicine - • Unexpected increases can force trade-offs with rent, food, or medicine + • Low-income and fixed-income households are most exposed - • Low-income and fixed-income households are most exposed + <b>Policy implication:</b> Stability is a consumer-protection issue, not merely a billing preference. - <b>Policy implication:</b> Stability is a consumer-protection issue, not merely a billing preference. + - + <br> - <br> + - + <b>3. The bill creates a clear, uniform standard</b> - <b>3. The bill creates a clear, uniform standard</b> + • One increase per 12-month period - • One increase per 12-month period + • Applies only to residential customers - • Applies only to residential customers + <b>Policy implication:</b> Clear rules reduce confusion, disputes, and inconsistent utility practices. - <b>Policy implication:</b> Clear rules reduce confusion, disputes, and inconsistent utility practices. + - + <br> - <br> + - + [[Category:2026 Session]] - [[Category:2026 Session]] + -
2026-01-20 11:54:08
Edited by: 198.246.136.35
Edited by: 198.246.136.35
= HB242 Public utilities; budget plan payment increases. = == Status == [https://house.vga.virginia.gov/subcommittees/H14003/agendas/5165 Labor and Commerce | Subcommittee — 1/20/2026] <hr> == Overview == === Summary as Introduced === Public utilities; budget plan payment increases. Prohibits a public utility from, for any residential customer who is enrolled in a budget plan or similar billing option, 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 30 days before such increase takes effect. The bill defines a “budget plan” as a fixed billing option offered by a public utility 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. <hr> === Patrons === ==== House Patrons ==== • Joshua G. Cole (chief patron) ==== Senate Patrons ==== • None <hr> == Language == The language of [https://lis.virginia.gov/bill-details/20261/HB242/text/HB242 HB242] can be viewed here. <hr> == Proposed Amendment == === Amendment Under Consideration === Strike the following language from subsection B (line 18), leaving the period: <blockquote> or without notifying the customer in writing at least 30 days before such increase takes effect </blockquote> === Purpose of the Amendment === To reinforce the core policy objective of the bill by ensuring that residential customers enrolled in budget plans are not subject to mid-cycle payment increases during a 12-month budget period, rather than permitting increases so long as notice is provided. The amendment clarifies that budget plans are intended to provide predictability and stability over a full year. Stakeholder discussions are ongoing to ensure the bill’s protections are clear, workable, and balanced for both customers and utilities. <hr> == Opening Statement == === House Subcommittee Statement === Madam Chair, members of the subcommittee— HB 242 is a consumer-protection measure focused on predictability and transparency for residential utility customers who choose budget billing plans. Budget plans are marketed as a way to smooth costs by estimating a year of service in advance and spreading that cost evenly over twelve months. For many households—particularly those on fixed or limited incomes—the value of these plans is stability and the ability to plan around a consistent monthly bill. This bill establishes a clear rule: if a residential customer enrolls in a budget plan or similar billing option, the utility may not increase that customer’s monthly payment more than once within a 12-month period. The bill also defines “budget plan” in statute to ensure clarity and consistency across utilities, anchoring the concept to an annual estimate divided evenly over the year. We are continuing conversations with utilities, advocates, and other stakeholders to ensure the bill strikes the right balance and delivers on its core purpose—protecting customers from unexpected mid-year increases while preserving workable billing practices. I ask that the subcommittee favorably report HB 242. <hr> === House Committee Statement === n/a === Floor Statement === n/a === Senate Subcommittee Statement === n/a === Senate Committee Statement === n/a <hr> == Support and Opposition == === Support === - • (to be updated) + • BigMoneyOutVA - + • Network NOVA - === Opposition === + - • (to be updated) + === Opposition === - + • (to be updated) - === No Recommendation === + - • (to be updated) + === No Recommendation === - + • (to be updated) - <hr> + - + <hr> - == Fiscal Impact == + - There is no fiscal impact statement for HB242. + == Fiscal Impact == - + There is no fiscal impact statement for HB242. - <hr> + - + <hr> - == Possible Questions == + - + == Possible Questions == - === TL;DR === + - <b>Q1: “Does this prevent utilities from ever adjusting budget plans?”</b> + === TL;DR === - TL;DR: No. It limits increases to once per 12-month budget period to preserve predictability. <br> + <b>Q1: “Does this prevent utilities from ever adjusting budget plans?”</b> - + TL;DR: No. It limits increases to once per 12-month budget period to preserve predictability. <br> - <b>Q2: “Why remove the 30-day notice language?”</b> + - TL;DR: Because notice alone does not protect customers from mid-year increases that undermine the purpose of budget plans. <br> + <b>Q2: “Why remove the 30-day notice language?”</b> - + TL;DR: Because notice alone does not protect customers from mid-year increases that undermine the purpose of budget plans. <br> - <b>Q3: “Does this affect non-residential customers?”</b> + - TL;DR: No. The bill applies only to residential customers. <br> + <b>Q3: “Does this affect non-residential customers?”</b> - + TL;DR: No. The bill applies only to residential customers. <br> - === Q1: “Does this prevent utilities from adjusting budget plans?” === + - <b>What’s true:</b> Utilities rely on estimates and true-ups to manage billing accuracy. + === Q1: “Does this prevent utilities from adjusting budget plans?” === - <b>What’s misleading:</b> The bill does not eliminate adjustments entirely; it limits how often payment amounts may be increased. + <b>What’s true:</b> Utilities rely on estimates and true-ups to manage billing accuracy. - <b>Answer you can use:</b> HB 242 allows utilities to set a budget plan based on a 12-month estimate, as they do now. It simply ensures that customers are not surprised by repeated increases during the same budget cycle. Adjustments can still occur at the annual reset. + <b>What’s misleading:</b> The bill does not eliminate adjustments entirely; it limits how often payment amounts may be increased. - + <b>Answer you can use:</b> HB 242 allows utilities to set a budget plan based on a 12-month estimate, as they do now. It simply ensures that customers are not surprised by repeated increases during the same budget cycle. Adjustments can still occur at the annual reset. - <br> + - + <br> - === Q2: “Why strike the 30-day notice provision?” === + - <b>What’s true:</b> Notice requirements improve transparency. + === Q2: “Why strike the 30-day notice provision?” === - <b>What’s incomplete:</b> Notice does not solve the underlying problem of instability for customers who enrolled in a plan specifically to avoid fluctuating bills. + <b>What’s true:</b> Notice requirements improve transparency. - <b>Answer you can use:</b> The purpose of a budget plan is predictability over a full year. Allowing mid-year increases with notice still defeats that purpose. The amendment clarifies that once a customer enters a budget plan, the payment amount should remain stable for the duration of the 12-month period. + <b>What’s incomplete:</b> Notice does not solve the underlying problem of instability for customers who enrolled in a plan specifically to avoid fluctuating bills. - + <b>Answer you can use:</b> The purpose of a budget plan is predictability over a full year. Allowing mid-year increases with notice still defeats that purpose. The amendment clarifies that once a customer enters a budget plan, the payment amount should remain stable for the duration of the 12-month period. - <br> + - + <br> - === Q3: “Who benefits most from this bill?” === + - <b>Answer you can use:</b> Customers on fixed incomes, seniors, families living paycheck-to-paycheck, and anyone who relies on budget billing to manage household expenses benefit from knowing their utility payment will not change unexpectedly mid-year. + === Q3: “Who benefits most from this bill?” === - + <b>Answer you can use:</b> Customers on fixed incomes, seniors, families living paycheck-to-paycheck, and anyone who relies on budget billing to manage household expenses benefit from knowing their utility payment will not change unexpectedly mid-year. - <hr> + - + <hr> - == Additional Information == + - + == Additional Information == - <b>1. Budget plans are marketed as stability tools</b> + - • Customers enroll to avoid seasonal spikes + <b>1. Budget plans are marketed as stability tools</b> - • Predictable monthly payments are the core selling point + • Customers enroll to avoid seasonal spikes - <b>Policy implication:</b> Mid-cycle increases undermine consumer expectations. + • Predictable monthly payments are the core selling point - + <b>Policy implication:</b> Mid-cycle increases undermine consumer expectations. - <br> + - + <br> - <b>2. Mid-year increases create household budgeting risk</b> + - • Unexpected increases can force trade-offs with rent, food, or medicine + <b>2. Mid-year increases create household budgeting risk</b> - • Low-income and fixed-income households are most exposed + • Unexpected increases can force trade-offs with rent, food, or medicine - <b>Policy implication:</b> Stability is a consumer-protection issue, not merely a billing preference. + • Low-income and fixed-income households are most exposed - + <b>Policy implication:</b> Stability is a consumer-protection issue, not merely a billing preference. - <br> + - + <br> - <b>3. The bill creates a clear, uniform standard</b> + - • One increase per 12-month period + <b>3. The bill creates a clear, uniform standard</b> - • Applies only to residential customers + • One increase per 12-month period - <b>Policy implication:</b> Clear rules reduce confusion, disputes, and inconsistent utility practices. + • Applies only to residential customers - + <b>Policy implication:</b> Clear rules reduce confusion, disputes, and inconsistent utility practices. - <br> + - + <br> - [[Category:2026 Session]] + - + [[Category:2026 Session]] +
2026-01-20 11:52:48
Edited by: 198.246.136.35
Edited by: 198.246.136.35
= HB242 Public utilities; budget plan payment increases. = == Status == [https://house.vga.virginia.gov/subcommittees/H14003/agendas/5165 Labor and Commerce | Subcommittee — 1/20/2026] <hr> == Overview == === Summary as Introduced === - Public utilities; budget plan payment increases. Prohibits a public utility from, for any residential customer who is enrolled in a budget plan or similar billing option, 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 30 days before such increase takes effect. The bill defines a “budget plan” as a fixed billing option offered by a public utility 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. :contentReference[oaicite:1]{index=1} + Public utilities; budget plan payment increases. Prohibits a public utility from, for any residential customer who is enrolled in a budget plan or similar billing option, 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 30 days before such increase takes effect. The bill defines a “budget plan” as a fixed billing option offered by a public utility 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. <hr> === Patrons === ==== House Patrons ==== • Joshua G. Cole (chief patron) ==== Senate Patrons ==== • None <hr> == Language == The language of [https://lis.virginia.gov/bill-details/20261/HB242/text/HB242 HB242] can be viewed here. <hr> == Proposed Amendment == === Amendment Under Consideration === Strike the following language from subsection B (line 18), leaving the period: <blockquote> or without notifying the customer in writing at least 30 days before such increase takes effect </blockquote> === Purpose of the Amendment === To reinforce the core policy objective of the bill by ensuring that residential customers enrolled in budget plans are not subject to mid-cycle payment increases during a 12-month budget period, rather than permitting increases so long as notice is provided. The amendment clarifies that budget plans are intended to provide predictability and stability over a full year. Stakeholder discussions are ongoing to ensure the bill’s protections are clear, workable, and balanced for both customers and utilities. <hr> == Opening Statement == === House Subcommittee Statement === Madam Chair, members of the subcommittee— HB 242 is a consumer-protection measure focused on predictability and transparency for residential utility customers who choose budget billing plans. Budget plans are marketed as a way to smooth costs by estimating a year of service in advance and spreading that cost evenly over twelve months. For many households—particularly those on fixed or limited incomes—the value of these plans is stability and the ability to plan around a consistent monthly bill. This bill establishes a clear rule: if a residential customer enrolls in a budget plan or similar billing option, the utility may not increase that customer’s monthly payment more than once within a 12-month period. The bill also defines “budget plan” in statute to ensure clarity and consistency across utilities, anchoring the concept to an annual estimate divided evenly over the year. We are continuing conversations with utilities, advocates, and other stakeholders to ensure the bill strikes the right balance and delivers on its core purpose—protecting customers from unexpected mid-year increases while preserving workable billing practices. I ask that the subcommittee favorably report HB 242. <hr> === House Committee Statement === n/a === Floor Statement === n/a === Senate Subcommittee Statement === n/a === Senate Committee Statement === n/a <hr> == Support and Opposition == === Support === • (to be updated) === Opposition === • (to be updated) === No Recommendation === • (to be updated) <hr> == Fiscal Impact == There is no fiscal impact statement for HB242. <hr> == Possible Questions == === TL;DR === <b>Q1: “Does this prevent utilities from ever adjusting budget plans?”</b> TL;DR: No. It limits increases to once per 12-month budget period to preserve predictability. <br> <b>Q2: “Why remove the 30-day notice language?”</b> TL;DR: Because notice alone does not protect customers from mid-year increases that undermine the purpose of budget plans. <br> <b>Q3: “Does this affect non-residential customers?”</b> TL;DR: No. The bill applies only to residential customers. <br> === Q1: “Does this prevent utilities from adjusting budget plans?” === <b>What’s true:</b> Utilities rely on estimates and true-ups to manage billing accuracy. <b>What’s misleading:</b> The bill does not eliminate adjustments entirely; it limits how often payment amounts may be increased. <b>Answer you can use:</b> HB 242 allows utilities to set a budget plan based on a 12-month estimate, as they do now. It simply ensures that customers are not surprised by repeated increases during the same budget cycle. Adjustments can still occur at the annual reset. <br> === Q2: “Why strike the 30-day notice provision?” === <b>What’s true:</b> Notice requirements improve transparency. <b>What’s incomplete:</b> Notice does not solve the underlying problem of instability for customers who enrolled in a plan specifically to avoid fluctuating bills. <b>Answer you can use:</b> The purpose of a budget plan is predictability over a full year. Allowing mid-year increases with notice still defeats that purpose. The amendment clarifies that once a customer enters a budget plan, the payment amount should remain stable for the duration of the 12-month period. <br> === Q3: “Who benefits most from this bill?” === <b>Answer you can use:</b> Customers on fixed incomes, seniors, families living paycheck-to-paycheck, and anyone who relies on budget billing to manage household expenses benefit from knowing their utility payment will not change unexpectedly mid-year. <hr> == Additional Information == <b>1. Budget plans are marketed as stability tools</b> • Customers enroll to avoid seasonal spikes • Predictable monthly payments are the core selling point <b>Policy implication:</b> Mid-cycle increases undermine consumer expectations. <br> <b>2. Mid-year increases create household budgeting risk</b> • Unexpected increases can force trade-offs with rent, food, or medicine • Low-income and fixed-income households are most exposed <b>Policy implication:</b> Stability is a consumer-protection issue, not merely a billing preference. <br> <b>3. The bill creates a clear, uniform standard</b> • One increase per 12-month period • Applies only to residential customers <b>Policy implication:</b> Clear rules reduce confusion, disputes, and inconsistent utility practices. <br> [[Category:2026 Session]]
2026-01-20 06:05:40
Edited by: 198.246.136.35
Edited by: 198.246.136.35
- = HB242 Public utilities budget plan payment increases. = + = HB242 Public utilities; budget plan payment increases. = - Start writing your article here using '''Wikitext'''. + == Status == - [[Category:2026 Session]] + [https://house.vga.virginia.gov/subcommittees/H14003/agendas/5165 Labor and Commerce | Subcommittee — 1/20/2026] + + <hr> + + == Overview == + + === Summary as Introduced === + Public utilities; budget plan payment increases. Prohibits a public utility from, for any residential customer who is enrolled in a budget plan or similar billing option, 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 30 days before such increase takes effect. The bill defines a “budget plan” as a fixed billing option offered by a public utility 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. :contentReference[oaicite:1]{index=1} + + <hr> + + === Patrons === + + ==== House Patrons ==== + • Joshua G. Cole (chief patron) + + ==== Senate Patrons ==== + • None + + <hr> + + == Language == + The language of [https://lis.virginia.gov/bill-details/20261/HB242/text/HB242 HB242] can be viewed here. + + <hr> + + == Proposed Amendment == + + === Amendment Under Consideration === + Strike the following language from subsection B (line 18), leaving the period: + + <blockquote> + or without notifying the customer in writing at least 30 days before such increase takes effect + </blockquote> + + === Purpose of the Amendment === + To reinforce the core policy objective of the bill by ensuring that residential customers enrolled in budget plans are not subject to mid-cycle payment increases during a 12-month budget period, rather than permitting increases so long as notice is provided. The amendment clarifies that budget plans are intended to provide predictability and stability over a full year. + + Stakeholder discussions are ongoing to ensure the bill’s protections are clear, workable, and balanced for both customers and utilities. + + <hr> + + == Opening Statement == + + === House Subcommittee Statement === + + Madam Chair, members of the subcommittee— + + HB 242 is a consumer-protection measure focused on predictability and transparency for residential utility customers who choose budget billing plans. + + Budget plans are marketed as a way to smooth costs by estimating a year of service in advance and spreading that cost evenly over twelve months. For many households—particularly those on fixed or limited incomes—the value of these plans is stability and the ability to plan around a consistent monthly bill. + + This bill establishes a clear rule: if a residential customer enrolls in a budget plan or similar billing option, the utility may not increase that customer’s monthly payment more than once within a 12-month period. + + The bill also defines “budget plan” in statute to ensure clarity and consistency across utilities, anchoring the concept to an annual estimate divided evenly over the year. + + We are continuing conversations with utilities, advocates, and other stakeholders to ensure the bill strikes the right balance and delivers on its core purpose—protecting customers from unexpected mid-year increases while preserving workable billing practices. + + I ask that the subcommittee favorably report HB 242. + + <hr> + + === House Committee Statement === + n/a + + === Floor Statement === + n/a + + === Senate Subcommittee Statement === + n/a + + === Senate Committee Statement === + n/a + + <hr> + + == Support and Opposition == + + === Support === + • (to be updated) + + === Opposition === + • (to be updated) + + === No Recommendation === + • (to be updated) + + <hr> + + == Fiscal Impact == + There is no fiscal impact statement for HB242. + + <hr> + + == Possible Questions == + + === TL;DR === + <b>Q1: “Does this prevent utilities from ever adjusting budget plans?”</b> + TL;DR: No. It limits increases to once per 12-month budget period to preserve predictability. <br> + + <b>Q2: “Why remove the 30-day notice language?”</b> + TL;DR: Because notice alone does not protect customers from mid-year increases that undermine the purpose of budget plans. <br> + + <b>Q3: “Does this affect non-residential customers?”</b> + TL;DR: No. The bill applies only to residential customers. <br> + + === Q1: “Does this prevent utilities from adjusting budget plans?” === + <b>What’s true:</b> Utilities rely on estimates and true-ups to manage billing accuracy. + <b>What’s misleading:</b> The bill does not eliminate adjustments entirely; it limits how often payment amounts may be increased. + <b>Answer you can use:</b> HB 242 allows utilities to set a budget plan based on a 12-month estimate, as they do now. It simply ensures that customers are not surprised by repeated increases during the same budget cycle. Adjustments can still occur at the annual reset. + + <br> + + === Q2: “Why strike the 30-day notice provision?” === + <b>What’s true:</b> Notice requirements improve transparency. + <b>What’s incomplete:</b> Notice does not solve the underlying problem of instability for customers who enrolled in a plan specifically to avoid fluctuating bills. + <b>Answer you can use:</b> The purpose of a budget plan is predictability over a full year. Allowing mid-year increases with notice still defeats that purpose. The amendment clarifies that once a customer enters a budget plan, the payment amount should remain stable for the duration of the 12-month period. + + <br> + + === Q3: “Who benefits most from this bill?” === + <b>Answer you can use:</b> Customers on fixed incomes, seniors, families living paycheck-to-paycheck, and anyone who relies on budget billing to manage household expenses benefit from knowing their utility payment will not change unexpectedly mid-year. + + <hr> + + == Additional Information == + + <b>1. Budget plans are marketed as stability tools</b> + • Customers enroll to avoid seasonal spikes + • Predictable monthly payments are the core selling point + <b>Policy implication:</b> Mid-cycle increases undermine consumer expectations. + + <br> + + <b>2. Mid-year increases create household budgeting risk</b> + • Unexpected increases can force trade-offs with rent, food, or medicine + • Low-income and fixed-income households are most exposed + <b>Policy implication:</b> Stability is a consumer-protection issue, not merely a billing preference. + + <br> + + <b>3. The bill creates a clear, uniform standard</b> + • One increase per 12-month period + • Applies only to residential customers + <b>Policy implication:</b> Clear rules reduce confusion, disputes, and inconsistent utility practices. + + <br> + + [[Category:2026 Session]] +
2026-01-20 06:04:06
Edited by: 198.246.136.35
Edited by: 198.246.136.35
- == HB242 Public utilities budget plan payment increases == + = HB242 Public utilities budget plan payment increases. = - + - Start writing your article here using '''Wikitext'''. + Start writing your article here using '''Wikitext'''. + + [[Category:2026 Session]]
Initial version (2026-01-18 18:29:46)
Created by: 74.110.183.75
Created by: 74.110.183.75
- == HB242 Public utilities budget plan payment increases == + = HB242 Public utilities budget plan payment increases. = - + - Start writing your article here using '''Wikitext'''. + Start writing your article here using '''Wikitext'''. + + [[Category:2026 Session]]