HB 523

Abstract

Dulles Greenway. Amends the powers and responsibilitiesof the State Corporation Commission (SCC) to regulate toll road operators underthe Virginia Highway Corporation Act of 1988. The bill adds requirements thattoll rates not materially discourage the public's use of the toll road, thatthe cost of operating the toll road be reasonably apportioned across all tollroad users based on the relative distance each class of user travels on thetoll road, such that the toll rates are established in a reasonable andnondiscriminatory manner in relation to the benefit obtained, and that tollrates shall provide the operator with no more than a reasonable return. Inaddition, the bill (i) requires the SCC, by October 1, 2020, to initiate aninvestigation into the tolls charged by all operators subject to the Act and toissue a ruling by April 1, 2021, on its investigation as to whether the currenttolls charged by the operator comply with such new requirements; (ii) prohibitsthe SCC from using the fact that any incremental return resulting fromincreased traffic related to a relative change in potential toll users that isgreater than zero on a cumulative basis as the sole basis for finding that theoperator's return exceeds a reasonable level as specified in such newrequirements, during any future complaint proceeding; (iii) requires the SCC,in its initial investigation, to develop a baseline from which it can measurethe relative change in potential toll users and directs how the incrementalreturn shall be computed; (iv) prohibits an operator from seeking a tollincrease that attempts to raise its return above the reasonable level; (v)requires the full disclosure, in public financial reports to the SCC, of thedetails of any related party transactions; and (vi) establishes a presumptionthat any related party transactions shall be presumed to be imprudent andexcluded from costs used for any purpose, including but not limited to costs oflobbyists, excessive compensation, and entertainment expenses, unless theoperator provides information showing that at least three separate competitivebids demonstrate that the operator could not have achieved better contractterms from a third party.