SCC News

RICHMOND – April is National Safe Digging Month, and the State Corporation Commission’s Division of Utility and Railroad Safety (URS) reminds all Virginians to Know What’s Below and Dig with C.A.R.E. to help keep Virginia’s underground utility infrastructure damage free and our communities, business districts and environment safe.

The steps to safe digging in Virginia are:

• Contact Virginia 811 before you dig.
• Allow the required time for marking the utilities.
• Respect and protect the marks.
• Excavate carefully.

Whether you’re a professional contractor, do-it-yourselfer or homeowner, you have an important role in preventing damage to underground utilities. No matter how big or small your project is, contacting the Virginia 811 Notification Center to request the marking of your underground utility lines before you dig will help avoid physical injury, property damage, costly repairs and service interruptions.

Contact Virginia 811 by going online at www.va811.com. You may also call 811 or 1-800-552-7001 Monday through Friday, 7 a.m. to 5 p.m., excluding legal state and national holidays. Emergency notification service is available 24/7, 365 days a year.

For more information about safe digging and demolition, contact URS at 804- 371-9980 or visit the SCC Damage Prevention page at scc.virginia.gov/pages/Damage-Prevention.

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Contact: Jordan Bondurant, 804-371-9141

RICHMOND – The State Corporation Commission’s (SCC) Bureau of Insurance (Bureau) is seeking public comments regarding Virginia’s proposed essential health benefits (EHB) benchmark plan application for plan year 2025. The final application is due to the Centers for Medicare & Medicaid Services (CMS) by May 3, 2023.

Legislation passed by the 2023 Virginia General Assembly directs the Bureau to select a new EHB benchmark plan for plan year 2025. The EHB benchmark plan sets the required benefits that must be provided by comprehensive fully-insured individual and small group health insurance coverage issued in Virginia. Before Virginia adopts the new EHB benchmark plan, the Bureau must release the plan for public comment and then obtain approval of the plan from CMS.

In 2022, the General Assembly directed the Bureau to study and analyze the Commonwealth’s options for a new EHB benchmark plan for potential implementation in 2025 and to report its findings. The SCC utilized federal grant money to review Virginia’s EHB benchmark plan to present potential updates, including additional health benefit options. As part of this process, a consulting actuary for the Bureau also provided cost estimates of additional health benefits recently considered by Virginia’s Health Insurance Reform Commission and compared Virginia’s EHB benchmark plan to those of several other states.

Among the potential benefits studied for inclusion in Virginia’s 2025 EHB benchmark plan were medically necessary prosthetic devices and components as well as formula and enteral nutrition products as medicine. The recently-passed 2023 legislation directs the Bureau to add these benefits to the EHB benchmark plan in addition to the current benefits. Following public comment, the proposed 2025 EHB benchmark plan application must be approved by CMS in advance. A CMS determination on Virginia’s proposed 2025 EHB benchmark plan is expected by late summer 2023.

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

Public comments on Virginia’s proposed EHB benchmark plan application for plan year 2025 must be submitted to the Bureau of Insurance at: EHBComments@scc.virginia.gov by Wednesday, April 12. Those comments will be published on the Bureau’s website at Virginia SCC - Essential Health Benefits Benchmark Plan.

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Contact: Katha Treanor, 804-371-9141

RICHMOND – Strong winds, tornadoes, hailstorms, lightning, and flash floods – these are just some of the severe weather events that can accompany the arrival of spring.

Severe weather can strike anywhere and anytime. Advance planning is the key to protecting yourself, your loved ones and your property – both physically and financially.

The State Corporation Commission’s (SCC) Bureau of Insurance (Bureau) encourages Virginians to plan now for the possibility of extreme spring weather. “Assess your risk and make sure you have the insurance coverage you need if severe weather causes damage to your home, business, vehicles or other property,” said Virginia Insurance Commissioner Scott A. White.

The Bureau encourages Virginians to consider the following:

• Review your insurance policy and contact your insurance agent or company if you have any questions about your coverage.
• Create a detailed inventory of your belongings including photos and receipts of your property if you have them. The National Association of Insurance Commissioners (NAIC) provides a free home inventory app that can help you with this process. Additionally, you can use the NAIC’s Home Inventory Checklist as a guide. Store your home inventory checklist and insurance policy information in a secure, waterproof location.
• Most homeowners and renters insurance policies do not cover losses due to flooding. If you believe that you may need flood coverage, talk to your insurance agent about how to obtain flood insurance or visit the National Flood Insurance Program website at floodsmart.gov. Keep in mind that there is typically a 30-day waiting period before a flood insurance policy takes effect.

Automobile other-than-collision insurance coverage, often called "comprehensive" insurance coverage, helps pay to repair or replace vehicles if they are stolen or damaged by such things as fire, water, wind, hail, vandalism, glass breakage, falling objects or contact with an animal.

If your home, business, vehicles, or other property are damaged due to severe weather, the Bureau recommends that Virginians keep several steps in mind:

• Contact your insurance company or agent as soon as possible after the danger or risk has passed.
• Take photos of your damaged property once it is safe to do so.
• Save the receipts for the costs of any emergency repairs that are needed to prevent further damage to your property.
• If you feel you are treated unfairly, contact the Bureau of Insurance Property & Casualty Consumer Services team at 804-371-9185 or file a complaint.

The Bureau offers free consumer guides for homeowners and commercial property owners with information about what to do when a disaster strikes. These and many other consumer insurance guides are available on the Bureau’s website at scc.virginia.gov/pages/Insurance.

The Bureau’s specially trained staff can assist consumers with their insurance-related questions and concerns. To learn more, contact the Consumer Services Section of the Bureau’s Property and Casualty Division toll-free at 1-877-310-6560 or in Richmond at 804-371-9185.

For additional emergency preparedness information related to various types of disasters and hazards, visit the Virginia Department of Emergency Management website at vaemergency.gov.

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Contact: Katha Treanor, 804-371-9141

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

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

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

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

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

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

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

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

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

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Contact: Katha Treanor, 804-371-9141

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

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

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

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

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

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Contact: Ford Carson, 804-371-9141

Case Number PUR-2022-00139
View Final Order

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

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

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

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

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

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

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

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

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

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Contact: Jordan Bondurant, 804-371-9141

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

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

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

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

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

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

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

• Local navigators and assisters can be found at the Enroll Virginia website: ENROLL Virginia! (enrollva.org) or by calling 1-888-392-5132.
• Certified agents and brokers in their community can be found by visiting Get help applying and more | HealthCare.gov

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