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To amend City Code §§ 28-54, concerning deposits and refunds on gas and water utilities accounts, 28-57, concerning disconnection of gas, water and wastewater service for nonpayment of service charges and notice, and 28-58, gas service to residential customers billed under RS rate schedule, disconnection for nonpayment of gas, water and wastewater services for nonpayment and notice, all for the purpose of aligning the City Code with state law.
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THE CITY OF RICHMOND HEREBY ORDAINS:
§ 1. That sections 28-54, 28-57, and 28-58 of the Code of the City of Richmond (2020), be and are hereby amended and reordained as follows:
Sec. 28-54. Deposit; refund when account satisfactory.
Except as otherwise provided by the Code of Virginia, Title 15.2, Ch. 21, Art. 2 (Code of Virginia, § 15.2-2109 et seq.) or Art. 2.1 (Code of Virginia, § 15.2-2121.1 et seq.), the Director may require a deposit in advance by any owner, occupant or consumer of an amount deemed adequate to secure the payment of sums that may become due on account of gas or water, or both, used, consumed or wasted, provided that the Director may refund the deposit so made to every customer who is not in default in the payment of charges for gas or water consumed and whose payment record for gas and water consumed has been good for a period of one year or more or to each customer with less than one year's service who requests that the customer's service be finalized. The Director is authorized to pay interest on all gas and water customer deposits. The rate shall be set by the Director and in no event shall interest paid on deposits exceed eight percent. The rate in effect when the deposit is refunded shall be the rate used to compute the amount of interest paid to the customer for the entire term that the City held the deposit. Interest will not be allowed for deposits held less than six months. If at any time satisfactory payment record is not maintained by any customer using gas or water, the Director may again require such deposit, and the Director may refuse such service until the account is brought to a current status and the deposit is again made.
Sec. 28-57. Disconnection for nonpayment; notice.
(a) When a bill for gas service charges other than for individual residential gas service billed under the RS rate schedule as specifically provided, remains unpaid for at least [30] 45 days after the date appearing on the bill, the supply of gas may be stopped to the premises in respect to which the default exists, so long as the premises are occupied by the owner, occupant or consumer who is in default on account of nonpayment of any such bill or so long as the owner who is liable therefore is in such default, and the Director may proceed to collect the bill or portion thereof in any manner or by any process allowed by law. However, in no case shall the supply of gas be stopped or proceedings be taken to collect the bill until ten days after a notice has been delivered via mail, email, text message, phone call, or door hanger to the owner, occupant or consumer who is in default on account of nonpayment of any such bill. The Director may refuse to provide or may discontinue gas service to any premises, other than for individual gas service billed under the RS rate schedule as specifically provided, until all indebtedness is paid in full or secured to the satisfaction of the Director.
(b) When a bill for water service or wastewater service or any portion thereof remains unpaid for at least 45 days after the date appearing on such bill, the supply of water service or wastewater service, or both, may be stopped to such premises in respect to which such default exists, so long as such premises are occupied by the owner, occupant or consumer who is in default on account of nonpayment of any such bill, and the Director may proceed to collect the bill or portion thereof in any manner or by any process allowed by law. However, in no case shall the supply of water service or wastewater service, or both, be stopped or proceedings be taken to collect the bill until ten days after notice has been delivered via mail, email, text message, phone call, or door hanger to the owner, occupant or consumer who is in default on account of nonpayment of any such bill. The Director may refuse to provide or may discontinue water service or wastewater service, or both, to any other premises of the owner, occupant, or consumer who is in default until all indebtedness is paid in full or secured to the satisfaction of the Director.
Sec. 28-58. Gas service to residential customers billed under RS rate schedule; disconnection for nonpayment; notice.
When a bill for gas service charges or any portion thereof rendered to a customer for service provided at such customer's individual residence, billed under the RS rate schedule, remains unpaid for [30] 45 days after the date appearing on the bill, the supply of gas may be stopped to such individual residential premises in respect to which the default exists, so long as the premises are occupied by the owner, occupant or consumer who is in default on account of nonpayment of any such bill or so long as the owner who is liable therefor is in such default, and the Director may proceed to collect the bill or portion thereof in any manner or by any process allowed by law. However, in no case shall the supply of gas to such individual residence be stopped or proceedings taken to collect the bill until ten days after notice has been delivered via mail, email, text message, phone call, or door hanger to the owner, occupant or consumer who is in default on account of nonpayment of any such bill. The Director may refuse to provide or may discontinue gas service to any other such residential premises until all indebtedness is paid in full or secured to the satisfaction of the Director.
§ 2. This ordinance shall be in force and effect upon adoption.
City of Richmond
Intracity Correspondence
O&R Transmittal
DATE: April 25, 2025
TO: The Honorable Members of City Council
THROUGH: The Honorable Danny Avula, Mayor
THROUGH: Sabrina Joy-Hogg, Interim Chief Administrative Officer
THROUGH: Sheila White, Director of Finance
THROUGH: Meghan K. Brown, Director of Budget & Strategic Planning
THROUGH: Scott Morris, DBA, P.E., Director of Public Utilities
FROM: Billy Vaughan, Deputy Director Senior, Department of Public Utilities
RE: Aligning City Code Section 28-54 with Virginia Code
ORD. OR RES. No.
PURPOSE: To align City Code section 28-54 with Chapter 21 of Title 15.2, Chapter 3.2 of Title 44, and Chapter 10 of Title 56 of the Code of Virginia relating to public utilities; municipal utilities; disconnection of service; limitations; report; consumer protections.
BACKGROUND: In the 2024 legislative session, Virginia passed House Bill 904 which amended Virginia’s code related to disconnection of utility services. As a result, chapter 28, article III, section 28-54 of the Code of the City of Richmond needs to be amended to be in alignment with the Code of Virginia. Chapter 21 of Title 15.2 prohibits utilities from disconnecting service to residential customers for non-payment on weekends, holidays, or the day before a holiday. It also allows utilities to voluntarily suspend disconnections during extreme weather or emergencies. Chapter 3.2 of Title 44 provides protections from disconnections when an emergency is declared by the Governor in response to a communicable disease of public health threat. Chapter 10 of Title 56 specifies the requirements for utilities regulated by the State Corporation Commission, as it relates to when disconnections of utilities are prohibited, similar to the requirements outlined in Chapter 21 of Title 15.2.
COMMUNITY ENGAGEMENT: None.
STRATEGIC INITATIVES AND OTHER GOVERNMENTAL: Aligning City and Virginia code ensures well managed government in compliance with State Law.
FISCAL IMPACT: Cost associated with this Code change is minimal as most of the amendments have been standard practice of the DPU.
DESIRED EFFECTIVE DATE: Upon adoption
REQUESTED INTRODUCTION DATE: May 27, 2025
CITY COUNCIL PUBLIC HEARING DATE: June 9, 2025
REQUESTED AGENDA: Consent
RECOMMENDED COUNCIL COMMITTEE: Governmental Operations (May 28, 2025)
AFFECTED AGENCIES: Department of Public Utilities
RELATIONSHIP TO EXISTING ORD. OR RES.: None.
ATTACHMENTS: Virginia Acts of Assembly - 2024 Reconvened Session, Chapter 824.
STAFF: Billy Vaughan, Deputy Director Senior, 646-5232