Money FunnelIndustry Update

. . . And One for All!

During its 2000 session, the Virginia General Assembly passed legislation that changes the way Virginia taxes are paid by consumers and collected by utilities.

This change was made to ensure that out-of-state energy suppliers would not gain a pricing advantage relative to utilities operating in Virginia. Currently, there are three taxes included in your electric bill that are collected by all electric utilities and remitted to either state or local governments.

Beginning in January 2001, these three taxes will be replaced with one called the Virginia Consumption Tax. The Virginia Consumption Tax is not a new tax, but rather it replaces the three that have been included in your bill all along.

The rates for the Virginia Consumption Tax are fixed in state law and have been set at a level to approximate the taxes you currently pay. In other words, there should be little, if any, change in the amount of the tax you pay. Remember, taxes are one component of your current rates. This tax is not new, it is just different.

Also, you may note that beginning with your January bill, you may see a line item on your bill that looks like the following:

Virginia Consumption Tax: XXXXXXXXXX



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