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2000 SESSION

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SB 585 Electric Utility Restructuring Act.

Introduced by: Thomas K. Norment, Jr. | all patrons    ...    notes | add to my profiles | history

SUMMARY AS PASSED:

Electric utility restructuring. Directs the Virginia State Corporation Commission to recommend to the Legislative Transition Task Force, on or before January 1, 2001, whether electric metering services, electric billing services, or both, may be provided competitively. The Commission’s recommendations may vary by service, type of seller, region, incumbent electric utility and customer group. The recommendation shall take into account, among other factors, the technological feasibility of furnishing any such services on a competitive basis. The recommendation shall also include a draft plan for implementation of competition for metering services and billing services. Competition for such services may be implemented concurrently or pursuant to separate schedules as determined by the General Assembly. Other provisions (i) clarify when municipalities and other political subdivisions may aggregate intra- and inter-governmental load without the necessity of obtaining a license as aggregators; (ii) clarify that the wires charges calculated by the Commission shall not be less than zero; (iii) authorize the Commission to implement its proposed consumer education recommendations and to fund the program through the Commission's regulatory tax; (iv) provide that capped rates established pursuant to rate applications made prior to January 1, 2001, will be interim in nature and subject to refund with interest until the Commission has completed its investigations of these applications, and (v) provides for certain adjustments in determining the projected market price for generation. The measure also clarifies what activities constitute aggregation, and includes several technical amendments. The bill is a recommendation of the Legislative Transition Task Force.

SUMMARY AS PASSED SENATE:

Electric utility restructuring. Directs the Virginia State Corporation Commission to recommend to the Legislative Transition Task Force, on or before January 1, 2001, whether electric metering services, electric billing services, or both, may be provided competitively. The Commission’s recommendations may vary by service, type of seller, region, incumbent electric utility and customer group. The recommendation shall take into account, among other factors, the technological feasibility of furnishing any such services on a competitive basis. The recommendation shall also include a draft plan for implementation of competition for metering services and billing services. Competition for such services may be implemented concurrently or pursuant to separate schedules as determined by the General Assembly. Any person selling competitive services is required to be licensed by the Commission. When a service presently provided by an incumbent electric utility is made competitive, the Commission shall adjust the rates for any noncompetitive services provided by the utility so that such rates do not reflect costs associated with or allocable to the service made competitive. Other provisions (i) clarify when municipalities and other political subdivisions may aggregate intra- and inter-governmental load without the necessity of obtaining a license as aggregators, and specifying that the Commonwealth does not need a license when aggregating its governmental load; (ii) clarify that the wires charges calculated by the Commission shall not be less than zero; (iii) authorize the Commission to implement its proposed consumer education recommendations and to fund the program through the Commission's regulatory tax; (iv) provide that capped rates established pursuant to rate applications made prior to January 1, 2001, will become effective on that date but that these rates will be interim in nature and subject to refund with interest until the Commission has completed its investigations of these applications, and (v) provides for certain adjustments in determining the projected market price for generation. The following activities do not make a person an aggregator subject to licensing under the Virginia Electric Utility Restructuring Act: (i) furnishing legal services to retail customers, suppliers or aggregators; (ii) furnishing educational, informational, or analytical services to two or more retail customers, unless direct or indirect compensation for such services is paid by an aggregator or supplier of electric energy, or to two or more suppliers or aggregators; (iii) providing default service; (iv) engaging in authorized activities of a licensed retail electric energy supplier; and (v) engaging in actions of a retail customer, acting in common with one or more other such retail customers, to issue a request for proposals or to negotiate a purchase of electric energy. The bill also includes several technical amendments. The bill is a recommendation of the Legislative Transition Task Force.

SUMMARY AS INTRODUCED:

Electric utility restructuring. Directs the Virginia State Corporation Commission to recommend to the Legislative Transition Task Force, on or before January 1, 2001, whether electric metering services, electric billing services, or both, may be provided competitively. The Commission’s recommendations may vary by service, type of seller, region, incumbent electric utility and customer group. The recommendation shall take into account, among other factors, the technological feasibility of furnishing any such services on a competitive basis. The recommendation shall also include a draft plan for implementation of competition for metering services and billing services. Competition for such services may be implemented concurrently or pursuant to separate schedules as determined by the General Assembly. Any person selling competitive services is required to be licensed by the Commission. When a service presently provided by an incumbent electric utility is made competitive, the Commission shall adjust the rates for any noncompetitive services provided by the utility so that such rates do not reflect costs associated with or allocable to the service made competitive. Other provisions (i) clarify when municipalities and other political subdivisions may aggregate intra- and inter-governmental load without the necessity of obtaining a license as aggregators, and specifying that the Commonwealth does not need a license when aggregating its governmental load; (ii) clarify that the wires charges calculated by the Commission shall not be less than zero; (iii) authorize the Commission to implement its proposed consumer education recommendations and to fund the program through the Commission's regulatory tax; and (iv) provide that capped rates established pursuant to rate applications made prior to January 1, 2001, will become effective on that date but that these rates will be interim in nature and subject to refund with interest until the Commission has completed its investigations of these applications. The following activities do not make a person an aggregator subject to licensing under the Virginia Electric Utility Restructuring Act: (i) furnishing legal services to retail customers, suppliers or aggregators; (ii) furnishing educational, informational, or analytical services to two or more retail customers, unless direct or indirect compensation for such services is paid by an aggregator or supplier of electric energy, or to two or more suppliers or aggregators; (iii) providing default service; (iv) engaging in authorized activities of a licensed retail electric energy supplier; and (v) engaging in actions of a retail customer, acting in common with one or more other such retail customers, to issue a request for proposals or to negotiate a purchase of electric energy. The bill also includes several technical amendments. The bill is a recommendation of the Legislative Transition Task Force.