LEGISLATIVE TRANSITION TASK FORCEBackgroundSection 56-584 of the Virginia Electric Utility Restructuring Act (the "Act") provides: Just and reasonable net stranded costs, to the extent that they exceed zero value in total for the incumbent electric utility, shall be recoverable by each incumbent electric utility provided each incumbent electric utility shall only recover its just and reasonable net stranded costs through either capped rates as provided in § 56-582 or wires charges as provided in § 56-583. Subdivision C, clause (iii) of § 56-595 of the Act provides that the members of the Legislative Transition Task Force shall: [A]fter the commencement of customer choice, monitor, with the assistance of the Commission, the Office of the Attorney General, incumbent electric utilities, suppliers, and retail customers, whether the recovery of stranded costs, as provided in § 56-584, has resulted or is likely to result in the overrecovery or underrecovery of just and reasonable net stranded costs . . . As customer choice has commenced in the Commonwealth, it is appropriate for the Legislative Transition Task Force to initiate the process of monitoring whether the recovery of stranded costs has resulted or is likely to result in the overrecovery or underrecovery of just and reasonable net stranded costs. Requested ActionsThe Legislative Transition Task Force hereby requests the State Corporation Commission to: 1. Convene a work group, consisting of Commission staff and such persons as the Commission deems appropriate to represent the Office of the Attorney General, incumbent electric utilities, suppliers, and retail customers, for the purpose of developing consensus recommendations regarding the issues listed in paragraphs 2 and 3. The chairman of the Legislative Transition Task Force will designate two of its members to monitor the progress of the work group. 2. By July 1, 2003, present to the Legislative Transition Task Force the work group's consensus recommendations regarding: (a) Definitions of "stranded costs" and "just and reasonable net stranded costs." (b) A methodology to be applied in calculating each incumbent electric utility's just and reasonable net stranded costs, amounts recovered, or to be recovered, to offset such costs, and whether such recovery has resulted in or is likely to result in the overrecovery or underrecovery of just and reasonable net stranded costs; and 3. By November 1, 2003, present to the Legislative Transition Task Force the work group's consensus recommendations, developed using the methodology developed pursuant to paragraph 2 (b), regarding: (a) The amount of each incumbent electric utility's just and reasonable net stranded costs. (b) The amount that each incumbent electric utility has received, and is expected to receive over the balance of the capped rate period, to offset just and reasonable net stranded costs from capped rates and from wires charges. 4. Report periodically to the Legislative Transition Task Force's Subcommittee on Stranded Costs, which will be reactivated to oversee the implementation of this resolution. 5. Determine whether the work group has access to information necessary for the development of recommendations on the issues set out in paragraphs 2 and 3, and, if the work group has been unable to obtain necessary information, give prompt written notice of the issue to the chairman of Legislative Transition Task Force, with a copy to its staff. 6. Take all reasonable and appropriate actions to ensure that State Corporation Commission staff and other work group participants do not make unauthorized disclosures of information regarding incumbent utilities' stranded costs and amounts received to offset stranded costs that is provided in confidence to the work group. 7. Request that the Commission staff and persons who are invited to participate in the work group act in good faith to develop consensus recommendations on the issues set out in paragraphs 2 and 3. 8. If the work group members are not able to develop consensus recommendations regarding the issues set out in paragraphs 2 and 3, include in its reports to the Legislative Task Force and the Subcommittee on Stranded Costs, as appropriate, (i) the recommendations of the Commission staff and other members of the work group regarding the issues and (ii) an analysis by Commission staff of such recommendations. 9. Include in its reports to the Legislative Transition Task Force any recommendations for legislative or administrative action that the Commission, the work group, or both, determine to be appropriate in order to address any overrecovery or underrecovery of just and reasonable net stranded costs.
Adopted by the Legislative Transition Task Force on __________________, 2003.
A true copy: ______________________
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