On page three, Section 58.1-2900, insert the following language following line 34: "The tax on consumers under this section will not be imposed on consumers served by an electric utility owned or operated by a municipality if such electric utility elects to have an amount equivalent to the tax included as part of the rate it pays for transmission and/or wholesale electric service. The maximum tax rates for such an electric utility shall be adjusted to eliminate the amount of tax that replaces the SCC special assessment tax on utilities. The kilowatt hours used to calculate the rate paid for transmission and/or wholesale electric service shall exclude kilowatt hours for a municipality's own use and kilowatt hours used by counties, divisions or agencies of federal or state governments."

In Section 58.1-2900, insert the following on line 38 following "municipalities": "for their own use" and insert "to counties," between "or" and "divisions".

In Section 58.1-2901, insert the following on line 47 after "consumers" and before the comma: "(except for amounts included in the rates to utilities owned and operated by municipalities which are charged by the company providing transmission directly to such utilities)". Insert the following on line 50 at the end of Section 58.1-2901: "Amounts of the tax billed that are included in the rates to utilities owned and operated by municipalities which are charged by the company providing transmission directly to such utilities shall be remitted by such company monthly following the month during which it bills utilities owned and operated by municipalities."