AARP

VIRGINIA STATE LEGISLATIVE COMMITTEE

CHAIR
James K. Ramborger
2265 Laurel Cove Drive
Virginia Beach, VA 23454
(304) 431-0490

SECRETARY
Ward B. Taylor
11330 Dixie Drive
King George, VA 22435
(703) 773-7704

REMARKS OF DONALD F. SULLIVAN
REPRESENTING THE VIRGINIA STATE LEGISLATIVE COMMITTEE
OF THE AMERICAN ASSOCIATION OF RETIRED PERSONS
TO THE TASK FORCE ON STRUCTURE AND TRANSITION
OF THE SJR 91 JOINT SUBCOMMITTEE

Mr. Chairman, and Members of the Task Force: thank you for giving the AARP this opportunity to comment briefly on structure and transition matters:

AGGREGATION. We believe that aggregation should be encouraged by the SCC. In fact, the SCC should actively help customers to aggregate.

DIVESTITURE. In our opinion, the best way to ensure non discriminatory access to transmission and distribution services is by divestiture of the incumbent's transmission and distribution systems so that competition can begin on a level playing field. This is the best way to ensure that market power by the incumbent cannot be used to lessen competition.

ISO. ISO operators must be truly independent of any incumbent or competitor. Further, we believe that residential consumers should be represented on the governing board of the ISO.

SUPPLIER OF LAST RESORT. The SCC should designate a supplier of last resort in each service area. This supplier should be available to any customer who is unable to obtain competitive service or who does not have a new supplier.

LOW INCOME. Basic electric services (such as lighting, heating, cooling and cooking) must be available to all consumers.

-Basic services must be discounted for low income customers.
-Customers should not have to forego other necessities (such as food and medicine) to use necessary electricity.
-The SCC should coordinate its program with financial assistance available for payment of electric bills from state, federal, and private resources.

MARKET POWER. Divestiture will ensure that the incumbent utility has no more of interest in the distribution and transmission system than any other supplier.

TRANSITION. AARP believes that the SCC should maintain oversight over the electric utility industry until there is effective competition for service. Once there is effective competition, the regulations on the incumbent utility can be eased.

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