Comments for Consideration of Taskforce Recommendations:

Utility/Industrial bilateral contracts can create a potential for market power abuse. A double jeopardy is possible in that in the absence of clear legislative language for non-bypassable charges that stranded cost recovery charges and systems benefits charges will be bypassed. Secondly, bilateral contracts may allow only large industrial customers first access to the lowest cost power.

Private deals made outside of the power pool will obscure knowledge of prices and obstruct the development of effective competition. Therefore, additional reporting requirements should be implemented for bilateral contracts. The reporting should be made to the State Corporation Commission, as the regulator, to monitor prices and control the price gap between customer classes.

Respectfully submitted by:

Mary Ann Capp
Energy Management Services
VMH, Inc.