Arlen K. Bolstad, Senior Attorney
Robert A. Omberg, Staff Attorney
Legislative Services, Second Floor General
Assembly Building
Capitol Square
Richmond, VA 23219

Dear Arlen and Rob:

The following are questions posed by the Consumer, Environment, and Education Task Force of SJR 91 that we would like to answer:

Customer Aggregation
Should customer aggregation be permitted in Virginia in conjunction with restructuring? Yes

Should aggregators be subject to mandatory licensing by any regulatory authority, or be required to furnish evidence of financial soundness? Yes

Should aggregators be subject to any other requirements? If so, describe them. Aggregators should be required to share annual reports proving financial solvency and lack of discrimination in selecting the customers they accept.

Should localities (counties, cities or towns) be permitted to aggregate their residential load? Yes

Should localities be permitted to aggregate their residential load on an ìopt outî basis? Yes

Should localities be permitted to form inter-locality aggregates? Yes

Should localities be permitted to aggregate load with private entities outside their territorial jurisdiction? Yes

Should localities be permitted to aggregate load with private entities or localities outside of Virginia? No, since aggregators who will primarily be dealing with the small consumers should be regulated by the Virginia State Corporation Commission.

Please identify any other issue(s) falling under this topic you believe are important, and provide comments on that issue. No opinion.

Consumer protection
Should electric service providers and aggregators be required to disclose standard information in their marketing materials, and in their proposals and contracts for service? If so, what basic information should be provided? Aggregators should be regulated by the State Corporation Commission, and the SCC should determine what information should be provided.

Should any kinds of marketing practices by electric service providers or aggregators be specifically prohibited? If so, what basic information should be provided? Aggregators should not be allowed to market until there is a firm commitment for a year round, 24 hour per day supply of electricity.

Should Virginia restructuring legislation establish limits on the size of utility service deposits that may be required by electric service providers and aggregators? No position. If so, what limits should be established? Any limits should be established by the SCC.

What kinds of standard information should electric bills contain after restructuring? If so, what information should each bill be required to provide? There should be one bill, which lists separately the distribution charge, the transmission charge, and the energy charge.

Should Virginians be given any statutory rights to cancel utility service contracts with electric service providers or aggregators within a specified number of days following acceptance? There should be a minimum of 15 days. If so, what special rights of recission or cancellation should be provided in statute? No opinion.

Should Virginians be given any statutory protection against unauthorized switching of electric service providers, or "slamming?" Yes. If so, what anti-slamming protections should be adopted? The SCC should develop these statutory protections.

Should Virginians be given any statutory protection against any electric service provider or aggregator telemarketing practices/ If so, what? There should be a mechanism for an individual to remove his name and telephone number from telemarketing lists.

Should consumers be furnished assistance by any state regulatory agencies in resolving complaints against electric service providers or aggregators? Yes. If so, which agencies should be involved, and what should their responsibilities include? The SCC should be the agency involved.

Please identify any other issue(s) falling under this topic you believe are important, and provide comments on that issue. There should be a prohibition against switching service more than once per year. There should be one bill for service, not up to three.

Environmental Protection
Should Virginia restructuring legislation in any way promote or encourage the use of renewable energy in the generation of electricity? If so, how. The issue of renewable energy should be addressed after the basic framework has been established for electric utility restructuring.

We do not have any other responses to the list of questions that you developed. Thank you for allowing the Virginia Association of Counties to participate in this discussion.

Sincerely,

Ellen R. Davenport
Director of Public Finance

C. Flippo Hicks
General Counsel