Public Benefits Charges.

1. As part of implementing electric utility restructuring in Virginia, should the General Assembly establish any rate subsidy and/or energy efficiency assistance programs for low-income households?

Yes, low-income Virginians need rate subsidy/discount programs to ensure affordability, crisis payment assistance, and Weatherization/energy conservation programs.

2. How should any such program(s) be structured in terms of eligibility?

Income eligibility should be based upon current LIHEAP (federal Low-Income Home Energy Assistance Program) guidelines of 150% of poverty. Priority should be given to households with greatest percent-of-income electricity cost, also elderly and families with young children.

3. How should any such program(s) be funded?

Nonbypassable public benefits charge paid by all users of electricity, based upon monthly per-kilowatt-hour usage.

4. How should any such program(s) be administered?

By an office of state government experienced in working with the population, with oversight by a committee of stakeholders. (Department of Housing and Community Development has experience administering Weatherization and energy programs; the Department of Social Services currently administers LIHEAP. These agencies could share
responsibility for administering the program.)

5. Are there any programs that could or should serve as an alternative or supplement to any such programs? If so, describe.

Utility-operated programs such as Virginia Power's "EnergyShare" could act as supplements--contributions to such programs currently are insufficient to be considered a viable alternative.

6. Please identify any other issue(s) falling under this topic you believe are important, and provide comments on that issue.

Consumer Education.

7. What should be the general purpose of any consumer education program preceding and accompanying Virginia's transition to retail competition?

To ensure that Virginia consumers are prepared for deregulation and the changes it will bring, that they understand how they will be impacted, and that they acquire the knowledge they will need in order to benefit from customer choice.

8. When should these programs be conducted?

Education should begin immediately to prepare consumers for the transition. Full-scale consumer education should continue throughout the transition to customer choice and to some point beyond transition, when it may be anticipated that all consumers have been reached by the education effort.

9. Who, if anyone, should have regulatory oversight over such programs?

The State Corporation Commission, with statutory language directing participation by other state agencies and subcontracting with appropriate entities (providers of advocacy and services to low-income, elderly, disabled, etc., consumer groups and others) to reach vulnerable target populations.

10. Which state regulatory agencies, if any, should participate in this program, and in what capacity?

The Department of Social Services, the Department of Housing & Community Development, the Department for the Aging, the Department of Agriculture and Consumer Services, should all provide input into the implementation methodology needed to reach vulnerable populations served and protected by the particular agencies, should assist in identifying appropriate outreach entities, and should participate in evaluation to determine effectiveness of the outreach efforts provided.

11. How should such programs be funded?

Nonbypassable public benefits charge paid by all users of electricity, based upon monthly per-kilowatt-hour usage.

12. Should any long-term consumer education program be established, to continue after the transition to retail competition is completed? If so, describe its scope, oversight and funding.

Yes, full-scale consumer education should continue until such time as competition is determined to be effective. Upon that determination, educational efforts should continue to advise consumers of their rights and protections in the newly-deregulated environment. Oversight of such efforts could then revert to the Department of Agriculture and Consumer Services. Such efforts could continue to be funded from public benefits charges, as costs should be minimal.

13. Please identify any other issue(s) falling under this topic you believe are important, and provide comments on that issue.

Customer Aggregation.

14. Should customer aggregation be permitted in Virginia in conjunction with restructuring?

Yes, maximum benefits to residential and small business customers can only be realized through aggregation.

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

Yes, however requirements should not be so onerous as to serve as disincentives to nonprofit organizations or consumer cooperatives that wish to become aggregators.

16. Should aggregators be subject to any other requirements? If so, describe them.

Yes, should be subject to all consumer protection legislation as suppliers and marketers.

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

Yes, they should be encouraged to become aggregators for their residents. Adding commercial and industrial consumers to the mix as well should enable even greater savings for residential customers.

18. Should localities be permitted to aggregate their residential load on an "opt out" basis?

Yes.

19. Should localities be permitted to form inter-locality aggregates?

Yes, allowing localities to join with others in aggregation will be essential to enable small, sparsely-populated localities to meet the minimum threshold in numbers to make aggregation of benefit to their residents.

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

21. Should localities be permitted to aggregate load with private entities or localities outside of Virginia?
Yes.

22. Please identify any other issue(s) falling under this topic you believe are important, and provide comments on that issue.

Consumer protection.

23. Should electric service providers and aggregators be required to disclose standard information in their marketing materials, and in their proposals and contracts for services? If so, what basic information should be provided?

Yes, price, fuel mix and resulting emissions, at a minimum.

24. Should any kinds of marketing practices by electric service providers or aggregators by specifically prohibited? If so, what practices should be barred?

Yes, the law should prohibit unfair and deceptive advertising, marketing and business practices, including misrepresentation of "green power" and intrusive telemarketing.

25. Should Virginia restructuring legislation establish limits on the size of utility service deposits that may be required by electric service providers and aggregators? If so, what limits should be established?

Yes--for residential customers, should be no more than one month bill for a "typical" residential customer. The law should also direct suppliers to establish payment plans so that payment of deposits will not create hardship for low-income families and those on fixed incomes.

26. What kinds of standard information should electric bills contain after restructuring? If so, what information should each bill be required to provide?

Bills should be presented in a clear, uniform and customer-friendly format. Separate charges for the various unbundled services should be clearly shown. Uniform information regarding the supplier's fuel mix and resulting emissions should be provided.

27. 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? If so, what special rights of recission or cancellation should be provided in statute?

Yes, 3-day right of cancellation.

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

Yes, the law should specify heavy fines for providers who switch customers without written authorization.

29. Should Virginians be given any statutory protection against any electric service provider or aggregator telemarketing practices? If so, what?

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

Yes, the Attorney General's Office and the SCC should assist. Responsibilities should include hearing disputes, determining fault and imposing penalties on suppliers as required.

31. Please identify any other issue(s) falling under this topic you believe are important, and provide comments on that issue.

Environmental Protection.

32. Should Virginia restructuring legislation in any way promote or encourage the use of renewable energy in the generation of electricity? If so, how?

33. Should Virginia restructuring legislation in any way address air quality, directly or indirectly? If so, in what way?

34. Should Virginia restructuring legislation require electric service providers or aggregators to disclose generation fuels? If so, how should this requirement be implemented and administered?

Yes, standardized disclosure label (similar to nutrition labeling) on all electric service provider marketing materials and customer bills, subject to monitoring by the SCC.

35. Please identify any other issue(s) falling under this topic you believe are important, and provide comments on that issue.

Energy Efficiency.

36. Should Virginia restructuring legislation in any way promote or encourage energy conservation or energy efficiency, e.g., encouraging installation of energy efficient equipment or energy efficiency monitoring equipment? If so, what incentives should the legislation include?

Yes, public benefits programs to fund low-income Weatherization, energy conservation education and installation of energy efficient lighting and appliances, supplemented by utility-operated programs. Incentives should include tax credits for utilities providing such programs for low-income households, as well as tax credits for homeowners and small business owners who install such energy efficient equipment or monitoring equipment in their own dwellings, businesses, etc.

37. Should Virginia restructuring legislation establish a public benefits charge for the purpose of encouraging research and development in the areas of energy conservation and efficiency? If so, how should it be assessed and administered?

38. Please identify any other issue(s) falling under this topic you believe are important, and provide comments on that issue.

Electric Utility Worker Protection.

39. Should Virginia's electric utility workers be given any statutory protections in conjunction with the transition to a retail competition? If so, what protections should be provided, and through what mechanism?

40. If any statutory protections for utility workers result in additional costs or expense, how should they be funded?

41. Should providers of electric energy in a restructured market be required to maintain minimum staffing levels for purposes of reliability? If so, who should determine these levels, and what standards should be applied in doing so?

42. Should the purchaser of any generation unit or station sold after restructuring be required to (I) hire or continue the employment of such unit or station's employees, and (ii) furnish such employees the same wages, working conditions and benefits and terms and conditions of employment that were in effect prior to the sale?

43. Should new entrants into Virginia's electricity market following restructuring be required to comply with any requirements concerning the qualifications of their electrical workers with regard to quality, safety and reliability of service? If so, who would establish such requirements?

44. Should Virginia, in conjunction with restructuring, establish mandatory training and skill standards for all electrical workers responsible for systems and equipment that affect system reliability and safety?

45. Please identify any other issue(s) falling under this topic you believe are important, and provide comments on that issue.