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?

VCCC: Yes.

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

VCCC: Department of Social Services eligibility criteria for the low-income weatherization program, currently set at 150% of the federal poverty guidelines, and adopt a Percentage of Income Payment plan.

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

VCCC: By an all-fuels competitively-neutral non-bypassable wires charge assessed on all electricity generation sold in the state. Wires charge should be on a BTU and per kilowatt-hour basis.

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

VCCC: By an independent non-profit entity accountable to the State Corporation Commission. Funding should go to the state Treasury to be audited and publicly accountable.

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

VCCC: Utility crisis intervention programs which provide emergency, one-time assistance meet a small fraction of the need and are a supplement, not a substitute for on-going assistance to make energy affordable for low-income households. The LIHEAP program is a supplement, not a substitute.

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?

VCCC: To prepare consumers for structural changes in the electric market prior to restructuring, to assist consumers in shopping for electric service, and to inform consumers of their rights and obligations as electric customers.

8. When should these programs be conducted?

VCCC: First phase should begin at least six months before restructuring is implemented. Concentrated consumer education in shopping for electricity during the transition, with an on-going program for the indefinite future.

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

VCCC: State Corporation Commission

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

VCCC: Office of Consumer Affairs/Virginia Department of Agriculture and Consumers Services, the Consumer Counsel/Office of the Attorney General, and the Virginia Cooperative Extension Service at Virginia Tech and Virginia State University can help design the content and delivery of consumer education messages.

11. How should such programs be funded?

VCCC: By a competitively-neutral, non-bypassable wires charge imposed on all electricity used in the state.

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.

VCCC: Yes. Consumer education is essential to a competitive market. The SCC should have ongoing responsibility to provide information to assist consumers as part of its over-sight function and funded as part of the SCC's budget.

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

VCCC: Non-profit community-based organizations must have a role in educating hard-to-reach populations. The consumer education program should have a mandate to contract with CBOs to deliver information.

Customer Aggregation

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

VCCC: Yes, aggregation should be encouraged.

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

VCCC: Aggregators are "buyers" of electricity for consumers, not "sellers" of electricity. The level of regulatory oversight should be sufficient to prevent unfair and deceptive practices and reliable delivery of services.

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

VCCC: Participation by consumers in any aggregation plan should be voluntary.

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

VCCC: Localities should be permitted to aggregate all their load, not just residential customers.

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

VCCC: Yes, including all customers in the locality.

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

VCCC: Yes, the goal is to create enough demand with an optimum load profile to effectively bid for low-cost power.

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

VCCC: Yes, as long as participation was voluntary.

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

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 service? If so, what basic information should be provided?

VCCC: Yes. Price volatility, unit price, fuel mix, emissions, contract terms, right to cancel contract in three business days, where to complain and get information (toll-free number). The basis for claims of environmentally-friendly power should be verifiable.

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

VCCC: Unfair, deceptive practices, fraudulent and unconscionable practices, including unauthorized switching of providers, misleading claims about "green" power, selling power without the ability to deliver power, charging for unauthorized goods and services (cramming), bait and switch advertising, negative option plans, redlining, and pyramid schemes. The same law should apply to electric utilities.

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?

VCCC: Yes. Service deposits should be restricted to customers with a poor payment record and limited to one-month's average bill. Interest should be paid on deposits and deposits should be refunded after a 12-month on-time payment record.

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

VCCC: Yes, electric bills should fit a standardized format with uniform terms, clear language, and visual simplicity. The SCC should promulgate billing regulations.

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?

VCCC: Yes, if long-term contracts are required by energy service providers, consumers should have a three-business day right to rescind.

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?

VCCC: Yes, Virginians should be protected against "slamming" and "cramming" of electric bills, along with a blanket prohibition on unfair and deceptive practices. Slamming protections should include independent third-party verification if service is sold by telemarketing and a ban on collecting any payment from a "slammed" customer. The violator should be required to compensate the original service provider for lost sales.

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

VCCC: Yes. Telemarketing should be restricted to certain hours of the day. All telemarketers of electricity (if not already licensed as energy service providers) should register with the SCC.

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?

VCCC: Yes. The State Corporation Commission should be designated and staffed to handle consumer inquiries and intake, mediation, investigation and redress of complaints involving electric service. The Office of Consumer Affairs/Virginia Department of Agriculture and Consumer Services can assist with complaints about advertising and sales practices. The SCC/Attorney General should enforce the laws against unfair and deceptive trade practices involving electric companies. Consumers should have a private right of action.

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

VCCC: Privacy protections are necessary for information about billing, payment history and consumption patterns. No information should be released without permission from the customer. Discriminatory policies should be prevented, such as "red-lining" low-income or minority neighborhoods.

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?

VCCC: Yes, renewable sources of electricity should be encouraged.

33. Should Virginia restructuring legislation in anyway address air quality, directly or indirectly? If so, in what way?
VCCC: Yes. Power plants should have to comply with current clean air standards. If old plants are permitted to operate under pre-Clean Air Act standards, their owners get a windfall benefit at the expense of public health and fair competition.

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?

VCCC: Yes, the generation mix and emissions should be disclosed on marketing materials and on bills. Mislabeling of "green" power would be an unfair and deceptive trade practice.

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?

VCCC: The universal service fund should support weatherization and energy efficiency programs for low-income consumers to reduce the level of support needed for monthly bills and to promote conservation.

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.