Customer Aggregation.

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

Yes. Aggregation is an essential tool for all but large industrial customers to realize savings in a deregulated environment. For residential and small business customers aggregation is likely the only way to realize any financial benefit in a deregulated environment.

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

Yes. The SCC or some governmental agency should have authority for oversight of aggregators including evidence of financial soundness and responsible management. Regulations should recognize the difference between an entity or which markets on behalf of an electricity supplier, or which purchases power at the wholesale level for resale, and an aggregator which simply negotiates rates and terms and conditions on behalf of an aggregate group of customers.

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

Aggregators should be non-discriminatory and membership open to all qualified customers. Each class of customers must be given equitable treatment. Limitations on entry into or withdrawal from, or transfer between, aggregation groups must be reasonable.

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

Yes. Localities should be permitted to aggregate on behalf of their residential, commercial and industrial customers.

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

Yes. Opt-out aggregation will provide necessary demand requirements to enable localities to successfully negotiate with suppliers and will bring more suppliers to the market place inasmuch as an aggregate containing a substantial number of residential, commercial and industrial customers in combination with municipal load will provide suppliers with a more balanced load than an aggregate which includes a single class of customers.

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

Yes. Joint negotiations for combined municipal loads have been successfully conducted in Virginia for more than 20 years. Under restructuring, inter-locality aggregators should be permitted to negotiate for all governmental, residential, commercial and industrial customers within the combined territory.

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

Yes, unless such private entities are within a locality which operates a municipal electric system.

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

Yes, Virginia localities which border on other states may find it necessary or advantageous to aggregate with localities in such neighboring states in order to achieve the strongest negotiating position.

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

Legislation should contain provisions whereby the Commission will retain regulatory authority over the rates and practices of incumbent utilities which supply generation services to Virginia customers and also over foreign generators or marketers supplying Virginia customers.

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?

Yes. Legislation should provide that aggregators will be subject to regulations adopted by the Commission or other governmental agency. Such regulations should include disclosure by all entities supplying generation services to Virginia customers of all relevant particulars of the plan of aggregation or marketing, including sources of energy and reliability of supply, rates and other costs to customers, essential terms of the aggregation agreement, customer deposits, penalties for late payment, opt-out provisions, methods for entering and terminating agreements with other entities, the rights and responsibilities of participants, any conservation programs and subsidization programs for low income customers.

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

Yes. Regulations adopted and enforced by the Commission, or other governmental agency, should govern marketing practices to prevent unfair competition and unreasonable customer annoyance. Experience in the market place relative to the long distance telecommunication industry furnishes evidence of the kinds of practices which should be controlled.

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?

Limits on the size of utility service deposits should be left to regulations adopted by the Commission or other governmental agency.

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

Electricity bills should separately itemize charges for generation, transmission and distribution, specifying all customer charges for each element of service.

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?

Legislation should provide a reasonable period of time for customers to cancel or opt-out of utility service contracts after acceptance.

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?

Provisions against slamming, and other customer protections should be considered by the commission in connection with its adoption of regulations governing the licensing and operation of all electric service providers or aggregators.

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

See 28 above.

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. Complaint resolution should be addressed by the commission or other regulatory agency in connection with the adoption of regulations governing electric service providers or aggregators.

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