(804) 697-4120
Del. Clifton A. Woodrum, Vice Chair
Sen Richard J. Holland
Sen. Thomas K. Norment, Jr.
Sen. John C. Watkins
Sen. Kenneth W. Stolle
Del. Kenneth R. Plum
Del. Jerrauld C. Jones
Del. Harry J. Parrish
Del. Eric I. Cantor
Del. Terry G. Kilgore
Members of the
SJR 91 Joint Subcommittee Studying Electric Industry Restructuring
c/o Division of Legislative Services
General Assembly Building
910 Capitol Street, 2nd Floor
Richmond, Virginia 23219
Re: Suggested Legislation on Stranded Costs and Market Power
Dear Vice Chairman Woodrum and Members of the Joint Subcommittee:
We appreciate the opportunity to submit, on behalf of the Virginia Committee for Fair Utility Rates ("Virginia Committee"), a draft of suggested legislation for your consideration. The proposals address two issues, stranded costs and market power, at the very center of the debate on electric industry restructuring.
The suggested language is virtually identical to proposals made by the Virginia Committee to the Task Force on Stranded Cost and Related Issues during the summer in response to the request of the Task Force, except that, in keeping with the Vice Chairman's request in his memorandum to stakeholders of November 17, 1998, we have reformatted both proposals to conform them to structure contained in SB 688.
The process of drafting legislation will provide an overall context, including definitions of key terms, for these two proposals and, of course, for other proposals offered by stakeholders and subcommittee members. We hope that sharing these suggestions with you will help produce fair and reasonable results for utilities and their customers.
Again, we thank the Joint Committee for the opportunity to participate, and we look forward to working with you in this important process.
Very truly yours,
Louis R. Monacell
Enclosures
cc: Arlen K. Bolstad, Esq.
Division of Legislative Services
Edward L. Petrini, Esq.