MEMORANDUM

TO: SJR 91 stakeholders and interested parties.

FROM: Chip Woodrum, Joint Subcommittee Vice Chairman

DATE: November 17, 1998

RE: December 8, 1998 Drafting Group meeting; work plan.

When the joint subcommittee met in Manassas on November 10, we established a drafting group--composed of all task force chairmen, together with the Vice Chairman--to begin preparation of a committee restructuring bill for the 1999 Session. Of course, all joint subcommittee members may attend and participate. I am writing to outline a work plan for this drafting group-a plan that has been submitted to all joint subcommittee members for their review.

First of all, we will take full advantage of the task forces' efforts and reports. These reports systematically identify the positions of stakeholders and interested parties on critical restructuring issues. This information will help focus and streamline the work of our drafting group.

Second, we will also take advantage of another development: statutory proposals developed or under development by stakeholders and interested parties that reflect and advance their views on electrical utility restructuring. I believe we will benefit from opening the committee's drafting process to consideration of these proposals.

Thus, the drafting group's process will incorporate (i) the task force reports, (ii) statutory proposals developed by interested parties, and (iii) ideas and suggestions emerging during the drafting group's working sessions. With that in mind, the drafting group will follow the framework outlined below:

• Stakeholders and interested parties with statutory proposals are requested to submit these proposals to the drafting group for consideration. These drafts may address all issues associated with restructuring, or only certain of the issues. For example, one party might choose to submit a comprehensive restructuring bill; another could choose to submit language focused solely on one issue, e.g., stranded costs.

• The drafts should follow the general framework of Senate Bill 688 (see attached outline), a structure already used explicitly by the Structure & Transition task force, and implicitly by the others. This will help our drafting group compare "apples to apples." To avoid unnecessary time and effort expended in redrafting statutory proposals following a different format, the drafting group will consider drafts accompanied by indexes, cross-referencing their sections to that of the modified SB-688 format attached to this memo.

• Each draft should be accompanied by detailed drafting notes summarizing key aspects of the proposed legislation-preferably following each proposed Code section. These notes should, in narrative form, provide a clear summary of the purpose and operation of each proposed section. If the sections do not follow the SB-688 format (attached), then the note should also contain an internal cross reference to the appropriate section in the SB-688 outline.

• Any and all proposed drafts must be submitted to our staff in electronic format no later than Tuesday, December 1, 1998 in order to be considered by the drafting group at its December 8 meeting. This will allow the drafts to be (i) promptly distributed to drafting group members, and (ii) immediately posted to the web site well in advance of the drafting group's December 8 meeting. It will also give our staff a brief amount of time to review the proposals prior to the meeting, and furnish some analyses of them.

• We will use the December 8 meeting to focus on issues before the Structure & Transition, Stranded Costs, and Consumer, Environment & Education Task Forces. Since the Taxation Task Force is continuing to work (its next meeting is on November 24), we will examine taxation issues at a later drafting group meeting.

• Finally, in light of the enormous task this group is taking on, it may be necessary to convert the December 17 joint subcommittee meeting into an additional working session for the drafting group. I would anticipate that we might try to schedule a meeting of the joint subcommittee during the week of December 28.

This work plan is designed to encourage full and continued participation by all stakeholders and interested parties who have devoted their time and energy to the work of the joint subcommittee and its four task forces.

Please call our staff-Arlen Bolstad or Rob Omberg-at (804) 786-3591 with any questions or comments you may have concerning the work of the drafting group.

CW:cl
CC: Members, SJR-91 joint subcommittee

§56-576. Short title.
§56-577. Definitions.
§56-578. Applicability; municipalities.

• Structure and Transition Matrix, page 1

§56-579. Schedule for transition to retail competition; Commission authority.

• Structure and Transition Matrix, pages 1-7

§56-580. Nondiscriminatory access to transmission and distribution systems.

• Structure and Transition Matrix, pages 7-9

§56-581. Independent system operator.

• Structure and Transition Matrix, pages 9-12

§56-582. Regional power exchange.

• Structure and Transition Matrix, pages 12-15

§56-583. Transmission and distribution of electric energy.

• Structure and Transition Matrix, pages 15-17

§56-584. Regulation of rates subject to the Commission's jurisdiction.

• Structure and Transition Matrix, pages 17-18

§56-585. Licensure of suppliers of retail electric energy; license suspension or revocation; penalties.

• Structure and Transition Matrix, pages 18-19

§56-586. Suppliers of last resort.

• Structure and Transition Matrix, pages 19-20

§56-587. Voluntary aggregation permitted.

• Structure and Transition Matrix, page 20
• Consumer, Environment and Education Matrix, pages 7-10

§56-588. Metering, billing and other related distribution services.

• Structure and Transition Matrix, page 20

§56-589. Consumer protections and customer services; penalties.

• Structure and Transition Matrix, pages 20-21
• Consumer, Environment and Education Matrix, pages 10-15

§56-590. Public purpose programs.

• Structure and Transition Matrix, page 21
• Consumer, Environment and Education Matrix, pages 1-4

§56-590.1. Environment

• Consumer, Environment and Education Matrix, pages 16-18

§56-590.2. Energy efficiency

• Consumer, Environment and Education Matrix, pages 19-20

§56-590.3. Utility workers Protection

• Consumer, Environment and Education Matrix, pages 20-24

§56-591. Transition costs and benefits.

• Structure and Transition Matrix, page 22

§56-591.1. Stranded Costs

• Structure and Transition Matrix, pages 1-21

§56-592. Nonbypassable wires charges.

• Structure and Transition Matrix, pages 22-23

§56-593. Divestiture not required; functional separation.

• Structure and Transition Matrix, pages 23-26

§56-594. Legislative transition task force established.

• Structure and Transition Matrix, pages 26-29

NOTE: Italicized sections are new.