Delete 579.1(A)(1) as unnecessary.

Section 579.1(A)(2) (lines 5-6) insert "under this chapter" after "authorized" delete "and opting"

Section 579(B): after "as provided in," insert "section 52-242 and"

Delete 579.1(C). [no longer necessary in light of default service commencing on date of customer choice for all customers]

Add new 579.1(C) as follows: "The establishment of capped rates under this section shall not preclude an incumbent electric utility from instituting a proceeding for a change in rates pursuant to chapter 10 of this title."

Section 580(D): (p.4, line 11) replace "permitting processes" with "nondiscriminatory access procedures"

Section 580(E)[G] (p.5, line 15-16): replace "regulate such person's rates pursuant to Chapter 10 ... of this title" with "adjust such person's retail rates to the extent necessary to protect retail customers from such market power"

Section 581(B) (p.5 line 24-25): replace "with appropriate public input" with "after notice and opportunity for hearing"

Section 583(A) (p.8 line 8-9): replace "prohibited" with "preempted"

Section 583(B) (p.8 line 11): replace "prohibited" with "preempted"

Section 584(A): (p.9 line 22) replace "prohibited" with "preempted"

Section 584(A): (p.9 line 24): after "customer choice", insert "for all retail customers"

Section 585(C): (p.10 line 26): after "cancel," insert "without penalty or cost"

Section 586(B)(3) (p.12 lines 10-11): change "provides" to "provided"; after "service" insert "as of the effective date of this chapter."

Section 586(C) (p.12 line 16): replace "discourage" with "prevent"

Section 586(C) (p.12 line 16): replace "The Commission" with "In doing so, the Commission".

Section 56-586.1: (p.13 line 14): replace "precluded" with "preempted"; delete "or by the Federal Energy Regulatory Commission" as redundant.

Section 56-592: (p.17 l.20) delete "kWh-based"

56-591(A): p.18 l.10: replace "January 1, 2002" with "the date of the commencement of customer choice".

56-591(A): p.18 l.18: add: "The Commission may adjust such determination from time to time in order to reflect changes in the market value associated with such assets and obligations."

56-591(B) (p.18 lines 14-18): rewrite this sentence as follows and then add the subpara. XX below:

Any just and reasonable [Such] net stranded costs determined to be recoverable under this section may be recovered by (i) excess earnings received by the incumbent electric utility during the period in which capped rates established in section 56-579.1 are in effect, subject to the provisions in subparagraph XX, (ii) a [shall be recovered via] a nonbypassable wires charge, in accordance with the provisions of § 56-592, or (iii) both (i) and (ii), from persons who purchase any transmission or distribution service after the date on which such persons have customer choice (as defined in SB 688), within the territory served by such electric utility as of the date of customer choice.

XX. Excess Earnings

Excess earnings realized by an incumbent electric utility during the period in which capped rates are in effect shall be treated as follows:


1. Determination of excess earnings
   1. For any utility having an alternative regulatory plan approved by the Commission under Section 56-235.2 as of the effective date of this chapter, the amount of excess earnings for the entire capped rate period shall be determined in the manner set forth in such plan.

   2. For any utility not having an alternative regulatory plan approved by the Commission under section 56-235.2 as of the effective date of this chapter, the amount of excess earnings for the entire capped rate period shall be determined consistent with chapter 10 of title 56.

2. Application of excess earnings: The Commission shall apply excess earnings determined in the preceding paragraph to reduce stranded cost (including but not limited to regulatory assets) determined by the Commission to be recoverable to ratepayers; provided that if such utility has stranded cost equal to or less than zero, the treatment of excess earnings for a utility shall be as set forth in the alternative regulatory plan for each utility having a plan approved by the Commission as of the effective date of this chapter or, in the absence of such a plan, consistent with the provisions of chapter 10 of title 56.