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The Energy Project

Comparison of Selected Electric Industry Restructuring Legislation
38-Page Document


Updated October 9, 1998

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Contents

Introduction
Comparison Chart

Chart Topics:
Retail Competition
Independent System Operators (ISOs)
Power Pool
Mandatory Rate Reductions/Rate Caps
Stranded Costs
Divestiture of Generation Assets
Reciprocity
Customer Aggregation
Unbundling
Consumer Education
Consumer Protection
Universal Service/Low Income Assistance Programs
Renewable Energy, Conservation and Environmental Issues
Treatment of Transmission and Distribution (T&D)
Legislative Oversight
Performance Based Rates (PBR)
Residential Electricity Rates

NCSL Contacts


Introduction

Electric industry restructuring is a difficult issue to summarize. Because of the varied nature of its components, among them taxes, consumer protection, and stranded costs, restructuring has inspired a wealth of legislation. The major issues covered in this legislative comparison include stranded costs, consumer education, customer aggregation, renewable energy, legislative oversight and residential electricity rates.

NCSL's Energy Project works to educate legislators and legislative staff on the many underlying issues involved in utility restructuring. This legislative comparison serves to inform state legislatures of legislative activities in other states. For more information on this topic, please contact the NCSL Energy Project.

 


Comparison Chart

COMPARISON OF SELECTED ELECTRIC RESTRUCTURING LEGISLATION

(Revised July 9, 1998)

Start Date of Retail Competition

Nevada
A.B. 366

July 16, 1997

Customers may begin obtaining generation, aggregation, and any other potentially competitive services from an alternative seller no later than 12/31/99, unless the PUC determines that a different date is necessary to protect the public interest. (Section 39, p. 12)

California
H.B. 1890

August 31, 1996

3/31/98 (p. 30, 42)

Maine
H-568, (LD 1804)

May 23, 1997

Beginning on 3/1/00, all consumers have the right to purchase generation services from competitive providers. (p. 1)

Montana
S.B. 390

May 2, 1997

On or before 7/1/98, customers with loads greater than 1000 kW must have opportunity to choose an electric supplier. Co-ops may file notice with PSC, within one year after effective date of Act, electing not to participate in retail access. (p. 4, 11)

New Hampshire
H.B. 1392

May 21, 1996

PUC to implement in most expeditious manner and no later than 1/1/98. PUC may delay to 7/1/98 but not longer without legislative approval.
(p. 9)

Oklahoma
S.B. 500

April 25, 1997

All retail customers are permitted to choose their retail electric energy suppliers by 7/1/02. (p. 3-4)

Pennsylvania
H.B. 1509

November 26, 1996

Transition period to begin on 1/1/97. All customers to have retail access by 1/1/01. (p. 39, 84)

Rhode Island
96-H 8124
Substitute B

 

 August 7, 1996

By 1/1/97 each distribution company shall file with PUC a plan for transferring ownership of generation, transmission, and distribution facilities into separate affiliates. Company shall implement plan within 3 months after retail access is available to 40 percent of kWh sales in New England. PUC may extend time if necessary. (p. 17-18)

Massachusetts H.B.5117

3/1/98 for all customers

Connecticut
H.B. 5005

April 29, 1998

35% of each companies' peak load, consisting of customers in distressed municipalities will be able to choose their electric supplier by January 1, 2000. The remainder will be able to choose starting July 1, 2000.

Illinois
H.B. 362

10/99 All large industrial customers, 33% of nonresidential customers
12/00 Remaining 66% of nonresidentials
5/02 All residentials

Phase-in of Retail Competition

Nevada
A.B. 36690

PUC may establish different dates for different services and different geographic areas and authorize retail competition in gradual phases. Utilities shall submit to PUC plan for compliance with Act, including information PUC needs to:  set rates (e.g., utilities' cost to provide service and estimate of required revenue), allocate costs of service among customers, and adopt regulations for potentially competitive services. PUC may exempt sellers from certain portions of Act if necessary to achieve effective competition. (Section 39, p. 12; Section 49, p. 20)

California
H.B. 1890

Full retail access for all customers no later than 1/1/02; phase-in to be equitable to all classes as determined by PUC. (p. 5, 42, 91)

Maine
H-568, (LD 1804)

Beginning 3/1/02, electric billing and metering services are subject to competition. The PUC may establish an earlier date except in no case may the date be prior to 3/1/00. (p. 3)

Montana
S.B. 390

Transition period begins 7/1/98 for customers with loads greater than 1000 kW; all customers eligible by 7/1/02, unless the PSC determines added time is needed because workable competition does not exist. Full implementation may not be delayed beyond 7/1/04, however, for customers with loads greater than 1000 kW and not beyond 7/1/06 for all other customers. Participating co-ops must adopt transition plans on or before 7/1/01, and the transition period may not extend beyond 7/1/02, although the transition plan may be altered under certain circumstances. (p. 3-5, 9, 12-13)

New Hampshire
H.B. 1392

On the effective date of the Act, PUC shall undertake a generic proceeding to develop a statewide industry restructuring plan in accordance with the legislative principles in the bill. Final order is due by 2/28/97. PUC shall require all utilities to submit compliance filings. No utility shall be required, however, to commence implementation until filings representing 70 percent of retail sales have been implemented. (p. 9-10)

Oklahoma
S.B. 500

Legislature directs Corporation Commission to study all relevant issues relating to restructuring and develop a proposed industry restructuring framework under the direction of the legislative Task force. Commission shall address appropriate steps to achieve an orderly transition and may include, in addition to the directives in this Act, other provisions Commission deems necessary and appropriate. However, Commission is expressly prohibited from promulgating rules or orders relating to restructuring without prior express legislative authorization. A defined period for transition shall be established. (p. 4)

Pennsylvania
H.B. 1509

As of 1/1/99, maximum of 33 percent of peak load in each customer class will have direct access; 66 percent by 1/1/00; 100 percent by 1/1/01. PUC may extend 1/1/99 implementation date for 6 months. PUC to conduct milestone reviews to ensure technically workable and equitable transition. (p. 35, 39-41)

Rhode Island
96-H 8124
Substitute B

 

 

On 7/1/97, distribution companies required to offer retail access from non-regulated power producers to all new commercial and industrial customers with anticipated annual demand of 200 kW or more, all existing manufacturing customers over 1500 kW, and all state accounts, not to exceed 10 percent of total kW sales. On 1/1/98 access to include all existing manufacturers over 200 kW and all towns in state, not to exceed 20 percent of total kW sales. Access for all customers within 3 months after access is available to 40 percent or more of the kW sales in all New England states, but not later than 7/1/98. PUC may extend final deadline up to 6 months. (p. 24-25)

Massachusetts
H.B.5117

No phase-in

Connecticut
H.B. 5005

(see above start date info)

Illinois H.B. 362

(see above start date info)

Pilot Program

Nevada
A.B. 366

 

California
H.B. 1890

 

Maine
H-568, (LD 1804)

 

Montana
S.B. 390

Beginning 7/1/98, utilities shall conduct pilot programs using samples of residential and small commercial customers. Utilities must file a report with the PSC and the transition advisory committee on or before 7/1/00 analyzing the results of the pilot programs. Co-ops may also establish pilot programs for customers with loads less than 1000 kW. (p. 3-4, 9)

New Hampshire
H.B. 1392

 

Oklahoma
S.B. 500

 

Pennsylvania
H.B. 1509

PUC has authority to require utilities to submit proposals for pilots to begin 4/1/97. Program must commit 5 percent of peak load for each customer class. Minimum period for pilot is 1 year and shall include an evaluation process as directed by PUC. (p. 42-45)

Rhode Island
96-H 8124
Substitute B

 

 

Massachusetts H.B.5117

Connecticut
H.B. 5005

Illinois H.B. 362

 Primary Responsibility for Implementation of Retail Competition

Nevada
A.B. 366

PUC shall promulgate regulations to implement Act and shall determine which electric services are potentially competitive. Such services are defined as ones that:  will not harm one or more customer classes; will decrease cost; increase quality or innovation, where effective competition is likely to develop; will advance competitive position of state; and won't jeopardize safety or reliability. If PUC determines that market for potentially competitive service does not include effective competition, it shall establish method for determining prices, terms, and conditions of service. Effective competition means an individual seller can't significantly influence the price of service. (Sections 39-52, p. 12-22; Section 337, p. 149)

California
H.B. 1890

PUC. (p. 42)

Maine
H-568, (LD 1804)

PUC. PUC may impose by rule any additional requirements necessary to carry out the purposes of the Act, except PUC may not regulate the rates of competitive providers. (p. 5)

Montana
S.B. 390

All public utilities shall submit a transition plan to the PSC not later than 1 year before retail choice is offered. PSC shall develop a procedural schedule for considering transition plans and issue a final order within 9 months after the plan is filed. On approval of plan, PSC shall enforce the plan in its final order. PSC may extend the transition period if workable competition does not exist. Workable competition exists if competition is sufficient to inhibit monopoly pricing or anti-competitive price leadership. (p. 5, 12-13)

New Hampshire
H. 1392

PUC authorized to order such charges and other service provisions and to take such other actions substantially consistent with the legislative principles in the bill that are necessary to implement restructuring. (p. 3, 11)

Oklahoma
S.B. 500

Legislature directs Corporation Commission to study all relevant issues relating to restructuring and develop a proposed industry restructuring framework under the direction of the legislative task force. Commission shall address appropriate steps to achieve an orderly transition and may include, in addition to the directives in this Act, other provisions Commission deems necessary and appropriate. However, Commission is expressly prohibited from promulgating rules or orders relating to restructuring without prior express legislative authorization. (p. 4)

Pennsylvania
H.B. 1509

PUC. (p. 28-29)

Rhode Island
96-H 8124 Substitute B

PUC and the Division of Public Utilities and Carriers. (p. 2)

Massachusetts H.B.5117

 Department of Telecommunications and Energy (DTE), Division of Energy Resources (DOER)

Connecticut H.B. 5005

Department of Public Utility Control (DPUC)

Illinois H.B. 362

Public Utility Commission

Independent System Operator (ISO)

Nevada
A.B. 366

 

California
H.B. 1890

Control of transmission system given to ISO. Utilities cannot collect CTC unless they commit control of their transmission assets to ISO. ISO governed by Oversight Board selected by governor and legislature.
(p. 30, 36-39, 87, 90)

Maine
H-568, (LD 1804)

The governance of any ISO with responsibility for operations of the regional transmission system must be fully independent of influence by market participants. The PUC shall use all means within its authority and resources to advocate for and promote the interests of Maine ratepayers in any FERC proceeding involving the development, governance, operations, or conduct of an ISO. PUC shall monitor events in the region pertaining to the development of an ISO, the management of competitive access to the regional transmission system, and rights to negotiate potential contracts

between buyers and sellers. If the PUC determines that there is insufficient independence on the part of the ISO, the PUC shall provide a report to the joint standing committee of the legislature with recommendations to remedy the problem. (p. 20, 22-23)


Montana
S.B. 390

 

New Hampshire
H.B. 1392

 

Oklahoma
S.B. 500

 

Pennsylvania
H.B. 1509

All participants encouraged to coordinate plans and transactions through ISO or functional equivalent. ISO should, and PUC shall, set and enforce inspection, maintenance, and repair standards. (p. 23)

Rhode Island
96-H 8124 Substitute B

By 1/1/97, electric licensing committee to submit recommendations to legislature for changes to regional power pool that would facilitate creation of ISO. (p. 22)

Massachusetts
H.B.5117

Established as of 3/1/98. Monitored and analyzed by DOER.

Connecticut
H.B. 5005

The licensing process for sellers of electricity begins April 1, 1999 and requires that the seller be registered with or certified by the regional ISO, ISO-New England, or have a contractual relationship with an entity that is so registered or certified. The seller must be in compliance with all ISO-New England rules and standards and must own or purchase such capacity and reserves as ISO-New England may require.

Illinois
H.B. 362

As of enactment of bill, each electric utility company will file a request to join an ISO. If by 3/31/99, FERC has not approved the ISO application; or if by 6/30/99, all utilities have not applied to be a part of the ISO, an Oversight Board will be formed to oversee creation of ISO.

Power Pool

Nevada
A.B. 366

 

California
H.B. 1890

Power Exchange established to operate an efficient, competitive auction for electricity open to all suppliers on a nondiscriminatory basis.(p. 5, 39)

Maine
H-568, (LD 1804)

 

Montana
S.B. 390

 

 

New Hampshire
H.B. 1392

New England Power Pool should be reformed to compliment restructuring on a regional basis. Any pool structure should not preclude bilateral contracts and should not preclude ancillary pool services from being obtained from non-pool sources. (p. 8)

Oklahoma
S.B. 500

Legislative task force is authorized to retain consultants to study the benefits of establishing a Power Exchange which would operate as a power pool allowing power producers to compete on common ground in the state. (p. 9)

Pennsylvania
H.B. 1509

PUC to take all necessary steps to encourage interstate power pools. PUC and utilities to work with federal and state governments, regional reliability councils, and interstate power pools to ensure reliable service. (p. 37)

Rhode Island
96-H 8124 Substitute B

By 1/1/97, electric licensing committee to submit recommendations to legislature for changes to regional power pool that would facilitate creation of voluntary power exchange. PUC shall establish regulations for non-regulated power producers selling into state that are necessary to meet operating and reliability standards of regional power pool. (p. 22)

Massachusetts
H.B.5117
 

 

New England Power Pool should be used to provide strong coordination and enforceable protocols for all users of the power grid and to promote the use of the interconnected regional transmission systems.

Connecticut
H.B. 5005

(see text above for Massachusetts)

Illinois
H.B. 362

Mandatory Rate Reductions or Rate Caps

Nevada
A.B. 366

Rates charged for residential services must not exceed the rate charged for the service on 7/1/97. The rate cap remains in effect until 2 years after the date the PUC repeals the regulations that established the pricing method for the service. The PUC may approve an increase in the rate for residential service in an amount that does not exceed the increase necessitated to ensure the recovery by the utility of just and reasonable costs. (Section 45, p. 18)

California
H.B. 1890

Small customers receive at least 10 percent reduction on 1/1/98 and no less than 20 percent by 4/1/02. Can be financed with rate reduction bonds. (p. 5, 28, 49)

Maine
H-568, (LD 1804)

When retail access begins, PUC shall ensure that standard-offer service is available to all consumers of electricity. By 2/15/98, PUC shall provisionally adopt rules establishing terms and conditions for standard-offer service. If qualifying bids for standard-offer service in any service territory, when combined with the regulated rates of transmission and distribution service and any stranded costs charge exceed, on average, the total rate for electricity immediately before the implementation of retail access, PUC shall investigate whether implementation of retail access remains in the public interest or whether other mechanisms to achieve the public interest and to adequately protect consumer interests need to be put in place. PUC shall notify legislature of results of its investigation and its determination. (p. 17-18)

Montana
S.B. 390

Rate moratorium during transition period: 7/1/98 thru 6/30/00, utilities may not charge more than rates in effect on 7/1/98; 7/1/00 thru 6/30/02, utilities may not increase the increment of rates normally allocated to electric supply-related costs above those associated with such costs in effect on 7/1/98. From 7/1/00, utilities may propose increases to rate increments normally allocated to T&D costs. Increased costs related to universal system benefit programs greater than those in effect on passage are exempt from rate caps, as are increased costs necessary to implement full customer choice including metering, billing, and technology. Certain other exemptions are allowed in extraordinary cases. (p. 6-8)

New Hampshire
H.B. 1392

 

Oklahoma
S.B. 500

 

Pennsylvania
H.B. 1509

Rates capped at 1/1/97 levels for 54 months or until stranded costs are recovered and all customers have retail access, whichever is shorter. Additionally, generation component of rates is capped for 9 years or until distribution utility has collected stranded costs and all customers have direct access, whichever is shorter. (p. 30-31)

Rhode Island
96-H 8124 Substitute B

Within 3 months after retail access is available to 40 percent of the kW sales in New England and extending through 2009, distribution companies must arrange power contracts for their customers who have not contracted for their own power supply such that the average revenue per kWh received from the customer shall equal the price for the 12-month period ending 9/30/96, with certain inflationary adjustments. No customer who chooses this standard offer and subsequently contracts with their own supplier shall be required to pay an exit fee. (p. 26)

Massachusetts
H.B.5117

2.8 cent/kWh standard offer charge for generation offered by energy producers affiliated with established distribution companies.

10% rate reduction for all customers off rates in effect 8/97. Proceeds from securitization, if chosen and approved, can be used toward further reducing rates by additional 5%.

Connecticut
H.B. 5005

From 7/1/98 until 1/1/00, rates are capped at their 12/31/96 levels. Starting 1/1/00, each distribution company must provide service under a "standard offer" to those customers who do not arrange for service from an alternate supplier. The standard offer, provides for a 10% reduction (off rates effective 12/31/96). This requirement runs for 4 years. DPUC must adjust rates under the standard offer to reflect changes in taxes and fuel costs. Starting 1/4/04, distribution companies must procure power for consumers who do not obtain service from competitive suppliers, but can charge market rates for this power.

Illinois
H.B. 362

ComEd and IP residential rate reductions:
8/98 15%
10/02 0%
Other suppliers except CILCO's residential rate reductions:
8/98 5% (2% CILCO)
5/02 Max. 5%
10/02 reflective of the Midwest avg.

CILCO has had historically low rates compared to the Midwest avg, therefore, it doesn't have to offer as substantial rate reductions as ComEd and IP. Non-residential customers get no rate reduction.

 Financing Rate Reductions and Stranded Costs

Nevada
A.B. 366

 

California
H.B. 1890

Provides for rate reduction bonds to finance rate reductions and stranded ("transition") costs. (p. 5-6, 75-87)

Maine
H-568, (LD 1804)

 

Montana
S.B. 390

PSC may authorize the imposition and collection of fixed transition amounts and the issuance of transition bonds. After 7/1/97, a utility may apply to the PSC for a determination that certain transition costs may be recovered through the issuance of transition bonds. If such bonds are not issued within 4 years of the PSC order, the order must terminate. A utility may apply for an extension or renewal of the order. Order must set forth the term over which transition bonds are to be paid-not to exceed 20 years. Upon issuance of transition bonds, the financing orders and fixed transition amounts must be irrevocable. Cost savings associated with and resulting from the bonds must benefit customers. Proceeds from bonds must be used to recover, reimburse, finance or refinance transition costs, and to acquire transition property. Bonds may not constitute an indebtedness or loan of credit against the state or a political subdivision thereof. Co-ops may fully recover transition costs approved by local governing body.
(p. 2-3, 6-7, 10,16-21)

New Hampshire
H.B. 1392

 

Oklahoma
S.B. 500

All transition costs shall be recovered by virtue of savings generated by increased efficiency in markets brought about by restructuring. All classes of consumers shall share in the transition costs. No later than 1/1/99, Commission shall commence study of financial issues related to restructuring. Study shall include but is not limited to examination of IOU financing and any other financial issues Commission deems appropriate. Final report shall be provided to legislative task force no later than 12/31/99. (p. 6-7)

Pennsylvania
H.B. 1509

PUC may approve utility request for issuance of transition bonds for some or all of its stranded costs. If approved, the utility's rates or its CTC must be reduced by an amount equal to the revenue requirement of the stranded costs for which transition bonds have been issued. (p. 52-53, 69-84)

Rhode Island
96-H 8124 Substitute B

 

 

Massachusetts
H.B.5117

As of 7/1/98, DTE will review purchase power contracts to determine if utility companies have made efforts to reduce or renegotiate them in order to reduce stranded costs. Non-mitigable stranded costs can be collected through a transition charge.

Customers can only bypass transition charge if they have already notified utility company of intention to cogenerate. No exit fee would be charged that customer in that case.

Connecticut
H.B. 5005

Certain stranded costs resulting from generation-related regulatory assets and above-market long-term contracts are eligible to be refinanced through the issuance of rate reduction bonds. The bonds will mature no later than 12/31/11. Beginning 1/1/00, all utility customers will be charged a new competitive transition assessment to pay the debt service on the rate reduction bonds and approved stranded costs that are not eligible to be funded with the proceeds of the rate reduction bonds. The assessment will be charged until the bonds are paid in full and stranded costs are fully recovered by the utilities.

Illinois
H.B. 362

Utilities may use securitization to finance transitional costs or stranded costs. Commission must approve of securitization as long as the proceeds of sale will be used to:
1)refinance debt, equity or both reducing capital;
2)retire fuel contracts for nukes; or
3)fund debt services to pay for costs associated with above.
Funding charges for securitization can only be collected until 12/31/08.

 Divestiture of Generation Assets

Nevada
A.B. 366

A vertically integrated electric utility shall not provide a potentially competitive service except through an affiliate. The PUC shall establish limitations on ownership, operation, and control of the assets of a provider of an electric service to prevent anti-competitive conduct and ensure the development of effective competition. Such conditions and limitations may include limitations on the ownership, operation, and control of transmission facilities and any generation necessary to the reliable and economic operation of such transmission facilities. An affiliate may provide a potentially competitive service if PUC finds there is an arm's length transaction that will not adversely affect effective competition and the risk of anti-competitive behavior, and the regulatory expense to prevent such behavior, is minimal; PUC shall adopt procedure to process an affiliate request to provide potentially competitive service and shall make any required findings no later than 6 months before authorizing retail competition. (Section 39, p. 12; Sections 41-43, p. 15-16)

California
H.B. 1890

Essential to separate monopoly transmission function from competitive generation operations by use of ISO. PUC must approve retention of generation assets in same corporation with distribution assets after market valuation.
(p. 29, 61)

Maine
H-568, (LD 1804)

On or before 3/1/00, each investor-owned utility shall divest all generation assets and generation-related business activities other than contracts with QFs or demand side management providers, facilities located outside the U.S., or generation assets PUC determines necessary for the utility to perform its transmission and distribution obligations. No later than 1/1/99, each utility shall submit to the PUC a plan to accomplish divestiture. PUC shall review the plans and, by 7/1/99, issue an order approving or modifying the plan. Utility may apply for an extension beyond 3/1/00. PUC shall grant an extension if the extension would improve the sale value of the assets. If extension is granted, utility shall transfer generation assets to a distinct corporate entity by 3/1/00. After 2/28/00, each utility shall sell rights to capacity and energy from all generation assets except those necessary to perform its transmission and distribution obligations. PUC shall adopt rules governing the procedure for divestiture. PUC shall require distribution utility to divest an affiliated competitive provider if the utility or the affiliate has knowingly violated provisions of the Act and the violation resulted in or had the potential to result in substantial injury to retail consumers. If, after the effective date of the Act, 10 percent or more of the stock of a distribution utility is purchased by an entity, the purchasing entity and any affiliate may not sell or offer generation service to any retail customer and, if the PUC determines that an affiliated provider obtains an unfair market advantage as the result of such a purchase, the PUC shall order the distribution utility to divest the affiliate. If PUC orders a distribution utility to divest an affiliate, the distribution utility may not have an affiliated interest in a competitive provider after the divestiture. (p. 2, 7, 11-12)

Montana
S.B. 390

To the extent a utility is vertically integrated, it shall functionally separate electricity supply, retail transmission, and distribution. PSC may approve functional separation but may not order divestiture or prohibit it. Utilities shall prevent undue discrimination in favor of own power supply and prevent any form of self-dealing that could result in noncompetitive electricity prices. Utilities must grant customers and suppliers access to the utilities' retail transmission and distribution systems on a nondiscriminatory, comparable basis. Utilities may satisfy these provisions if they adopt a code of conduct consistent with the FERC-approved code of conduct. Similar provisions apply to co-ops. (p. 2, 5, 9)

New Hampshire
H.B. 1392

Restructuring should require at least functional separation of generation from transmission and distribution services. However, distribution companies should not be entirely precluded from owning small-scale distributed generation resources. PUC authorized to require that distribution and power supply services be provided by separate affiliates. (p. 2, 4, 11)

Oklahoma
S.B. 500

A primary goal of a restructured electric industry is to encourage development of competition through separation of generation services from transmission and distribution services. Entities what own both transmission and distribution, as well as generation facilities, shall not be allowed to use any monopoly position in these services as a barrier to competition. Generation services shall be functionally separated from transmission and distribution services. No later than 1/1/98, Commission shall commence study of technical issues related to restructuring, which shall include but not be limited to examination of unbundling of generation, transmission and distribution services, and market power. (p. 2-4, 6)

Pennsylvania
H.B. 1509

PUC may permit but cannot require a utility to divest facilities or reorganize its corporate structure. (p. 33-34)

Rhode Island
96-H 8124 Substitute B

By 1/1/97, distribution companies must file plan with PUC to transfer ownership of generation facilities to separate affiliates. Every wholesale power supplier receiving contract termination fees must subject its generating facilities to market valuation through lease, sale, spin-off or other method. At least 15 percent of such facilities must be disposed of through this process. If company is subject to a higher requirement in another state's restructuring proceeding, same amount will apply in Rhode Island. Implementation methodology must be filed with PUC by 7/1/97. Employees of distribution company must function independently of affiliated non-regulated power company under detailed standards of conduct.
(p. 17, 31-32, 35-38)

Massachusetts
H.B.5117

Optional divestiture, although encouraged by DTE as a good way for utility to rid itself of nuclear related stranded costs. Non-nukes must be sold at auction or sale. Proceeds from sale of generation, net of tax effects, should be applied to reduce amount of transition costs. Affiliates must be separate entities.

Connecticut
H.B. 5005

The state's electric companies must unbundle and separate their power generation assets from their transmission and distribution assets. Utilities must divest their nonnuclear generation by 1/1/00, sell their nuclear generation assets and mitigate their costs in order to be eligible to claim any stranded costs. By 1/1/00, DPUC must establish a competitive transition assessment (CTA) for each distrib co. to recover DPUC-approved stranded costs. The CTA will be applied to all customers.

Illinois
H.B. 362

Treatment of Stranded Costs

Nevada
A.B. 366

When PUC determines an electric utility providing noncompetitive service cannot meet the conditions to also provide a potentially competitive service, utility has reasonable opportunity to recover previously incurred costs of those services it elects not to provide in future. The PUC shall determine the recoverable costs associated with assets and obligations documented in the accounting records of a vertically integrated electric utility that are properly allocable to a particular potentially competitive service as of the date alternative sellers begin providing such service in this state. Shareholders of the utility must be fully compensated for all such costs determined by the PUC. In determining the recoverable costs, the PUC shall take into account extent utility was legally required to incur cost; extent market value exceeds costs for assets and obligations; mitigation efforts; extent to which previous rates have already compensated shareholders for risk of non-recovery; tax effects; and, where utility had discretion to incur costs, its performance relative to similar utilities. PUC may impose a non-bypassable mechanism for recovery and determine time period for recovery. Such determinations and procedures must not discriminate against a market participant. (Section 43, p. 16; Section 46, p. 18)

California
H.B. 1890

Fair opportunity to fully recover costs of PUC approved generation-related assets, including work force realignments and buyouts of certain existing power contracts. PUC to identify and determine costs and categories that may become uneconomic. Such costs are recoverable from all customers on a non-bypassable basis. Calculation based on book cost net against market value. Departing customers pay a severance fee; remaining customers pay a competitive transition charge (CTC) based on customer usage. CTC ends for most costs on 12/31/01; employee related cost recovery extends to 12/31/06. "Firewall" protects customers in one class from absorbing CTC exemptions granted in other classes. If local publicly owned utility elects not to allow retail competition, it cannot recover stranded costs. (p. 5, 31, 45-53, 60, 89-90)

Maine
H-568, (LD 1804)

Stranded costs are defined as a utility's legitimate, verifiable, and unmitigable costs made unrecoverable as a result of restructuring and determined by the PUC. For each utility, PUC shall determine the sum of the following to the extent they qualify as stranded costs: costs of utility's regulatory assets related to generation; difference between net plant investment associated with generation assets, and the market value of generation assets; difference between future contract payments and market value of the utility's purchased power contracts. When determining market value of generation assets and purchased power contracts, PUC shall rely to the greatest extent possible on market information. PUC may not include any costs for obligations incurred on or after 4/1/95, except: regulatory assets created after 4/1/95 and prior to 3/1/00, for amortization of costs associated with restructuring a QF contract; costs deferred pursuant to rate plans; energy conservation costs; obligations incurred after 4/1/95, and prior to 3/1/00, that are beyond the control of the utility; and obligations incurred after 4/1/95, to reduce potential stranded costs. Utility must pursue all reasonable means to reduce potential stranded costs and to receive highest possible value for assets and contracts. PUC shall consider utility's efforts to mitigate when determining amount of stranded costs. PUC shall provide utility a reasonable opportunity to recover stranded costs through rates of transmission and distribution. Nothing in the Act may be construed to give a utility a greater or lesser opportunity to recover stranded costs than existed prior to retail access. Before retail access begins, PUC shall estimate stranded costs of each utility. PUC shall use these estimates as the basis for a stranded costs charge to be charged by each transmission and distribution utility when retail access begins. In 2003, and every 3 years thereafter until utility is no longer recovering adjustable stranded costs, PUC shall correct any substantial inaccuracies in the estimates and adjust the charges to reflect the correction. Any change will be prospective only and may not reconcile past estimates to reflect actual values. PUC shall set an amount of recoverable, stranded costs after calculating the net aggregate value of all divested assets that had proceeds exceeding book costs against the aggregate value of all other stranded generation assets. Commission may not shift cost recovery among customer classes in a manner inconsistent with existing law. PUC shall conduct separate adjudicatory proceedings to determine stranded costs for each utility. In the same proceeding, PUC shall establish stranded cost charges for each utility. Customer who significantly reduces or eliminates consumption due to self-generation, conversion to alternative fuel or DSM, may not be assessed an exit or entry fee in any form. Absent other just cause, a layoff after 3/1/00 is deemed to be a result of retail competition. Each utility must file a plan with the PUC prior to the beginning of retail access providing transition services and benefits for eligible employees. Such benefits include programs to assist employees in maintaining fringe benefits, up to 2 years of retraining and out-placement services, full tuition for 2 years at the University of Maine or a comparable technical school at the discretion of the employee, 24 months of continued health care insurance, and severance pay equal to 2 weeks of base pay for each year of full-time employment. The plan may include provisions for early retirement benefits. PUC shall allocate the reasonable accrual incremental cost of such benefits to ratepayers through charges collected by the transmission and distribution utility. All charges must be transferred to a system benefits administrator in the transmission and distribution utility and used to provide the benefits and services provided for in the Act.
(p. 13-15, 21-22)

Montana
S.B. 390

PSC shall allow recovery of transition costs including unmitigatable costs of QFs such as reasonable buyout or buy down, unmitigatable costs of energy supply-related regulatory assets and deferred charges, unmitigatable transmission costs related to generation and other power purchase contracts, except recovery of those costs is limited to the amount accruing during the first 4 years after the PSC approves a transition plan. Value of generation-related assets must be reasonably demonstrable and considered on a net basis. Methods for determining value include estimating future market values, independent third-party appraisal, and competitive bid sale. Transition charges must be imposed within a transition cost recovery period approved by the PSC on a case-by-case basis. Certain transition costs may have varying transition cost recovery periods. (p. 3, 6-7, 10)

New Hampshire
H.B. 1392

Defined as costs, liabilities, and investments utilities would reasonably expect to recover under existing regulatory scheme but which they will not recover in a competitive market. Such costs limited to existing, PUC-approved renegotiated, or new PUC-mandated, commitments. It is legislative intent to give PUC appropriate tools and guidance to address stranded costs. PUC shall balance interests of ratepayers and utilities. Nothing is intended to provide greater recovery than present law provides. Utilities should recover net nonmitigatable costs of environmental mandates and federally mandated QF contracts. Costs should be on net basis, verifiable, exclusive of transmission and distribution assets, periodically trued up. Recovery should be by nondiscriminatory, appropriately structured charge, fair to all customer classes, limited in duration, consistent with promotion of competitive markets, applied only to customers within the distribution utility's service territory. Entry and exit fees are not preferred mechanisms. PUC may establish interim recovery charge good for 2 years after compliance filing, to be netted against final recovery charges. Interim charge sets no precedent for amount of final recovery charge.
(p. 4, 7-8, 10-11)

Oklahoma
S.B. 500

A procedure shall be established for identifying and quantifying stranded costs and for allocating such costs. Mechanisms shall be proposed for recovery of an appropriate amount of prudently incurred, unmitigatable, verifiable stranded costs. Each entity must propose a recovery plan that establishes its unmitigatable, verifiable stranded costs and a limited recovery period designed to recover costs expeditiously, provided that the recovery period and amount of transition costs shall yield a transition charge that shall not cause total price, including transmission and distribution services, for any consumer to exceed the cost per kW hour paid on the date of this Act during the transition period. Transition charge shall be applied to all consumers including direct access consumers, shall not disadvantage one class or supplier over another, shall not impede competition, and shall be allocated over a period of not less than 3 nor more than 7 years. No later than 1/1/99, Commission shall commence a study of financial issues related to restructuring, which shall include but not be limited to the examination of stranded costs and their recovery, and a final report shall be provided to the legislative task force no later than 12/31/99. (p. 6-7)

Pennsylvania
H.B. 1509

Fair opportunity to fully recover amount of stranded costs PUC determines to be just and reasonable. PUC determines level of each utility's stranded costs to be collected through a non-bypassable CTC applied to all customers accessing transmission and distribution systems. PUC must adhere to specifically enumerated principles in determining amount. Calculation based on utility's known and measurable net generation-related cost determined on net present value basis over life of asset that may become uneconomic despite mitigation efforts. Includes prudently incurred costs of work force realignments and power contract buyouts and excludes any costs previously disallowed by PUC as imprudent. (p. 21-22, 24, 26-27, 35-36, 49-52)

Rhode Island
96-H 8124 Substitute B

Utilities should have a reasonable opportunity to recover prudently incurred transition costs. Distribution companies who purchase wholesale power under an all-requirements contract are authorized to terminate the contract and pay a termination fee. Such payments are recoverable from all customers through a non-bypassable transition charge. Charge may include costs of regulatory assets, nuclear obligations, buyout of above market power contracts, net unrecovered commitments, and capital costs of generating plants. Charge continues until liabilities are satisfied, with true up calculations. Recovery time for certain specified components is limited to period from 7/1/97 to 12/31/09. From 7/1/97 to 12/31/00, charge shall recover 2.8/kWh, thereafter in an amount set by PUC.(p. 3, 20, 28-30)

Massachusetts
H.B.5117

Use of securitization by distribution company would require approval by DTE and is subject to achievement of mitigation efforts satisfactory to DTE. But, use of securitization may only be used if distrib. co. demonstrated that rate reductions stemming from securitization would not be financially viable without securitization.

Connecticut H.B. 5005

To have stranded costs approved, the utility must take reasonable steps to mitigate the costs, including seeking to have the purchasers of generation assets offer employment to those employed by the divested generating facility and making good faith efforts to negotiate the buyout, buydown or renegotiation of power contracts. An electric company is eligible to claim stranded costs in connection with its nonnuclear generation assets only if it divests them. The DPUC will calculate the stranded costs for generation-related regulatory assets to be their book value as of 1/1/00. Stranded costs for long-term contract costs that have been reduced to a fixed present value through the buyout, buydown, or renegotiation of independent power producer contracts and purchased power contracts approved by FERC will be calculated at their present value and the DPUC will then net purchased power contracts approved by the FERC that are below market value against any contracts that are above market value. Stranded costs for nonnuclear generation assets will be calculated by the DPUC to be the difference between the book value and the market value of an efficiently managed, comparable nonnuclear generating facility in a competitive market.

A distrib co. can apply to DPUC to retire Millstone I for economic reasons. DPUC must allow any recovery ordered to be recovered through a CTA. Other nuclear power plants must be operating for recovery of the stranded costs associated with them. Companies must put plants up for auction by 1/1/04 if they want to continue recovery of associated stranded costs.

 

Illinois
H.B. 362

Residential

Graduated transition chg. decreases annually during the period 2002-2006

Non-Residential

.05 cents/kWh in '99 increases to .9 cents/kWh in 2006.

Intangible transition assets can be securitized. Collection of transition costs can continue to 2008, 2010,if determined to be in public interest. The amt. Securitized cannot exceed 50% of total capitalization ($7 billion for ComEd, $1.8 billion for IP)

 Reciprocity

Nevada
A.B. 366

PUC to issue a quarterly report to legislature evaluating, among other issues, opportunities to cooperate, formally or informally, with other states or with the Federal Government in the implementation of competition. (Section 53, p. 23)

California
H.B. 1890

For a utility to sell to another utility's customers, it must allow access to its own customers. Out-of-state utilities must enter into a compact to adhere to enforceable reliability protocols to be allowed to sell to California retail customers. (p. 29, 90-91)

Maine
H-568, (LD 1804)

Montana
S.B. 390

All suppliers must be afforded open, fair, and nondiscriminatory access to customers and a comparable opportunity to compete. Distribution service providers or affiliates may not use another distribution service provider's facilities unless the first provider offers comparable, nondiscriminatory access to its distribution facilities. Co-ops that elect not to participate in retail access may not use utilities' distribution systems unless there is a pre-existing contract.
(p. 11, 14)

New Hampshire
H.B. 1392

 

Oklahoma
S.B. 500

Any municipal corporation may voluntarily become subject to the provisions of the Act through a non-revocable election. Any municipal corporation that elects not to participate shall be prohibited from extending retail electric distribution service beyond its corporate limits with the exception that it may continue to offer retail distribution service from lines owned on the Act's effective date.

(p. 4, 9)

Pennsylvania
H.B. 1509

No entity regulated by the PUC may use the transmission or distribution system of another PUC regulated entity to supply electricity to an end-use customer unless the first entity allows the other entity to sell to its customers. (p. 38-39)

Rhode Island
96-H 8124 Substitute B

 

Massachusetts
H.B.5117

-All suppliers must be given open access to customers and the ability to compete.
-The Commonwealth should enter into compact with other New England state and N.Y. that provides incentives to sell electricity to MA retail customers. But protects reliability of regional transmission and distribution

Connecticut
H.B. 5005

Municipal companies cannot restructure unless they want to sell outside their service territories. If they decide to do this, they must open their markets to competitors. Municipals account for only 4% of the market in CT.

Illinois
H.B. 362

Alternative suppliers may not:
1) deny service or offer different terms, rates, etc. to anyone or group
2)deny service based on locality or change rates etc. based on locality
Electric Co. may serve customer outside service territory as long as customer is eligible for service from alternative and has expressed desire for alt. Service. They may also sell to customers previously served by municipal company.
Municipal CO's are exempt from state jurisdiction.

Customer Aggregation

Nevada
A.B. 366

Customers may begin obtaining aggregation services from an alternative seller no later than 12/31/99, unless the PUC determines that a different date is necessary to protect the public interest. (Section 29, p. 11; Section 39, p. 12)

California
H.B. 1890

All customer classes are entitled to aggregation on a voluntary basis. Can be done by private parties, or governmental entities. Public bodies acting as residential aggregators must offer to include everyone within the jurisdiction.
(p. 43)

Maine
H-568, (LD 1804)

When retail access begins, consumers may aggregate in any manner they choose. If a public entity serves as an aggregator, it may not require consumers within its jurisdiction to purchase generation service from that entity. (p. 2-3)

Montana

S.B. 390

Aggregators may be licensed by the PSC to aggregate retail customer purchases. Aggregators take title to electric energy as an intermediary for sale to retail customers. (p. 2)

New Hampshire
H.B. 1392

 

Oklahoma
S.B. 500

 

Pennsylvania
H.B. 1509

Permits PUC licensing of aggregators, brokers and marketers as suppliers of electric energy, including municipal corporations selling outside their municipal limits, to serve all customer classes. (p. 24, 53-56)

Rhode Island
96-H 8124 Substitute B

Massachusetts
H.B.5117

Municipalities can aggregate, but cannot solicit customers of municipal companies. Cities and towns can aggregate on behalf of citizens.

Connecticut
H.B. 5005

By 1/1/00, the DPUC must propose standards and procedures to facilitate the aggregation of electricity loads and the aggregation of end use customers into buying groups.

Illinois
H.B. 362

Groups of customers can aggregate power needs and purchase electricity at bulk rates. However, customers included in aggregation must have become eligible for choice.

Unbundling

Nevada
A.B. 366

PUC to determine which electric services are potentially competitive using a set of specified criteria. Retail customers will have direct access to such services.
(Section 39, p. 12-13)

California
H.B. 1890

Each electric corporation shall propose a stranded cost recovery plan to the PUC, which must provide identification and separation of individual rate components. Bills shall disclose each component of the total charge.
(p. 49, 62, 71)

Maine
H-568, (LD 1804)

Beginning 1/1/99, utility shall issue bills that state the current cost of electric capacity and energy separately from transmission and distribution charges and other charges for electric service. By 1/31/98, each utility shall file an unbundling proposal with PUC. Beginning 3/1/02, billing and metering services are subject to competition. PUC may establish an earlier date for competitive billing and metering services, but beginning date may not be prior to 3/1/00. (p. 3, 19)

Montana
S.B. 390

Electrical bills must disclose each component of the electrical bill in accordance with the rules promulgated by PSC. Bills must disclose distribution and transmission charges, electricity supply charges, competitive transition charges, and universal system benefits charges. (p. 14)

New Hampshire
H.B. 1392

Restructuring should require unbundling of prices and services. Customers should be able to choose options such as levels of reliability, real time pricing, and generation source. There should be clear price information on generation, transmission, distribution, and ancillary services. (p. 2, 4)

Oklahoma
S.B. 500

A primary goal of a restructured industry is to encourage unbundling of prices. Consumer choice means retail consumers shall be allowed to purchase different levels and quality of electric supply. When consumer choice is introduced, rates shall be unbundled to provide clear price information on generation, transmission, distribution, and ancillary charges. Bills for all classes shall be unbundled, utilizing line itemization to reveal various component costs of services. Charges for public benefit programs shall be unbundled and appear in line item format for all classes of consumers. (p. 3-5)

Pennsylvania
H.B. 1509

PUC must require unbundling of electric services, tariffs, and bills to separate charges for generation, transmission and distribution, and may require unbundling of other services. Customer bills must contain unbundled charges sufficient to enable consumer to determine basis for the charges. (p. 29-30, 47)

Rhode Island
96-H 8124 Substitute B

On or before 1/1/97, and effective 7/1/97, distribution companies shall file unbundled rates separately stating transmission, distribution and transition charges. Customer bills shall conspicuously display specified information, including transition and conservation charges, taxes, number of kWh consumed, cost of power, cost of distribution, and other costs. (p. 27, 49)

Massachusetts H.B.5117

As of 1/1/98, unbundled bills were sent to customers.

Connecticut
H.B. 5005

By 10/1/98, each electric company must submit a plan to the DPUC to unbundle and separate by 10/1/99, all of the utility's generation assets. Any nonnuclear generation assets that the utility does not intend to divest by 1/1/00 must be unbundled and separated by transferring them to one or more separate affiliates. Any nuclear generation assets that the utility does not intend to sell by 1/1/00 must be unbundled and separated by divesting them by 1/1/04, transferring them to one or more separate affiliates or to one or more divisions.

Illinois
H.B. 362
Three years from effective date of this Act, Commission will investigate the need
for unbundling.

Consumer Education

Nevada
A.B. 366

The PUC shall establish minimum standards for the form and content of all disclosures, explanations, or sales information disseminated by sellers of competitive services to ensure that consumers receive adequate, accurate, and understandable information about the service that enables them to make an informed decision relating to the source and type of electric service purchased. Such standards must not be unduly burdensome, must not unnecessarily delay or inhibit competition, and may establish different requirements for disclosures, explanations, or sales information relating to different services or similar services to different classes of customers wherever appropriate. Before commencement of direct access, the PUC shall carry out an educational program for consumers to inform them of changes in the provision of electric service, inform them of the requirements relating to disclosures, explanations, or sales information, and provide assistance in understanding and using the information to make reasonably informed choices. The PUC shall expend up to $500,000 from its reserve account to provide education and informational services to educate and inform residents. The PUC shall contract with an independent person to provide such services. (Section 48, p. 19; Section 57, p. 24)

California
H.B. 1890

Electric corporations, in conjunction with PUC, shall devise and implement a customer education program. (p. 72)

Maine
H-568, (LD 1804)

PUC shall establish standards for publishing and disseminating, through any means considered appropriate, information that enhances consumers' ability to effectively make choices in a competitive market. PUC shall adopt rules implementing a consumer education program including the immediate organization of a consumer education advisory board to investigate and recommend methods to educate the public about retail access and its impact on consumers. PUC shall ensure broad representation from all customer classes including public agencies on the advisory board. Members serve without compensation. The advisory board must address level of funding for adequate educational efforts and source of such funding; aspects of retail access on which consumers need education; most effective means of accomplishing education of consumers; appropriate entities to conduct education efforts; and any other relevant issue regarding education of consumers. PUC shall consider the recommendations of the advisory board when adopting rules to implement a consumer education program. (p. 5, 19)

Montana
S. B. 390

Public utilities shall educate customers about choice so customers can make informed choices. The education process must give special emphasis to efforts during the transition period.

New Hampshire
H.B. 1392

PUC should ensure customer confusion is minimized and consumers will be well informed about changes. (p. 4)

Oklahoma
S.B. 500

Commission shall ensure that consumer confusion will be minimized and consumers will be well informed about changes resulting from restructuring and increased choice. (p. 4)

Pennsylvania
H.B. 1509

Each distribution company, in conjunction with PUC, must implement a consumer education program. PUC shall establish regulations to ensure suppliers provide adequate and accurate information to enable consumers to make informed choices. Information must be in an understandable format that enables comparison of price and service on a uniform basis. (p. 47-48)

Rhode Island
96-H 8124 Substitute B

Distribution companies to notify customers of retail options at least 90 days prior to eligibility for retail access. (p. 25)

Massachusetts
H.B.5117

DOER will be primary agency in charge of consumer ed. DOER will provide a toll free hot-line for customers, and provide educational materials. Educational services will be approved by DTE to ensure they're not duplicative of educational/protection services provided by DTE's Consumer Division.

Portfolio standards and disclosure of fuel sources, emissions etc. will be provided in standardized form for consumers to make supplier choices.

Connecticut
H.B. 5005

DPUC must establish a comprehensive education program. The cost of this program is covered by a systems benefits charge.

Illinois
H.B. 362

Consumer Protection

Nevada
A.B. 366

Any alternative seller must have a PUC license, which may be limited, suspended, or revoked to protect the public interest. By 1/1/99, PUC to establish conditions alternative sellers must satisfy before selling to retail customers. Conditions relate to safety, electric reliability, financial reliability, fitness to serve customers, billing practices, and terms for establishing and terminating service. PUC to establish and implement standards of conduct related to activities inconsistent with goals of Act, including appropriate penalties for violation and procedures for imposing such penalties and referring potential violations to Attorney General or Justice Department. PUC shall establish procedures to ensure no customer is switched to another seller without reliable confirmation.
(Section 40, p. 14; Section 42, p. 15-16; Section 48, p. 19)

California
.B. 1890

Every entity offering power to small customers must register with PUC. All offers of service must include written notice of price and terms, including amount of CTC and right to rescind contract. Consumers can recover actual and punitive damages, including attorney's fees, for violations. No residential or small commercial customer's account can be switched to another provider without confirmation by an independent third party verification company. (p. 6, 43-44, 72-73)

Maine
H-568, (LD 1804)

PUC shall establish minimum standards to protect consumers. PUC shall license competitive electric providers. To issue a license, PUC must receive evidence of financial capability, ability to enter into binding interconnection arrangements with transmission and distribution utilities, disclosure of all pending legal actions and customer complaints filed during the prior 12 months, evidence of ability to satisfy the renewable resource portfolio standards, and disclosure of names and corporate addresses of all affiliates. PUC may also require a bond as evidence of financial ability to withstand market disturbances. PUC shall establish rules governing information disclosure for competitive providers. As a condition of licensure, provider supplying customers with a demand of 100 kW or less may not terminate generation service without 30 days' prior notice, must offer service for a minimum period of 30 days, must allow customer to rescind selection of competitive provider within 5 days of initial selection, may not telemarketing services to a customer who has filed a written request not to receive such services, and must provide a customer with specified disclosure information within 30 days of contracting. PUC may limit the duration and scope of a license or may revoke a license in the public interest. PUC shall establish by rule consumer protection standards to protect and promote market competition and to prevent fraud or other unfair and deceptive business practices. PUC may impose a penalty of up to $5,000 for each violation of any consumer protection rule. Each day of a violation constitutes a separate offense. If PUC has reason to believe that utility has violated any provision of law for which a criminal prosecution is provided or has violated any antitrust law of the state or the US, PUC shall notify the attorney general. Attorney general shall promptly institute any appropriate actions. A distribution utility may not release any proprietary customer information without the prior written authorization of the customer. Employees of a distribution utility may not state or provide any customer or potential customer opinion regarding reliability, experience, qualifications, financial capability, managerial capability, operations capability, customer service record, consumer practices, or market share of any affiliated competitive provider or nonaffiliated competitive provider. (p. 4-6, 9-10, 12)

Montana
S.B. 390

Public interest requires continued protection of consumers through licensure, provision of information, and a process for investigating and resolving complaints. Utilities shall maintain standards of safety and reliability of the electric delivery system. PSC may require proof of financial integrity, adequate reserves, and a license bond. PSC may revoke or suspend a license of an electric supplier or impose a penalty or both. If the supplier intentionally provided false information to PSC, switched electricity customer without written permission, failed to provide reasonably adequate supply of electricity, committed fraud, or engaged in deceptive practices, fine is not less than $100 or more than $1,000 for each violation. Each day of each violation constitutes a separate violation. PSC shall promulgate rules establishing procedures to prevent unauthorized switching of customers. Transitional advisory committee shall file annual report in 2000 that addresses the need, if any, for additional consumer protection including protection from abusive or anti-competitive practices. (p. 1, 11, 13-14, 16)

New Hampshire
H.B. 1392

Retail suppliers who do not own transmission and distribution facilities should at a minimum be registered with PUC. (p. 5)

Oklahoma
S.B. 500

Appropriate rules shall be promulgated ensuring that reliable and safe electric service is maintained. Minimum residential consumer service safeguards and protections shall be ensured. No later than 1/1/98, Commission shall commence study of technical issues related to restructuring including but not limited to reliability and safety. Final report shall be provided to legislative task force no later than 12/31/98. No later than 7/1/99, Commission shall commence study of consumer issues related to restructuring including but not limited to examination of consumer safeguards and licensing of retail suppliers. Final report shall be provided to legislative task force no later than 8/31/00. All retail suppliers shall be required to meet certain minimum standards designed to ensure reliability and financial integrity and be registered with Commission. There shall be no customer switching between distribution providers from the date of this Act until 7/1/02, except by mutual consent of all affected parties. (p. 4-7, 9)

Pennsylvania

H.B. 15

Each generation supplier required to obtain PUC license and post bond or other security to ensure financial responsibility. PUC to establish regulations to prevent customer account transfer without direct oral confirmation or written consent. PUC to monitor market for anti-competitive conduct; investigate complaints or potential violations and refer them as necessary to the appropriate state or federal prosecutors; deny proposed mergers, acquisitions, dispositions, or other transactions that are anti-competitive or discriminatory. (p. 21, 47, 53, 67-69)

Rhode Island

96-H 8124 Substitute B

By 1/1/97, electric licensing committee to submit proposals to legislature for consumer protection. All non-regulated power producers must file registration application with division listing specified information and showing evidence of financial soundness such as surety bonds or other mechanisms specified by division. On request, distribution company must release names and addresses of customers to power producers who will be eligible for retail access within next 60 days, unless customer has requested in writing that information not be released. (p. 22, 24, 26)

Massachusetts

H.B.5117

DTE's Consumer Division will continue to protect consumers and ensure that distribution companies adhere to rules and regulations concerning billing and termination procedures.

Alternative supplier can only serve customers after receiving a Letter of Affirmation stating that the customer desires the alternative supplier.

Connecticut H.B. 5005

By 1/1/99, the DPUC is required to develop licensing procedures for sellers of electricity using the transmission and distribution facilities of an electric company. Suppliers must demonstrate their technical and managerial competence and meet a variety of environmental, consumer protection and labor provisions.

Illinois

H.B. 362

Utility companies retain obligation to serve residential and small commercial customers.

-If a customer leaves and returns to be served by initial utility company, that company must serve the customer at the market price and guarantee service for up to 24 months.

-Supplemental low-income Energy Assistance Fund will be established from surcharge on bills ($.40/mo for residentials, $4.00/mo for non-residentials and $300/mo for large industrials).

-Energy Assistance Program Design Group will design low-income energy efficiency programs.

 

Universal Service/Low-Income Assistance Program

Nevada

A.B. 366

An electric distribution utility shall provide all noncompetitive services within its territory unless the PUC authorizes another entity to provide the noncompetitive service. PUC to establish minimum terms and conditions under which any customer not using an alternate seller will receive electric service. PUC shall designate utility to provide service to customers who do not elect or are unable to obtain alternative seller. Procedures may include, but are not limited to, requiring utility to serve such customers, requiring each alternative seller to serve a share of such customers, competitive bidding to select one or more providers. If the provider is an electric utility, the service shall be provided through an affiliate whose sole business is provision of basic service. (Section 44, p. 17; Section 45, p. 18)

California

H.B. 1890

Such programs must continue to be funded at not less than the 1996 authorized levels. (p. 6, 65-67)

Maine

H-568

(LD 1804

The policy of the state is to ensure adequate provision of financial assistance. In order to continue existing levels of financial assistance for low-income households and to meet future increases in need, PUC shall receive funds collected by all transmission and distribution utilities at a rate set by the commission in periodic rate cases and set initial funding for programs based on an assessment of aggregate customer need. If legislature appropriates financial support for households and individuals receiving assistance from the general fund, PUC may not terminate the assistance provided by transmission and distribution utilities unless the general fund source has completely replaced such assistance. On or before 1/1/98, PUC and state planning office shall provide the legislature with recommendations to fund assistance to low-income consumers through the general fund or through a tax on all energy sources in the state.
(p. 19-20, 26)

Montana

S.B. 390

Universal system benefits programs include cost effective local energy conservation, low-income customer weatherization, renewables and low-income energy assistance. Programs are paid for by a non-bypassable universal system benefits charge assessed at the meter. Programs are established to ensure continued funding of, and new expenditures for, conservation, renewables, and low-income assistance during the transition period and into the future. From 1/1/99 through 7/1/03, 2.4 percent of each utility's annual retail sales revenue for the calendar year ending 12/31/95 establishes the minimum annual funding level. Utilities receive credit for internal programs or activities that support renewables, conservation, or low energy assistance. Credits can be carried forward to future years. Minimum annual funding for low-income and weatherization is established at 17 percent of the utility's annual universal system benefits funding level. The utility's transition plan must describe proposals for benefit programs, including methodologies such as cost effectiveness and need determination used to measure the utility's level of contribution to each program. Customers with loads greater than 1000 kW pay a charge equal to the lesser of $500,000, less credits, or .9 mills per kWh x the customer's kWh purchases, less credits. Utilities must submit an annual summary report relating to system benefit programs to the PSC and the transition advisory committee. Co-ops may collectively pool statewide credits to satisfy annual funding requirements. On or before 7/1/02, transition advisory committee and PSC shall reevaluate system benefits programs and make recommendations to the legislature regarding future need for such programs. On or before 11/1/98, the transition advisory committee shall make recommendations to the governor and legislature regarding low-income assistance programs. Recommendations may include assignment of agency or private nonprofit entity to administer fund. (p. 2-4, 11-12, 16)

New Hampshire

H.B. 1392

Distribution utility has obligation to connect all customers and to maintain minimum residential service safeguards, including low income assistance. A non-bypassable, competitively neutral system benefits charge applied to distribution may be used to fund low income programs. (p. 5)

Oklahoma

S.B. 500

"Public benefit programs" means all social, economic, and environmental programs currently funded through rates charged to consumers. Entities providing distribution services shall be relieved of their traditional obligation to provide electric supply but shall have a continuing obligation to provide distribution service to all consumers within existing service territories. Firm service territories shall be fixed by a date certain if not currently established in law. Minimum residential consumer service safeguards and protections shall be insured including programs and mechanisms that enable residential consumers with limited incomes to obtain affordable essential electric service and the establishment of a default provider for any distribution customer who has not chosen an alternative supplier. Commission shall consider establishment of a distribution access fee assessed to all consumers to cover social costs, capital costs, and operating costs. No later than 1/1/99, Commission shall commence study of financial issues related to restructuring including but not limited to stranded benefits and their funding. Final report shall be provided to legislative task force no later than 12/31/99. No later than 7/1/99, Commission shall commence study of consumer issues related to restructuring including but not limited to examination of service territories, obligation to serve, and obligation to connect. Final report shall be provided to legislative task force no later than 8/31/00. (p. 3, 5, 7)

Pennsylvania

H.B. 1509

State must at a minimum continue current protections and policies to assist low-income customers. PUC shall ensure that universal service is appropriately funded in each distribution territory and shall encourage the use of community-based organizations with necessary experience to be direct providers of programs that assist low-income customers. PUC shall establish an appropriate cost recovery mechanism for each utility to fully recover universal service costs. Distribution company remains provider of last resort unless PUC approves alternative. While distribution company collects CTC, or until there is 100 percent direct access, company has full obligation to serve, including connection, delivery, and acquisition of power. After transition period, PUC shall adopt regulations defining obligation to serve. (p. 20, 22, 28, 34-35, 48-49)

Rhode Island

96-H 8124 Substitute B

Current special rates and protections shall continue. Within 3 months after 40 percent of kWh sales in New England are available for retail access, distribution company shall arrange a last resort power supply for customers unable to receive power under the standard offer or elsewhere. Company shall periodically solicit bids for power at market prices plus a fixed contribution from the company, subject to PUC approval. Company's fixed contribution is recoverable in rates charged all other customers. Company can terminate for nonpayment pursuant to PUC regulations. Authorized performance-based rate increases for distribution companies between 1/1/97 to 12/31/98 cannot be applied to low-income customers. (p. 3, 27-28, 35, 43)

 

Massachusetts

H.B.5117

Default service will ensure that customer will be served by incumbent supplier. Rate shall never exceed the avg. monthly market price of electricity. Payment options and rates charged for default service will remain uniform for up to 6 months. Ratepayer Parity Trust Fund will be established to subsidize low-income rates from monthly benefits surcharge on customers' bills.

Connecticut H.B. 5005

Universal Service: Default and back-up service is required of distrib co's. Standard offer rate is available to all customers.

Low-income: Include bars on discrimination on basis of income and redlining, a requirement that the state budget agency open the state electricity purchasing pool to people on public assistance. The ban is extended to include preventing winter shut-offs. The low-income programs, studies and other efforts are funded through a systems benefits charge.

 

Illinois

H.B. 362

Utility companies retain obligation to serve residential and small commercial customers.

-If a customer leaves and returns to be served by initial utility company, that company must serve the customer at the market price and guarantee service for up to 24 months.

-Supplemental low-income Energy Assistance Fund will be established from surcharge on bills ($.40/mo for residentials, $4.00/mo for non-residentials and $300/mo for large industrials).

-Energy Assistance Program Design Group will design low-income energy efficiency programs.

 

Renewable Energy, Conservation, and Environmental Issues

Nevada

A.B. 366

The PUC shall establish portfolio standards for domestic energy that set forth the minimum percentage of the total electricity sold during each calendar year that must be derived from renewable energy resources. The portfolio standards must require two-tenths of 1 percent of the total amount of electricity annually consumed by customers in this state as of 1/1/01 to come from renewables. This standard must be increased biannually thereafter by two-tenths of 1 percent of the total annual electric consumption until the standard reaches a total of 1 percent of the total amount of electricity consumed. The electricity must be derived from not less than 50 percent renewable energy resources and be derived from not less than 50 percent solar renewable energy systems. Tradable renewable energy credits are allowed. Reporting requirements are established to ensure that all providers comply with the standards. A vertically integrated electric utility that has 9 percent of its electricity furnished by renewable energy resources on 1/1/97 is deemed to be in compliance until 1/1/05. Between 1/1/05 and 12/31/09, such a utility shall reach a total of one-half of 1 percent of the annual amount of electricity consumed, in annual increments of one-tenth of 1 percent, from solar energy resources. (Section 52, p. 22-23)

California

H.B. 1890

PUC must require each electric corporation to identify a rate component to fund energy efficiency, public interest research and development, and demand side management in specified yearly amounts that total $540 million through 3/31/02. The funds are to be held by the Energy Commission until further legislative action. Consumers can make voluntary contributions through their monthly bills to support such programs. (p. 6, 61-67)

Maine

H-568

(LD 1804)

Renewable resources are defined as total power production capacity not exceeding 100 mW and relying on fuel cells, tidal power, solar, wind, geothermal, hydroelectric, biomass, or municipal solid waste generators. Each competitive provider must demonstrate that no less than 30 percent of its portfolio of supply sources is derived from renewable resources. PUC shall review the 30 percent requirement and make a recommendation for any change to the joint standing legislative committee no later than 5 years after the beginning of retail competition. PUC shall require utilities to implement energy conservation programs. (p. 15-17)

Montana

S.B. 390

Public interest requires continued protection of consumers through funding for public purpose programs for energy conservation, weatherization, and renewable resource projects and applications. Such programs are paid for with a universal system benefits charge assessed at the meter. Beginning 1/1/99 through 7/1/03, 2.4 percent of each utility's annual retail sales revenue for the calendar year ending 12/31/95, is the minimum annual funding level for total system benefits programs, and 17 percent of that minimum must be used for low-income assistance programs, including weatherization. The balance may be used for other benefit programs such as energy conservation and renewables. Customers with loads greater than 1000 kW pay a system benefit program charge equal to the lesser of $500,000, less credits, or .9 mills per kW hour x the customer's kWh purchases, less credits. Credits can be carried forward into future years. Customers are entitled to credits for expenditures on renewable energy or conservation-related activities that are part of internal utility programs or activities. Utilities must submit an annual summary report to PSC and transition advisory committee detailing activities relating to all system benefit programs. On or before 7/1/02, PSC and transition advisory committee shall reevaluate ongoing need for such programs and make future needs recommendation to legislature. (p. 2-4, 11-12, 16)

New Hampshire

H.B. 1392

Overall policy goal is to implement restructuring with minimum adverse consequences to environment. Continued environmental protection and long-term environmental sustainability should be encouraged. A non-bypassable, competitively neutral system benefits charge applied to distribution may be used to fund energy efficiency, research and development, and investments in new technologies, as determined by the PUC. Increased future commitments to renewables should be consistent with existing state energy policy and be balanced against impact on rates. Over the long term, renewables can have significant environmental, economic, and security benefits. Customers should be able to pay a premium for renewables. Incentives should be provided for demand side management. (p. 2, 5-7)

Oklahoma

S.B. 500

 

 

Pennsylvania

H.B. 1509

 

 

Rhode Island

96-H 8124 Substitute B

From 1/1/97 until 12/31/01, each distribution company must include a 2.3 mills per kWh charge to fund demand side management and renewables. PUC shall determine allocations of funds between the two categories. PUC, at its own discretion, may increase the sums after notice and public hearing. City where a generation plant has been proposed may request builder to fund study of environmental effects of proposed facility, up to lesser of $100,000 or .1 percent of estimated capital cost of project. (p. 43, 52-53)

 

Massachusetts

H.B.5117

Energy efficiency benefits charge assessed to all but muni electric company customers for DSM over five years starting 3/1/98 ($.0033/kwh in '98, to $.0025/kwh by 2002). Competitive procurement process must be used.

DOER will oversee and coordinate energy efficiency programs.

Renewables will be funded by vacillating annual rate of $.00075/kwh to $.0005/kwh by 2002. Funds would be deposited in "Massachusetts Renewable Energy Trust Fund". Renewables portfolio will be established by DOER. DOER will oversee and coordinate ee programs. Minimum requirements for retail suppliers for new renewables:

  • 1% of sales by 2003, or within one year of any renewable being within 10% of the avg. spot mkt price;
  • an additional .5% per year through 2009;
  • an additional 1% per year until a date determined by DOER.

Hydro and municipal solid waste don't count toward new renewables requirement, but may count toward a portfolio standard to be determined by DOER for all renewables, including existing.

A study was ordered to be conducted by department of revenue on the following tax deduction options: customers purchasing renewable energy in excess of minimum requirements under renewables portfolio standard, could take tax deduction of 50% of above market price. Business customers would get 25% tax deduction. Individual or business purchasing energy efficiency equipment would be eligible for a 20% deduction up to $10,000. Businesses would be eligible for 10% up to $50,000.

Performance standards for fossil fuel plants will be drawn up by EPA with adoption by at least 3 other northeast states. Assessment against all nukes will be at least $90,000 to be used for radiation control program.

The performance standards for fossil fuel plants must include at least one pollutant by 2003, or earlier if adopted by 3 other states. The state Dept. of Environmental Protection, in conjunction with the A.G. shall promulgate standards for any pollutant determined by the DEP to be of concern to public health, and produced in quantity by electric generation facilities.

Connecticut H.B. 5005

DPUC must establish a 0.3 cents per kilowatt-hour charge to fund energy conservation programs and a charge rising to 0.1 cents per kilowatt-hour to fund investments in renewable technologies. The Department of Environmental Protection must develop emission standards for pollutants for generating plants serving the Connecticut market, whether they are located in the state or elsewhere. The standard for a pollutant goes into effect when adopted by three northeastern states having a total population of at least 27 million.

There is a Renewables Portfolio Standard that preserves the level of existing renewables, 5.5% of sales, and requires sales from those (or other renewable) technologies to increase to 7% by 2009. Sales from Class I renewables (solar, wind, sustainable biomass, fuel cells) must equal .5% per year to 3% by 2006; and an additional 1% per year to 6% by 2009.

Illinois

H.B. 362

Renewable Energy Resources Program will be administered by Dept. of Commerce and Community Affairs. Grants, loans and other incentives for investment in renewable energy resources. Report will be made to the General Assembly on the use and potential of renewables. As of 1/198 "Renewable Energy Resources and Coal Technology Development Assistance Charge" will be assessed customers. $.05/mo for residential, non-residential and gas customers; $37.5/month for non-residential electric and gas customers.

Environmental protection: $100 million over 10 years for development of renewable energy resources and coal technology. $10 million in annual funding through surcharge on bills.

Energy Efficiency Trust Fund: As of 1/1/98, this trust fund will consist of the pro-rata share of $3 million based on kWh sales from each supplier.

By 4/1/99, every supplier with nuclear generation must file a tariff indicating the kWh sales for those facilities for decommissioning expense purposes.

 

Treatment of Transmission and Distribution (T&D)

Nevada

A.B. 366

A public entity does not become subject to the provisions of Sections 28-53 solely because the entity provides transmission or distribution service to an alternative seller except that the public entity shall provide such transmission and distribution services on an open and nondiscriminatory basis to alternative sellers in accordance with standards the PUC may establish by regulation. The PUC shall require each provider of a noncompetitive service that is necessary to the provision of a potentially competitive service to make its facilities or services available to all alternative sellers on equal and nondiscriminatory terms and conditions. The PUC may establish standards of conduct to prevent anti-competitive activities and such standards of conduct may include limitations on the ownership, operation, and control of transmission facilities and any generation necessary to reliable and economic operation of such transmission facilities. The PUC shall adopt regulations ensuring that a person who owns a transmission or distribution facility makes the facilities available on equal and nondiscriminatory terms and conditions to all alternative sellers or customers of alternative sellers. The Colorado River Commission may sell electricity or provide transmission or distribution service to customers who it was not serving or with whom it did not have a contract on the effective date of the relevant provisions of the Act, if the Colorado River Commission allows its system for transmission and distribution to be utilized by other alternative sellers pursuant to such terms and conditions as the PUC may establish. PUC may conduct an investigation of the effect on the market of transmission congestion or constraints. (Section 40, p. 14; Section 41, p. 15; Section 42, p. 15; Section 44, p. 17; Section 50, p. 20)

California
H.B. 1890

Continues to be regulated. All customers and suppliers to receive open, nondiscriminatory, and comparable access. (p. 29-30)

Maine

H-568

(LD 1804)

Upon request from a competitive provider, PUC shall provide load data on a class basis that is in the possession of a T&D utility, subject to reasonable protective orders to protect confidentiality. Except as otherwise permitted, on or after 3/1/00, an IOU T&D may not own, have a financial interest in, or otherwise control generation or generation-related assets. After commencement of retail access, a large investor-owned T&D utility serving more than 50,000 retail customers may not sell electricity to any retail customer. An affiliated provider may sell to retail customers outside the service territory of the distribution utility with which it is affiliated and within the service territory of the distribution utility with which it is affiliated, except that the affiliate may not sell more than 33 percent of the total kWh sold within the service territory of the distribution utility. No later than 1/1/05, based on its evaluation of the development of the competitive retail sales market, PUC shall complete an evaluation of the need for the market share limitation and shall report its findings to the legislature. A distribution utility may not engage in joint advertising or marketing programs of any sort with its affiliated competitive provider. Employees of a distribution utility may not be shared with and must be physically separated from those of an affiliated competitive provider. A distribution utility and its affiliated competitive provider must keep separate books and records. All regulated products and services offered by a distribution utility, including any discount, rebate, or fee waiver, must be available to all customers and competitive providers simultaneously and without undue or unreasonable discrimination. (p. 3, 8-12)

Montana

S.B. 390

Distribution services providers must make distribution facilities available to all suppliers, providers, and customers on a nondiscriminatory, comparable basis; and be the emergency supplier of electricity and related services. When a distribution services provider acts as emergency supplier, the supplier that should have provided the power must reimburse the distribution company according to a prescribed formula. Distribution services providers are not required to purchase reserve supply to fulfill emergency obligations. Transmission services must also be available on a nondiscriminatory, comparable basis. If a co-op offers electricity competitively to customers using a utility's distribution facilities, the co-op must create an affiliated for-profit entity to serve those customers that allows the entity to be taxed at the same level as other for-profit suppliers. PSC shall regulate retail transmission and distribution services including establishment of just and reasonable rates, which may include performance-based rates. (p. 2, 6, 9-10, 12-13, 22)

New Hampshire

H.B. 1392

T&D should remain regulated for the foreseeable future. PUC to take necessary measures to ensure nondiscriminatory, comparable, and open access to T&D. (p. 4-5)

Oklahoma

S.B. 500

A primary goal of a restructured industry is to enable suppliers to engage in fair and equitable competition through open, equal, and comparable access to T&D systems. Entities which own both T&D as well as generation facilities shall not be allowed to use any monopoly position in these services as a barrier to competition. Generation shall be functionally separated from T&D services, which shall remain regulated. Comparable access for retail suppliers competing with affiliates of entities supplying T&D shall be assured. Commission shall monitor companies providing T&D and take necessary measures to ensure no supplier of such services has an unfair advantage in offering and pricing such services. Benefits associated with implementing an independent system planning committee composed of owners of electric distribution systems to develop and maintain planning and reliability criteria for distribution facilities shall be evaluated. No later than 7/1/99, Commission shall commence study of consumer issues related to restructuring including but not limited to examination of service territories, obligation to serve, and obligation to connect, as well as rates for regulated services. Final report shall be provided to the legislative task force no later than 8/31/00. (p. 3-7)

Pennsylvania

H.B. 1509

Continues to be regulated as a natural monopoly. Distribution company remains provider of last resort unless PUC approves alternative. PUC shall require all transmission and distribution facilities to provide comparable open access to all customers and suppliers. There is a rebuttable presumption the distribution company can accommodate all requests for service from suppliers but does not have to install nonstandard equipment unless customer pays full cost of such facilities. While distribution company collects CTC, or until there is 100 percent direct access, company has full obligation to serve, including connection, delivery, and acquisition of power. After transition period, PUC shall adopt regulations defining obligation to serve. Company must accept returning customer on same terms and conditions as new applicant. Distribution company shall implement procedures to require suppliers to deliver sufficient power to meet supplier's customer obligations. Subject to PUC approval, company may require customer to pay for enhanced metering capability. (p. 22, 28, 34, 46, 48-49)

Rhode Island

96-H 8124 Substitute B

T&D companies must provide nondiscriminatory access on reasonable terms consistently applied to all customers. Distribution companies must terminate all requirements contracts with generators no later than 3 months after 40 percent of the kWh sales in New England are available for retail access and can only own or operate generation or transmission facilities through affiliates, with some specific exceptions. (p. 6, 17-19, 21)

Massachusetts

H.B.5117

-T&D companies must provide nondiscrimination access on reasonable terms for all suppliers and customers. -Transmission and distribution assets as of 12/31/96, or acquired thereafter, shall be transferred to transmission or distribution companies, respectively. Distribution companies will be prohibited from selling electricity at retail and from owning or operating transmission services.

As of 3/1/98, DTE will designate service territories for distribution companies.

Connecticut H.B. 5005

Transmission and distribution activities will continue to be regulated by the DPUC, but electric generation activities will not be regulated.

Illinois

H.B. 362

To ensure system reliability, the Commission, within 180 days of the Act must adopt rules and regs for T&D that establish the procedures for restoring T&D to customers.

 

Legislative Oversight

Nevada

A.B. 366

PUC shall issue a quarterly report to the legislature assessing developments in electric industry in Nevada. Report shall evaluate, at a minimum, effectiveness of competition, compatibility of direct access with environmental goals, impacts of competition on each customer class relative to present structure, and opportunities to cooperate with other states or the Federal Government in implementation of competition. In the quarterly report for the first quarter of 1999, the PUC shall provide a comprehensive evaluation of the development of the markets for potentially competitive services since 7/1/97. Not later than 1/1/99, Department of Taxation shall report to legislature on effect of Nevada's tax policies on potential for effective competition, effect of competition on state and local tax revenues, and recommend new legislation to advance Act in competitively neutral manner with minimum impact on state and local tax revenues. (Section 53, p. 23; Section 335, p. 148; Section 336, p. 148)

California

H.B. 1890

Five-member oversight board composed of three gubernatorial appointees, one Senator, and one Assemblyman. Board oversees the ISO and Power Exchange and serves as the appeal board from ISO decisions. (p. 5, 34-36)

Maine

H-568

(LD 1804)

On December 31 of each calendar year, PUC shall submit to the joint standing legislative committee a report describing the PUC's activities in carrying out the requirements of the Act, and include draft legislation designed to modify the Act consistent with the public interest. The joint standing legislative committee having jurisdiction over utility and energy matters may report out legislation concerning electric energy restructuring to future legislative sessions. (p. 22, 26)

Montana

S.B. 390

Transition advisory committee consists of eight voting members, equally balanced by party: 4 appointed by Speaker and 4 appointed by Senate President. Non-voting advisory members include: the director of dept. of environmental quality; one public utilities appointee; and 1 representative each from consumers, cooperatives, and PSC. Governor appoints 1 each non-voting member from: industry, non-industrial consumers, organized labor, environmental/ conservation, low-income program provider, Indian tribes, power market industry. PSC, legislative counsel, and agencies provide staff. Committee meets quarterly and dissolves on earlier of date full transition is completed or 12/31/04 and shall: provide an annual report on or before 11/1/01 to governor, speaker, Senate president, and PSC; provide quarterly reports to legislature thru 1/1/99; analyze and report on transition to effective competition. Annual report in 2000 must evaluate pilot programs with loads under 1000 kWh and include legislative recommendations about best means to further encourage choice, market access, and need for additional consumer protection revisions. Criteria for evaluating effective competition are specified. On or before 7/1/02, committee and PSC shall reevaluate need for ongoing universal system benefits programs and make recommendations. On or before 11/1/01, committee shall determine whether Montana utilities have an opportunity to market outside the state comparable to the reverse. On or before 11/1/98, committee shall make recommendations to governor and legislature regarding low-income assistance programs. (p. 4, 12, 15-16, 27)

New Hampshire

H.B. 1392

Establishes 14-member legislative oversight committee, seven from each house, with 2-year terms. Committee to report annually on or before 11/1 to governor, legislature, and PUC. In conjunction with PUC, report shall address new legislation and proposed amendments to existing law to promote restructuring. (p. 12)

Oklahoma

S.B. 500

Act creates Joint Electric Utility Task Force composed of 14 members of the legislature, 7 each selected by Senate President and House Speaker. Task force may appoint advisory councils made up of representatives of interested parties. Task force shall direct and oversee studies by the Commission and the Tax Commission. Task force shall remain in effect until termination, which shall be no later than 1/1/03. Commission shall make reports to task force on independent system operator issues, technical issues, financial issues, and consumer issues no later than 2/1/98, 12/31/98, 12/31/99, and 8/31/00, respectively. Task force may make final recommendations to the governor and the legislature. The task force is authorized to retain consultants and experts to study the creation of an ISO and the benefits of establishing a Power Exchange, which would operate as a power pool. All

studies and recommendations relating to the ISO shall be submitted to the task force on or before 2/1/98, and shall conform to FERC Order No. 888. (p. 8-9)

Pennsylvania
H.B. 1509

 

 Rhode Island
96-H 8124 Substitute B

 On 1/1/98, and annually for next 4 years, PUC to file report with governor and legislature detailing developments in competitive supply market, estimated savings from retail competition, progress towards regional transmission agreement, reforms instituted by regional power pool, and status of restructuring in surrounding states. (p. 23)

Massachusetts
H.B.5117

DTE, DOER and any other agencies, task forces involved with the Legislature will be reported to on an annual basis, or as necessary, by restructuring process.

Connecticut
H.B. 5005

Companies and agencies are required to report on various issues to the Legislature. These include the status of competition, rates, reliability, environmental quality and dislocated workers.

Illinois
H.B. 362

-On or before 12/31/99, and once every three years thereafter, the Commission shall monitor and analyze patterns of entry and exit to the market and report its findings to the General Assembly. During 2001 through 2006, the Commission will prepare annual reports regarding the development of electric markets.

-Utility companies must report annually to legislature on their collection of transition charges, efforts to mitigate stranded costs and use of transition funding mechanisms.

A Policy Advisory Council, established by the legislature, will analyze restructuring and ensure that requirements of the Act are met and advise legislature on the spending of the Fund monies.

 Taxes

Nevada
A.B. 366

If two or more persons perform separate functions collectively needed to supply electricity to final customer and the property would be centrally assessed if owned by one person, it shall be centrally valued and apportioned. Proportion of the tax levied by each county shall be determined according to valuation of contribution of each person to aggregate valuation of property. However, this provision does not apply to QFs built before 7/1/97. Not later than 1/1/99, Department of Taxation shall report to legislature on effect of Nevada's tax policies on potential for effective competition, effect of competition on state and local tax revenues, and recommend new legislation to advance Act in competitively neutral manner with minimum impact on state and local tax revenues. (Section 278, p. 114-116; Section 335, p. 148)

California
H.B. 1890

 

 Maine
H-568, (LD 1804)

On or before 1/1/98, the PUC and the state planning office shall provide the legislature with recommendations concerning funds to assist low-income consumers through general fund appropriations or through a tax on all energy sources in the state. (p. 26)

Montana
S.B. 390

During 4-year transition period, utilities may accelerate amortization of accumulated deferred investment tax credits associated with T&D and general plant if earnings fall below 9.5 percent earned return on average equity. Revenue oversight committee shall analyze state and local tax revenue derived from previously regulated electricity suppliers that will enter the competitive market and report to legislature annually on how revenue to state and local government is changed by restructuring and competition. On or before 11/30/98, revenue oversight committee shall recommend legislative changes, if any, to address comparable state and local taxation burdens on all market participants. (p. 8, 10, 16, 21-22)

New Hampshire
H.B. 1392

 

Oklahoma
S.B. 500

The Tax Commission shall study and fully assess the impact of restructuring on state tax revenues and all other facets of current utility tax structure both on the state and all other political subdivisions. Study shall include feasibility of a uniform consumption tax or other method of taxation. Tax Commission is expressly prohibited from promulgating any rule or order without prior express authorization from the legislature or legislative task force. In the event a uniform tax policy, which allows all competitors to be taxed on a fair and equal basis, has not been established on or before 7/1/02, effective date for customer choice shall be extended until such time as a uniform tax policy has been established. (p. 8)

Pennsylvania
H.B. 1509

Restructuring to be accomplished in a revenue neutral manner at a level necessary to recoup losses that may result form restructuring. (p. 57-66)

Rhode Island
96-H 8124 Substitute B

By 1/1/97, retail electric licensing committee shall submit plan to legislature for taxing and/or assessing distribution and transmission companies and non-regulated power producers. (p. 22)

Massachusetts
H.B.5117

Requires parent, affiliate, subsidiary to pay transition payments to municipality impacted by devaluing of power plant in which generation facility is located. Transition payments are calculated on a declining rate from 1998-2009 (percentage difference between local property tax value of the property as of 1/1/96 and the fair cash value of the property as of 1/1 of the year previous to the year during which calculation is made).
Generation facilities would be subject to the full fair cash valuation by localities. Tax payment would be a payment-in-lieu-of-taxes.

Connecticut
H.B. 5005

The gross earnings tax as it applies to generation is eliminated but the tax rate on transmission and distribution services is increased. The CTA and SBC are subject to this tax. The corporation business tax and sales tax is amended to reflect the bill's changes to the electric industry. The gross earnings tax changes are effective 1/1/00. Electric suppliers, including aggregators, will receive a one-time credit of $1,500 against the state corporation business tax for each worker hired by the supplier who was displaced as a result of deregulation.

Illinois
H.B. 362

-Sale, pledge, assignment or other transfer of intangible transition property shall be exempt from state and local taxes.

-A per/kWh use tax will be implemented, except for municipal corporations owning and operating a local transportation system for public service.

 Performance Based Rates (PBR)

Nevada
A.B. 366

PUC shall adopt regulations permitting innovative methods of pricing noncompetitive services upon a finding that such methods would improve performance or lower costs. (Section 44, p. 17)

California
H.B. 1890

 

 Maine
H-568, (LD 1804)

 

 Montana
S.B. 390

PSC shall establish just and reasonable rates, through established rate making principles, for distribution and transmission services and shall regulate these services. PSC may approve performance-based rate making on a demonstration by utilities that the alternative methods comply with the utilities' transition plans. (p. 13)

New Hampshire
H.B. 1392

Performance-based or incentive regulation should be considered for transmission and distribution services. (p. 4)

Oklahoma
S.B. 500

 

Pennsylvania
H.B. 1509

PUC has authority to approve flexible rates, including negotiated, contract-based tariffs and to use performance based rates. (p. 45)

Rhode Island
96-H 8124 Substitute B

 It is in the public interest to establish performance based rate making. To hold overall rate increases to the level of inflation, for the period 1/1/97 to 12/31/98, distribution companies shall implement a PBR plan in accordance with specified provisions, subject to PUC approval. However, rates for low-income customers cannot increase.
(p. 3, 33-35)

 Massachusetts
H.B.5117

-DTE has authority to promulgate rules and regs to establish and require PBR for each distribution, transmission, and gas company organized and doing business in the Commonwealth. Service quality standards will be established for customer service performance. Each company will file a report with DTE by 3/1 of each year comparing performance during the previous year to DTE's standards. DTE will be able to levy a penalty against any company failing to meet standards up to 2% of revenues for the previous calendar year.

Connecticut
H.B. 5005

The DPUC must investigate performance-based regulation by having each distrib co design a PBR plan and report its findings to the Energy and Technology Committee.

 Illinois
H.B. 362

An Electric Utility Property Tax Assessment Task Force will be established. From the 1997 assessment year through the 1999 assessment year, fair cash value for any electric generating plant shall be determined using original cost less depreciation, and depreciation rates shall be equal to those in effect on 11/1/97.

  Residential Electricity Rates (/kWh), (Source: Resource Data International, Inc.)

 State/Bill

 1991

1995

Nevada
A.B. 366

5.89

7.11

California
H.B. 1890

10.79

11.61

Maine
H-568, (LD 1804)

10.45

12.51

Montana
S.B. 390

7.39

7.26

New Hampshire
H.B. 1392

10.38

13.50

Oklahoma
S.B. 500

7.03

6.82

Pennsylvania
H.B. 1509

9.58

9.72

Rhode Island
96-H 8124 Substitute B

10.99

11.61

 Massachusetts

 11.3 (1996)

 Illinois

10.4 (1996)

 

Compiled by the Research Division of Nevada's Legislative Counsel Bureau, Portions added by the National Conference of State Legislatures

S.Com.Lab:August.27Rev.StateComparison


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