Electrical Deregulation and Customer Choice Task Force
TO: Electrical Deregulation and Customer Choice Task Force
FROM: Brian Allred, Research Analyst
DATE: November 6, 1997
SUBJECT: November 13, 1997 Meeting
Sen. Leonard M. Blackham has scheduled the next meeting of the Electrical Deregulation and Customer Choice Task Force as follows:
DATE: Thursday, November 13, 1997
TIME: 8:30 a.m. - 1:00 p.m.
PLACE: Room 303 State Capitol
An agenda is enclosed. If you are unable to attend, please call me or Beverlee LeCheminant at 538-1032.
Sen. Lorin V. Jones
Sen. Eddie "Ed" P. Mayne
Sen. Millie M. Peterson
Sen. Michael G. Waddoups
Rep. Ralph Becker
Rep. Judy Ann Buffmire
Rep. Christine R. Fox
Rep. Kevin S. Garn
Rep. J. Brent Haymond
Rep. David Ure
1. Welcome - Approval of Minutes of November 3, 1997
2. Task Force Business
3. Scope of Public Service Commission Rate Case
Task force staff and the Public Service Commission will provide information on the elements of a rate case and potential implications of a "limited" rate case.
a. Background - Patricia Owen, Associate General Counsel
b. Stephen Mecham, Chair, Public Service Commission
4. Public Comment
Interested individuals who have previously requested to speak (10 minutes maximum per speaker) will address the following specific questions:
a. Which task force recommendation option (or variation of an option) as outlined in the proposed options sheet, do you recommend?
b. What are your recommendations regarding the following?
(1) a target starting date for retail competition
(2) extending the rate freeze
(3) conducting a rate case
(4) scope of potential 1998 legislation re: PacifiCorp, Municipals, and Rural Co-ops
(5) stranded costs determination and mechanisms for recovery
(6) ways to mitigate market power
(7) any other relevant issue
The task force will then summarize and discuss the public comment received.
5. Task Force Options For Recommendation to 1998 Legislature
The task force will determine a task force recommendation option (or variation of an option) from the proposed option sheet and will determine the specific elements of the selected option.
6. Draft Report
The task force will review, modify, and consider approval of the task force draft report.
7. Adjourn
Invitation to Address Committee
For its November 13, 1997 meeting, the Electrical Deregulations and Customer Choice Task Force invites interested individuals or groups to respond to the following specific questions:
1. Which task force recommendation option (or variation of an option) as outlined in the proposed options sheet, do you recommend?
2. What are your recommendations regarding the following?
i. a target starting date for retail competition
ii. extending the rate freeze
iii. conducting a rate case
iv. scope of potential 1998 legislation re: PacifiCorp, Municipals, and Rural Co-ops
v. stranded costs determination and mechanisms for recovery
vi. ways to mitigate market power
vii. any other relevant issue
Presentation Guidelines and Deadlines
* The "option sheet" referred to above is attached.
* Presenters will be given 10 minutes maximum to present their position.
* Presenters are requested to bring to the meeting a 1-2 page written summary of their response to the specific questions outlined above.
* Those individual or groups wishing to address the task force must contact a member of task force staff listed below no later than 5:00 p.m. Wednesday, November 12th.
Task Force Staff
Brian Allred, Research Analyst
Patricia Owen, Associate General Counsel
Phone/voicemail (801) 538-1032
Fax (801) 538-1712
Email Brian Allred - ballred@le.state.ut.us
Patricia Owen - powen@le.state.ut.us
Option 1
. Recommend no legislation for 1998 General Session.
. Allow the rate freeze to end and allow a rate case to proceed.
. Adopt a specific study plan for the1998 interim. To avoid merely more testimony on the same issues addressed in 1997 and to allow maximum time for consideration of potential legislation, this could include specific draft legislation options submitted to the task force by the end of the 1998 General Session that would serve as starting points for task force study in the 1998 interim and could potentially lead to recommended legislation for the1999 General Session.
Option 2
. Recommend legislation for the 1998 General Session addressing (1) whether to continue the rate freeze; and (2) the scope of a potential rate case. Legislation may or may not include determination of a specific retail competition implementation date.
. Adopt a specific study plan for the 1998 interim as outlined in Option 1 or include the study plan in the legislation.
Option 3
. Recommend legislation for the 1998 General Session that establishes a framework for retail competition. The legislation could include the following:
a. a target starting date for retail competition
b. whether or not to extend the rate freeze
c. whether or not to hold a rate case
d. scope of legislation re: PacifiCorp, Municipals, and Rural Co-ops
e. stranded cost determination
i. generation assets
ii. regulatory assets
f. stranded cost mechanisms for recovery
i. rate freeze
ii. exit fees
iii. customer transition charges
iv. securitization
g. market power mitigation measures
i. divestiture of generation assets
ii. functional separation
iii. company spinoffs
iv. repeal of anti-trust exemptions
v. creation of Independent System Operator
vi. price bands
. Additional issues of implementation to be addressed in the 1998 interim.
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