H.J.R. 7

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RESOLUTION ON RESTRUCTURING OF
2 ELECTRICAL INDUSTRY
3 1998 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Beverly Ann Evans
6 A JOINT RESOLUTION OF THE LEGISLATURE ADOPTING THE RECOMMENDATIONS
7 OF THE ELECTRICAL DEREGULATION AND CUSTOMER CHOICE TASK FORCE;
8 SUPPORTING RESTRUCTURING OF THE ELECTRICAL INDUSTRY; AND
9 ESTABLISHING A STUDY PLAN FOR THE 1998 INTERIM.
10 Be it resolved by the Legislature of the state of Utah:
11 WHEREAS H.B. 313 (1997 General Session) created the Electrical Deregulation and
12 Customer Choice Task Force to study issues related to restructuring in the electrical industry;
13 WHEREAS the task force met multiple times during the interim hearing extensive
14 testimony on critical issues related to restructuring in the electrical industry;
15 WHEREAS although the task force found that restructuring in the electrical industry would
16 be to the long-term benefit of the citizens of the state, it recommended to the Legislature that, as
17 part of the task force's two-year authorization, the task force continue its study of how to
18 restructure the electrical industry; and
19 WHEREAS the task force recommended a specific study plan to be followed to maximize
20 the input from the public and the efficiency of task force discussion:
21 NOW, THEREFORE, BE IT RESOLVED that the Legislature recommends that the rate
22 freeze created in H.B. 313 be allowed to expire and that a full Public Service Commission rate
23 hearing on PacifiCorp be allowed to proceed.
24 BE IT FURTHER RESOLVED that the Legislature supports electric industry restructuring
25 in the state.
26 BE IT FURTHER RESOLVED that the Legislature supports the free enterprise system and
27 believes that electric industry restructuring is to the long-term benefit of the citizens of the state.

1 BE IT FURTHER RESOLVED that the Electrical Deregulation and Customer Choice Task
2 Force prepare legislation for the restructuring plan to be introduced in the 1999 General Session.
3 BE IT FURTHER RESOLVED that the Electrical Deregulation and Customer Choice Task
4 Force adopt the following specific study plan for the 1998 interim:
5 (1) All interested groups or individuals are invited to submit draft legislation for
6 consideration by the task force in its 1998 interim study. The submitted draft legislation should:
7 (a) be provided to the task force staff by no later than April 30, 1998;
8 (b) be in bill draft form and not as an outline or conceptual proposal;
9 (c) include as an attachment, a summary outline of the proposal; and
10 (d) as to the elements listed in Subsection (2), at a minimum either:
11 (i) address each of the elements in the legislation; or
12 (ii) affirmatively recommend not to include the element in the legislation.
13 (2) The elements described in Subsection (1)(d) include the following:
14 (a) a target starting date for retail competition;
15 (b) the scope of legislation as it relates to PacifiCorp, municipals, and rural electrical
16 cooperatives;
17 (c) stranded cost evaluation including:
18 (i) types of stranded costs, including:
19 (A) generation assets; and
20 (B) regulatory assets; and
21 (ii) stranded cost recovery mechanisms, if stranded costs are determined, including:
22 (A) a rate freeze;
23 (B) exit fees;
24 (C) customer transition charges; and
25 (D) securitization;
26 (d) market power mitigation measures, including:
27 (i) divestiture of generation assets;
28 (ii) functional separation;
29 (iii) company spinoffs;
30 (iv) repeal of anti-trust exemptions;
31 (v) the creation of an independent system operator; and

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1 (vi) price bands;
2 (e) aggregation;
3 (f) universal service fund;
4 (g) obligations to serve or connect;
5 (h) taxation implications, including the impact of revaluation of plants on local
6 government property tax revenue;
7 (i) customer protection and education;
8 (j) the impact on all classes of customers, i.e., residential, commercial, and industrial;
9 (k) licensing programs or regulation of providers and marketers of electric power;
10 (l) end user self-generation or co-generation preservation;
11 (m) safety and reliability;
12 (n) environmental impact; and
13 (o) any other relevant issue.
14 (3) All submitted draft legislation received by April 30, 1998, will be reviewed and
15 considered as a starting point for the task force's study in 1998 and could potentially become the
16 basis for recommended legislation in the 1999 General Session.




Legislative Review Note
as of 12-31-97 8:07 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

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