Senate Bill No. 696
(By Senators Helmick, Ross, Chafin, Fanning, Minear and Hunter)
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[Introduced February 23, 1998; referred to the
Committee on the Judiciary.]
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A BILL to amend article two, chapter twenty-four of the code of
West Virginia, one thousand nine hundred thirty-one, as
amended, by adding thereto a new section, designated section
eighteen, relating to the provision of electric power
service; legislative findings; directing the public service
commission to determine public interest in permitting retail
customers in West Virginia to obtain direct access to
competitive markets for their power supply; prescribing a
plan to allow deregulation of existing utility generation
assets and access by retail customers to competitive
electric power supply markets, both existing and new,
prescribing procedures and standards for the marketing of
power supply in the state; and issuing reports on findings
on the potential state and local tax consequences of any plan adopted by the commission.
Be it enacted by the Legislature of West Virginia:
That article two, chapter twenty-four of the code of West
Virginia, one thousand nine hundred thirty-one, as amended, be
amended by adding thereto a new section, designated section
eighteen, to read as follows:
ARTICLE 2. POWERS AND DUTIES OF PUBLIC SERVICE COMMISSION.
§24-2-18. Legislative findings on electric service; direction of the commission to determine public interest in permitting retail access to competitive power supply markets; establish standards and procedures for the marketing of power supply;certain reports
required.
(a) The Legislature hereby finds that:
(1) Electric service is essential to the health and well- being of residents, to public safety and to orderly economic
development, and that the cost of electricity is an important
factor in decisions made by businesses concerning locating,
expanding and retaining facilities in West Virginia. Therefore,
reliable electric service should continue to be available to all
customers at reasonable rates and on reasonable terms and
conditions;
(2) Many state governments have been studying policies that would create a competitive market for the supply of electricity;
(3) The public service commission of West Virginia is the
appropriate agency to prepare and adopt a plan whereby retail
users of electricity in the state have open access across
existing and new utility delivery systems to a competitive market
for power supply. The commission shall adopt a plan that fairly
balances the interests of the electric utilities, their
customers, and the state's economy and assures that the plan:
(A) Is in the best interest of West Virginia electric energy
consumers;
(B) Results in potential benefits available for all
customers, considering that while some customers may be
immediately benefited by reductions in electricity costs,
depending on their individual needs and choices, no customer
should be worse off;
(C) Preserves universal electric service at reasonable
rates;
(D) Maintains reasonable standards of safety and reliability
of electric service;
(E) Does not negatively impact compliance with environmental
rules;
(F) Considers and maintains the public benefits of energy
efficiency, renewable resource technology and research and development;
(G) Encourages the continued and expanded use of West
Virginia coal, oil, natural gas and other energy resources;
(H) Assures that customers have meaningful choices among
electricity providers and that customers are protected from
anticompetitive behavior, poor service and unfair billing,
collection or disconnection procedures;
(I) Is conditioned upon workable competition with a level
playing field for all buyers and sellers, and provides for a code
of conduct for electric service providers to be established by
commission rule; and
(J) Assures that existing commitments of utilities arising
from past decisions made pursuant to historical regulatory and
legal principles are addressed in a fair and reasonable manner.
(4) Restructuring of the electric utility industry should
not result in a shift of the tax burden to any customer or
customer group and that the tax system not result in a
disadvantage to any competitor in the market place.
(b) In addition to all other powers and duties the
commission is authorized to:
(1) Prescribe a plan and adopt rules, standards and
procedures to allow deregulation of existing utility generation
assets and direct access by retail customers to competitive electric power supply markets consistent with the legislative
findings set forth in this section;
(2) Prescribe, by order or rules, procedures and standards
for the marketing of power supply in the state as allowed by law,
and resolve all issues necessary to provide for an orderly
transition from the current regulated structure to a system of
direct retail access in a fully workable competitive power supply
market in a manner that is fair to customers, electric suppliers
and other affected parties.
(c) After the adoption and implementation of a plan, rules,
procedures and standards the commission shall have authority and
jurisdiction upon legislative approval to modify or rescind the
plan, if, upon application to the commission or upon the
commission's own motion, and after notice and hearing, the
commission finds that it is in the public interest to do so,
after a finding that a substantial change in state or federal law
or court decision necessitates the rescission or modification to
continue to meet the legislative findings in this section or the
commission determines that for any other reason the plan is not
meeting the legislative findings set forth in this section. The
implementation of any plan through an order of the commission
pursuant to this section does not amend existing provisions of
this code, except as specifically herein modified.
(d) The commission shall adopt a plan pursuant to this
section prior to the fifteenth day of January, one thousand nine
hundred ninety-nine. The plan will become effective as ordered by
the commission, but not later than the fifteenth day of March,
one thousand nine hundred ninety-nine. Prior to the adoption of
the plan, but no later than the fifteenth day of January, one
thousand nine hundred ninety-nine, the commission shall issue a
report on the potential state or local tax consequences to the
governor, the president of the state Senate and the speaker of
the House of Delegates, along with recommendations for statutory
changes, if any are necessary, to implement the plan.
NOTE: The purpose of this bill is to authorize the public
service commission to prescribe and implement a plan whereby
retail customers in West Virginia could obtain direct access to
competitive markets for their electric power supply.
This section is new; therefore, strike-throughs and
underscoring have been omitted.