SB371 SUB1

COMMITTEE SUBSTITUTE

FOR

Senate Bill No. 371

(By Senators Snyder and Prezioso)

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[Originating in the Committee on Government Organization;

reported February 25, 1999.]

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A BILL to amend and reenact sections sixteen, seventeen and eighteen, article one, chapter five-d of the code of West Virginia, one thousand nine hundred thirty-one, as amended, and to further amend said article by adding thereto a new section, designated section twenty-four, all relating to the public energy authority; requiring public service commission approval on contracts and agreements by the authority to sell retail electricity; requiring public service commission approval on natural gas transportation projects by the authority; and termination of the board.

Be it enacted by the Legislature of West Virginia:
That sections sixteen, seventeen and eighteen, article one, chapter five-d of the code of West Virginia, one thousand nine hundred thirty-one, as amended, be amended and reenacted; and that said article be further amended by adding thereto a new section, designated section twenty-four, all to read as follows:
ARTICLE 1. PUBLIC ENERGY AUTHORITY OF THE STATE OF WEST VIRGINIA.
§5D-1-16. Authority not a public utility and not subject to full jurisdiction of public service commission; exceptions for retail sales of electricity; authority subject to provisions concerning gas pipeline safety.
(a) Notwithstanding anything contained in this article to the contrary, and specifically notwithstanding any activities of the authority which shall constitute a public service, except as provided in subsection (b) of this section, the authority shall not be considered or deemed a public utility in any respect for purposes of chapter twenty-four of this code, and neither the authority, nor any of its activities or the activities of its agents or employees, nor any project constructed, maintained or operated by the authority, nor any other matters pertaining to the authority, shall be subject to the jurisdiction of the public service commission of West Virginia, either with respect to the powers of said public service commission generally, or with respect to its power over rates, or otherwise: Provided, That the authority and all natural gas transmission projects which it constructs, maintains or operates shall nevertheless be subject to the provisions of chapter twenty-four-b of this code concerning gas pipeline safety.
(b)Notwithstanding the provision of subsection (a) of this section, the authority may not enter into any contract or agreement to sell at retail to any entity in this state any electricity which the authority has purchased, or has contracted to purchase, unless and until a plan for deregulation of electric generation and retail competition has been developed by the public service commission, approved by the Legislature and implemented in accordance with the provisions of section eighteen, article two, chapter twenty-four of this code: Provided, That, if such a plan has not been so developed, approved and implemented, the authority may enter into such a contract or agreement only if the contract or agreement is first submitted by the authority to and approved by the commission upon a formal finding by the commission that:
(1) The contract or agreement:
(A) Is in the best interest of West Virginia electric energy consumers;
(B) Maintains reasonable standards of safety, availability and reliability of electric service;
(C) Does not result in a substantial negative impact on employment in the state;
(D) Considers and maintains the public benefits of energy efficiency, renewable resource technology and research and development;
(E) Encourages the continued and expanded use of West Virginia coal, oil, natural gas and other energy resources;
(F) Assures that existing commitments of utilities, arising from past decisions made pursuant to historical regulatory and legal principals are addressed in a fair and reasonable manner, considering the financial integrity of the utilities; and
(G) Reasonably preserves tax revenues for state and local governments and does not result in a shift of the tax burden to any customer or customer group;
(2) The contract or agreement is for a period not to exceed six years, upon the expiration of which, subject to an implemented plan of deregulation, it may be renegotiated and resubmitted to the commission for approval in accordance with the provisions of this subsection; and
(3) If the contract or agreement is for the retail sale of electricity to any agency of the state or any political subdivision thereof, such contract or agreement will, for the entire period thereof, result in a reduction of the cost of electricity to such agency of at least twenty percent under the delivered kilowatt hour cost that the agency is paying just prior to the contract or agreement initially being implemented.
§5D-1-17. Transportation of gas from natural gas transportation projects by gas utility pipelines as common carriers.
In conjunction with any natural gas transportation project, and for any other purpose in order to effectuate the policies and intent of this article, the authority may shall petition the public service commission, pursuant to section three-a, article three, chapter twenty-four of this code, to authorize and require the transportation of natural gas for the authority or for any end-user or other person doing business with the authority, by intrastate pipelines with unused or excess capacity not needed to meet its contractual obligations, by interstate pipelines with unused or excess capacity not needed to meet interstate commerce demands, or by local distribution companies.
§5D-1-18. Transportation fees and other revenues from natural gas transmission projects owned by the authority.
This section shall apply to any natural gas transmission project or projects which are owned by the authority. The authority may charge, alter and collect transportation fees or other charges for the use or services of any natural gas transmission project, and fix the terms, conditions, transportation fees or other charges for such use or services. Such transportation fees or other charges shall not be subject to supervision or regulation by any other authority, department, commission, board, bureau or agency of the state, including specifically the public service commission.
§5D-1-2422-d3A-24. Termination of office.
The West Virginia public energy authority board is continued until the first day of July, two thousand one, pursuant to the provisions of article ten, chapter four of this code.