Sec. B-1. Public Utilities Commission and Department of the Attorney General to study market power issues related to electric industry restructuring. The Department of the Attorney General, referred to this Part as the "department," and the Public Utilities Commission, referred to in this Part as the "commission," jointly shall conduct a study of market power issues raised by the prospect of retail competition in the electric industry. The department and the commission shall examine how a competitive electric industry may be structured or regulated to protect electric power trade and commerce from unlawful restraints, price discrimination, price fixing, oligopolization and monopolization. The commission and the department may examine any issue that the commission or the department determines to be relevant to assessing market power issues raised by the prospect of electric industry restructuring. The study must examine at a minimum the following:
A. The effects of altering the system of electric power dispatch from a cost-based to a bid-based system;
B. The potential for market concentration or horizontal market power;
C. The potential for vertical market power arising from ownership or control of transmission and distribution systems of entities selling or marketing electric power;
D. The extent to which imbalances of supply and demand create opportunities for the unreasonable exercise of market power;
E. The significance of existing or potential transmission system constraints and the ownership and control of transmission ties;
F. The significance of the isolation of portions of the transmission and distribution grid from other portions of the grid, in particular from those portions of the grid currently controlled by the New England power pool;
G. The reasonable geographic areas and markets in which market power could be exercised;
H. The extent to which market power in relevant markets is within the scope of federal regulatory jurisdiction; and
I. The approaches taken in other states to address market power issues.
Sec. B-2. Work plan. The department and commission shall develop a work plan for coordinating work on the study in order to produce the reports required under section 6. The work plan must ensure jointly produced reports, although the plan may allow for differing recommendations and conclusions by the department and the commission.
Sec. B-3. Retaining experts. The department and the commission may retain experts or other consultants as they determine to be necessary in order to conduct the study as long as all costs are funded from resources available within the commission.
Sec. B-4. Coordination with other states. The department and the commission shall seek to coordinate their efforts with any similar studies undertaken in other states in the region.
Sec. B-5. Consultation with Legislature. The department and the commission regularly shall consult with the Joint Standing Committee on Utilities and Energy to update the committee on the progress of the study, to respond to any questions that the committee members may have and to discuss the examination of any relevant issues that the committee identifies to be of interest.
Sec. B-6. Reports. The department and the commission shall present to the Joint Standing Committee on Utilities and Energy an interim report of the department's and the commission's findings and recommendations no later than February 1, 1998 and a final report of their findings and recommendations no later than December 1, 1998. The interim and final reports must include any legislation necessary to implement the recommendations of the department or the commission.
Sec. B-7. Authorization to report out legislation. The joint standing committee of the Legislature having jurisdiction over utilities and energy matters may report out legislation related to electric industry restructuring to the Second Regular Session of the 118th Legislature or the First Regular Session of the 119th Legislature.
Sec. B-8. Funding of Attorney General position. An attorney position within the department must be designated by the Attorney General to conduct the study required by this Part and to investigate potential violations of antitrust laws within the electric utility industry. The position must be funded through June 30, 1999 from funds available within the commission.
Sec. B-9. Allocation. The following funds are allocated from Other Special Revenue to carry out the purposes of this Part.
1997-98
PUBLIC UTILITIES COMMISSION
Regulatory Fund
All Other $86,433
Allocates funds to fund one Attorney position within the Department of the Attorney General to conduct a market power study and investigate potential violations of antitrust laws within the utilities industry.
Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.
Effective June 10, 1997.
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