Resolve, Regarding the Reentry of Electric Utilities into the Energy Supply Business

Sec. 1. Review of electric utility participation in energy supply and related issues. Resolved: That the Public Utilities Commission shall undertake a review of the issue of electric utilities' participation in the energy supply business. The review must be conducted through a public investigative proceeding. For the purposes of this section, "energy supply business" includes owning, operating or having an interest in electric generation facilities, load management activities or demand-side management activities. The review must address, but is not limited to:

1. The laws and rules that would need to be changed to allow electric utilities to participate in the energy supply business;

2. Potential impacts of electric utility participation in the energy supply business on unregulated generators of electricity and on competitive electricity providers;

3. Potential impacts of electric utility participation in the energy supply business on consumers of electricity;

4. The relative advantages and disadvantages of various methods and options for allowing utility participation in the energy supply business;

5. Options for regulatory oversight and approval of electric utility participation in the energy supply business;

6. Options for restricting electric utility participation in the energy supply business in terms of the size or type of generation facility, total production, as measured in megawatts, and fuel source, including limiting production to renewable resources;

7. Specific issues presented by the participation of consumer-owned electric utilities in the energy supply business;

8. Options for obtaining additional benefits for electricity consumers as a result of the State's participation in regional arrangements and the State's role in siting new electricity generation facilities to serve the regional market; and

9. Potential stranded costs and the recovery of any stranded costs that may be associated with electric utility participation in the energy supply business; and be it further

Sec. 2. Report. Resolved: That, no later than January 15, 2008, the Public Utilities Commission shall report its findings and recommendations for further action and legislation to implement its recommendations to the Joint Standing Committee on Utilities and Energy; and be it further

Sec. 3. Authority to submit legislation. Resolved: That the Joint Standing Committee on Utilities and Energy may submit legislation relating to the subject matter of this resolve to the Second Regular Session of the 123rd Legislature.