EXHIBIT D-2B
PUBLIC SERVICE COMMISSION
OF WEST VIRGINIA
CHARLESTON
At a session of the PUBLIC SERVICE COMMISSION OF WEST
VIRGINIA in the City of Charleston on the 16th day of June,
2000.
CASE NO. 98-0452-E-GI
General Investigation to determine whether West Virginia
should adopt a plan for open access to the electric power
supply market and for the development of a deregulation
plan.
COMMISSION ORDER
By Order issued January 28, 2000, in this case, the Public
Service Commission adopted, and recommended for legislative
approval, a plan whereby users of electricity in the State
would have open access, across existing and new utility
delivery systems, to a competitive market for power supply (the
"Plan"). On March 11, 2000, the West Virginia Legislature
adopted the Plan, but delayed the starting date or
implementation of customer choice until enactment of necessary
tax changes. See House Concurrent Resolution 27. An integral
part of the Plan is set forth in Section13, entitled "Rate
Modification Prior to the Starting Date," which provides as
follows:
(a) For AEP, the basis for unbundled and default service rates
shall be the rates in effect immediately preceding the
starting date; provided, however, in lieu of an RSD,
beginning July 1, 2000 rates for large commercial and
industrial customers of Appalachian Power Company shall be
reduced by 1% off of such customer's total rate as of July
31, 1999. The dollar value of such rate decreases off of
the individual customer's total rate shall be reflected in
the customer's unbundled distribution charge. These
decreased rate levels will be the basis for the schedule
of unbundled default service rates applicable to all large
commercial and industrial customers during the first four
years of the Plan. The decreases shall expire on December
31, 2004. Rate escalations under the schedule of default
service rates shall be applied to the original unbundled
power supply rate, without regard to these decreased rate
levels.
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(b) For APS, the basis for unbundled and default rates shall
be the rates in effect immediately preceding the starting
date; provided however, in lieu of an RSD, beginning July
1, 2000 rates for large commercial and industrial
customers shall be reduced by 3% off of such customer's
total rate as of July 31, 1999. The dollar value of such
rate decreases off of the individual customer's total rate
shall be reflected in the customer's unbundled
distribution charge. These decreased rate levels will be
the basis for the schedule of unbundled default service
rates applicable to all large commercial and industrial
customers during the first four years of the Plan. The
decreases shall expire on December 31, 2004. Rate
escalations under the schedule of default service rates
shall be applied to the original unbundled power supply
rate, without regard to these decreased rate levels. Rates
in effect immediately preceding the starting date will
only be adjusted for agreements reached in Case Numbers 99-
0261-E-GI, 99-0262-E-GI, and 99-1407-EG-PC.
As noted above, the Legislature provided that the Plan
would not be implemented until necessary tax changes were
enacted. See House Concurrent Resolution 27. While this delay
in implementation affects the starting date of customer choice,
it does not affect the provisions of Section 13, which require
rate reductions prior to the starting date of customer choice.
UPON CONSIDERATION WHEREOF it is appropriate to require
American Electric Power (AEP), and Monongahela Power Company,
The Potomac Edison Company and West Virginia Power
(collectively APS) to file revised tariff sheets reflecting the
rate reductions required by Section 13, on or before June 22,
2000.
IT IS THEREFORE ORDERED that AEP and APS shall, on or
before June 22, 2000, file revised tariff sheets reflecting the
rate reductions required by Section 13 of the Plan, setting
forth rates and charges to be in effect on and after July 1,
2000.
IT IS FURTHER ORDERED that the Commission's Executive
Secretary shall assign and docket the tariff filings by each
utility with a separate case number.
IT IS FURTHER ORDERED that the requirements to publish
notice and file a Report on Tariff Change as prescribed by
Rules 19, 22, and 41 of the Commission's Rules and Regulations
for the Government of the Construction and Filing of Tariffs of
Public Utilities and Common Carriers by Motor Vehicle (Tariff
Rules), and supporting financial information as prescribed by
Tariff Rule 42, are hereby waived for these tariff filings.
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IT IS FURTHER ORDERED that the Commission's Executive
Secretary shall cause a copy of this Order to be served on all
parties of record by First Class United States Mail, and upon
Commission Staff by hand delivery.
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