As it moves closer to statewide deregulation, the Virginia StateCorporation Commission (SCC) is finalizing permanent rules thatwill govern retail access to competitive energy services for boththe electric and natural gas industries. The SCC is calling forpublic comment on the proposed rules, which take effect Jan. 1,2002.

The rules, which are expected to be finalized by July 1following the comment period, will offer “certain protections toconsumers while promoting a competitive environment in Virginia toattract energy supply markets,” wrote the commission. A work groupwith representatives of the restructuring marketplace assisted SCCstaff in developing the rules, which now include codes of conduct,licensure, customer information, enrollment and switching,marketing, billing and payment, and dispute resolution.

Virginia has been operating under interim rules since May 2000and has held several pilot programs in select areas. The pilotprojects also have served as a laboratory for energy choice andcompetition, with programs now in place by sponsors DominionVirginia Power, AEP-Virginia and Rappahannock Electric Cooperative.Their programs continue through Dec. 31, and based on theinformation gained in the pilot programs, the interim rules will bemodified and expanded before statewide retail access begins.

Since July 1, 2000, Virginia law has allowed natural gas retailchoice to expand in all areas of the state. Retail choice forelectricity supply will roll out on Jan. 1, 2002, and allVirginians will have access to shop for electric power by Jan. 1,2004.

Earlier this month, SCC granted Washington Gas Light the rightto provide choice to all of its 377,000 Virginia customersbeginning Jan. 1, 2002. WGL said that as of March 1, almost 37,000of its customers were participating in its retail choice program.

SCC’s approval allows WGL to use a “gas supply realignmentadjustment” to recover short-term transition costs, or capacity andpipeline storage costs incurred by former customers who switched toa new supplier. SCC gave WGL the right to bill all of its customersfor the adjustment.

To review a draft of the permanent statewide rules that willgovern retail access, or to read an SCC staff report discussing theproposed rules, visit the web site at www.state.va.us/scc and checkthe category under Utility Industry Restructuring.

Written comments or requests for a hearing on the proposedpermanent rules have to be submitted by April 6. Correspondenceshould be sent to the Clerk of the Commission, Document ControlCenter, P.O. Box 2118, Richmond, VA 23218. Refer to case numberPUE010013.

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