With the ongoing activity in the stranded cost market, the following list should help readers keep an eye on where these deals may be coming from in the near future, as state legislators ponder deregulation.
Alabama - Under consideration as of April 1999. University study claims rates would rise if restructuring mandate was passed, urges delay.
Arkansas - Restructuring bill passed 4/8/99. To open industry to competition beginning 6/1/02. Three-year rate freeze for utilities seeking stranded cost recovery. Securitization deals are planned.
Arizona - Revised plan issued April 1999. Competition may begin as soon as October 1999 and be phased in through 1/1/01. Salt River Project has own schedule.
Colorado - Study underway of possible impact on state, by 21-member panel.
Connecticut - Restructuring bill signed 4/29/98. 10% discount to all customers by 7/1/00. Stranded costs recovery via assessment on bills. Can be refinanced by securitized bonds.
Iowa - To debate deregulation during its 2000 session.
Idaho - Low price state. Study committee expected to issue findings this year.
Indiana - Low price state. Bills died in state legislature in 1997, 1998 and 1999.
Kansas - 1996 law prohibits authorizing competition prior to 7/1/99. Variety of restructuring bills were introduced in early 1999. Outlook uncertain.
Kentucky - Low price state. Task force to issue report by 11/99. Cautious approach urged.
Louisiana - No decisions before 2001. PSC staff issued draft report 2/99 that stated restructuring could mean higher residential rates.
Michigan - On 3/8/99 PSC ordered customer choice to be phased in beginning 9/20/99. Completion by 1/1/02. PSC believes it does not need legislative approval, but legislation possible to alter phase-in period. Full stranded cost recovery via transition fee. PSC endorses but legislature will have to enact law allowing for securitizations.
Mississippi - No enabling legislation in place. Stranded costs expected to be recovered through transition fee rather than securitization.
Nebraska - Results of three-year study expected 12/99. No plans currently underway.
New Hampshire - Enacted law in 1996 but tied up in litigation. Federal court hearing began 3/99.
Nevada - Restructuring law passed 7/98 but PUC voted 2/2/99 to delay. New bill in the legislature calling for 3/1/00 start. PUC to determine stranded cost recovery method.
New York - Competition underway under NY PSC framework. Stranded cost recovery through a "Competitive Transition Charge," with PSC determining amounts for each utility.
Ohio - Legislation being voted in state legislature for 1/1/01 start. Some stranded costs could be recovered through surcharges over four-year period.
Oregon - Deregulation bill passed state senate 4/20/99. House considering bill. Would start competition for large customers by 10/1/01.
Texas - Competition bill just passed both state houses and awaits Governor's signature. Competition starts 2/1/02. Transition bond fee for utilities securitizing stranded costs. Customers would pay small surcharge on bills for stranded cost recovery. Securitization deals are planned.
Vermont - No legislation underway, but restructuring is under active consideration.
West Virginia - Study underway. PSC has scheduled hearings for August 1999.
Wisconsin - No legislation underway. Reliability of state's electric system seen as more critical issue and needs to be improved before competition can be implemented.
Alaska, Florida, Georgia, Hawaii, Missouri, North Carolina, North Dakota, South Carolina, Tennessee, Utah, Washington, Wyoming and Washington, D.C. are not considering restructuring legislation.
California, Delaware, Illinois, Massachussetts, Maryland, Maine, Montana, New Jersey, New Mexico, Oklahoma, Pennsylvania, Rhode Island and Virginia already have fully-implemented deregulation programs. - David Feldheim