Should unbundling of utilities current rates accompany retail competition?
[Staff Matrix pg. 4.] • Virtually everyone agreed that unbundling (i.e., separating each utility’s rates into their component parts) is essential. However, the parties drew sharp distinctions between informational unbundling and competitive unbundling. AEP-Virginia and Allegheny support preliminary cost of service studies or rate analysis as the basis for informational unbundling. 8. Should mandatory baseline rates cases precede retail competition? [staff matrix, pg. 3] • Allegheny and the Co-ops suggested that rate unbundling would serve the same purpose; thus, baseline rate cases would be unnecessary. • Virginia Power believes that pre-transition rate cases should be filed under existing statutes. • AOBA says the SCC should have discretion to require baseline cases, but that rate cases for unbundling purposes should be mandatory. • Washington Gas suggests that rate cases should be used to establish base rates and to unbundle rates. 9. Should preliminary rate freezes be utilized in mi