(2) Requiring such entity to file a schedule of
charges for retail electric energy services provided by
such entity to such customers.
(3) Requiring such entity to file cost or revenue
projections for retail electric energy services provided
by such entity to such customers.
(4) Regulation of depreciation charges for facili-
ties used by such entity to provide retail electric en-
ergy services to such customers.
Each such State regulatory authority shall also cease to
carry out the activities referred to in paragraphs (1)
through (4), and cease to implement subsection (c), with
respect to any retail electric energy service provided within
a geographic area by a State regulated electric utility that
is providing local distribution services within such area if
the State regulatory authority determines that such serv-
ice is subject to effective competition.
(e) CONSIDERATION OF CERTAIN TERMS AND CON-
DITIONS.—Each State regulatory authority that makes an
election to establish retail electric service choice for retail
customers of a State regulated electric utility shall con-
sider each of the following terms and conditions and make
a determination concerning whether or not it is appro-
priate to apply such terms and conditions to the local dis-
tribution or sale of retail electric energy services to carry
out the purposes of this Act:
(1) Terms and conditions intended to insure
that adequate electric service is available to all cus-
tomers served by the retail distribution system con-
cerned.
(2) Terms and conditions designed to ensure
and enhance the reliability of electric service to all
electric energy consumers.
(3) Terms and conditions allowing any State
regulated electric utility subject to the ratemaking
jurisdiction of such State regulatory authority to re-
cover costs incurred prior to July 11, 1996, and any
costs incurred pursuant to a contract entered into
under section 210 of the Public Utility Regulatory
Policies Act of 1978.
(4) Terms and conditions to promote electric
energy efficiency, conservation, and environmental
programs.
Such terms and conditions may only be imposed on a non-
discriminatory and competitively neutral basis.
SEC. 104. RETAIL COMPETITION FOR NONREGULATED
ELECTRIC UTILITIES.
(a) NONREGULATED UTILITY ELECTION.—A non-
regulated electric utility may elect to establish, by no later
than December 15, 2000, retail electric service choice for
its customers. Such election shall be made through sub-
mission, within 6 months after the enactment of this sec-
tion, of a notice to the State regulatory authority exercis-
ing ratemaking jurisdiction over State regulated utilities
in the State in which such nonregulated utility is located.
Such notice shall be submitted to the Commission in the
case of a State without a State regulatory authority exer-
cising ratemaking jurisdiction over State regulated electric
utilities. If, within such 6-month period, the utility notifies
the State regulatory authority (or the Commission in the
case of a State without a State regulatory authority exer-
cising ratemaking jurisdiction over State regulated electric
utilities) that additional legislative authority is needed in
order for the utility to make such an election, the 6 month
date shall be extended to a date 2 years after the enact-
ment of this section. If a nonregulated electric utility does
not elect to establish retail electric service choice for its
customers within the required period, such utility shall be
subject to the election made under section 103 by the
State regulatory authority that has ratemaking authority
for State regulated electric utilities in the State. Any non-
regulated electric utility that established retail electric
service choice for its retail customers before the enactment
of this Act may submit a notice under this section within
6 months after the enactment of this Act.
(b) CUSTOMER CHOICE AND NONDISCRIMINATORY
ACCESS.—If a nonregulated electric utility elects to estab-
lish retail electric service choice for its retail electric cus-
tomers, the utility shall establish such rules as will provide
for each of the following:
(1) All nonregulated electric utility retail cus-
tomers of the utility shall be able to purchase retail
electric energy services from any person offering to
provide those services to such customers.
(2) Any person seeking to provide retail electric
energy services to such customers shall have reason-
able and nondiscriminatory access on an unbundled
basis, for the purposes of providing such services, to
all local distribution facilities owned or operated by
the utility. Access to local distribution facilities shall
be provided under rates, terms, and conditions that
are just, reasonable and not unduly discriminatory
and that permit the recovery by the utility of all
costs incurred in connection with the local distribu-
tion services and necessary associated services. The
local distribution services provided shall be at least
equal in quality to those provided by the utility to
itself or to any affiliate of the utility.
(3) Services that are not competitive may not
be used to subsidize services that are subject to com-
petition.
The nonregulated electric utility shall establish an effec-
tive date for the application of the requirements set forth
in paragraphs (1) through (3). Such date (hereinafter in
this section referred to as the ‘‘effective date for retail
electric service choice’’) shall not be later than December
15, 2000.
(c) CONSIDERATION OF CERTAIN TERMS AND CONDI-
TIONS.—Each nonregulated electric utility that makes an
election to establish retail electric service choice for its
customers shall consider each of the following terms and
conditions and make a determination concerning whether
or not it is appropriate to apply such terms and conditions
to the local distribution or sale of retail electric energy
services to carry out the purposes of this Act:
(1) Terms and conditions intended to insure
that adequate electric service is available to all cus-
tomers served by the retail electric distribution sys-
tem concerned.