(II) AN ADJUSTMENT THAT TAKES INTO ACCOUNT GENERATION
ASSET SALES BY AN ELECTRIC COMPANY OR AN AFFILIATE TO A NONAFFILIATE
THAT ARE CONSUMMATED ON OR BEFORE JUNE 30, 2005; OR

(III) ANY OTHER MECHANISM AS PART OF A SETTLEMENT.

(E) (1) IN DETERMINING THE APPROPRIATE TRANSITION COSTS OR
BENEFITS FOR EACH ELECTRIC COMPANY'S GENERATION-RELATED ASSETS, THE
COMMISSION SHALL:

(I) CONDUCT PUBLIC HEARINGS; AND

(II) CONSIDER IN ADDITION TO OTHER APPROPRIATE EVIDENCE

OF VALUE:

1. BOOK VALUE AND FAIR MARKET VALUE;

2. AUCTIONS AND SALES OF COMPARABLE ASSETS;

3. APPRAISALS;

4. THE REVENUE THE COMPANY WOULD RECEIVE UNDER
RATE-OF-RETURN REGULATION;

5. THE REVENUE THE COMPANY WOULD RECEIVE IN A
RESTRUCTURED ELECTRICITY SUPPLY MARKET; AND

6. COMPUTER SIMULATIONS PROVIDED TO THE

COMMISSION.

(2) THE COMMISSION SHALL DETERMINE ANY EQUITABLE ALLOCATION
OF COSTS OR BENEFITS BETWEEN SHAREHOLDERS AND RATEPAYERS. IN
DETERMINING THE ALLOCATION OF TRANSITION COSTS OR BENEFITS, THE
COMMISSION SHALL CONSIDER THE FOLLOWING FACTORS:

(I) THE PRUDENCE AND VERIFIABILITY OF THE ORIGINAL

INVESTMENT;

(II) WHETHER THE INVESTMENT CONTINUES TO BE USED AND

USEFUL;

(III) WHETHER THE LOSS IS ONE OF WHICH INVESTORS CAN BE
SAID TO HAVE REASONABLY BORNE THE RISK; AND

(IV) WHETHER INVESTORS HAVE ALREADY BEEN COMPENSATED

FOR THE RISK.
7-514.

(A) (1) ON COMPLAINT OR ON ITS OWN MOTION, FOR GOOD CAUSE SHOWN,
THE COMMISSION MAY CONDUCT AN INVESTIGATION OF THE RETAIL ELECTRICITY
SUPPLY AND ELECTRICITY SUPPLY SERVICES MARKETS AND DETERMINE WHETHER
THE FUNCTION OF ONE OF THESE MARKETS IS BEING ADVERSELY AFFECTED BY
MARKET POWER OR ANY OTHER ANTICOMPETITIVE CONDUCT.