(D) (1) THE COMMISSION SHALL ESTABLISH PROCEDURES FOR THE
ANNUAL REVIEW OF THE COMPETITIVE TRANSITION CHARGE FOR EACH ELECTRIC
COMPANY TO RECONCILE THE ANNUAL REVENUES RECEIVED FROM THE CHARGE
WITH THE ANNUAL AMORTIZATION OF TRANSITION COSTS APPROVED BY THE
COMMISSION UNDER THIS SECTION TO TAKE ACCOUNT OF ACTUAL KILOWATT HOUR
SALES IN THE PRIOR YEAR COMPARED WITH PREVIOUSLY ESTIMATED
KILOWATT HOUR SALES. THE COMMISSION SHALL ADJUST THE COMPETITIVE
TRANSITION CHARGE BASED ON ANY UNDER RECOVERY OR OVER RECOVERY WITH
RESPECT TO THE AUTHORIZED AMORTIZATION AMOUNT.

(2) NOTHING IN THIS SUBTITLE SHALL BE CONSTRUED AS PREVENTING
THE COMMISSION FROM APPROVING FOR AN INVESTOR OWNED ELECTRIC
COMPANY:

(I) AN ADJUSTMENT MECHANISM PROPOSED BY SUCH INVESTOR
OWNED ELECTRIC COMPANY IN ITS INITIAL RESTRUCTURING PROPOSAL FILED
PRIOR TO JANUARY 1, 1999 THAT TAKES INTO ACCOUNT DIFFERENCES OTHER THAN
DIFFERENCES IN KILOWATT HOUR SALES, TAKING INTO CONSIDERATION ANY
REQUIREMENTS RELATED TO ANY TRANSITION BONDS;

(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 CONDUCT AN EVIDENTIARY HEARING TO ESTABLISH THE
VALUE OF THOSE GENERATION ASSETS.

(2) THE COMMISSION MAY CONSIDER IN THE DETERMINATION OF THE
VALUATION OF EACH ASSET EVIDENCE OF BOOK VALUE, FAIR MARKET VALUE,
SALES OF COMPARABLE ASSETS, APPRAISALS, THE REVENUE THE COMPANY WOULD
RECEIVE UNDER RATE OF RETURN REGULATION, THE REVENUE THE COMPANY
WOULD RECEIVE IN A RESTRUCTURED ELECTRICITY SUPPLY MARKET, OTHER.
APPROPRIATE EVIDENCE OF VALUE. AND OTHER ISSUES CONSIDERED BY THE
COMMISSION.

(3) THE COMMISSION SHALL DETERMINE AN 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