(1) THE ELECTRIC COMPANY SHALL IMPOSE AND COLLECT,
THROUGH ITS CUSTOMER BILLS, THE INTANGIBLE TRANSITION CHARGES
APPROVED BY THE QUALIFIED RATE ORDER; AND

(II) AT THE SAME TIME, THE ELECTRIC COMPANY'S COMPETITIVE
TRANSITION CHARGE SHALL BE REDUCED BY AN AMOUNT EQUAL TO THAT PORTION
OF THE COMPETITIVE TRANSITION CHARGE RELATED TO THE TRANSITION COSTS
FOR WHICH TRANSITION BONDS HAVE BEEN SUCCESSFULLY ISSUED, TOGETHER
WITH ANY COSTS OF CAPITAL RELATED TO THE TRANSITION COSTS FOR WHICH
RECOVERY WAS PROVIDED IN THE COMPETITIVE TRANSITION CHARGE, AS
PROVIDED IN THE QUALIFIED RATE ORDER

(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 MAY BE CONSTRUED AS PREVENTING
THE COMMISSION FROM APPROVING FOR AN INVESTOR-OWNED ELECTRIC
COMPANY:

(I) AN ADJUSTMENT MECHANISM PROPOSED BY THE
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:

(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;