PROVIDED AN OPPORTUNITY TO RECOVER UNDER ITS RESTRUCTURING PLAN
THROUGH THE COMPETITIVE TRANSITION CHARGE OR OTHER APPROPRIATE
MECHANISM.

(C) AFTER JULY 1, 1999, AN ELECTRIC COMPANY MAY APPLY TO THE

COMMISSION FOR A QUALIFIED RATE ORDER FOR SOME OR ALL OF ITS TRANSITION
COSTS.

(2) IF THE COMMISSION ISSUES A QUALIFIED RATE ORDER AND THE
TRANSITION BONDS APPROVED BY THAT ORDER ARE SUCCESSFULLY ISSUED;

(I) 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 TO PREVENT 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 INCLUDES TAKES INTO ACCOUNT
DIFFERENCES OTHER THAN DIFFERENCES IN KILOWATT HOUR SALES, TAKING INTO
CONSIDERATION ANY REQUIREMENTS RELATED TO ANY TRANSITION BONDS; OR

(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.
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