{"data":{"id":"us-dc/d.c.-code-34-1510","jurisdiction":"us-dc","citation":"D.C. Code § 34-1510","heading":"Transition costs, transition benefits.","body":"(a)\nThe electric company shall be provided an opportunity to recover all of its prudently incurred and verifiable net transition costs, subject to full mitigation, following the Commission’s determination under subsection (b) of this section. In connection with the foregoing:\n(1)\nA competitive transition charge, or other appropriate non-bypassable mechanism as determined by the Commission, may be included as part of the charge paid by every customer accessing the transmission or distribution system of the electric company.\n(2)\nThe competitive transition charge may be included on bills to customers for a period of limited duration to be determined by the Commission.\n(3)\nThe Commission may establish recovery periods of different lengths for different categories of transition costs.\n\n(b)\n(1)\nThe Commission shall determine the transition costs and the amount of the costs that the electric company may recover.\n(2)\nIn determining the electric company’s transition costs, the Commission shall:\n(A)\nConduct public hearings; and\n(B)\nConsider evidence appropriate to an accurate determination of the electric company’s transition costs. Such evidence may include:\n(i)\nBook value and fair market value;\n(ii)\nAuctions and sales of comparable assets;\n(iii)\nAppraisals;\n(iv)\nThe revenue the company would receive under rate-of-return regulation;\n(v)\nThe revenue the company would receive in a restructured electricity supply market; and\n(vi)\nComputer simulations provided to the Commission.\n(3)\nIf the Commission determines that the electric company will incur transition costs, the Commission shall determine the extent of the permitted recovery based on the following factors:\n(A)\nThe prudence of the original investment and of the continued management of the investment;\n(B)\nWhether the investment was mandated by law, regulation, or order;\n(C)\nWhether the amount at issue has been fully verified and minimized;\n(D)\nWhether the investment continues to be used and useful;\n(E)\nWhether the loss is one of which investors can be said to have reasonably borne the risk;\n(F)\nWhether investors have already been compensated for the risk;\n(G)\nThe financial integrity of the electric company;\n(H)\nWhether the investment was made to satisfy the need to ensure the availability of reliable electric service;\n(I)\nFor costs incurred or to be incurred as a result of electric industry restructuring or the establishment of customer choice, whether the costs are reasonable; and\n(J)\nThe impact of a recovery of transition costs on the development of effective competition in the market for electricity supply or billing, or the market for any component of electric service declared by the Commission to be a potentially competitive service.\n\n(c)\nThe Commission shall establish procedures for an annual review of actual market conditions to determine if the authorized competitive transition charge is overcompensating or undercompensating the electric company for the transition costs established under subsection (b)(3) of this section. If an annual review demonstrates that the authorized competitive transition charge is overcompensating or undercompensating the electric company for the transition costs established under subsection (b)(3) of this section, the Commission shall adjust the competitive transition charge accordingly.","path":["Title 34. Public Utilities.","Chapter 15. Retail Electric Competition and Consumer Protection."],"source_url":"https://code.dccouncil.gov/us/dc/council/code/sections/34-1510","current_through":"2026-08-20 (D.C. Law 26-175)","vintage":"","retrieved_at":"2026-08-29T05:44:07Z","sha256":"eba949cdc1f09ed71d62f19f4fdd5b250f1d50320ee763bdc723f32fac7086a8","source_id":"us-dc","stale":false,"prev":"us-dc/d.c.-code-34-1509","next":"us-dc/d.c.-code-34-1511"},"notice":"GroundRules: Original legal text. Not legal advice."}