This report is the result of the directives delineated in the following resolutions passed at the 1975 Session of the General Assembly.

In accordance with the directives contained in Senate Resolution No. 27, the Senate Commerce and Labor Committee appointed Senators J.. Harry Michael, Jr., Peter K. Babalas, H. Selwyn Smith, Edward M. Holland and Frank W. Nolen to the membership of the Subcommittee.

At the March 31, 1975, meeting of the full House Corporations, Insurance and Banking Committee, the Committee voted that the study of public utilities referred to in House Joint Resolution No. 271 be given to a Subcommittee to sit with the Senate Subcommittee and report back at intermittent times to the full Committee on their findings. The House members attended the meetings and provided ideas and suggestions, but they took no part in the voting on the legislative packet to be recommended to the Senate Commerce and Labor Committee nor did they go on record as either approving or disapproving the final report. As stated, they will report the results to their full Committee. This action was taken to avoid redundancy and to allow for a more concentrated effort by all of those involved with the study.

Pursuant to their vote, the House Corporations, Insurance and Banking Committee appointed Delegates Robert R. Gwathmey, III, Richard M. Bagley, Frank E. Mann, Lewis W. Parker, Jr. and W. Ward Teel to assist in the Senate study.

Thus formed, the Joint Subcommittee proceeded to hold a series of Statewide public hearings to ascertain consumer problems and to solicit citizen ideas for the solution of those problems. Public hearings were held in Richmond, Abingdon, Salem, Painter, Yorktown, Virginia Beach, Weyer's Cave, Arlington, Fairfax, Fredericksburg, Prince William County and Louisa. At these hearings, citizens were allowed to speak without time constraints on the· problems created by· soaring electricity costs. The Subcommittee received numerous requests to investigate citizen allegations directed primarily at Virginia Electric and Power Company (hereinafter referred to as VEPCO), and Appalachian Power Company (hereinafter referred to as APCO). Follow-ups were forthcoming where possible.

The resolutions directed the attention of the Subcommittee to all utilities. Most complaints, though not all, received during the course of the public hearings related to electric utilities.

In addition to the public hearings, the Joint Subcommittee has held several working sessions to deliberate on the work of the staff and consultants. Pursuant to the request of the Governor, the recommendations contained in the Governor's Electricity Cost Commission Study have been reviewed by the Subcommittee and certain of them, which will be discussed later in this report, have been incorporated into the Subcommittee's final recommendations.

The Subcommittee is being assisted in its endeavor by a team of consultants possessing certain expertise in the field of public utilities. Dr. James Dunstan, Executive Director, assists the Subcommittee's overall efforts and coordinates staff and consultant activity. John W. Chesson, Esquire, serves as special counsel to the Subcommittee and advises it on SCC and financing matters. Dr. James E. Brown serves as the Subcommittee's rate analyst. Mr. Norman Gregg, Jr. advises the Subcommittee on fuel related matters. L. Willis Robertson, Jr., Esquire and Thomas R. Oliver, Jr. served respectively as staff attorney and research associate. The Subcommittee wishes to express its appreciation to those men for their assistance in this arduous effort.