X. Preliminary Scoping Memo

This rulemaking will be conducted in accordance with Article 2.5 of the Commission's Rules of Practice and Procedure. As required by Rule 6 (c)(2), this order includes a preliminary scoping memo as set forth below.

The scope of this proceeding will be to 1) investigate and identify the correct criteria for the efficient and appropriate allocation of gains from the sale of utility assets; 2) identify past tests we have used for determining allocation of gains on sale; 3) determine the types of situations in which utilities incur gains on sale; and 4) develop specific tests to apply to each of the situations identified in item 3, based on the criteria identified in this Order, or on rationales developed in the record of this proceeding.