4. Issues in Proceeding

The evidence and briefs make clear that a series of policy, legal and implementation questions require resolution in order for the Commission to impose a bond charge. These include the following:

1. Should the Commission exempt specific bundled electric customers and usages, such as residential consumption less than 130% of lifeline amounts or CARE-eligible and Medical Usage, from the bond charge?

2. What methodology should the Commission use to calculate a bond charge?

3. What are the likely consequences of the various policies under consideration in R.02-01-011 for bond charge amounts?

4. How should the Commission implement the methodology adopted to allocate and collect bond-related costs?

Answering these questions will enable the Commission to meet its statutory obligation of imposing bond charges sufficient to ensure the timely repayment of bond-related costs. We therefore address each question in turn.