PENNSYLVANIA, February 24 - unbundled shall include, but not be limited to: commodity

costs, capacity costs, hedging costs whether financial or

physical, procurement costs, billing system and billing

costs, customer service and account management costs, working

capital, overheads, including executive salaries and

benefits , office building, rent and information technology

costs, legal and financial costs and labor costs. To the

extent any of these costs are indirect costs to pay for

services that support both distribution customers and

supplier of last resort customers, the commission shall

require an appropriate proportion of those indirect costs be

allocated to supplier of last resort. For the purpose of this

paragraph, the provision of supplier of last resort service

shall be treated as an affiliate of the electric distribution

company . The intent of this requirement is to ensure that the

actual costs of providing distribution and supplier of last

resort service are accurately reflected in the rates charged

for those services. The commission shall adopt rate

mechanisms to ensure that the electric distribution companies

recover fully their allowed distribution costs. The

unbundling and reallocation shall be accomplished in the

utility's next rate case. If an electric distribution company

does not file a rate case within three years following the

effective date of this paragraph, the commission may order

the filing of information to effectuate unbundling and, after

the filing, may commence a proceeding where the unbundling is

accomplished. After the initial allocation, changes shall be

permitted only in a general rate case. If the commission

finds it necessary to do so, the commission may establish a

mandatory schedule for the filing information and the

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