According to the PUC, “…the right of retail end-use customers … to acquire service from other providers is suspended until the Legislature, by statute, lifts the suspension or otherwise authorizes direct transactions.” (Section 365.1.a, California Public Utilities Code) Phase In Periodīetween the years, 2010 to 2013 the PUC allowed utilities to increase load allowance in a phased approach. The Right to Suspend DA Services for Retail End-Use Customers – Due to the caps or limitations placed on ESPs and the electricity supply, the program is currently unable to accept any additional applicants. “Within six months of the effective date of this section, or by July 1, 2010, whichever is sooner, the PUC shall adopt and implement a reopening schedule that commences immediately and will phase in the allowable amount of increased kilowatt hours over a period of not less than three years, and not more than five years, raising the allowable limit of kilowatt hours supplied by other providers in each electrical corporation’s distribution service territory from the number of kilowatt hours provided by other providers as of the effective date of this section, to the maximum allowable annual limit for that electrical corporation’s distribution service territory.” (Section 365.1.b, California Public Utilities Code) This limit is defined by the Commission as a 3 to 5 year phase.
This amount is defined by the Public Utility Commission (PUC) of California as the “maximum total kilowatt hours supplied by all other providers to distribution customers of that electrical corporation during any sequential 12-month period between April 1, 1998, and the effective date of this section.” (Section 365.1.b, California Public Utilities Code)ĮSP Service Area Limitations – This point emphasizes the energy limit (GWh) that ESPs can serve. However, there is a limit to how much electricity is supplied. Utility Territory Maximum Supply Load – The DA Program allows non-residential customers to receive supply services from an ESP in utility territories. The most important items to highlight include: This bill outlines the different laws associated to California’s DA program. This bill called for DA to open up again (starting in 2010), but only to non-residential customers. One of these corrections was to re-introduce deregulation concepts, but in a way that would not harm the industry and its consumers. In October of 2009, Governor Arnold Schwarzenegger signed Senate Bill 695. Since then, the California has made corrections to their energy market. To repay the General Fund and continue the power purchase program, state agencies are preparing to issue DWR Power Supply Revenue Bonds.” District Access Re-Opens Furthermore, we note that the suspension of the ability to acquire direct access service will provide DWR with a stable customer base from which to recover the cost of the power it has purchased and continues to purchase.”Īt that time, the state also indicated that “Currently, the State of California through the DWR is purchasing electric energy on behalf of the utilities’ existing ratepayers (except those purchasing electric energy from ESPs) with funds from the State’s General Fund and an interim loan. To help offset the damage from the crisis, California suspended the DA Program in 2001 stating, “Suspending the right to acquire direct access service will assist in issuing these bonds at investment grade, by providing DWR with a stable customer base from which to recover its costs. These laws pertained directly to the DA Program. Some believe that the energy crisis occurred in part because of incorrectly implemented, partial energy deregulation laws. It is estimated that this crisis cost California between $40 to $45 billion. As a result, the price of wholesale electricity increased dramatically, and rolling blackouts hurt many businesses that relied on electricity to conduct day to day tasks. The state had a shortage of electricity supply for many reasons, some of which include capped retail supply, illegal oil pipeline closures, drought and market manipulations. In the early 2000s California experienced an energy crisis. While there is a slight difference in terminology and function, California’s Direct Access Program ultimately gives eligible customers the power to choose who supplies their electricity. This program, albeit extremely limited in scope, is very similar to electricity deregulation programs in states like Texas and Connecticut. While utilities continue to provide consumers with electric delivery related services, ESPs are competitive providers that facilitate the sale of supply related products and services. The Direct Access (DA) Program allows a limited selection of consumers living in the state of California to purchase their electricity from an Electric Service Provider (ESP).
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