Calif Public Utilities Commission revises fees to level playing field for customers

The California Public Utilities Commission (CPUC) recently revised the fee that Community Choice Aggregation (CCA) and Direct Access customers pay in order to ensure equitable treatment for all electric market participants.

The CPUC adopted the decisions, it said, to prevent customers who remain with an investor-owned utility from having to pay costs the utility incurred on behalf of customers who left the utility to become customers of a CCA or Direct Access provider and to prevent departing customers from taking on costs that were not incurred on their behalf.

The revised fee, called the Power Charge Indifference Adjustment (PCIA), is comprised of financial obligations the utilities made on behalf of customers to build power plants and enter into long-term power purchase contracts with independent power producers.

“We are updating the PCIA formula now because everyone agrees it is broken,” Commissioner Carla J. Peterman said. “I support the creation of alternative electric providers to expand customer choice, and our legal obligation is to make sure this happens without increased costs to customers who do not, or cannot, join a CCA. Today’s proposal ensures a more level playing field between customers.”

The impacts on bills will vary depending on customer class, service provider, energy usage, the energy markets and a utility’s resources. For residential CCA customers in Pacific Gas and Electric Co.’s (PG&E) territory, there will be an estimated 1.68 percent increase over 2018 bills. Customers in Southern California Edison’s territory will see an estimated 2.5 percent increase. In San Diego Gas & Electric (SDG&E) territory, CCA customers will see an estimated 5.24 increase. Rate increases for one group of customers are offset by rate decreases for other sets of customers.

“We are in a critical transition in balancing a more competitive environment for buying energy for customers,” Commissioner Martha Guzman Aceves said. “This decision will allow the Community Choice Aggregators to move forward without harming customers that are left with the utility. I look forward to seeing local governments through their CCAs get more involved in CPUC energy issues by bringing innovative, diverse, and representative voices to our decision-making process.”