Bmark's Robert Kramb Expects Calif. Phase Three Direct Access Cap to be Hit Immediately

Robert Kramb, president of broker Bmark Energy, expects the California Phase Three direct access cap to be hit immediately upon the start of the next Notice to Transfer period, which commences January 31, 2011.

The expectation is not surprising given that the Phase One and Phase Two direct access caps were each essentially hit instantaneously upon their opening, with thousands of Notice of Intent/Transfer submissions rejected for lack of space under the caps.

Kramb reported that there is still a huge amount of demand waiting for an allotment under the cap, so the Phase Three cap will likely be hit just as rapidly as the prior two caps. Additionally, the Year Three cap is only about 60% of the size of the Year One and Year Two caps.

Under the Phase Three cap, customers are submitting Notices to Transfer to take direct access service starting in the year 2012. Under the PUC's original decision, at Pacific Gas & Electric and Southern California Edison, the additional direct access load available in Phase Three is about 789 GWh, and at San Diego Gas & Electric, the additional load is about 92.4 GWh.

Kramb said that 55% of the customers with which Bmark Energy worked for the Phase Two cap allocation were awarded the ability to take direct access.

Kramb confirmed that new direct access participation under the cap has been dominated by large and mid-merit customers; however, Bmark is prospecting small volume customers as well.