Market Reports Calif. Phase IV Direct Access Cap Hit

The amount of new direct access load available under Phase IV of the limited re-opening of direct access in California has already been fully subscribed, several suppliers told Matters after January 13, the first day that suppliers and customers were permitted to file six-month notices to take direct access service under Phase IV starting in January 2013.

In each of the three prior enrollment and/or notice periods for new customers to take direct access, the amount of space available was reached essentially instantaneously. With a much smaller amount of load available under Phase IV, a similar result was expected, and Friday's experience confirmed that thought.

As originally ordered by the PUC, available under Phase IV was the following amount of incremental, new direct access load at each utility:

Pacific Gas & Electric: 395 GWh

Southern California Edison: 395 GWh

San Diego Gas & Electric: 46 GWh

The utilities must verify and confirm the six month notice requests before officially declaring the amount of direct access load available fully subscribed.

Commenting on the customer desire to take direct access service, Andrea Morrison, Director, Government and Regulatory Affairs for Direct Energy, said:

"We are very pleased for the customers that have been fortunate enough to gain access to retail choice. However it is very evident through this limited reopening and the speed and at which the caps have been filled that there still remains a good deal of demand for direct access in California. It is our hope that the legislature will review this and do what's right in terms of allowing more businesses in California the freedom to choose their Energy Service Provider."