Calif. PUC Directs Utilities to Propose Methodology for ESP Security Requirements

The California PUC has directed the investor-owned utilities to file proposals for the calculation of electric service provider security.

As previously reported, a prior decision held that ESP security must cover the incremental procurement costs incurred by the utility to serve residential and small commercial customers returned to the utility under an ESP default or other involuntary mass transition.

However, the decision deferred the determination of such incremental procurement costs to a future decision.

An amended scoping memo directed Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company, to file by February 24 proposals for the determination of ESP financial security requirements and related re-entry fees to cover incremental procurement costs relating to the involuntary return of small commercial and residential direct access customers.

The proposals should address how to distinguish small versus large customers for purposes of applying the ESP financial security requirements, another issue which had also been deferred.

Interested parties may reply to the proposals by March 9.