Calif. PUC Formally Opens Rulemaking To Expand Direct Access Load, Set Start Date, Allocation

The California PUC adopted a final resolution to open a rulemaking to implement expanded direct access caps pursuant to SB 237

As previously reported, pursuant to SB 237, on or before June 1, 2019, the commission shall issue an order regarding direct transactions that provides as follows: (1) Increase the maximum allowable total kilowatt-hours annual limit by 4,000 gigawatt hours and apportion that increase among the service territories of the electrical corporations, (2) All residential and nonresidential customer accounts that are on direct access as of January 1, 2019, remain authorized to participate in direct transactions.

The rulemaking will address how to comply with the above provision, including whether the Commission should adopt a Staff proposal or a different approach.

Staff proposes that the 4,000 GWh shall be apportioned as a percentage of the load for the full service territory of an IOU, excluding residential and existing Direct Access load, irrespective of which load serving entity currently serves the remaining load

Furthermore, Staff proposed that, to comply with year-ahead Resource Adequacy requirements, and address potential cost-shifting, customers enrolled as a result of the 4,000 GWh expansion will not begin service until January 2020.

Furthermore, Staff proposed that, eligibility to enroll new Direct Access customers is based off the waitlist that went into effect on January 1, 2019

The Commission will consider whether the June 1, 2019, implementation date will impact existing rules and regulations, including the Commission’s rules governing Resource Adequacy. Thus, the Commission may, if appropriate, modify the open enrollment rules for assigning new load to the Direct Access program to account for Resource Adequacy considerations

The PUC will consider whether there are any timing or process issues related to the increase in Direct Access load and the Commission’s rules and regulations for the Integrated Resource Plan, and the Power Charge Indifference Adjustment

SB 237 also directs the PUC to provide recommendations to the Legislature on implementing a further direct transactions reopening schedule, including, but not limited to, the phase-in period over which the further direct transactions shall occur for all remaining nonresidential customer accounts in each electrical corporation’s service territory.

The rulemaking will also consider a petition from the Direct Access Customer Coalition (DACC) seeking revisions to the Direct Access Customer Relocation Declaration form (Relocation Form)

The PUC will consider in the proceeding whether the Direct Access Monthly Report, which IOUs provide to the Commission, should be revised to denote Direct Access load that is reserved and, therefore, not available to be assigned to customers who are on the waitlist. Load will be considered as reserved if it is assigned to a customer who has a pending load replacement, load relocation, or account transfer.

The PUC will also consider in the rulemaking whether Direct Access customers should be permitted to relocate to a new location on the same premises.