New Opportunity for California Electric Customers
The California Public Utilities Commission (CPUC) is set to re-open the retail electric market for competition in April. Retail electric competition in California, known as direct access, was suspended in 2001 in the wake of the state's electricity crisis. Since that time, most businesses have had to take electricity service from their local utility. Now the CPUC is readying regulations that will give businesses the option to purchase electricity services from a provider other than PG&E, SDG&E, or Southern California Edison.
The rub is that the re-opening is limited. The legislation that precipitated the CPUC's move (Senate Bill 695) put a cap on the amount of electricity that will be available under direct access load, and this amount is to be phased in over the next four years. MRW and many other industry experts anticipate that customer demand for this limited amount of new direct access load will be much greater than the supply. According to current plans (and these plans could change), each of the utilities will accept notices of intent to take direct access on a first-come, first-served basis until the utility's allotment for the year is met. Given the robust interest in this re-opening, customers interested in direct access should act now and not take a wait-and-see attitude.
Customers often are seeking to lower their electric bills when they decide to enter the competitive electricity marketplace. Other benefits of direct access can include pricing structures tailored to individual customers' needs and risk management through more predictable pricing. Businesses concerned about the environment or their carbon footprint may want to seek out green power from competitive electricity providers.
MRW & Associates helped many businesses navigate the new and complex world of retail electric competition in the late 1990s when California first allowed direct access. Although direct access was suspended, MRW has continued to advise retail customers on other aspects of the electricity market and has remained engaged on direct access issues in both regulatory and legislative arenas. With this experience and knowledge, MRW is ready to help customers understand how the re-opening of direct access can benefit them.
If you would like help in understanding your options or more information on MRW's services for retail customers, please contact Mark Fulmer or William Monsen.
