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Currents

An Energy Newsletter for Local Governments

Community Choice Aggregation Phase 1 Decision

On December 16th, 2004 the California Public Utilities Commission voted unanimously to adopt a decision in Phase 1 of the Community Choice Aggregation rulemaking (R.03-10-003), Highlights of the decision follow:

  • CCA's can phase-in their programs at their discretion.
  • Implementation costs will be paid by all customers (not just CCAs).
  • The CRS must not reflect any avoidable costs, and the utilities must disclose the data underlying the calculations.
  • Potential CCAs are entitled to all information they feel is relevant to their investigation of CCA.
  • CCAs should generally have the opportunity to take delivery of any portion of DWR or utility contracts for which it pays through a CRS.
  • Interim tariffs will enable CCAs to implement programs beginning in 2005.

The interim CRS does not include the DWR bond charge (0.5 cents per kWh) and, for PG&E, the regulatory asset charge (0.6 cents per kWh). However, the interim CRS will be revised within 18 months or sooner if the utilities' forecasts of the CRS are 30% less than or greater than the interim amount. The adopted interim CRS should largely be moot because the 2006 CRS is projected to be well below the interim amount.

The changes from the ALJ's initial proposed decision which was released on October 29th, 2004 include the following:

  • Reduced the interim CRS amount to 2.0 cents per kWh from 2.2 cents per kWh, effective 1/1/05.
  • Clarified that this amount is in addition to the DWR bond charges and historic utility cost (the later applies to PG&E customer charges for the PG&E bankruptcy-related "regulatory asset").
  • Extened the time for utility compliance filings to 60 days from 30 days.
  • Assigned some costs associated with processing of customer opt-outs to CCAs (to be determined in Phase 2).
  • Deferred the issue of whether customers that switch from the CCA back to the utility should be responsible for incremental procurement/reliability related costs to Phase 2.
  • Deferred final determination of whether the CRS should be "vintaged" (i.e., different CRS applicable depending on the year the CCA program began operations) to Phase 2.
  • Deferred final determination of whether and how CCAs should be able to take delivery of power for which it pays through the CRS to Phase 2..
  • Deferred adoption of the open season proposal for transferring customers to CCA service to Phase 2.
  • Determined that CCAs are not required to implement baseline subsidies in their rate structures and directs the utilities to address the impact of the baseline subsidy on their rates in other utility ratemaking proceedings.
  • Added the requirement that in order to request confidential customer data from the utility, the mayor or chief county administrator must sign a letter attesting that the city or county is investigating or pursuing status as a CCA.

The full decision can be found at: http://www.cpuc.ca.gov/PUBLISHED/FINAL_DECISION/30547.htm

Phase 2 of this rulemaking will start with a pre-hearing conference at the CPUC on January 25th, 2005. For more details on this rulemaking, visit the LGC Community Discussion Board.

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