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Some California Direct Access Customers to Receive Significant Refunds

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We have exciting news for our commercial and industrial customers in California. Direct Access (DA) customers should take note of a change in non-bypassable charges, which may result in significant refunds for many customers.

What Are Non-Bypassable Charges?
Non-by passable charges include utility charges that all customers must pay, including transmission and distribution charges. DA customers must also pay a non-bypassable charge referred to as the Power Charge Indifference Amount (PCIA) – that is the DA customer’s share of “stranded costs” associated with purchases made by the utility before the customer left utility service.

The Change in Non-Bypassable Charges
Constellation…
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Constellation Supports Settlement in Arizona; Could Bring Customer Choice to Large C&I Customers in Arizona Public Service (APS) Territory

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There are interesting developments happening in Arizona, which could bring customer choice to large commercial and industrial (C&I) customers. I recently testified along with other energy industry leaders on behalf of a settlement in the Arizona Public Service (APS) rate case, which would allow a capped amount of load associated with large power users to select alternative generation suppliers.

The Settlement Agreement, if approved, will require APS to implement Experimental Rate Schedule AG-1, a buy-through rate for large commercial and industrial customers for a period of four years, with participation capped at 200 MW of peak load.

Under…
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Arizona Explores Benefits of Competitive Electric Markets

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Competitive energy markets are thriving around the country, driven by efficiency, robust renewable options and innovation. I heard many variations of that statement during an all-day meeting to discuss bringing retail competition and customer choice to Arizona.

State regulators, industry leaders, and federal energy experts who were invited speakers at the meeting were aligned in their support for the retail choice that exists in 17 states and Washington, D.C., as well as their recommendation that Arizona take steps to enjoy those same benefits.

Not only are competitive markets more efficient, they provide more competitive energy prices and budget…
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Update on California Direct Access Expansion Bill

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We recently reported that Senate Bill 855 had been introduced by California State Senator Christine Kehoe to expand the Direct Access reopening cap that had been put in place in 2009. 

We had expected that the bill would be heard in the Assembly Utilities and Commerce Committee on July 5.  Unfortunately, that hearing did not occur, but the bill remains eligible for further action later on in the summer. We plan to work closely with Senator Kehoe and her staff to resolve any outstanding issues so that the bill can be passed and enacted during the current two-year legislative…
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Update on Direct Access – Coalition Petition to Ensure an Efficient Process for Customers

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Yesterday, the California Public Utilities Commission (Commission) approved a petition that had been submitted jointly by a broad coalition, including the Alliance for Retail Energy Markets (AReM), a trade association that represents the interests of competitive electricity service providers (ESPs) of which Constellation NewEnergy is a member.

In the petition, the coalition asked the Commission to modify its Order that established the Open Enrollment Window process timeline for the first year of the Direct Access phase-in, and the timeline for the submission of six month switching notices to get space under the second year of the phase-in…
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California Direct Access set to begin on April 11, 2010

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The reopening of California’s Direct Access (DA) market is set to begin on April 11, 2010.  At that time, non-residential customers will have the opportunity to choose an alternative electric supplier to replace the supply service currently provided by the three major investor owned utilities in California (Southern California Edison, Pacific Gas & Electric, and San Diego Gas & Electric).  The size of the Direct Access market is, however, capped in each of the utility service territories, and the cap will be phased in over a four year period. 

As a result, customers who are interested in evaluating their alternative…
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