Applications for California Direct Access Program to be Accepted June 10-14

Article by Constellation

In our recent webinar and blog post, we reviewed a proposed decision that had been issued by the California Public Utilities Commission (CPUC) that set forth implementation details for the 4,000 GWh expansion of the Direct Access (DA) cap.

What the Proposed Decision Said

One of the implementation details included in the proposed decision that we reviewed during the webinar set forth how the 4,000 GWh would be allocated to eligible customers, as follows:

• First Phase: 2,000 GWh of load to be admitted from the DA waitlist established by the 2018 lottery, and in effect for all of 2019, would be awarded space by June 14, 2019 and be able to start service on January 1, 2020.
• Second Phase: 2,000 GWh of load to be admitted from a DA waitlist to be established by a 2019 lottery conducted in June 2019 that would be in effect for all of 2020. The Second Phase lottery provided for start of service on January 1, 2021.

What the Final Order Said

In the final order issued by the CPUC on May 30, 2019, the First Phase timeline has been changed and will now start service January 1, 2021. The reason for the change is that for service to begin on January 1, 2020, the proposed decision provided for an exemption to the rules for developing and reporting load forecasts that are used for establishing the Resource Adequacy requirements that each Load Serving Entity must meet. In the final order, the CPUC determined that such an exemption should not be permitted, and that the First Phase load service start date should be delayed so that the load could be properly reflected in the load forecasts.

Changes in the Final Order

The key change in the timeline for awarding space under the new cap that result from this order is that both the First Phase and Second Phase load notifications are aligned. Key dates are as follows:

• The 2019 Lottery (which determines the customers that will get into the Second Phase) timing remains as June 10 – 14, 2019.
• First Phase load (from the existing 2018 waitlist) and Second Phase load (from the new 2019 waitlist) will now be notified by August 12, 2019 if they are getting space
• We are working to clarify with the CPUC how much time a customer will have to accept, or reject, the offered space, and complete the DASR process for those who accept.
• All First Phase and Second Phase load that completes the DASR process will start service on January 1, 2021.

Summary of Key Impacts and Customer Actions

Below is a chart showing the key dates for the First Phase and Second Phase of the Direct Access program based on the final decision on implementation of SB 437:

It’s important for customers on the 2018 waitlist (First Phase) to understand that you will NOT know if you are getting into the lottery until the 2019 waitlist process if over. To ensure you also have a chance to get in the Second Phase, you must enter the 2019 lottery.

Constellation is here to help with your lottery submission. To get your questions answered, you can:

• contact your Constellation business development manager
• email californialottery@constellation.com or
• visit our customer resource page which provides the utility forms required for lottery submission.

Customer Reference Document for DA Lottery