4. The Electric Service Provider Deposit and Reentry Fee

The September 28, 2009 scoping memo stated that this proceeding would determine where the issue of the deposit and reentry fee requirement for an electric service provider (ESP) should be addressed. This issue was raised in Assembly Bill (AB) 117, which was enacted into law in Chapter 838 of the Statutes of 2002, and addressed in D.03-12-015. In D.03-12-015, the Commission solicited comments about the size and form of the deposit requirement an ESP should have, and whether the deposit requirement should be used to cover the ESP's financial responsibility for any reentry fee. Although comments on this issue were filed, the Commission did not resolve this issue because direct access of electricity by end-use customers was suspended on February 1, 2001 as a result of Water Code § 80110.

Senate Bill (SB) 695 was recently signed by the Governor. (Stats. 2009, Ch. 337.) Section 2 of SB 695 added Pub. Util. Code § 365.1, while Section 9 of SB 695 eliminated subdivision (f) of Water Code § 80110. By eliminating subdivision (f) of Water Code § 80110, the suspension of direct access was eliminated from that code section. The addition of Pub. Util. Code § 365.1 allows limited direct access of electricity by nonresidential end-use customers up to a maximum allowable total annual limit that is to be determined by the Commission, and phased in over a period of not less than three years but no more than five years. Pursuant to Pub. Util. Code § 365.1(b), the Commission is to adopt and implement a reopening schedule by April 11, 2010.

We anticipate implementing the direct access provision of SB 695 in Rulemaking (R.) 07-05-025 or another appropriate proceeding. The ESP deposit and reentry fee requirement should also be addressed in that proceeding, and therefore will not be addressed in this proceeding.