COM/MP1/rg1/acb* Mailed 12/08/03

Decision 03-12-015 December 4, 2003

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Southern California Edison Company (E 3338-E) for Authority to Institute a Rate Stabilization Plan with a Rate Increase and End of Rate Freeze Tariffs.	Application 00-11-038 (Filed November 16, 2000)
Emergency Application of Pacific Gas and Electric Company to Adopt a Rate Stabilization Plan (U 39 E).	Application 00-11-056 (Filed November 22, 2000)
Petition of THE UTILITY REFORM NETWORK for Modification of Resolution E-3527.	Application 00-10-028 (Filed October 17, 2000)

OPINION REGARDING ASSEMBLY BILL 117'S EXPANDED REGISTRATION OF ELECTRIC SERVICE PROVIDERS
AND REENTRY FEE

TABLE OF CONTENTS

TITLE Page

OPINION REGARDING ASSEMBLY BILL 117'S EXPANDED REGISTRATION OF ELECTRIC SERVICE PROVIDERS
AND REENTRY FEE

Summary 22

Background 33

Discussion 55

A. Introduction 55

B. Expanded Registration and Related Proof 77

C. Use of Electric Service Provider in Other Code Sections 2222

D. Reentry Fee 2525

Comments on Draft Alternate Decision 2727

Assignment of Proceeding 2727

Findings of Fact 2828

Conclusions of Law 3131

O R D E R 3333

Attachment A

Summary

Assembly Bill (AB) 117 (Stats. 2002, ch. 838) went into effect on January 1, 2003. As part of AB 117, Public Utilities Code § 394¹ was amended to expand the registration of electric service providers (ESPs). Prior to the amendment of this code section, only ESPs serving residential and small commercial customers (small ESPs) were required to register with the Commission. With certain exceptions, AB 117 expands the registration requirement to all entities offering electric service to customers within the service territory of an electrical corporation. AB 117 also amended § 394.25 by adding subdivision (e), which addresses the reentry procedures that might be obligatory as a demonstration of fitness to serve in the event that an ESP fails to meet its contractual obligations. Today's alternate decision addresses the expanded registration and re-application requirements. Unless specifically excluded, all entities that offer electric service to customers within the service territory of an electrical corporation in California shall be required to register with the Commission within 120 days, if they have not registered already. This expanded registration requirement primarily affects those ESPs who provide electric service to agricultural customers, medium to large commercial customers and/or industrial customers (large ESPs).

In order to register those additional ESPs, we direct all California electric utilities to provide a list to the Energy Division of all the entities offering electrical service to customers within their respective service territories. The Energy Division shall then notify all these entities of the expanded registration requirement and the deadline for complying with this decision. This decision invites comments from interested persons on whether or not the current security deposit requirements (for a large ESP) provide adequate consumer protection. Also, the decision asks concerned individuals to suggest alternative mechanisms (instead of the security deposit) that could be used by the Commission to ensure that a large ESP is financially viable. Finally, the decision solicits comments from interested persons on whether the security deposit could be used to defray re-entry fees (if charged by an investor owned utility).