V. Assignment of Proceeding
Carl W. Wood and Geoffrey F. Brown are the Assigned Commissioners and Thomas R. Pulsifer is the assigned ALJ in this proceeding.
1. As part of its provisions to deal with California's energy emergency, AB 1X was enacted by the legislature which, among other things, suspended direct access.
2. D.02-03-055 did not change the DA suspension date of September 21, 2001, but created an exemption to the suspension requirements of D.01-09-060 (the "switching exemption") by permitting existing DA customers to choose a new ESP and continue on DA, subject to specified restrictions.
3. In D.02-04-067, the Commission granted a rehearing on the issue of the switching exemption, to be considered further in light of AB 1X and D.01-09-060, and so that an adequate record could be developed.
4. Parties presented testimony and briefs on issues relating to the switching exemption in this proceeding.
5. The Legislature's suspension of direct transactions of in AB 1X was intended to provide assurance that DWR power purchase costs would be covered by a stable customer base.
6. The suspension of direct transactions on September 20, 2001 in fact provides a stable customer base for the recovery of DWR costs.
7. If the DA customers depart bundled service without restriction, they potentially leave long-term supply commitments stranded, to be shifted to the remaining bundled service customers.
8. To the extent the utility must plan for the contingency that significant amounts of DA load may return to bundled service on short notice, its procurement costs will be impacted
9. In its Orders implementing the suspension of direct transactions the Commission has provided all customers with notice that direct transactions would be continued only pursuant to a valid existing contract.
1. The Legislature suspended the right of customers to avoid receiving and paying for electric service from DWR on a date designated by the Commission as September 20, 2001 in Water Code section 80110.
2. The legal effect of the suspension was to terminate the right of customers to avoid receiving and paying for DWR power so long as DWR is providing that service.
3. Permitting the initiation of new arrangements for direct transactions after September 20, 2001 violates Water Code section 80110.
4. Sustaining the validity of pre-existing contracts pursuant to which a customer who was engaging in direct transactions prior to September 20, 2001 is consistent with water Code section 80110.
5. Permitting continuation of direct transactions after September 20, 2001 pursuant to the express terms of pre-existing contracts, including assignment and renewal where expressly provided for, is consistent with Water Code section 80110.
6. A switching exemption whereby new arrangements for direct transactions are initiated after September 20, 2001 is not lawful under the provisions of Water Code section 80110.
7. The "standstill" principle articulated in D.02-03-055 is consistent with the provisions of AB 1X only to the extent described in this Order.
8. This decision construes, applies, implements, and interprets the provisions of AB 1X (Chapter 4 of the Statutes of 2001-02 First Extraordinary Session).
9. Pub. Util. Code § 1731(c) (any applications for rehearing are due within 10 days after the date issuance of the order or decision) and Pub. Util. Code § 1768 (procedures applicable to judicial review) are applicable.
IT IS ORDERED that:
1. This order shall apply to Southern California Edison Company. Pacific Gas and Electric Company, and San Diego Gas & Electric Company.
2. Continuation of direct access service after September 20, 2001 for customers of Southern California Edison Company. Pacific Gas and Electric Company, and San Diego Gas & Electric Company, including renewal and assignment after September 20, 2001, shall be based on the terms of the direct access contract or arrangement in effect on September 20, 2001 between that customer and the electric service provider (ESP) identified in the customer's direct access service request (DASR) on file with Southern California Edison Company. Pacific Gas and Electric Company, and San Diego Gas & Electric Company, respectively, as of September 20, 2001, as provided in D.01-09-060, D.01-10-036 and D.02-03-055.
3. Southern California Edison Company. Pacific Gas and Electric Company, and San Diego Gas & Electric Company shall comply with D.01-09-060, D.01-10-036 and D.02-03-055 by undertaking the following actions:
a. Review all direct access service requests (DASRs) filed after October 10, 2001;
b. Where DASRs have been processed that change the identity of the ESP, or make any other material change, Southern California Edison Company, Pacific Gas or Electric Company, and San Diego Gas & Electric Company shall review the direct access contract in effect on September 20, 2001 to determine whether the change was expressly provided for in the contract.
c. If Southern California Edison Company, Pacific Gas and Electric Company, or San Diego Gas & Electric Company determines after such review that the change was not provided for in the contract, the affected utility shall immediately notify this Commission and the affected customer and return the customer to bundled service on the customer's next regular metering reading date. Southern California Edison Company, Pacific Gas and Electric Company, and San Diego Gas & Electric Company shall report the results of the review to the Commission within 60 days of the effective date of this order.
4. 4. The utilities shall file advice letters within 15 days of the effective date of this order to implement tariff changes necessary to comply with the provisions of this order.
5. The utilities shall assess the full DA CRS for any load that was improperly served via direct access prior to the full implementation of this decision. The schedule for the subsequent payment of such amounts shall be determined by the Commission after receipt of the report required in Ordering Paragraph 3.
6. Southern California Edison Company. Pacific Gas and Electric Company, and San Diego Gas & Electric Company shall report to the Energy Division any ESP refusing to make available a DA contract, or otherwise cooperating, for purposes of determining compliance with the Commission's orders. The Energy Division shall report to the Commission the identity of any ESP refusing to make a contract available or otherwise refusing to cooperate, on or before June 30, 2003, along with a recommendation for enforcement action.
This order is effective today.
Dated , at San Francisco, California.
