Statutory Requirements

The industrial interruptible programs of the utilities are covered in part by the requirements of Public Utilities Code Sections 743 and 743.1.

PU Code Section 743, adopted in 1991,¹² allows that:

The commission may approve contracts between an electrical corporation and its heavy industrial customers as determined by the electrical corporation, of not more than ten years' duration, in which the electrical corporation buys from the heavy industrial customer the right to interrupt the customer's service on short notice, as determined by the commission. The payment mechanism may include a discounted rate for service.

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Throughout the term of any of these contracts, the commission shall have the right to amend the contract. Every contract subject to this subdivision shall include a provision indicating that the contract is subject to amendment by the commission as provided in this subdivision.

PU Code Section 743.1, effective January 1, 1997¹³ required that:

Electrical corporations shall continue the availability to qualified heavy industrial customers of optional interruptible or curtailable service. The effective rate for interruptible or curtailable service to qualifying customers shall reflect a pricing incentive for electing to operate under the interruptible or curtailable service option.

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The commission shall continue the availability of optional interruptible or curtailable service at least until March 31, 2002. In no event shall the level of the pricing incentive for interruptible or curtailable service be altered from the levels in effect on June 10, 1996, until March 31, 2002. (Emphasis added.)