Review of Curtailment Priorities

If successful, the results of this Rulemaking, combined with the efforts of this Commission and other state agencies to promote increased electric generation and energy efficiency will help to ensure a reliable electric system for California. If needed, however, this Rulemaking will also serve as the forum for revising and updating our priorities for curtailing customers during times of energy shortages.

PU Code Sections 2771 and 2772 provide that:

The commission shall establish priorities among the types or categories of customers of every electrical corporation and every gas corporation, and among the uses of electricity or gas by such customers. The commission shall determine which of such customers and uses provide the most important public benefits and serve the greatest public need and shall categorize all other customers and uses in order of descending priority based upon these standards...

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In establishing the priorities pursuant to Section 2771, the commission shall include, but not be limited to, a consideration of all the following: (a) A determination of the customers and uses of electricity and gas, in descending order of priority, which provide the most important public benefits and serve the greatest public need. (b) A determination of the customers and uses of electricity and gas which are not included under subdivision (a). (c) A determination of the economic, social, and other effects of a temporary discontinuance in electrical or gas service to the customers or for the uses determined in accordance with subdivision(a) or (b). (d) Any curtailment or allocation rules, orders, or regulations issued by any agency of the federal government.

Our existing curtailment policies were developed during the early 1980's after a lengthy, multi-year effort.¹⁹ As part of our review of the utilities' interruptible programs, and as we prepare to address energy needs for the Summer of 2001, the Commission may wish to make modifications to its decades-old curtailment rules. This Rulemaking will serve as the forum to address proposed changes on the Commission's own initiative.