Suspending the right to contract for direct access protects DWR and the electric utilities in their endeavor to secure long-term contracts to acquire electric energy, with a reasonable opportunity to recover their costs of power. We have determined on our own motion that public necessity require reduction of the usual 30-day period for public review and comment to 10 days. (Rule 77.7(f)(9).) Reply comments are waived. The Water Code sections regarding the purchase of electric energy by the Department of Water Resources has an urgency statute which provided for the suspension of direct access. The legislature found that immediate implementation of the statute was needed to protect the "health, welfare, and safety of the people of this state ...." Our urgency is no less. Parties in R.94-04-031 and I.94-04-032 may file comments to this draft decision in this docket.
1. An emergency exists in the electricity market in California.
2. Under the rate freeze, direct access customers are being subsidized by SCE.
3. There is no requirement for SCE to make cash refunds to direct access customers or ESPs in lieu of a bill credit.
4. Pursuant to Water Code § 80110, this Commission must determine when the right of retail end use customers to acquire service from other providers shall be suspended.
5. The right to contract for direct access should be suspended effective July 1, 2001, except for written contracts executed prior to July 1, 2001.
1. The petition of SCE should be granted.
2. SCE should not make cash payments to direct access customers or ESPs to satisfy the PX credit.
3. The determinations we make today should apply to PG&E, SDG&E, as well as SCE.
4. This order should be served on the parties to R.94-04-031 and I.94-04-032, who may file comments to the draft decision in this docket.
5. The right to contract for direct access should be suspended effective July 1, 2001, except for written contracts executed prior to July 1, 2001.
6. This order should be effective today so that our findings may be implemented expeditiously.
IT IS ORDERED that:
1. The petition of Southern California Edison Company (SCE) to modify Decision 99-06-058 is granted to the extent set forth in Ordering Paragraphs 2 and 3.
2. This order shall apply to Pacific Gas and Electric Company (PG&E) and San Diego Gas & Electric Company (SDG&E).
3. SCE, PG&E, and SDG&E shall not make any payments of cash to direct access customers or energy service providers to satisfy the customers' Power Exchange credit balance.
4. SCE, PG&E, and SDG&E shall notify their customers that the right of retail end users to acquire service from other providers, except the Department of Water Resources, is suspended until the Department no longer supplies power pursuant to Water Code §§ 80000, et seq., effective July 1, 2001, except for written contracts executed prior to July 1, 2001.
5. This proceeding is closed.
This order is effective today.
Dated , at San Francisco, California.
(See Formal Files for Appendix A.)