USA : June 17, 2010

The California Public Utilities Commission has approved re-opening Direct Access electricity over a four year period for the state’s three largest regulated utilities – Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric.  The initiative calls for retail access to become available to all business customers over a consecutive four-year period beginning in April 2010.  To facilitate the process an open enrollment window running from April 11 to June 30 allowed a customer to avoid a six-month notice period and be accepted under the first year’s cap on a “first come first served basis”.  Direct Access in California was severely limited for electricity customers in 2001 following the state’s energy crisis in 2000-2001.

Currently, the initial cap has been filled for all three utilities with the next round of enrollment being scheduled for July 2010.  The rush of applicants was overwhelming and the same is expected during the next round.  California businesses pay some of the highest rates for electricity in the nation. Customer choice programs such as what California is now doing provide consumers an opportunity to access competitive market prices for their supply needs beyond what is offered by traditional utility companies.  By allowing customers to choose their electricity suppliers and the conditions under which they will purchase their electricity, one can more effectively manage their energy requirements.