CONTACT: Dianne Dienstein 415-703-2423 December 23, 1997 CPUC - 137
Given the announcement by the Independent System Operator (ISO) and Power Exchange (PX), both key to opening California's electricity market to competition, that a delay in operating their systems will cause the electric market not to open on January 1, 1998, the California Public Utilities Commission (CPUC) today will issue for comment a draft order proposing changes to its competition implementation decisions necessary to accommodate the delay.
The effect of the proposed changes will be to continue the electricity transmission, distribution and service arrangements which currently exist until the ISO and PX are up and running. The ISO and PX will announce a new target date for start-up on December 29. Both entities' rates and other terms of service are regulated by the Federal Energy Regulatory Commission.
The CPUC already has scheduled a meeting on Tuesday, December 30, at 2 p.m. at the State Office Building Auditorium, 505 Van Ness Avenue, in San Francisco, which will provide it an opportunity to take up the proposed order.
The CPUC role, in conjunction with Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric, is to ensure a smooth transition to the competitive market and continuation of reliable electric distribution service. Most CPUC implementation decisions can proceed as planned. For instance, ratepayers will receive a 10 percent electricity rate reduction beginning January 1, the ongoing consumer education program about electric industry change will continue, and marketers and brokers can continue to take direct access orders, and utilities to process direct access requests, although the effective date of the transfers will be delayed until the ISO and PX begin operations.