| CONTACT: | Dianne Dienstein 415-703-2423 | December 30, 1997 CPUC - 140 |
To ensure a smooth transition to the competitive market and continuation of reliable electric distribution service, the California Public Utilities Commission (CPUC) today modified some previously-issued electric industry restructuring orders to accommodate the delay in starting up the Independent System Operator (ISO) and Power Exchange (PX). The effect of the Commission's decision is to continue the regulatory status quo for the few months until the ISO and PX can operate.
Utilities will inform their customers of the delay through bill inserts and information mailed to customers.
Once the ISO and PX are up and running, expected by March 31, the Chief Executive Officers of the ISO and the PX, Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric must each certify this to the Federal Energy Regulatory Commission. Once this occurs, the CPUC's Coordinating Commissioner for Electric Restructuring, currently President P. Gregory Conlon, will issue a ruling which will order when direct access should begin.
In the interim, beginning January 1, residential and small commercial ratepayers will receive a 10 percent electricity rate reduction, and utility rates will be frozen; the ongoing consumer education program about electric industry change will continue; and utilities can proceed to arrange for the sale of generation plants, however final transfer of the plants can take place only when the market is open to competition.
The ability of customers to choose and sign-up for a new energy provider will continue during the delay, except that the new energy providers will not be able to provide service until direct access begins. Marketers and brokers can continue to take direct access orders, utilities can process direct access requests to take effect when the ISO and PX begin operations, and utilities will continue to provide metering and billing information to energy service providers and other market participants.
The Competition Transition Charge (CTC) paid by all customers will continue to be recovered in bundled rates, however, calculation of the specific CTC amount is delayed until operation of the PX because it is determined by the market price of electricity established in the PX.