California Customer Choice: An Evaluation of Regulatory Framework Options for an Evolving Electric Market

In 2017, the California Public Utilities Commission (CPUC or Commission) commenced an inquiry into the many changes occurring in California's electric sector. After holding an en banc hearing on May 19, 2017, the CPUC formed the California Customer Choice Project to examine the issues and develop a report evaluating choice in California's current market.

On May 3, 2018, the California Customer Choice Project issued its draft paper entitled, California Customer Choice: An Evaluation of Regulatory Framework Options for an Evolving Electricity Market. The CPUC jointly held an en banc with the California Energy Commission to discuss the draft white paper on June 22, 2018 and solicited written public comments from interested parties. 

On August 7, 2018, the California Customer Choice Project released the final Choice Paper which incorporates statements from the Ad Hoc Advisory Committee of nationally recognized energy experts and stakeholder input. The final report includes an expanded discussion of the types of Load Serving Entities (LSEs), updated tables/figures on policy implementation, procurement, resource adequacy and information on a central buyer and customer data. Read our press release for more information.

Final Choice Action Plan & Gap Analysis (Published December 2018)

The Commission must consider how to address California's changing electric markets in a way that continues to ensure reliable, clean, and affordable electricity for customers and equitable treatment for all market participants. The Choice Paper raises a breadth of issues about California's electric market that affects many stakeholders, including state and federal agencies, the California Independent System Operator (CAISO), the Legislature, and local governments. Without a coherent and comprehensive plan, the current policies in place may drift California to an unintended outcome, like the California Energy Crisis, and breakdown in services.

Undertaking an effort to create a comprehensive plan requires coordination and action by all entities involved. The CPUC developed the Choice Action Plan to help guide decision makers on the next steps in addressing these complex, and sometimes interdependent, issues.

In conjunction with stakeholder input solicited over the last year and other commission divisions, including Legal, Administrative Law Judge, Energy Division, and the Consumer Affairs Branch, the Customer Choice Project Team:

  • preformed a gap analysis which will examine the fundamental questions raised in the Choice Paper to identify critical issues requiring a solution;
  • mapped current CPUC (and other agency) proceedings that address issues presented;
  • identified outstanding matters that require further analysis; and
  • solicited public input for solutions that will lead to specific outcomes.

Stakeholder input is an essential component of this process. Interested parties have provided written comments and have had a number of opportunities to participate at public events held on this issue.

Previous En Bancs

October 29, 2018 En Banc

 June 22, 2018 En Banc 

Draft Green Book

October 31, 2017 Informal Public Workshop and related materials

Please direct inquiries on all aspects of the California Customer Choice project to: customerchoice@cpuc.ca.gov

Historical Reference Materials on Customer Choice

Customer Choice