Proceeding to Allocate Customer CCA Costs (R.17-06-026)

On June 29, 2017, the CPUC opened a proceeding to consider alternatives to the amount that Community Choice Aggregation and Direct Access customers pay in order to keep remaining utility customers financially unaffected by their departure, which is required by legislation.  Legislation also requires that departing customers do not experience cost increases as a result of an allocation of costs that were not incurred on behalf of the departing load.

The Power Charge Indifference Adjustment (PCIA) is the mechanism to ensure that the customers who remain with the utility do not end up taking on the long-term financial obligations the utility incurred on behalf of now-departed customers. Examples of such financial obligations include utility expenditures to build power plants and, more commonly, long-term power purchase contracts with independent power producers.

This proceeding will consider whether the PCIA can be reformed or whether alternative mechanisms would better meet the statutory goals for cost allocation.

In addition to the central cost allocation question, the proceeding will examine data transparency, cost stability, mechanisms to verify prudent portfolio management, and other relevant matters.  



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