Today, the California Public Utilities Commission (CPUC) unanimously approved Commissioner Peterman’s revised Alternative Proposed Decision (APD) to conclude the cost allocation methodology portion of the Power Charge Indifference Adjustment Methodology (PCIA) proceeding. Phase II of the proceeding will address many important issues that still need resolution.
The PCIA determines the cost indifference calculation for how much community choice aggregator (CCA) customers, bundled investor owned utility (IOU) customers, and direct access (DA) customers will pay for generation resources previously procured on their behalf. These costs are allocated to customers who departed or may depart IOU service territories to take service from a CCA or direct access provider (electric service providers (ESPs)).
Per the CPUC’s 10/11/18 press release: “Bill impacts will vary depending on customer class, service provider, energy usage, the energy markets, and a utility’s resources. Evaluating CCA residential customers departing in 2018, there is an estimated 1.68 percent increase in bills of residential CCA customers over 2018 bills as a result of today’s decision in PG&E’s territory; in Edison’s territory, that figure is 2.50 percent; and in SDG&E’s territory, that number is 5.24 percent. Any rate increases for one group of customers will be offset by rate decreases for other sets of customers.”
This post updates a previous post that explained the original proposed alternative decision. This post focuses on explaining the differences between the original PD, APD, and the revised APD adopted today.
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