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Calif. Draft Would Adopt Fees, Security Levels For Municipal Aggregations

April 09,2018



A proposed California PUC decision would establish security requirements for community choice aggregations, including determining a per-customer fee used in such calculations to determine the cost of returning mass transitioned load

The proposed order would provide:

• For purposes of calculating the financial security requirement pursuant to Public Utilities Code Section 394.25(e), the reentry fee for community choice aggregators includes both utility administrative costs and incremental procurement costs.

• For purposes of calculating the financial security requirement pursuant to Public Utilities Code Section 394.25(e), the reentry fee for utility administrative costs is to be based upon the reentry fee for voluntary returns in each utility’s Schedule CCA–SF, which are currently $4.24 for Pacific Gas and Electric Company, $1.12 for San Diego Gas & Electric Company and $0.50 for Southern California Edison Company

• For purposes of calculating the financial security requirement pursuant to Public Utilities Code Section 394.25(e), the reentry fee for incremental procurement costs is to be based upon six months of incremental procurement.

• The financial security requirement includes both utility administrative costs and incremental procurement costs.

• Letters of credit and cash held by a third party are acceptable forms for satisfying the financial security requirement.

• The amount of the financial security requirement is to be updated twice per year, with a 10% deadband, consistent with the method adopted for electric service providers in Decision 13-01-021.

• To the extent that the applicable incremental procurement cost is negative, those negative procurement costs will offset up to 100% of the applicable administrative costs.

See the proposed order here



Tags:
California   Municipal Aggregation   Community Choice Aggregation  

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