Direct Access Parties Seek Stay of PCIA Changes at SCE, SDG&E

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March 8, 2011  

Several direct access parties have petitioned the California PUC for an immediate ruling to stay any changes to the Power Charge Indifference Amount (PCIA) calculation at Southern California Edison and San Diego Gas & Electric until a final decision by the PUC regarding direct access exit fees (R. 07-05-025).

Under the proposed stay, new customers leaving bundled supply would pay the 2010 vintage PCIA until a final order on the exit fee.

As Pacific Gas & Electric has already implemented a revised PCIA for 2011, the direct access parties sought a ruling directing PG&E to establish an account to track all PCIA charges in excess of the 2010 PCIA levels, to facilitate any potential refund due to the final adjudication of exit fees.

"Granting this motion will ensure that ratepayers are not required to pay a PCIA rate that is artificially and inappropriately inflated, and will eliminate the imposition of fluctuating rate changes that are contrary to the Commission's long-standing policies and practices that support rate stability," the direct access parties said. Jointly filing the motion were the Direct Access Customer Coalition, the Alliance for Retail Energy Markets, BlueStar Energy, and the Retail Energy Supply Association, along with several community choice aggregators and end users.

The PCIA, which can take one of several vintages depending on when a customer leaves utility supply, is a nonbypassable charge intended to compensate the utility for certain procurement decisions previously made on behalf of customers leaving bundled supply for direct access.

The direct access parties have sought modifications to the PCIA calculation, particularly with respect to the market price benchmark used in the current formula. The direct access parties claimed that, "there is no debate over whether the PCIA calculation methodology needs to be changed, or whether the changes that are required will lead to a lower PCIA."

"[A]ll parties in this proceeding concede that fact and recognize that a revised calculation methodology is necessary. The remaining issues are precisely what changes will be made to the calculation and their resolution will indubitably lead to a lower PCIA," the direct access parties said.

"Despite the recognition by all parties that the PCIA is slated to be reduced as a result of this proceeding, the IOUs have already implemented (in the case of PG&E) or are planning to implement (in the case of SCE and SDG&E) substantial increases in the PCIA," the direct access parties added.

The 2011 PCIA by utility is, or proposed to be, 1.40 cents/kWh at PG&E, 2.15 cents/kWh at SCE, and 1.85 cents/kWh at SDG&E, which direct access parties said range from 35% to 293% higher than 2010 levels.

The PUC has previously denied the direct access parties' requested relief with respect to the PCIA in the utilities' individual Energy Resource Recovery Account proceedings.

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