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CPUC Takes Second Look at Direct Access Electricity Marketing A recently approved plan by the California Public Utilities Commission would allow more companies to bypass utilities and purchase electricity directly from independent marketers at wholesale prices.
Problems with the deregulated market ten years ago forced state officials to stop the practice. But California’s market looks different than it did then, perhaps most significantly because supply is currently outpacing demand. Additionally, the FERC has imposed tighter rules to protect against anti-competitive behavior in the energy market.
Under the new plan, between 10 and 12 percent of the state’s market will become eligible to purchase electricity in this manner over the next four years.
The change has not been met with opposition from utilities thus far. Southern California Edison will allow those businesses using 11,710 gigawatt hours or more to purchase their power independently. The company recently told the Wall Street Journal that it has already had 4,000 companies express interest in shopping directly for their power. |
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