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California to Reinstate Limited Direct Access for Non-Residential Customers

March 23rd, 2010

(CAPSTONE ENERGY SERVICES) – California regulators have elected to begin moving back toward an open-access grid.

On March 11, 2010, the California Public Utilities Commission (CPUC) issued its “Decision for Increased Limits for Direst Access Transactions” which sets the framework for non-residential power consumers to purchase electricity supplies from non-utility marketers.  This decision begins to phase-out the 2001 legislative suspension of Direct Access Service in California.

Under this program, each of the California regulated utilities are instructed to authorize limited power deliveries to customers using third party suppliers.  This program will be available to all non-residential customers of regulated utilities (Southern California Edison, Pacific Gas and Electric and San Diego Gas and Electric) on a first-come, first-served basis.  Given the limited volume of authorized deliveries and potential cost-savings for customers, this program is likely to be fully subscribed soon after enrollment opens.

Each of the utilities is to provide tariff modifications to the CPUC by the end of March to implement the new direct access program with the initial phase beginning on April 11, 2010.  This change represents a significant opportunity that commercial and industrial consumers should carefully evaluate as a mechanism to lower costs and limit exposure to market price volatility.

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For further information, contact Capstone Energy Services at 402.996.2242 or via email at: info@capstonenrg.com

Glossary Terms

Glossary Terms

Nominated Volume

The physical quantity of gas requested, typically in MMBtu/day, for a specific contract or for all contracts at a specific point.

Marketing Affiliate

A marketing company that has corporate ties to an interstate pipeline, an intrastate pipeline, or a local distribution company.

Energy Only Providers

Power marketers or other electricity vendors who provide and bill for only the energy component of the electricity consumed by the end-use customer.

Therm

A unit of heating value equivalent to 100,000 British thermal units (Btu).

Real Power

The component of electric power that performs work, typically measured in kilowatts (kW) or megawatts (MW)--sometimes referred to as Active Power.

Injection (Storage)

The process of delivering natural gas into a storage field for future delivery and use.

Price Ceiling

Statutory maximum lawful prices for various categories of natural gas, including gas destined for both the intrastate and interstate markets.

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Energy Delivery Chains

Energy Delivery Chains

Find out more about how your energy is produced and delivered to your business.

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Energy & the Environment

Energy & the Environment

How we assist clients in responding to national environmental concerns.

  • Initiate and manage a "Green" energy procurement program
  • Evaluate national legislative and regulatory initiatives
  • Research state and local energy efficiency programs and incentives
  • Track energy use and related emissions estimate