California Businesses – New Opportunity to Move to Competitive Electricity Supply

Home/News/California Businesses – New Opportunity to Move to Competitive Electricity Supply

The California Legislature last year passed Senate Bill 237 which increased the cap on the Direct Access program by 4,000,000 MWh of customer load per year.  Direct Access is the program by which some business & institutional customers purchase electricity competitively rather than at the tariff rates of PG&E, SCE or SDG&E.  If you have facilities in California that are currently served by one of the 3 utilities, Energy Edge would strongly encourage you to explore entering the Direct Access Market due to the potential for lower costs and the ability to better control long term electricity costs.

There is currently a waitlist of customers (called the 2019 waitlist) who have applied to enter the Direct Access market.  The first 2,000,000 MWh of the cap increase will be allocated to those customers.  If you are on the 2019 waitlist, Energy Edge strongly recommends you begin the collection of data and market evaluation now. You will be notified mid-June of your eligibility to participate in Direct Access with your final forms being due July 31st.  Please contact Energy Edge as soon as possible if you need assistance with obtaining necessary data from the IOU’s and procuring competitive electricity supply to start January 1st, 2020.

If you are not currently on the Direct Access waitlist, there will be a very narrow window to apply to the 2020 waitlist for the ability to start competitive supply on January 1st, 2021.  Key dates for customers interested in applying for Direct Access participation are below:

June 14th, 2019Deadline for customers to apply for 2020 waitlist
August 12th, 2019Deadline for utilities to notify customers eligible to participate in D.A. starting 2021
September 3rd, 2019Deadline for customers to notify utility that they intend to enter D.A. starting 2021
February 1st, 2020Deadline for customers to complete competitive supply contracts and submit to the utility
January 1st, 2021Commencement of competitive supply for new Direct Access customers

 

There are many potential benefits to California customers from moving to competitive electricity supply via Direct Access, including:

  • The ability to purchase electricity on a fixed price, indexed price, or any other basis to better match up with budget and overall business goals, rather than utility tariff rates;
  • Limiting the future impact of utility stranded costs
  • More flexibility in purchasing renewable energy

Energy Edge strongly encourages California customers to consider applying for Direct Access, and will assist customers in the application process at no cost.  Contact your Energy Edge representative today for more information or amueller@energyedge.com.

May 13th, 2019|News|