Competition in the Electric Industry Emerging Issues, Opportunities, and Risks for Facility Operators (1996) / Chapter Skim
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A Road Map to Electric Restructuring in California: Decisions 95-12-063 and 96-03-022
A Road Map to Electric Restructuring in California: Decisions 95-12-063 and 96-03-022
Pages 26-34
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From page 26... ...
It prompted more public comment and commission hearings. In May 1995 the Commission published two alternative potential versions of a restructured electric industry.
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From page 27... ...
Customer choice of options: full service utility customer, direct access to the competitive electric generation market, real-time rate options, or contracts for differences. Figure ~ puts this proposed market structure in graphic form.
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From page 28... ...
Proposed market structure for State of California 28
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From page 29... ...
This arrangement will ensure that wholesale transmission for utilities is not favored over retail transmission for customers. The ISO also: Coordinates scheduling the dispatch of power from all sources Balances load on a real-time basis Efficiently manages transmission congestion Maintains reliability Recovers the costs of ancillary services Provides information on transmission constraints, load distribution, line losses, and other system conditions.
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From page 30... ...
; \ \ / / . X/ 1 1 \ \ " ISO I \ Local Distribution ' ~ Local Distributions Utility Portfolio F.lli Selvice Blindlecl Flat Rate /\ Virtual Direct Access Hourly Prices TOU Meters / / \ Direct Access `~ ~ :/ \ Options Aggregator or g:~elf-Manag$' Direct Access Customers 1 \ ~ I \ ~ Institution \ \~ CI;D Direct Access Cllstomer FIGURE 2.
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From page 31... ...
To reduce the "horizontal" market power of utilities (due to their ownership of the vast majority of generating plants) , the largest investorowned utilities, Southern California Edison, San Diego Gas and Electric, and Pacific Gas and Electric will be required to divest themselves of some generating assets.
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From page 32... ...
With a direct access option, retail customers can choose to arrange the purchase of electric generation service directly from nonutility generation providers. Customers will also have the choice of a real-time rate option which will allow customers to shift their use to lower cost periods, reducing their electricity bills.
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From page 33... ...
In the period of transition to competition, customers may abandon the utilities for municipal and other power companies, leaving the remaining customers to bear the full transition charges. Utilities under the California Public Utility Commission's jurisdiction will have the following functions: Provide safe, reliable, nondiscriminatory distribution service to all electricity customers Provide energy from the Power Exchange to all customers who do not choose or are not eligible for direct access (socalled full-service customers)
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From page 34... ...
Schedule for Implementation Our goal is to have the new market structure in place by January I, 1998. Essential actions that are needed prior to January I, 1998, include the following: ISO principals and rates approved by FERC and asset transfer approval by the California Public Utilities Commission Power Exchange approved by FERC and asset transfer approval by the California Public Utilities Commission Resolution of horizontal market power issues Rates unbundled and applicable tariffs established Adoption of direct access eligibility and phase-in protocols Adoption of direct access standards including billing and access charges Adoption of metering standards Installation of metering equipment Adoption of competition transfer charge mechanism forecast of costs articulated Establishment of rules for new estimates California Environmental Quality Act completed and Environmental Impact review official Consumer protection in place: service and safety issues and education trust Public goods charge in place.
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