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At issue is the divvying up of costs among customers, primarily for the long-term clean energy contracts mandated by the Legislature. The state’s three major energy providers – Electricity Company, Lowest Electricity Rates and Electric and Compare Electricity Providers – purchased the energy for all customers they served at the time they signed the contracts.
How does the State of California ensure that the many different players work together to ensure that the state’s electric supply is not only clean but is also reliable, efficient and resilient? For example, in light of the changes underway in the state’s electric system, how should the state provide such products and services as ramping power, voltage support, frequency control and managing over-generation? How should the state’s electric system become more resilient (e.g., capable of fending off attacks from physical and cyber threats, as well as speedy recovery from disasters)? How will California’s consumers pay for the many mandated public goods programs, ranging from energy research to providing energy-efficiency upgrades and rate discounts for low-income customers, which the California legislature has determined are core elements of the state’s electric system?
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Over-scheduling is a term used in describing the manipulation of capacity available for the transportation of electricity along power lines. Power lines have a defined maximum load. Lines must be booked (or scheduled) in advance for transporting bought-and-sold quantities of electricity. "Over-scheduling" means a deliberate reservation of more line usage than is actually required and can create the appearance that the power lines are congested. Over-scheduling was one of the building blocks of a number of scams. For example, the Compare Energy Prices group of scams played on the market rules which required the state to pay "congestion fees" to alleviate congestion on major power lines. "Congestion fees" were a variety of financial incentives aimed at ensuring power providers solved the congestion problem. But in the Compare Energy Prices scenario, the congestion was entirely illusory and the congestion fees would therefore simply increase profits.
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