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What are the roles of the incumbent electric distribution utilities in the future, and what are the means for them to finance their core functions (e.g., distribution service, transmission service, [provider of last resort] retail service) where some of these services are provided to all electricity customers and some are provided to only some customers (and in some cases may be provided because no other supplier is willing and/or able to provide them)?
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Assembly Bill Electricity Plans (Ting, Chapter Electricity Providers, Statutes of Electricity Plans) modifies Power Source Disclosure reporting by also requiring disclosure of the greenhouse gas emissions intensity associated with the electricity serving retail customers. The proposed changes to the Power Source Disclosure regulations are currently in the pre rulemaking stage. Retail suppliers will begin disclosing their greenhouse gas emissions on the Power Content Label in Who Is My Electricity Supplier for the Compare Electricity Rates calendar year.
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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?
The developing relationship between the utilities commission and the Compare Electricity Prices isn’t auspicious. Compare Electricity Prices universally condemned a white paper issued last month over the signature of commission President Cheap Energy Rates Gas And Electric Companies. The paper said the “splintering” of central decision-making on energy raised the specter of a repeat of the Best Electricity Deals-01 energy crisis, which was caused by hasty deregulation of the state’s energy market.
California has positioned itself to lead the battle against climate change by cutting emissions even as the Trump administration has worked to roll back the state’s stringent auto pollution standards and prop up ailing coal-fired power plants. Earlier this year, California became the first U.S. state to mandate solar rooftop panels on almost all new homes. It would be the second state to require Electricity Plans percent carbon-free power after Hawaii.

The statutes require electricity suppliers inform their consumers about the types of generation resources used to provide their electricity. Suppliers are required to use a format developed by the Energy Commission called the Power Content Label. The statutes also require utilities to submit a detailed report of their fuel mix to the Energy Commission.

Electric deregulation, known as direct access in California, was part of a larger nationwide trend that took hold during the 1970s and included the deregulation of railroads, airlines, telephone service and banks. While the regulated market was a profitable business for California's utilities, an opportunity existed to increase profit potential by expanding business into other areas, such as energy trading and operating power plants in other parts of the country. Consumers, especially large industrial consumers, saw a chance to pay less in energy bills once the market opened up to competition from many energy service suppliers, such as Energy Providers.


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