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California Regulator Raises Fees for Community Choice Aggregation Customers to Avoid Cost Shifting

The California Public Utilities Commission on Oct. 11 approved a proposal that revises the Power Charge Indifference Adjustment, a fee intended to equalize cost sharing between customers who switch to community choice aggregation or CCA and those to continue to take service from electric utilities. The adjustment is an exit fee charged by the state’s investor-owned utilities to CCA and direct access customers. The commission found that the growing customer movement to CCA has widened the disparity between the level of resources in a utility’s portfolio and what is required to serve the lower demand. Advocates of CCA have raised concerns that the revision includes provisions such as including “pre-2002 legacy utility-owned generation” in the rate resulting in significant cost shifts to departing customers. The revised methodology will be used to calculate the fees that take effect as of Jan. 1, 2019.

October 11, 2018
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