California

Electric:

Contrary to popular belief, electric competition in California was not completely suspended in 2001. In fact, some customers retained the ability to shop for an alternate electric provider to find a lower rate.

Even more customers were granted this choice in 2010 as a partial re-opening of choice, known as "direct access" in California, was implemented at Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric.

In March 2010, the California Public Utilities Commission established a four-year phase-in of new direct access load caps, equal to 9,520 GWh at Pacific Gas & Electric, 11,710 GWh at Southern California Edison, and 3,562 GWh at San Diego Gas & Electric.  This allowed many customers who had previously been locked out of choice an opportunity to shop for a lower electric rate.

The phase-in allowed up to 35% of space available under the electric choice cap to be filled in 2010, up to 70% in 2011, up to 90% in 2012, and up to 100% in 2013.  California holds periodic "Notice of Intent" periods for customers to attempt to receive an allocation under these load caps and be assigned the right to take direct access. 

As of early 2011, the first three phases have been completely filled, and during each enrollment window, the load caps were hit instantly with a significant amount of customers denied the right to shop for electricity because the cap was hit -- indicating a high demand among consumers for choice in their electric supplier.

Under direct access, a customer's delivery and supply charges are separated. The utility continues to deliver the customer's power, but the customer can choose an alternate provider for electricity supply, in order to obtain a lower rate or a customized product, such as green energy. The utility continues to handle all line maintenance and service outages.

Natural Gas:

California offers all customers a chance to shop for lower natural gas rates. Customers can choose a different company to supply them with their gas supply. Customers choosing an alternate gas supplier will still have their gas supply delivered by the local utility, but customers will be buying their gas supply from a new company.

A customer's natural gas bill has been separated into two parts:

• Regulated distribution of gas, which is still only provided by the utility, and
• Supply of the gas commodity, which is open to competition.

Customers can choose to receive their gas supply from their utility, or an alternate gas provider.

If customers do not shop for an alternate gas supplier, they receive default sales service from their utility. However, how this sales service is structured depends on the size of the customer. California has split customers into "core" customers, or those customers to whom gas is essential, and "non-core" customers.

Core customers include all residential customers, regardless of load size, commercial customers with annual loads below 250,000 therms, and those commercial customers with annual loads above 250,000 therms who elect to receive the higher reliability associated with core service.

Non-core customers include all cogeneration customers, regardless of load size, and those commercial customers with annual loads above 250,000 therms.

Under default sales service, customers pay a supply charge called "gas energy charge" which can vary as often as monthly. Customers can avoid wild monthly swings in the gas supply charge by contracting with an alternative gas supplier.

No matter who you choose to buy energy from, your local utility will continue to deliver your gas and respond to service interruptions and outages. You will still pay your utility for these services. Depending on your area, you can choose to receive a single bill from your utility listing your utility delivery charges and supplier commodity charges, or separate bills from the utility and alternate energy provider.