Tools
California Direct Access
BP Energy Company is pairing with preferred Electricity Service Providers (ESPs) to deliver a total energy solution.
California Direct Access
Retail electric competition was introduced in California when Assembly Bill 1890 was passed in 1996 and enacted in March 1998. The bill provided all customers with "Direct Access," which allowed them to choose their own energy service provider. The California Public Utility Commission suspended Direct Access on September 20, 2001. Since then, businesses that wish to shop around for a competitive electricity rate have had no choice but to buy from their local utility.The re-opening of the California Direct Access program was approved with the passing of Senate Bill 695 in October of 2009. Under the current structure, yearly enrollment in the program is limited to 10% of each utility's commercial accounts. Participation is based on a first come, first served basis with the acceptance of applications for the next round of enrollees starting on July 1st, 2010.
Phase 1 vs. Phase 2
Direct Access is in Phase 2. If a customer submits a request for space under the Phase 2 cap, and is accepted, the customer must initiate direct access service by January 31, 2011, or the customer will then be subject to market rules that will require the customer to remain on utility service for three years. This condition is different than Phase 1 where customers who were accepted under the Phase 1 cap were able to shop for direct access service, but could remain on utility service with no restrictions or minimum stay if they did not go to direct access service.
Volume Caps
There are volume caps that limit the load which can migrate to Direct Access with annual phase-in volumes allotted to each utility, and since space is limited, it will be allotted to companies on a “First Come – First Serve” basis. Once the cap is reached, there is no further Direct Access movement.
BP’s Place in Retail Power
Effective wholesale markets are a key component of a well functioning retail market. BP brings the scale economies and the deep understanding of a major wholesale market participant.We understand that California is a unique energy market. “The important role of imported power into California is one key difference. California relies much less on coal than the rest of the US. This different in generating source also helps explain whey there is a price disparity between the US and California. California’s dependence on natural gas is likely the prime reason prices are so much higher.” (Source: EIA
The Potential Benefits of Retail Power Competition
Source: Capitol Hill Research Center, Energy Retailer Research Consortium
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