Commission Adopted Decision Against Direct Access Expansion

The following is a brief summary of the reasoning in D.21-06-033:

This decision contains the Commission’s recommendation to the Legislature against further expansion of the Direct Access program at this time. Public Utilities Code Section 365.1 requires that recommendations to reopen Direct Access be supported by the following findings:

1. The recommendations are consistent with the state’s greenhouse gas emission reduction goals.
2. The recommendations do not increase criteria air pollutants and toxic air contaminants.
3. The recommendations ensure electric system reliability.
4. The recommendations do not cause undue shifting of costs to bundled-service customers of an electrical corporation or to direct transaction customers.

The Commission interprets Section 365.1 to require that all four Required Findings can be made. With the energy market in California being influx and highly fragmented, in addition to the record demonstrating a wide range of complexities and potential risks (like electric reliability) that could result from reopening, there is a high level of uncertainty. Thus, the Commission cannot meet the four Required Findings and therefore cannot recommend a schedule to expand Direct Access that meets these requirements.

To fulfill the Commission’s primary responsibility in ensuring grid reliability, implementing the state’s ambitious GHG and air quality goals, and encouraging the construction of long-term renewable generation resources, the Commission recommends that the Legislature not expand Direct Access at this time.