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Power Charge Indifference Adjustment ("PCIA")
R. 17-06-026
June 7, 2023

CPUC to Vote on PD Addressing PCIA Components and ESPs' Data Access

The California Public Utilities Commission ("CPUC") will vote on the Proposed Decision ("PD") of Administrative Law Judge ("ALJ") Stephanie Wang at its June 8, 2023, Business Meeting. The PD, issued May 4, 2023, modifies the calculation of the Power Charge Indifference Adjustment ("PCIA") by establishing a new market price benchmark ("MPB") and an alternative allocation mechanism to address the "greenhouse gas-free" ("GHG-Free") incremental value of large hydroelectric energy resources above fossil fuel resources, as well as revising the calculation of the Energy Index MPB to improve accuracy and transparency. The PD declines to modify the calculation of the Renewables Portfolio Standard ("RPS") MPB for long-term transactions or modify access to confidential data for energy service providers ("ESPs"). If approved, the PD will close the R. 17-06-026 proceeding.

Several parties submitted comments on the PD, including The Utility Reform Network (“TURN”), Pacific Gas and Electric Company (“PG&E”), California Community Choice Association (“CalCCA”), Southern California Edison Company (“SCE”), the Public Advocates Office at the CPUC (“Cal Advocates”), Shell Energy North America (“Shell Energy”), and the Alliance for Retail Energy Markets and Direct Access Customer Coalition (collectively, “AReM/DACC”).

In its comments, CalCCA states that it supports the PD, with the following limited comments and requested modifications:

  1. The PD’s adoption of a minimum volume-based threshold of 1,000 gigawatt-hours for setting the GHG-Free MPB rather than a threshold based on the number of contracts entered into strikes a reasonable balance between the positions of the parties;
  2. The Commission should require PG&E and SCE to file their Tier 1 Advice Letter indicating their election between the GHG-Free MPB or GHG-Free allocations for 2024 within 30 (rather than 60) days of the effective date of the final Decision to allow CCAs adequate time to plan for 2024; and
  3. The final Decision should direct parties to the proper proceedings to address:
  • Vintaging changes when an investor-owned utility (“IOU”) procurement contract is amended, renewed, or extended, which is the subject of a September 9, 2022 Motion filed by CalCCA in this proceeding; and
  • The urgent need for a permanent framework to credit the Portfolio Allocation Balancing Account when IOUs use banked Renewable Energy Certificates for renewables portfolio standard compliance.

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Proposed DecisionCalCCA Comments on PD
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