CPUC Market Proceeding

In December 2006, a petition was filed with the CPUC by the Alliance for Retail Energy Markets and over two hundred other co-petitioners and supporters, asking they open an investigation into the continued suspension of the right to direct access and choice in energy suppliers. These supporters, which represent a wide range of public and private entities and vary from small to multi-national organizations signed on to the petition. Those groups which represent K-12 schools, universities, local governments, retailers, restaurants, manufacturing, health systems and electric suppliers all seek to reestablish the right to energy choice currently denied to all but a few existing direct access customers.

On April 24, 2007, CPUC Commissioner and President Michael R. Peevey issued a proposed decision on this issue. In the proposed decision, he recommended opening the investigation and beginning a rulemaking process, which will determine under what conditions direct access will be restored.

On May 24, 2007, the California Public Utilities Commission (CPUC) voted to grant a petition opening an investigation into lifting the suspension of direct access and restoring consumers’ ability to choose electric service providers.

The rulemaking process that will follow will include three phases ranging from the determination of the CPUC’s legal authority to reopen the market, moving through establishing the benefits of an open market structure to customers and concluding with the precise rules for how to exercise competitive options.

ARem is a member of the California Alliance for Competitive Energy Solutions (CACES), a coalition of public and private entities that support lifting the suspension of Direct Access to the electricity market. To learn more about CACES visit www.ca-aces.org.