The California Public Utilities Commission on Thursday moved to possibly reopen a program suspended during the state’s energy crisis in 2001 that lets consumers buy electricity from independent suppliers rather than from utilities, Reuters reports.
The CPUC’s decision, made on a 4-to-1 vote, opens a three-phase process to decide whether “direct access” can be reinstated in the state’s retail electricity market. The process could take more than 18 months.
“Direct access is an integral part of the competitive market,” said Michael Peevey, president of the CPUC and author of the proposal. “Retail competition may exert further downward pressure on rates.”
The commissioners emphasized that they wanted to study retail competition and get more information before making a final decision.
Consumer groups, however, strongly oppose the move, saying independent energy companies are working to circumvent a state law that protects consumers from harm due to deregulation.
Leading lawmakers in Sacramento also say the CPUC does not have the legal authority to lift the suspension of direct access.
Direct access to electricity suppliers was a key plank in California’s ill-fated deregulation plan adopted by the state Legislature in 1996.
