Joint PCIA Working Group Releases Report April 5

Community Choice Agencies and Delivery Utilities also Issue Joint Petition to CPUC

In previous posts we have addressed the Power Charge Indifference Adjustment (PCIA) and efforts to remedy some of the more troublesome aspects of it like volatility, longevity, and transparency. For background, our original paper on what the PCIA is can be downloaded here.

Over the past six months a Working Group led by representatives from Sonoma Clean Power and Southern California Edison met about once per month to examine the existing PCIA and to see if there may be a way forward on reforming the PCIA in a way that is equitable for all parties.

A full report of the activities of the Working Group and of the issues they discussed was published on April 5. Although much progress was made in participants’ understanding of the issues, no agreement was reached on any firm recommendations for PCIA reform or replacement.

Outcomes of the effort include:

  • A comprehensive list of issues related to the current PCIA
  • A list of ideas to improve transparency, data access, consistency, and predictability of the PCIA
  • A list of sources of publicly available data and a proposal to create a central database
  • A Joint Petition for Modification to develop a standardized format for IOUs to use when submitting PCIA filings

Also, several ideas for replacing the PCIA were discussed but not agreed upon as recommendations:

  • A portfolio allocation methodology to allocate share and cost between IOUs and CCAs
  • Lump-sum buy-out
  • Assignment of specific contracts to CCAs

The next steps in the process are that the CPUC will consider the Joint Petition for Modification. If they approve it as written, then going forward, IOUs will present their PCIA data as recommended in the Appendix of the Petition. They will present this in their future PCIA filings. It is likely that the CPUC will approve the Joint Petition due to the fact that they asked the joint parties to file a recommendation, it is supported by all three IOUs and four CCAs, and it is not controversial. It is not clear at this time what the next steps are regarding any further changes of substance to the PCIA.

PCIA matters are addressed within the Energy Resource Recovery Account proceeding at the CPUC. We will continue to post occasional updates here at the Clean Power Exchange.

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