California Urged to Restore Choice

Douglass & Liddell Petitions for Restoration of Competitive Choice in California

On behalf of a coalition of over 180 parties that included large and small commercial, industrial and educational entities, Douglass & Liddell recently petitioned the California Public Utilities Commission requesting that it commence an investigation into reopening the direct access market in California and restoring choice to California electricity consumers. Among the 38 petitioners were such major parties as the University of California, the California State Universities, Building Owners and Managers Association of California, California Independent Petroleum Association, California Manufacturers & Technology Association, California Retailers Association, Cargill, Federated Department Stores, Kinder Morgan Energy Partners, Los Angeles County Sanitation District, Macy's West, School Project For Utility Rate Reduction, Wal-Mart Stores, Inc., the Alliance for Retail Energy Markets, the Direct Access Customer Coalition and the Western Power Trading Forum.

Another 147 parties signed a statement of support that asked for an investigation into how the direct access market can be reopened and noted that, "The fundamental right of choice has now been denied to all but a few existing direct access customers for over five years and other California commercial and industrial end-users, schools, healthcare and other community organizations need to have the ability to choose their electricity provider restored as expeditiously as possible." Supporters included 7-Eleven, Albertsons, Boeing, Bristol Farms, Burger King, California Portland Cement, Cargill, the Community College League of California, Dairy Queen, McDonald's, Ralph’s Grocery, Marriott International, Oakley, Qualcomm, Round Table Pizza, Sizzler, Wells Fargo Bank, Wendy's, Williams-Sonoma and 22 California school districts.

Direct access, which allowed California ratepayers to choose their electricity suppliers, was suspended for new customers during the California energy crisis, while customers already taking advantage of direct access were allowed to continue. The petition explains that all of the causes that gave rise to the suspension in the first place have now been addressed and that it is long past time to restore choice to California electricity consumers.

The petition points out that we casually accept that it is our right to choose our providers of cellular services, internet access, natural gas, and gasoline. Yet we continue to deny choice for the majority of electricity consumers based on a rationale whose purposes have been served and whose time has passed, along with the energy crisis. It is time to restore freedom of choice to California's electricity consumers, and the Commission can and should lead the way in sponsoring the change.

Douglass & Liddell will continue its efforts on behalf of all California customers who desire and support retail choice. For more information and/or a copy of the petition, please contact Dan Douglass at douglass@energyattorney.com.

(Reprinted by permission Douglass & Liddell)