DATE
Governor Gavin Newsom
1021 O Street, Suite 9000
Sacramento, CA 95814
Re: AB 1761 (Rogers) - Support
Dear Governor Newsom:
On behalf of [Name], a member agency of [CCA], I write to support AB 1761 by Assemblymember Chris Rogers (D-Santa Rosa), a measure that supports energy affordability by improving transparency and certainty in how the Power Charge Indifference Adjustment (PCIA), a charge on nearly all energy bills, is calculated. [Information about your organization and its interest in the bill/issue area.] Electricity bills in California are on the rise, in part due to challenging market conditions and outdated and inefficient regulatory policies. Families and businesses in our community are feeling the impact.
Affordability is a key priority for [Name], and lawmakers and regulators need practical, consumerfocused solutions that ensure customers do not pay more than their fair share.
One tool to ensure customers receive energy bills that are fair and accurate is increased transparency in how PCIA charges are calculated. The PCIA is a fee designed to ensure customers who leave utility generation service, like customers of a Community Choice Aggregator (CCA) or Energy Service Provider (ESP), pay their portion of legacy power costs. But since the PCIA was implemented, there has been no consistent standard for what data must be made available in any California Public Utilities Commission (CPUC) process or proceeding where the PCIA or a related charge is set. Without adequate transparency, CCAs and ESPs are unable to verify the accuracy of the PCIA charges that their customers must pay and cannot confidently forecast rates – both of which are affordability tools needed to protect customers from unexpected rate increases. Additionally, the lack of consistent data creates costly disputes and inefficiencies in CPUC proceedings.
To address these problems, AB 1761 proposes amending the Public Utilities Code to require the CPUC and investor-owned utilities (IOUs) to disclose all data used to calculate PCIA costs, including cost inputs, forecasting assumptions, and methodologies. The bill would also ensure that when parties or the CPUC make proposals in a proceeding to change the PCIA, they provide all the underlying data informing that proposal. Sensitive information would remain protected through Commission-approved nondisclosure agreements, a practice already used to protect sensitive information in other compliance areas.
Greater transparency allows CCAs and ESPs to better advocate for their customers and assess proposals to change the PCIA. It reduces repeated fights over information, improves regulatory efficiency, and encourages utilities to verify calculations since the underlying data would be open to review. It can also inform cost forecasts and shield customers from sudden rate swings, an important issue for the residents and local businesses we serve.
For these reasons, [Name] strongly supports AB 1761, an important energy affordability tool which will strengthen confidence that customers pay their fair share – and not more. If you have any questions, please contact [POINT OF CONTACT].
Sincerely,
[SIGNATURE BLOCK]