Electrical services: provider of last resort.
The implementation of AB 2399 has the potential to reshape the regulatory framework governing electrical services in California. The bill emphasizes the need for smooth transitions of customer service without interruptions, reinforcing the requirement for any new service provider to demonstrate compliance with established electricity procurement and planning regulations. It seeks to accommodate the rapid increase in customer choice over the past decade, enabling customers to obtain services from community choice aggregators and other providers, rather than relying solely on conventional utilities.
Assembly Bill 2399 introduces significant changes to the provision of electrical services in California, specifically addressing the responsibilities of electrical corporations as 'providers of last resort'. The bill allows electrical corporations serving less than 30% of the total electrical load in their distribution territories to voluntarily terminate their service offerings. In such cases, these corporations can apply to transfer their existing customers to alternative load-serving entities that can provide the necessary service. This shift comes as an adaptation to the evolving landscape of electricity suppliers in the state, where a growing number of customers are choosing options beyond traditional electrical corporations.
While AB 2399 aims to enhance flexibility within the electrical service market, it also raises concerns over the implications for customer protection and the durability of service continuity. Critics argue that permitting electrical corporations to terminate service could lead to uncertainty for customers who may be caught between providers during the transition. Supporters of the bill, however, believe that it aligns with trends toward increased competition, efficiency, and innovation in the energy sector, suggesting that consumers could benefit from more options and potentially lower prices.