Over the past year, the California Public Utilities Commission (CPUC) has been working to implement Senate Bill 410 and Assembly Bill 50, which were enacted in 2023 to address delay and lack of transparency in utility interconnection and energization of new electric customers and customer facilities. (See New Statutes Aimed at Reducing Delays in Utility Energization, CPUC Expands Scope of Issues to be Addressed in the Energization Timelines Rulemaking)
After consideration of information provided by utilities and stakeholders, the CPUC has released a Proposed Decision (PD) establishing average and maximum energization targets and timelines for the three large California investor-owned utilities (IOUs), Pacific Gas and Electric Company, San Diego Gas & Electric Company, and Southern California Edison Company. Among other things, the PD recommends that:
- Statewide (rather than utility-specific) targets will be established for utility completion of energization. The PD finds that “the urgency to energize customers in light of California’s economic and climate goals is the same across the entire state…” and so all utility customers should be able to rely on a standard timeline. The PD likewise decided not to differentiate targets to account for considerations specific to customer or industry groups.
- Effective September 2024, the Average Energization Target will be 125 business days and 182 calendar days, regardless of which IOU’s electric tariff rule (15, 16, 29/45) is applicable to the project. The CPUC may refine which type of project falls into categories as additional data is collected.
- Effective September 2024 the IOUs will also be subject to Maximum Energization Targets, which range from 210-245 business days, depending on the applicable tariff rule category. Any project that exceeds this target will be considered overdue.
- The Average and Maximum Energization Targets will only apply to the portions of the energization process(es) that are fully under the control of the utilities.
- Residential energization requests that do not require infrastructure upgrades should be completed within a 30-60 day period.
- Statewide timelines will set expectation for utility performance and planning when an energization request triggers upstream capacity work. The statewide timelines (based on the lowest average among the three large IOUs) are 469 business days for a new/upgraded circuit, 700 business days for a substation upgrade, and 2,223 business days for a new substation. Given the “very limited” data provided to date by utilities, these timelines will be tracked and updated in the future. In the meantime, the IOUs are required to track and report on project progress and the number of energization projects that are delayed or cancelled due to an identified upstream capacity project.
- The large IOUs will jointly develop a new data reporting template that aligns with statutory requirements, which will be finalized after party comment. The first biannual energization reports are due on March 31, 2025.
- The CPUC will administer a customer complaint process to facilitate customer reporting and accountability.
- To improve communications, the IOUs will be required to assign an account/project manager to each approved application for new or upgraded service within 10 business days. Customers will receive detailed information and updates throughout the process, including monthly status updates, and timely notice of delays.
- The IOUs that are currently lagging behind the energization targets will be required to meet established “rates of acceleration” to come into compliance with energization targets.
- Biannual reporting will be used to track compliance. An IOU that exceeds the maximum statewide target for 5 percent or more of their customers’ energization requests in one year will be out of compliance. Utilities must reduce timelines for all customers rather than specifically targeting the “easier” projects.
- Small IOUs are not subject to the PD’s requirements, but must begin preparing to align with adopted energization targets. Their compliance deadlines will be addressed in Phase 2 of the proceeding.
Comments on the PD are due August 29, and reply comments are due September 4. The CPUC will likely vote on the PD at its September 12 business meeting.
Contact: Lynn Haug, Ron Liebert
