California Direct Access Lottery

By Michael DeCaluwe

About 1 week ago, California regulators finalized procedures to further open California’s electric grid to consumer choice.

California originally opened its electricity market in the 1990s and was on the path to full deregulation. However, the 2001 energy crisis in the state forced them to put a hold on electric choice. Companies that were already taking supply from a 3rd-party provider were allowed to keep doing so through a program called Direct Access, but the state barred any new companies from participating.

California Senate Bill 237

California SB 237, passed in September 2018, opened an additional 4,000 gigawatt-hours (GWh) for electric choice beyond the 24,000 GWh that are already with a 3rd-party supplier. Final rules and procedures for companies to participate were passed by state regulators recently.

Why is this important?

This legislation marks the first meaningful opening of California’s electricity market in almost 20 years. California energy costs are the 7th highest in the country. Customers in California who have chosen 3rd-party supply are experiencing 10-50% savings in their energy costs, and this new legislation will allow for more companies to take advantage of these savings.

What is the Direct Access Lottery?

The 3 major California utilities will hold a lottery to decide which additional companies can participate in Direct Access. For companies that haven’t previously applied for the lottery, applications are due this week on Friday, June 14, 2019, by 5:00PM PST.

Nania Energy can help you with the application process. Here’s how:

Send us a recent California electricity bill from any one of the 3 major California power utilities:

1. PG&E
2. Southern California Edison
3. San Diego Gas & Electricity

We’ll send you the necessary forms to complete to submit your lottery application.
Fill out the application and return it to us ASAP — we’ll handle the enrollment in the lottery on your behalf.

Final lottery selections will be made in August 2019 with service stating in January 2021.

If you have any questions on the new legislation or the lottery, please call us at (630) 225-4550 or email us at info@naniaenergy.com.

About the Author

Michael has served as the VP of Commercial & Industrial Sales at Nania Energy Advisors since 2007. He believes that listening to and understanding clients’ energy needs are vital to becoming a thought leader in the industry and forming a mutually beneficial business relationship. In his spare time, Michael enjoys being a dad, staying active, and playing basketball.