Cal. Community Choice Assn. v. Public Utilities Com.

BACKGROUND

I. Statutory Background

Section 366.2 governs the implementation and expansion of a community choice aggregation program. Section 366.2, subdivision (a)(4) states: “The implementation of a community choice aggregation program shall not result in a shifting of costs between the customers of the community choice aggregator and the bundled service customers of an electrical corporation.” Section 366.2, subdivision (d)(1) provides: “It is . . . the intent of the Legislature to prevent any shifting of recoverable costs between customers.” To further this intent, sections 366.2, subdivisions (d), (e), and (f) enumerate specific costs that the CCAs’ customers must pay to ensure their costs are not shifted to the customers who remain with the electrical corporation when they depart for the CCA. Under section 366.2, subdivision (c), after a CCA has adopted an implementation plan and submitted it to the Commission, the Commission must determine the amount of any cost recovery (the amount the CCA must pay to reimburse the electrical corporation for costs incurred on behalf of departing customers) and designate the “earliest possible effective date” for 2 implementation or…