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Perplexed about CA Direct Access?

You’re not alone. Here’s what you need to know.

It’s no secret that direct access in California has seen its fair share of opposition, not to mention confusion. Some Californians like you are at a crossroads. With your 3-year required stay commitment to your utility close to being fulfilled, you have a decision to make about your future energy supplier.

If you want to benefit once again from the freedom of choice that direct access offers, here’s what you need to know. In an effort to facilitate controlled switching amongst eligible direct access customers, the California Public Utility Commission (CPUC) instituted the following minimum requirements for those customers wanting to engage in direct access with electric service providers like Strategic Energy.

  1. You must possess a direct access contract that was executed on or before the September 20, 2001 suspension date.
  2. You will be notified by the utility that the end of your 3-year required stay is approaching. A flyer from the utility will be included with your bill.
  3. If you wish to return to direct access after fulfilling the 3-year required stay commitment with the utility, you must provide the utility with prior notice 6-months in advance of your intent. California utilities are requiring that your 6-months notice take place within a 60-day window before the conclusion of your 3-year commitment.
  4. Failure to comply with providing the utility 6-months notice will result in you being required to remain on bundled services with the utility for an additional 3 years.

Upon complying with these requirements, we look forward to the opportunity of being considered and selected as the electric service provider of choice for Californians like you.

At Strategic Energy, we understand the energy market—with all of its complexities and uncertainties. We are dedicated to being a trusted, unbiased advisor to our customers. For 20 years, we have helped companies implement effective energy management strategies. Strategic Energy is committed to giving businesses of all sizes a choice in their electricity purchasing strategies and the opportunity to control and maximize their energy spend.

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CA Deregulation Timeline
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1992 – Energy Policy Act of 1992 (EPACT) passed, allowing for the deregulation of the electric industry.

1996 – California officially deregulates its electricity market.

1998 – Full direct access is embraced in California.

2001 – On September 20, the California Public Utilities Commission (CPUC) suspends new direct access transactions indefinitely. Only customers with contracts signed on or before September 20 are able to remain on as direct access customers.

2005 – California attempts to re-regulate the California market and close down direct access with the introduction of the Proposition 80, titled the “Blackout Prevention Act.” The Act fails as voters embrace freedom choice.

2006 – The direct access market remains suspended to new direct access customers. However, any customer who was direct access eligible as of the suspension date of September 20, 2001 and since has returned to a utility and are nearing the conclusion of your 3-year required stay commitment to the utility, are eligible to return to direct access. The fight to lift the suspension on direct access continues.


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