Power Charge Indifference Adjustment (PCIA)

Power Charge Indifference Adjustment

Public Utility Code Sections 366.1 and 366.2 require the CPUC to make sure that customers leaving the utility do not burden remaining utility customers with costs which were incurred to serve them. To ensure customer indifference, CCAs and Direct Access, or departing load customers are required to pay a power charge indifference adjustment (PCIA). These departing load customers currently represent greater than percent of load in PG&E, SCE and SDG&E territory. Without the PCIA, the remaining utility customers would need to assume costs that the IOUs incurred in anticipation of serving the customers that now receive electric service from a CCA or Direct Access.

True Up and Forecast Market Price Benchmark

Investor-owned utilities (IOU) utilize these figures for the Power Charge Indifference Adjustment (PCIA) Forecast and True Up for their Energy Resource Recovery Account (ERRA) Forecast Updates in early October, as per Energy Division Decision (D.) 22-01-023. PCIA computations include the Resource Adequacy (RA) Adder, Energy Index, and Renewable Portfolio Standard (RPS) Adder, as specified by D.18-10-019 and amended by D.19-10-001, D.22-01-023, and D.23-06-006. D.22-01-023 and D.23-06-006 directs the Energy Division to calculate and distribute these data by the first business day October. 

Current PCIA Regulatory Activity

  • R.17-06-026, Current PCIA rulemaking. 
  • D.18-10-019, Modifying the Power Charge Indifference Adjustment Methodology, outlines the current calculations required for the PCIA charge. D.19-04-003 corrects an error in D.18-10-09.
  • D.19-10-001, Refining the Method to Develop and True Up Market Price Benchmarks, further refines the calculations developed in the D.18-10-019.
  • D.20-08-004, Adopting a Framework and Evaluation Criteria for the Power Charge Indifference Adjustment Prepayment Agreements, which provided a methodology in which a CCA on behalf of their customers or a DA customer could pre-pay their PCIA obligations as opposed to an ongoing obligation
  • D.21-05-030, Phase 2 Decision on Power Charge Indifference Adjustment Cap and Portfolio Optimization, removes the cap on PCIA changes between years and adopts a Voluntary Allocation and Market Offer (VAMO) process for optimizing the IOUs’ Renewable Portfolio Standard portfolios.
  • D.22-01-023, Decision Resolving Phase 2 Issues Related to Energy Resources Recovery Account Proceedings, revised the dates for ERRA Forecast Application filings and Market Price Benchmark calculations, resolved certain questions regarding treatment of PABA and ERRA balances, and directed greater consistency in the IOUs’ Master Data Requests and confidentiality designations.
  • D.22-07-008, Decision Resolving Phase 2 Issues Related to Data Access and Voluntary Allocations in Market Price Benchmark Calculations, expanded CCA reviewing representatives’ access to confidential data for the purpose of forecasting PCIA changes. Separately, the Decision also clarified that Voluntary Allocations of the IOUs’ RPS portfolios will not be included in RPS Market Price Benchmark calculations.

Related Programs

Related Divisions