On August 12, 2024, the California Public Utilities Commission issued a proposed decision setting average and maximum targets and timelines for the large electric investor-owned utilities to connect new customers or upgrade existing electric service in compliance with legislation passed last year.  Timely connection of new customers to the distribution system is necessary for California to meet its decarbonization goals.  This proposed decision marks the first time that electric utilities can be held to specific timelines for fulfilling energization requests.  The proposed decision also imposes new energization reporting and customer outreach requirements to increase transparency around the energization process.

Energization Targets and Timelines

The proposed decision sets targets and timelines for the large electric investor-owned utilities (IOUs) to complete different types of energization requests. The timelines range from one month to nine years, depending on the type of project and whether it involves upgrades to other IOU infrastructure.

The large electric IOUs have specific procedures for completing work to extend electric distribution and service equipment to energize new customer load in their respective tariffs under Electric Rules 15 (distribution line extensions), 16 (service extensions), 29 (PG&E and SCE electric vehicle infrastructure), and 45 (SDG&E electric vehicle infrastructure). For projects undertaken under any of the tariffs, or a combination thereof, the proposed decision sets the average energization target at 125 business day or 182 calendar days. The maximum energization targets vary by tariff as follows: (1) Rule 15 – 357 calendar days; (2) Rule 16 – 335 calendar days; (3) Combined Rule 15/16 – 306 calendar days; and (4) Rule 29/45 – 335 calendar days.

The maximum targets reflect the longest amount of time the utility should take to complete an energization request. But the maximum targets only apply to the portions of the energization process that are fully under the utility’s control. According to the Commission’s analysis, the large electric IOUs would have to accelerate their current maximum energization timelines by five percent to meet the maximum targets. Any project that exceeds the maximum energization targets will be considered overdue.

The proposed decision also set average and maximum targets for other types of energization projects that do not implicate existing electric rules. Residential energization requests that do not require major infrastructure upgrades beyond the customer’s property, like main panel upgrades, must be completed within an average time period of 30 business days and a maximum time period of 60 business days.

Energization projects may trigger upstream capacity upgrades, such as new or upgraded circuits, new substations, and substation upgrades. Instead of “targets” like those adopted for the electric tariffs, the Commission proposes timelines that set the expectations for utility performance and planning when energization requests trigger upstream capacity work. The proposed decision sets the following timelines for upstream capacity upgrades: (1) New/Upgraded Circuit – 686 calendar days; (2) Substation Upgrade – 1021 calendar days; and (3) New Substation – 3242 calendar days. These timelines were set based on incomplete data from the utilities, and the Commission intends to impose better-defined targets based on additional data in Phase 2 of the proceeding.

Energization Reporting & Customer Outreach Requirements

The proposed decision imposes energization reporting and customer outreach requirements on the utilities to track their progress on timely completing energization requests and to foster greater transparency in the energization process.

The proposed decision outlines a framework for instituting a biannual (every six months) energization reporting process. Under recent legislation, the large electric IOUs must, at a minimum, report to the Commission: (1) the average, median, and standard deviation time between receiving an application for energizing the electrical service; (2) explanations for energization time periods that exceed the target maximum for energization projects; and (3) constraints and obstacles to each type of energization, including funding limitations, qualified staffing availability, or equipment availability. The proposed decision also requires the utilities to track the timing of each step of the energization process, including steps outside their full control. This information can help inform process improvements in future Commission decisions related to energization targets. The proposed decision directs the large electric utilities to jointly propose a reporting template via a Tier 1 Advice Letter, where parties will have an opportunity to comment on the proposal. After finalizing the reporting template, the first biannual energization report will be due on March 25, 2025.

Lastly, the proposed decision adopts customer reporting procedures for delays in providing new or upgraded electric service requests and customer outreach requirements. The proposed decision provides a designated Commission e-mail address that customers can e-mail to report delays on energization requests. The proposed decision also imposes several requirements to improve customer outreach. For example, the utilities must assign an account/project manager to each approved application for a new or upgraded electric service within 10 business days of approving an application. This dedicated account/project manager must ensure the customer receives detailed information about the steps of the energization process and the proposed targets. Utilities would also be required to submit a Tier 1 Advice Letter proposing a customer engagement and communication plan. The customer engagement and communication plan must address avenues to improve customer outreach and disseminate information on the utilities’ recruiting, training, and retaining programs for employees needed to promptly respond to customer energization requests.

Conclusion

The proposed decision marks a significant step in the Commission’s efforts to accelerate new electric connections and existing customer upgrades to meet the State’s growing demand.

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