California Public Utility Commission's ESP Framework

•  CPUC's public utilities code section 394a states that an electric service provider (ESP) is considered as a non-utility company that can provide electric services to consumers.
• However, this can only be done within the service area of an electric utility.
• CPUC's subparagraph (b) also mandates ESP to register with the commission and follow its policies.
•  CPUC's ESP registration framework applies to those entities that are providing services to homes and small businesses that have have less than 20 kW power needs.
• These constraints were also deemed applicable to those ESPs that were not required to register before.
•  For new ESPs, the commission requires them to submit "resource adequacy requirements and renewable portfolio standards requirements."
• Entities who wish to become ESPs must have a UDC-ESP service agreement with each utility distribution firms that are operating within the service location of the company.
• Upcoming ESPs should also provide a minimum security deposit amounting to $25,000 in cashier's checks or financial guarantee bonds with the CPUC.
• Furthermore, upcoming ESPs should establish an agreement with a scheduling coordinator (SC) that is empowered by the Independent System Operator (ISO) before providing services to their customers.
• They should also provide a copy of "Section 394.5 Notice to the Energy Division of the CPUC" before providing their services to their customers.