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HomePublic Utilities CodeDiv. 1Pt. 1Ch. 2.3Art. 6§ 365 Commission Energy Market Oversight

§ 365 Commission Energy Market Oversight

Public Utilities Code·California
AI Summary·Official Text·Key Terms·Related Statutes·References
AI SummaryVerified

§ 365 Commission Energy Market Oversight

Key Takeaways

  • •The state helps power companies create fair ways to manage electricity and make sure everyone follows the rules.
  • •People can choose who they buy electricity from, but everyone has to pay certain fees no matter what.
  • •All customers could pick their own electricity supplier by January 1, 2002, but some got to do it earlier.
  • •If half of your electricity comes from renewable sources (like wind or solar), you can pick your supplier even if others can’t yet.

Example

A family wants to buy electricity from a company that only uses solar power instead of their regular power company.

If at least half of the electricity they use comes from solar, they can switch to that company right away. But they still have to pay some fees that everyone pays, no matter who they buy from.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source
View on CA.gov

§ 365 Commission Energy Market Oversight

The actions of the commission pursuant to this chapter shall be consistent with the findings and declarations contained in Section 330. In addition, the commission shall do all of the following: (a) Facilitate the efforts of the state’s electrical corporations to develop and obtain authorization from the Federal Energy Regulatory Commission for the creation and operation of an Independent System Operator and an independent Power Exchange, for the determination of which transmission and distribution facilities are subject to the exclusive jurisdiction of the commission, and for approval, to the extent necessary, of the cost recovery mechanism established as provided in Sections 367 to 376, inclusive. The commission shall also participate fully in all proceedings before the Federal Energy Regulatory Commission in connection with the Independent System Operator and the independent Power Exchange, and shall encourage the Federal Energy Regulatory Commission to adopt protocols and procedures that strengthen the reliability of the interconnected transmission grid, encourage all publicly owned utilities in California to become full participants, and maximize enforceability of such protocols and procedures by all market participants. (b) (1) Authorize direct transactions between electricity suppliers and end use customers, subject to implementation of the nonbypassable charge referred to in Sections 367 to 376, inclusive. Direct transactions shall commence simultaneously with the start of an Independent System Operator and Power Exchange referred to in subdivision (a). The simultaneous commencement shall occur as soon as practicable, but no later than January 1, 1998. The commission shall develop a phase-in schedule at the conclusion of which all customers shall have the right to engage in direct transactions. Any phase-in of customer eligibility for direct transactions ordered by the commission shall be equitable to all customer classes and accomplished as soon as practicable, consistent with operational and other technological considerations, and shall be completed for all customers by January 1, 2002. (2) Customers shall be eligible for direct access irrespective of any direct access phase-in implemented pursuant to this section if at least one-half of that customer’s electrical load is supplied by energy from a renewable resource provider certified pursuant to Section 383, provided however that nothing in this section shall provide for direct access for electric consumers served by municipal utilities unless so authorized by the governing board of that municipal utility. (Added by Stats. 1996, Ch. 854, Sec. 10. Effective September 24, 1996.)

Last verified: January 23, 2026

Key Terms

independent system operatorpower exchangecommissionterminationcorporationliabilityfederal energy regulatoryelectricity

Related Statutes

  • § 362 Electric System Reliability
  • § 373 Customer Cost Exemption Requests
  • § 346 Iso Ferc Compliance Authority
  • § 369.5 Residential Energy Cost Tracking
  • § 371 Electricity Cost Allocation Rules

References

  • Official text at leginfo.legislature.ca.gov
  • California Legislature. Public Utilities Code. Section 365.
View Official Source