The three largest California investor-owned utilities (IOUs) (em Pacific Gas and Electric Co., San Diego Gas & Electric Co. (SDGE), and Southern California Edison Co. (SCE) have circulated for comment working drafts of future Federal Energy Regulatory Commission (FERC) filings concerning a deregulated electricity industry.
One 150-page proposal asks that operational dispatch control of transmission facilities be conveyed to an ISO, beginning January 1, 1998. Transmission services become available on a comparable basis, priced to reflect locational marginal costs (five pricing zones are anticipated). This proposal is premised upon full recovery of stranded costs through a competitive transition charge (CTC). The proposal also sets forth rules for ISO governance and operation.