Section 1623 - Load Management Tariff Standard(a) Marginal Cost-Based Rates. This standard requires that each Large IOU develop marginal cost-based rates structured according to the requirements of this article and that the Large IOU submit such rates to its rate-approving body for approval. (1) Total marginal cost shall be calculated as the sum of the marginal energy cost, the marginal capacity cost (generation, transmission, and distribution), and any other appropriate time and location dependent marginal costs, including the locational marginal cost of associated greenhouse gas emissions, on a time interval of no more than one hour. Energy cost computations shall reflect locational marginal cost pricing as determined by the associated balancing authority, such as the California Independent System Operator, the Balancing Authority of Northern California, or other balancing authority. Marginal capacity cost computations shall reflect the variations in the probability and value of system reliability of each component (generation, transmission, and distribution).(2) Within twenty-one (21) months of April 1, 2023, each Large IOU shall apply to its rate-approving body for approval of at least one marginal cost-based rate, in accordance with 1623(a)(1), for each customer class.(3) Large IOUs shall provide the Commission with informational copies of tariff applications when they are submitted to their rate-approving bodies.(b) Publication of Machine-Readable Electricity Rates. No later than three (3) months after April 1, 2023, each Large IOU shall upload its existing time-dependent rates applicable to its customers to the Commission's Market Informed Demand Automation Server (MIDAS) database. Each Large IOU shall upload all time-dependent rates, including those approved after April 1, 2023, to MIDAS prior to the effective date of the time-dependent rates each time a time-dependent rate is approved by the rate-approving body and each time a time-dependent rate changes. The time-dependent rates uploaded to the MIDAS database shall include all applicable time-dependent cost components, including, but not limited to, generation, distribution, and transmission. The Commission maintains public access to the MIDAS-database through an Application Programming Interface (API) that, provided a Rate Identification Number (RIN), returns information sufficient to enable automated response to marginal grid signals including price, emergency events, and greenhouse gas emissions.
(c) Support Customer Ability to Link Devices to Electricity Rates. (1) Third-party Access. The Large IOUs, Large POUs and Large CCAs shall develop a single statewide standard tool for authorized rate data access by third parties that is compatible with each of those entities' systems. The tool shall: (A) Provide the RIN(s) applicable to the customer's premise(s) to third parties authorized and selected by the customer;(B) Provide any RINs, to which the customer is eligible to be switched, to third parties authorized and selected by the customer;(C) Provide estimated average or annual bill amount(s) based on the customer's current rate and any other eligible rate(s) if the Large IOU, Large POU or Large CCA has an existing rate calculation tool and the customer is eligible for multiple rates;(D) Enable the authorized third party to, upon the direction and consent of the customer, modify the customer's applicable rate to be reflected in the next billing cycle according to the Large IOU's, Large POU's or Large CCA's standard procedures;(E) Incorporate reasonable and applicable cybersecurity measures;(F) Minimize enrollment barriers; and(G) Be accessible in a digital, machine-readable format according to best practices and standards.(2) The Large IOUs, Large POUs and Large CCAs shall submit the single statewide standard tool developed pursuant to Section 1623(c)(1) to the Commission for approval at a Business Meeting. (A) The tool must be submitted within eighteen (18) months of April 1, 2023.(B) The Executive Director may extend this deadline upon a showing of good cause.(C) The Large IOUs, Large POUs and Large CCAs shall describe a single set of terms and conditions they intend to require of third parties using the single statewide standard tool.(3) Upon Commission approval the Large IOUs, Large POUs and Large CCAs shall implement and maintain the tool developed in Section 1623(c)(1).(4) Customer Access. No later than one (1) year after April 1, 2023, each Large IOU, Large POU and Large CCA shall provide customers access to their RIN(s) on customer billing statements and online accounts using both text and quick response (QR) or similar machine-readable digital code.(5) Any changes to the single statewide standard tool, including changes to the terms and conditions, shall be submitted to the Executive Director for approval. The Executive Director shall submit any substantive changes to the Commission for approval at a Business Meeting.(d) Public Programs. Large IOUs shall encourage mass-market automation of load management through information and programs.(1) No later than eighteen (18) months after April 1, 2023, each Large IOU shall submit to the Executive Director a list of load flexibility programs deemed cost-effective by the Large IOU. The portfolio of identified programs shall provide any customer with at least one option for automating response to MIDAS signals indicating marginal cost-based rates, marginal prices, hourly or sub-hourly marginal greenhouse gas emissions, or other Commission-approved marginal signal(s) that enable automated end-use response.(2) Within forty-five (45) months of April 1, 2023, each Large IOU shall offer to each of its electricity customers voluntary participation in a marginal cost-based rate developed according to Section 1623(a) if such rate is approved by the Large IOU's rate-approving body, or a cost-effective program identified according to Section 1623(d)(1) if such rate is not yet approved by the Large IOU's rate-approving body.(3) Each Large IOU shall conduct a public information program to inform and educate the affected customers why marginal cost-based rates and automation are needed, how they will be used, and how these rates can save the customer money.Cal. Code Regs. Tit. 20, § 1623
1. Amendment of section and NOTE filed 1-20-2023; operative 4-1-2023 (Register 2023, No. 3). Note: Authority cited: Sections 25213, 25218(e) and 25403.5, Public Resources Code. Reference: Sections 25132 and 25403.5, Public Resources Code.