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Can We Get There From Here? The Challenge of Restructuring the Electricity Industry So That All Can Benefit

The California Public Utilities Commission (PUC) has announced its intent to restructure the electricity industry in this state. The primary objective of this report is to investigate whether small customers will have a reasonable opportunity to benefit from industry restructuring. While it is not possible to predict whether small consumers will benefit from restructuring, the report investigates whether there are plausible scenarios under which small consumers are likely to benefit. In particular, it analyzes the extent to which the requirement of real-time pricing (RTP) to participate directly in wholesale markets is likely to limit individual small consumers from potentially enjoying benefits from a competitive market.