California Energy Bond Office

Sunset view of high-tension structures and power wires.

The sun sets behind high-tension structures and power wires. DWR/2016

The California Energy Bond Office (CEBO) mission is to manage the Electric Power Fund (EPF) and the Department of Water Resources (DWR) Charge Fund (DCF).  

Electric Power Fund

The EPF, formerly California Energy Resources Scheduling (CERS) was established January 17, 2001, when Governor Gray Davis issued an Emergency Proclamation in response to California’s 2000-2001 energy crisis. CERS was authorized to purchase power on behalf of the State’s three largest Investor Owned Utilities’ (IOU’s) customers to prevent rolling blackouts in the IOU’s service territories.
 
CERS immediately began purchasing power to meet the needs of the IOU’s (Pacific Gas and Electric Company, Southern California Edison, and San Diego Gas and Electric Company) customers.
 

DWR Charge Fund

A massive smoke plume from the Butte County, Camp Fire covers the distant sky above the North Fork of Lake Oroville in Northern California.A massive smoke plume from the Butte County, Camp Fire covers the distant sky above the North Fork of Lake Oroville in Northern California.
After several devastating wildfire seasons, Governor Gavin Newsom convened a strike force and legislation was introduced and passed that sought to create a mechanism to address the financial impact of catastrophic wildfires. Part of this legislative package was Assembly Bill 1054 (AB 1054), which was signed into law on July 12, 2019 by Governor Gavin Newsom. AB 1054 made changes to the California Water Code, Public Utilities Code, and Insurance Code and was intended to address the increased risk of catastrophic wildfires in California caused by electric utility equipment and act as a form of insurance for the utilities under certain conditions.

 

The bill created the Charge Fund program within DWR, to collect charges from the IOU's of customers to help partially fund the Wildfire Fund. The new Wildfire Fund is intended to provide a source of funds for administration by the California Earthquake Authority, as the Wildfire Fund Administrator, to pay eligible claims arising from wildfires caused by electric utility equipment. The Wildfire Fund Administrator also manages funds provided by the shareholders of the IOUs, which in conjunction with the charges collected by DWR, funds the program.

CEBO, a division within DWR, is administering agreements with the Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), San Diego Gas and Electric Company (SDG&E), and the California Public Utilities Commission (CPUC) for the collection of Wildfire Non-Bypassable Charges (NBCs) from the IOU's customers until January 1, 2036 to support the Wildfire Fund. 

Wildfire Charge Fund Revenue Requirements