California Energy Bond Office
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
February 1, 2001
- Assembly Bill 1X added Division 27 to the California Water Code, authorizing CERS to enter into long-term power contracts for IOU customers through December 31, 2002.
- 58 long-term power contracts were entered into at an estimated total cost of over $40 billion.
- The amount of energy requirements that were not provided by the Investor Owned Utilities were provided by CERS on behalf of the IOU's customers through long-term power contracts and the purchase of the residual net short amount of electricity needed.
- Issued bonds totaling $11.2 billion to pay for the power it previously purchased and to establish operating and bond reserves to support the ongoing program.
- Annual revenue requirements for allocation to the IOU's customers, with bond and power charges, were put in place to pay for bond and power costs.
- Stopped buying the residual net short power on behalf of the IOU customers on January 1, 2003.
- The cost and energy from the long-term power contracts were allocated among the IOUs.
- The IOUs acted as CERS' limited agents for scheduling, dispatch, and other administrative functions for long-term power contracts.
- CERS retained the financial and legal responsibility for the power contracts.
- The majority of the power contracts expired.
- The final power contract ended.
- The remaining bonds were legally defeased
- The EPF is in the final wind-down with the focus on collecting amounts through litigation related to the 2000-2001 power crisis and returning excess cash to the IOU’s ratepayers
- Notification of Determination of Revenue Requirement for 2022
- Rulemaking 15-02-012 Excess Amounts, date August 5, 2021
- Notice of Determination of Revenue Requirement for 2022
- 2021-1004-ALJ Scoping Memo and Ruling
- 2022 EPF Notice - CPUC
- Decision 21-12-001 - CPUC
- 2022 EPF Memo CPUC Excess Amounts 12212021
- Memo Confirming Defeasance of Outstanding Power Supply Revenue Bonds
- Defeasing the Power Supply Revenue Bonds and Initiation of the Wildfire Nonbypassable Charge 90-day Notice
- Defeasing the Power Supply Revenue Bonds and Initiation of the Wildfire Nonbypassable Charge 60-day Notice
- Notice of 2020 Revenue Requirement
- Memo to CPUC 2020 CERS Revenue Requirement
DWR Charge Fund
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.
June 2014 to December 2018
- California has experienced a dramatic increase in the number and magnitude of IOU related wildfires.
July 12, 2019
- Assembly Bill 1054 Public Utilities: Wildfires and Employee Protection (AB1054) and Assembly Bill 111 Wildfire Agencies: Safety and Insurance (AB111), was signed into law by Governor Newsom, effective immediately.
- AB1054 added Division 28 to the California Water Code authorizing DWR to issue up to $10.5 billion in bonds.
- Assembly Bill 1054 directed the CPUC to implement and deem as just and reasonable an annual $902.4 million revenue requirement to be collected through the NBCs.
October 24, 2019
- The CPUC issued Decision 19-10-056 implementing the imposition of a Wildfire Non-Bypassable Charge to support a revenue requirement of $902,400,000 annually remitted to DWR.
November 6, 2019
- Executed a Rate Agreement by and between the State of California Department of Water Resources and the State of California Public Utilities Commission.
July 16, 2020
- The CPUC issued Decision 20-07-014 approving Servicing Orders between DWR and each of the Large Electrical Corporations in California (PG&E, SCE, and SDG&E).
September 24, 2020
- The CPUC issued Decision 20-09-023 adopting timing and amount of the 2020 Wildfire Fund Non-Bypassable Charge.
October 1, 2020
- Per CPUC Decision 20-09-023, the IOUs commenced billing non-exempt electrical customers the Wildfire Non-Bypassable Charge.
December 17, 2020
- The CPUC issued Decision 20-12-024 adopting timing and amount of the 2021 Wildfire Fund Non-Bypassable Charge.