Section 369 Of Article 6. Requirements For The Public Utilities Commission From California Public Utilities Code >> Division 1. >> Part 1. >> Chapter 2.3. >> Article 6.
369
. The commission shall establish an effective mechanism that
ensures recovery of transition costs referred to in Sections 367,
368, 375, and 376, and subject to the conditions in Sections 371 to
374, inclusive, from all existing and future consumers in the service
territory in which the utility provided electricity services as of
December 20, 1995; provided, that the costs shall not be recoverable
for new customer load or incremental load of an existing customer
where the load is being met through a direct transaction and the
transaction does not otherwise require the use of transmission or
distribution facilities owned by the utility. However, the obligation
to pay the competition transition charges cannot be avoided by the
formation of a local publicly owned electrical corporation on or
after December 20, 1995, or by annexation of any portion of an
electrical corporation's service area by an existing local publicly
owned electric utility.
This section shall not apply to service taken under tariffs,
contracts, or rate schedules that are on file, accepted, or approved
by the Federal Energy Regulatory Commission, unless otherwise
authorized by the Federal Energy Regulatory Commission.