What is the Competition Transition Charge (CTC) and how does it affect the District?
The CTC provision included in the legislation that restructures the electric-power industry allows investor-owned utilities to recover uneconomic power plant costs and other above-market costs until 2002 by charging existing customers for these expenses. CTC charges are not added charges, since they are part of the rates customers currently pay to these utilities. Payment of the CTCs means electric costs will not go down as fast as they might have in a competitive environment. The District customers, though, have been given an exemption from these charges. This allows the District to provide its customers with electric power at lower rates. The District’s CTC exemption, which totals 75 megawatts, will be phased in over a five-year period. Customers, as they convert from PG&E to the District power, are provided the exemption in chronological order up to the limits. This provides an incentive for potential customers to become connected early to ensure they are within these exemption limi
