NMDL applies to consumers located in the PG&E service area as it existed on December 20, 1995, but who get their electric service from a Publicly Owned Utility (POU), not PG&E.
PLEASE NOTE: A POU is a public entity that qualifies as a local publicly owned electric utility under Public Utilities Code Section 9604, for example: a municipal utility district or an irrigation district.
PG&E has an obligation to serve all people within our service area. In anticipation of this need, we incur various costs.
As part of California's energy industry restructuring in the 1990s and energy crisis of 2000-2001, PG&E was authorized to collect fees, known as departing load charges, from NMDL consumers in our service territory.
The California Legislature enacted Assembly Bill 1890 in 1996. According to the bill, NMDL consumers must pay, with certain exceptions, various departing load charges related to the costs of restructuring the electric industry. These charges are related to power bought by the California Department of Water Resources (DWR) during the energy crisis.
Unless NMDL customers meet exemption requirements, the customers also owe costs established by a PG&E bankruptcy decision.
The bill's measures help ensure that the costs and others associated with electric restructuring and the energy crisis are shared by all people on whose behalf they are incurred.
The CPUC determined that all customers in the PG&E service area share the obligation, even if they receive service from another provider. However, the CPUC granted exemptions from some charges to NMDL consumers who meet a set of requirements.
In 2008, PG&E began billing NMDL customers served by various POUs and irrigation districts.
In response to public concern about the charges, PG&E, Merced Irrigation District and Modesto Irrigation District agreed that the irrigation districts will pay departing load charges on behalf of their NMDL customers.
An application was filed with the CPUC. On November 19, 2010, the CPUC approved the agreement with modifications. NMDL customers in the Modesto and Merced irrigation districts are not responsible for these charges.
For more information, contact Customer Service at 1-800-743-5000.