The California commercial electricity market has 20–30 for eligible DA accounts licensed suppliers competing for your account. Without a broker, you'll negotiate with one at a time. We put them in a competitive process simultaneously.
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How Deregulation Changed Energy in California
California passed AB 1890 (1996); Direct Access suspended 2001, partially restored, opening the commercial electricity market to retail competition. Today, Pacific Gas & Electric (PG&E), Southern California Edison (SCE), San Diego Gas & Electric (SDG&E) deliver power through wires they own — but you choose the company that generates and prices that electricity. That's a retail energy supplier (REP), and there are 20–30 for eligible DA accounts competing for your business.
California has Direct Access deregulation — not full retail choice; capacity limits exist
The grid operator — CAISO — runs the wholesale market where suppliers buy power in bulk. What they pay in that market, plus their margin and your delivery charges, determines your all-in rate. A broker's job is to know which suppliers are pricing aggressively at any given moment and lock that in before the window closes.
Retail Choice in the California Market
PG&E, SCE, and SDG&E are the three main IOUs (Investor-Owned Utilities)
Your utility (Pacific Gas & Electric (PG&E), Southern California Edison (SCE), San Diego Gas & Electric (SDG&E)) handles physical delivery and emergency response regardless of which supplier you choose. PG&E serves Northern CA; SCE serves most of Southern CA; SDG&E serves San Diego area The supply charge — typically the largest line item on commercial bills — is where your choice matters. Delivery and transmission charges are regulated and fixed by the state PUC.
CAISO capacity requirements
Finding the Right Supplier for Your California Business
We run a structured quote process: pull your usage history (12 months minimum), identify your load profile and peak demand pattern, then submit to 30+ suppliers simultaneously. Suppliers compete. You get multiple offers within 24–48 hours with our plain-English translation of each.
We don't represent any single supplier. Our fee comes from the supplier you choose — standard in the industry and priced into every quote regardless of whether you use a broker. You pay nothing out of pocket and get a competitive process you wouldn't have time to run yourself.
Compare California commercial energy rates — no cost
We shop 30+ suppliers at no cost to you.
California Pricing Mechanics
Three main structures exist in California:
- Fixed-rate: Set price per kWh for the contract term (typically 12–36 months). Best for businesses that need budget certainty. Typical California range: 15–25+ cents/kWh; SDG&E among highest in country.
- Variable-rate: Floats with the wholesale market monthly. Can save money in low-price periods, but exposes you to spikes. Generally not recommended for most commercial accounts without a hedge strategy.
- Indexed contracts: Priced against a published index (Day-Ahead, NYMEX) plus a fixed adder. Transparent pricing, but requires understanding what you're tracking.
PG&E, SCE, or SDG&E bundled rate
What California Energy Contracts Actually Cover
CAISO manages the wholesale grid
DA capacity limits mean not all commercial accounts can immediately access competitive supply
Natural gas note: Deregulated for commercial customers (Southern California Gas, PG&E gas)
Auto-renewal clauses, early termination fees, and demand charge structures vary significantly by supplier and contract. We read every contract before recommending it.
Getting Started With Energy Procurement in California
Is commercial electricity deregulated in California?
Yes. California operates under retail energy choice, meaning commercial and industrial customers can choose their electricity supplier. Pacific Gas & Electric (PG&E), Southern California Edison (SCE) still deliver the power; you're choosing who generates and prices it.
How many suppliers compete in the California commercial market?
There are 20–30 for eligible DA accounts licensed retail energy providers (REPs) active in California. We work with 30+ of them and can pull competing quotes for your account within 24–48 hours.
What are typical commercial electricity rates in California?
Commercial all-in rates in California typically run 15–25+ cents/kWh; SDG&E among highest in country depending on load size, contract term, and market timing. among the highest in the country
What grid manages electricity in California?
California is served by CAISO. California is in CAISO; Direct Access has a cap on eligible load; wait list for new DA customers in some territories
What's the risk of a variable-rate contract in California?
DA capacity limits mean not all commercial accounts can immediately access competitive supply
California by Industry
Energy use patterns vary significantly by business type. We've built resources for each major commercial sector in California: