Introduction

You’ve likely heard of Direct Access, but many businesses don’t fully understand it. In this article, we’ll explain why it matters in California, who’s eligible, and what to expect. TrueMeter helps by managing energy spend across locations—securing low rates, consolidating payments, and guiding you through programs like Direct Access.

What is Direct Access (DA)? 

Direct Access allows businesses in California to purchase their electricity supply from a competitive provider, known as an Electric Service Provider (ESP), instead of relying on their utility for generation. The utility (IOU) still manages transmission, distribution, safety, and metering—only the supply side changes.

How the Direct Access Lottery Works

Step

What Happens

Submission period

Businesses submit a Six-Month Notice to Transfer to Direct Access during a specific window—typically the second full week of June.

Assigning lottery/waitlist numbers

After submissions close, the utility reviews and verifies the notices. Valid entries are then assigned a lottery number through a randomizer.

Selection & waitlist

If there’s available “load space” under the Direct Access cap, businesses with winning lottery numbers are offered service. Those not selected are placed on a waitlist.

Acceptance & service start

Selected businesses have a deadline to accept or decline. If accepted, they complete paperwork (such as a Direct Access Service Request) and contract with an ESP. The actual switch usually happens the following year or once all steps are complete.

Waitlist expiration / annual reset

At year’s end, waitlists are cleared. Businesses not selected must reapply during the next enrollment window.

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Pros and Cons With Direct Access 

Pros

  • Businesses may see lower supply costs since ESPs often provide more competitive contracts.
  • Direct Access offers more flexibility to choose renewable energy options or contract types, such as fixed-price or green power.
  • Working with an ESP can provide greater budget certainty if they offer stable or fixed supply rates.

Trade-Offs / Risks

  • Participating in Direct Access requires additional paperwork and coordination, including contracts and forms. If a business wins the lottery but does not complete the steps properly, it may lose eligibility.
  • Even with Direct Access, businesses must still pay the utility for delivery, transmission, and distribution, as well as “exit fees” like the PCIA, which cover legacy utility contracts.
  • Because the program is capped, not every applicant is accepted, which can lead to long wait times or the need to apply multiple times.

Direct Access Timeline: Key Steps

Enrolling in Direct Access involves a clear process with key deadlines to keep in mind.

  • Early to mid-June – Six-Month Notice submission window opens (typically the second full business week).
  • Within ~30 business days – Utilities review and validate notices, then assign lottery numbers.
  • Late summer (often August) – Results are issued; businesses find out whether they secured Direct Access or were placed on the waitlist.
  • If selected – Businesses must accept or decline, execute a contract with an ESP, and complete Direct Access Service Request (DASR) paperwork.
  • Service begins – Usually after all steps are complete, often at the start of the next calendar year or according to utility schedules.

Where TrueMeter Creates Value

  • Annual Lottery Deadline – The June enrollment window is short. TrueMeter reminds clients, prepares paperwork, and prevents missed opportunities.
  • Cap & Odds Tracking – Participation is capped and varies by utility. We monitor PG&E, SCE, and SDG&E capacity to give clients clarity.
  • Full Cost Analysis – Exit fees and delivery charges apply. Our tools model bundled vs. DA costs so clients can decide with confidence.
  • Contract & Billing Support – DA brings new contracts and complex billing. TrueMeter streamlines and manages the process.

FAQs

What is the available load under cap? 

At the start of the lottery, the amount of load that could be taken under the cap was 1,716 GWh.

How many customers actually got into Direct Access?

In 2024, 416 customers were able to switch to Direct Access. However, 733 remained on the waitlist, representing 2,091 GWh of load.

Did all utilities have available load under the cap?

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No. For example, in that cycle SDG&E had zero available Direct Access load at the start of the lottery, so no customers from that lottery were able to switch that year.