PG&E Direct Access Lottery June 2026: 11,393 GWh Cap and NBC Increases

What happened June 8 through 12, 2026

Pacific Gas and Electric Company ran its annual Direct Access (DA) lottery from June 8 through 12, 2026 [pge-da-lottery]. The load cap for allocation was 11,393 GWh [pge-da-lottery]. DA lets commercial customers buy supply from an Energy Service Provider (ESP) while PG&E continues to deliver power and bill delivery charges.

California caps total DA load. When applications exceed the cap, PG&E holds a lottery rather than approving everyone [pge-da-lottery]. Cannabis cultivators with large annual kWh footprints compete against other commercial applicants for limited slots.

The six-month notice requirement

To enter the lottery, customers must file a six-month advance notice on form 79-1117 [pge-da-lottery]. If you missed the notice deadline for June 2026, you were not eligible for that year's allocation regardless of load size or industry.

For the June 2027 lottery, the notice clock starts now. A facility energizing in Q1 2027 still needs to file before the deadline PG&E publishes on its DA page [pge-da-lottery].

Milestone	Timing
File form 79-1117	At least 6 months before lottery [pge-da-lottery]
Lottery window	Typically early June [pge-da-lottery]
ESP enrollment	After allocation notification
DA service start	Per PG&E schedule after approval

Non-bypassable charges rose about 19%

Direct Access is not a free exit from all utility costs. Non-bypassable charges (NBCs) apply to DA and community choice aggregation customers to fund public purpose programs, wildfire mitigation, and legacy procurement [cpuc-nbc-report].

The California Public Advocates Office reported approximately a 19% increase in non-bypassable charges affecting DA and CCA customers in its Q1 2026 electric rates analysis [cpuc-nbc-report]. NBCs stack on top of ESP supply prices and PG&E delivery charges.

A cultivator comparing DA to bundled PG&E service must model ESP price + NBCs + delivery, not ESP price alone.

Worked example: Humboldt County indoor grow

Assume a 20,000 sq ft indoor facility in PG&E territory at 500 kW peak and 600,000 kWh monthly use (7.2 GWh annual). Illustration only.

Cost component	Bundled PG&E (illustration)	DA + NBC (illustration)
Supply / ESP energy	Included in bundled	$0.085/kWh x 600,000 = $51,000
NBCs	N/A on bundled	~$0.025/kWh x 600,000 = $15,000 [cpuc-nbc-report]
Delivery demand	500 kW x ~$20/kW = $10,000	$10,000
Delivery energy	600,000 x ~$0.04 = $24,000	$24,000
Monthly total	~$85,000 (at ~14.2¢ all-in)	~$100,000

This illustration shows DA is not automatically cheaper. The value depends on the ESP quote, NBC level, and delivery tariff. Some operators win DA to access contract structures (fixed price, renewable content) unavailable on bundled service rather than for immediate savings.

EIA reported California's average commercial price at 24.31 cents per kWh in mid-2026 [eia-epm-5-6-a].

Why cultivators apply for DA

California's Title 24 horticultural lighting rules and state cannabis energy reporting changes affect new construction, but they do not remove the DA cap [pge-da-lottery]. Large indoor grows pursue DA for:

• Fixed-price supply contracts through an ESP
• Renewable content tailored to brand or compliance goals
• Contract flexibility not offered on bundled PG&E rates
• Portfolio aggregation across multiple meters under one ESP

See the California indoor cultivator Direct Access case study for a worked procurement example.

If you lost the 2026 lottery

Lottery outcomes are binding for that year. If you were not allocated:

1. File form 79-1117 immediately for the June 2027 window [pge-da-lottery].
2. Compare bundled PG&E rates against CCA options if available in your zone.
3. Model NBC increases in any DA comparison [cpuc-nbc-report].
4. Focus on demand management to reduce delivery charges you pay either way.

DA vs CCA vs bundled: three paths

Path	Supply from	Delivery from	Cap/lottery?
Bundled PG&E	PG&E	PG&E	No
Community choice	Local CCA	PG&E	Varies by CCA
Direct Access	ESP you choose	PG&E	Yes, 11,393 GWh cap [pge-da-lottery]

Not every PG&E address has CCA coverage. DA is the path to a competitive ESP contract in PG&E territory when the lottery allocates capacity.

Planning for new construction

New cultivation facilities under construction should file DA notice before energization if the target is DA service at startup [pge-da-lottery]. Utility interconnection and service lead times run parallel to the six-month notice clock. Missing both timelines means operating on bundled rates until a future lottery.

See California switching guide and PG&E commercial rates. Load-specific guidance is at California cultivation facility energy.

Title 24 and new construction timing

California's 2025 Title 24 code applies to permits pulled after January 1, 2026 for horticultural lighting [pge-da-lottery]. New facilities designed for compliance may draw lower kWh per square foot but still need DA notice filed six months before the lottery [pge-da-lottery]. Energy code compliance and supply procurement run on separate calendars.

Comparing NBC increase to ESP savings

The Public Advocates Office reported roughly 19% higher NBCs for DA and CCA customers [cpuc-nbc-report]. Before assuming DA saves money, model ESP rate minus bundled PG&E rate plus the NBC delta. A 2 cent ESP advantage can disappear if NBCs add 2.5 cents equivalent [cpuc-nbc-report].

What happens if you win the lottery

Allocation notification comes from PG&E after the June lottery closes [pge-da-lottery]. You then contract with an ESP licensed by the CPUC. Enrollment timing determines when DA service starts. Plan ESP contract negotiation before the lottery so you can execute quickly if allocated [pge-da-lottery].

Non-bypassable charges when you win DA

Direct Access customers still pay PG&E non-bypassable charges (NBCs) for programs like wildfire mitigation and public purpose [cpuc-nbc-report]. The Public Advocates Office reported roughly 19 percent NBC increases affecting DA and community choice customers in 2026. Winning the lottery changes your supply price, not your obligation to pay NBCs on delivery.

Model NBC lines separately from energy supply when comparing bundled PG&E service to DA plus ESP pricing.

Form 79-1117 filing steps

PG&E publishes Direct Access notice requirements on its alternate energy providers page [pge-da-lottery]. Form 79-1117 is the six-month advance notice that qualifies your account for the annual lottery [pge-da-lottery]. Submit the form to PG&E with your account number, proposed load, and target DA start date. Keep confirmation of receipt.

Missing the notice deadline excludes you from that year's lottery regardless of load size [pge-da-lottery]. For June 2027, file before the deadline PG&E posts on its DA page, typically December of the prior year [pge-da-lottery]. New construction should file notice before the interconnection agreement is finalized if DA at energization is the goal.

CCA vs Direct Access decision tree

Not every PG&E address has community choice aggregation coverage [pge-da-lottery]. Where a local CCA operates, compare CCA supply rates plus NBCs against ESP quotes plus NBCs plus lottery risk [cpuc-nbc-report]. CCA enrollment does not require a lottery. DA requires winning allocation under the 11,393 GWh cap [pge-da-lottery].

Path	Lottery required	Supply negotiable	NBCs apply
Bundled PG&E	No	No	No
CCA	No	Limited	Yes [cpuc-nbc-report]
Direct Access	Yes [pge-da-lottery]	Yes	Yes [cpuc-nbc-report]

Large cultivators who need fixed-price multi-year contracts often pursue DA despite lottery uncertainty because ESP contracts offer terms CCAs may not match [pge-da-lottery].

Humboldt and Central Valley site selection

Cultivation clusters in Humboldt, Mendocino, and the Central Valley sit primarily in PG&E territory [eia-epm-5-6-a]. Annual load above 7 GWh competes for lottery slots against other industrial applicants [pge-da-lottery]. A 600,000 kWh monthly facility uses 7.2 GWh annually, which is a meaningful share of a single customer's allocation if won.

Site selection during lease negotiation should include a DA notice timeline. A facility that starts on bundled rates and wins DA two years later still pays bundled delivery under any PG&E GRC outcome while supply moves to an ESP [cpuc-nbc-report].

DCC electricity reporting after July 2026

California dropped mandatory electricity reporting for some cannabis licensees in July 2026, but efficiency and cost management remain operational priorities [pge-da-lottery]. DA and NBC modeling still matter for pro forma accuracy even when a specific DCC filing no longer applies [cpuc-nbc-report].

ESP contract terms after lottery allocation

Winning the lottery grants eligibility to enroll with a CPUC-licensed ESP [pge-da-lottery]. Negotiate contract length, fixed vs index pricing, and renewable content before the lottery if possible so you can execute quickly upon allocation [pge-da-lottery]. Delay between allocation notification and ESP enrollment can leave you on bundled service for one or more billing cycles [cpuc-nbc-report].

The 11,393 GWh cap is statewide across all PG&E DA applicants [pge-da-lottery]. Large cannabis loads compete with other industrial and commercial applicants. Facilities above 5 GWh annual use represent a meaningful share of a single winning allocation [pge-da-lottery]. Model your annual kWh before deciding whether DA lottery risk is worth the ESP contract benefits [cpuc-nbc-report].