CPUC Approves $8B in Energy Efficiency Plans

The California Public Utilities Commission unanimously approved an $8 billion cap on rolling energy efficiency business programs covering eight years.

The decision approving the efficiency business plans covers those of the four investor-owned utilities, Marin Clean Energy, the Bay Area Regional Energy Network, the Southern California Regional Energy Network and the Tri-County Regional Energy Network.

The filed “business plans allow a complete refresh on energy efficiency portfolios,” said Commissioner Carla Peterman, who presided over the decision. She added the decision creates “sufficient flexibility to accommodate changes over time while creating mechanisms to lower costs and streamline” the process.

The rolling efficiency plans, funded at up to $1 billion a year, increase both the roles of third-party administrators and attempt to bolster anemic efficiency installations in struggling communities.

The decision also requires utility efficiency program administrators to have at least one fourth of their 2020 program year forecasted budgets under contract with third parties no later than Dec. 19, 2019.

Commissioner Martha Guzman Aceves welcomed the increase for independent third-party administrators. She said it would allow for “more innovation.”

The eight-year rolling efficiency plans were attacked by electricity engineers and contractors for failing to include workforce standards ensuring cost effective energy savings installations, particularly in the area of lighting and home heating and air conditioning systems.

A former utility electrician told the commissioners that the ruling “allows ratepayers’ money to subsidize poor work.” He specifically took issue with the decision not requiring certification for installing highly efficient lighting. Improper installations of these “complex systems are widespread,” he added.

Peterman acknowledged the workforce concerns, saying that a rulemaking would be launched to address specific worker installation standards and certifications.

This week’s decision does mandate measurement metrics for the programs to ensure negawatts are reaped by various efficiency measures. In addition the utilities, Marin Energy and the regional energy networks are to seek stakeholder input on implementation plans for new programs.

The CPUC also directed Pacific Gas & Electric, Southern California Edison, San Diego Gas & Electric and SoCal Gas to set aside at least $1 million for the residential sector and $20 million for the commercial sector for testing and deployment of strategies to integrate energy efficiency and demand response.

The decision further calls for: Increasing installations of demand response-capable building controls; and Prohibiting incentives to advance CFL lighting programs by the end of this year because of their poor efficiency gains; In other news, the CPUC again delayed voting on a proposal rejecting Southern California Edison’s preferred resource deals for the Los Angeles Basin. The proposed rejections have raised the ire of clean energy advocates. Before the postponement, SoCal Gas signed three natural gas capacity LA basin deals .

In addition, state energy regulators again postponed voting on a new $10 million a year solar program to increase photovoltaic installations in low-income communities. — Elizabeth McCarthy

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CPUC Approves $8B in Energy Efficiency Plans

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