CPUC Delays Major Energy Efficiency & Electric Transportation Decisions

California utility regulators this week postponed acting on two major programs, one of which is aimed at accelerating a shift toward electric vehicles and the other at enhancing energy efficiency.

The California Public Utilities Commission May 10 put off voting on a proposed decision to authorize the state’s three investor-owned electric utilities to spend $589 million to advance electric transportation. The utilities would provide rebates and subsidies for charging infrastructure, including chargers that can serve heavy- and medium-duty trucks and transit buses.

“Our focus is on incentivizing as much charging as possible,” said Commissioner Carla Peterman. However, she noted the commission must balance expenditures on charging by utilities against the impact on utility ratepayers.

Peterman, who spoke during the commission’s meeting in the Inland Empire community of Fontana in San Bernardino County, called the massive spending program “the first of [its] kind in the nation.”

She made her remarks after hearing pleas from local clean air advocates to restore funds the proposed decision would cut from Southern California Edison’s spending plan.

Edison requested authority to spend $554 million on charging infrastructure and other expenditures for electric trucks and buses in its polluted service territory, including in the Inland Empire. It is a warehousing center traversed by heavy diesel truck traffic.

The proposed decision would cut that to $208.8 million. Peterman said the reduction shouldn’t necessarily be equated to installation of fewer chargers, noting that Edison’s cost estimate per charger was higher than Pacific Gas & Electric’s.

In addition, she noted the utility wanted an additional 35 percent added to its program as a contingency for potential cost overruns. Peterman said the proposed decision would cut the contingency allowance to 10 percent.

However, the commissioner acknowledged that she and her fellow commissioners would further entertain arguments about increasing funding at an all parties meeting scheduled for May 16. Depending upon the outcome of that meeting, she said the commission could vote on the electric vehicle infrastructure funding program as soon as May 31.

The commission also delayed acting on a proposed decision to cap rolling eight-year energy efficiency programs at $900 million a year.

The tentative ruling, initially set for a May 10 vote, would approve energy efficiency programs running from 2018-2025 for 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.

Measurement metrics are to be incorporated into the programs to ensure negawatts are reaped by various efficiency programs and measures.

Specific directions of the proposed ruling by Administrative Law Judges Julie Fitch and Valerie Kao include requiring the companies, Marin Energy and the regional energy networks to seek stakeholder input on implementation plans for new programs. The proposed decision also calls for increases in the installations of demand response-capable building controls to align energy efficiency, demand response, and greenhouse gas reduction goals.

In addition it would: Direct the CPUC to prohibit the use of incentives to advance CFL lighting programs by the end of this year because of their poor efficiency gains; Direct 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; and Require that all utility efficiency program administrators have at least 25 percent of their 2020 program year forecast budgets under contract with third parties no later than Dec. 19, 2019. — Elizabeth McCarthy

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CPUC Delays Major Energy Efficiency & Electric Transportation Decisions

William J. Kelly

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