The California Public Utilities Commission (CPUC) has issued Decision 23-08-005 adopting energy efficiency (EE) program goals for 2024 through 2035.
The CPUC is required by statute to identify all potentially achievable cost-effective electricity and natural gas efficiency savings in consultation with the California Energy Commission, and to establish efficiency targets for California investor-owned utilities (IOUs). CPUC staff study the cost-effective energy savings and system benefits that are potentially available in the state’s residential and commercial buildings, residential and commercial equipment and processes, and in the industrial, agricultural and mining sectors. This information is used by the CPUC to set goals for the large IOUs and for agency planning processes.
Upon review of the 2023 Energy Efficiency Potential and Goals Study, the CPUC determined that:
- It is reasonable to assume some impacts from the federal Inflation Reduction Act (IRA) on EE savings, while precise impacts of the IRA remain challenging to estimate.
- EE portfolio administrators and program implementers must create and maintain, at minimum, promotional and educational documentation to influence customers to use the IRA tax credit for applicable measures.
- IOUs should continue to aggressively pursue fuel substitution savings opportunities, but EE goals must reflect fuel substitution savings that are realistically achievable.
- It is helpful to anticipate and estimate the potential impact of the California Air Resources Board’s anticipated adoption of zero-emission standards for space and water heaters on longer-term saving potential.
The 2024-2035 annual energy efficiency targets for Pacific Gas and Electric Company, Southern California Edison Company, San Diego Gas & Electric Company and Southern California Gas Company are identified in Tables 1-8 in the decision. The next EE study is scheduled for 2025. Processes to identify study inputs and modeling scenarios may begin as early as July 2024.
Contact: Lynn Haug
