Energy Efficiency Potential and Goals Studies

In 2004 the Commission adopted aggressive ten-year energy savings goals to meets its commitment to make Energy Efficiency the resource of first choice, as established in the Energy Action Plan. The goals serve several important roles in the State regulatory framework. 

1. To provide guidance for the utilities’ next energy efficiency portfolios: The energy efficiency goals were first adopted in Decision (D.)04-09-060 to set the benchmark that the IOU energy efficiency programs were expected to achieve. The goal-setting process set a framework for the program planning cycle, determining the targets for utility energy efficiency program portfolio performance. Based on this decision, the CPUC adopted aggressive annual and ten-year cumulative goals for verified electric and natural gas savings and allowed the utilities to develop their own programs and portfolios. To measure the IOUs' progress toward their goals, the Energy Division developed an extensive evaluation, measurement and verification program (EM&V) to verify that utility programs meet their commitments. Since D.04-09-060, the Commission adopted interim goals in 2007 in D.07-10-032, D.09-09-047, and D.12-05-015.  

2. To update the forecast for energy procurement planning: As the Energy Action Plan established energy efficiency as first in the loading order, the state must adopt a long-term benchmark that can be used in utility energy procurement planning. The IOUs' energy efficiency goals adopted from this study will be incorporated into the California Energy Commission’s (CEC's) Integrated Energy Policy Report, which establishes the demand forecast for long-term procurement planning. This forecast is an input into the CPUC’s Long Term Procurement Planning Proceeding (LTPP), which determines the generation resources that energy efficiency is expected to offset in order to minimize costs to ratepayers.* 

3. To inform strategic contributions to California’s greenhouse gas reduction targets: The California Global Warming Solutions Act of 2006 (AB 32) relies on intensified energy efficiency efforts across California. The California Air Resources Board's (CARB's) Scoping Plan for Assembly Bill (AB) 32 establishes a statewide energy efficiency target of at least 32,000 GWh and 800 million therms by 2020, making it the second largest component in the State’s overall emissions reduction program. Future EE goals updates will have more implications for forecasts of GHG reductions to be provided by EE policy initiatives. 

4. To set benchmarks for shareholder incentives: In D.07-09-043, the Commission adopted shareholder incentives for the 2006-2008 energy efficiency program cycle to encourage the utilities to meet or surpass their energy efficiency goals. In D.13-09-023, the Commission modified the shareholder incentive mechanism for the 2013-14 program cycle to again tie shareholder earning to energy savings accomplishments. 

Goals Background and History

Since 2003, the CPUC has established energy efficiency goals based on legislative requirements set in SB 1037

  • History of Goals: Provides background of Commission decisions that have established the structure and application of goals. 

Potential & Goals Studies:


Immigration Guide