By Rebecca Bowe
The California Public Utilities Commission (CPUC) approved a $3.1 billion budget yesterday for statewide energy efficiency programs that will be in place until 2012. California’s powerful investor-owned utilities — Pacific Gas & Electric Company, Southern California Edison, San Diego Gas and Electric Company, and Southern California Gas Company — are in charge of implementing the programs, while the funding is derived from ratepayers.
While the decision marks the creation of the largest energy-efficiency program in the country, some question the wisdom of the colossal investment, because it relies on utility companies to implement dramatic reductions in energy use.
It’s the greatest financial contribution the state utility commission has ever pledged toward energy efficiency. According to the CPUC, the potential energy savings will negate the need for three new 500-megawatt power plants, and avoid 3 million tons of greenhouse gas emissions. The funding from this decision could create between 15,000 and 18,000 green jobs, the CPUC estimates.
The decision will provide $260 million for local efforts such as municipal building retrofits. It also requires utilities to track progress toward goals and strategies established in a long-term statewide plan for reducing energy use. Included in the effort is an ambitious home-retrofit program, which sets a goal of 20 percent energy savings for up to 130,000 homes.
“This investment in California’s clean energy economy is just what we need to create new jobs for our communities and fight global warming pollution,” said Lara Ettenson, director of California Energy Efficiency Policy at the Natural Resources Defense Council (NRDC), a prominent environmental organization.
Not everyone shares NRDC’s optimism, however.
The Division of Ratepayer Advocates (DRA), an independent consumer advocacy division of the CPUC, warned that the powerful utility companies should be closely monitored to see how they make use of such a tremendous sum.
In a statement released this morning, the DRA highlighted “a continuing need for stronger mechanisms to ensure transparency and accountability in the utilities’ use of the billions of dollars of ratepayer money.” Utility giant PG&E has been criticized in the past for misuse of energy-efficiency funds.