PUC Broadens Access to Energy-Saving Programs

SAN FRANCISCO —  State regulators moved Thursday to inject competition into the energy efficiency programs historically run by utilities, but they are phasing in the plan to avoid disruption of programs that helped avert blackouts last summer.

The California Public Utilities Commission voted 5 to 0 to give investor-owned utilities access to about 80% of the $235 million in funding available for 2002, while businesses and other non-utility entities could seek the rest. An additional $50 million would become available to non-utilities in 2003.

The commission earlier had indicated it wanted to open up the entire program to competition. But PUC President Loretta M. Lynch said those plans were scaled back after objections from consumer groups and others who feared that would derail effective programs.

Lynch said energy efficiency programs next year will receive less total funding than this year, when they got almost $300 million from ratepayers along with about $800 million in state funding during the energy crisis.

The PUC said it wants to encourage innovation in its energy plan while preserving the proven programs. Currently, homeowners and businesses can receive rebates and other incentives for efficient appliances, equipment and building improvements such as insulation.

Southern California Edison spokesman Gil Alexander said the company was pleased with the PUC vote. He said Edison has paid about 200,000 rebates, or $20 million, to residential customers--four times the level a year ago. The energy savings were enough to provide power to 83,000 homes.

“We believe that is one reason the state had a blackout-free summer,” he said.

Pacific Gas & Electric spokesman Ron Low reported a similar response among customers, who purchased more than 150,000 energy-efficient appliances and received $17 million in rebates. PG&E; customers also purchased more than 4 million compact fluorescent bulbs carrying discounts of $3 each.

Low said the utility received about $80 million in financial incentives to run the energy programs over the last several years.