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Public utilities

California Public Utilities Commission Initiates Rulemaking to Explore Clean Energy Financing Options

Strategic Insights

— 1 min read

The California Public Utilities Commission (CPUC) has initiated a rulemaking proceeding, R.20-08-022, to investigate and design clean energy financing options for electricity and natural gas customers. This effort aims to address the state's goal of transitioning to a clean energy economy, reducing greenhouse gas emissions, and promoting energy efficiency.

Key Takeaways:

  • The CPUC's rulemaking will examine different clean energy financing options, including but not limited to:

+ On-bill financing

+ Property-assessed clean energy (PACE) financing

+ Third-party financing

+ Innovative financing mechanisms

  • The proceeding will assess the costs and benefits of various financing options, including their impact on low-income ratepayers and the state's greenhouse gas emissions goals.
  • The CPUC will also consider the potential for integrated resource planning (IRP) to inform clean energy financing decisions, ensuring that energy efficiency and renewable energy resources are integrated into the state's energy infrastructure.
  • The commission will engage with stakeholders, including consumers, advocacy groups, and industry representatives, to gather input and feedback on the proposal.
  • The rulemaking process will conclude with the development of a final proposal outlining the recommended clean energy financing options for the state.

Statistics:

  • The California Public Utilities Commission has identified $47 billion in potential energy efficiency savings by 2025.
  • The state's renewable portfolio standard aims to reach 60% by 2030.
  • The CPUC's energy efficiency programs have saved California customers over $14 billion since 1978.

Sources:

  • Comments from the Local Government Sustainable Energy Coalition to the CPUC on Order Instituting Rulemaking to Investigate and Design Clean Energy Financing Options for Electricity and Natural Gas Customers (RULEMAKING 20-08-022).
  • Service List, California Public Utilities Commission, dated October 5, 2020.

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