Southern California Edison Company's Comments on Draft Potential and Goals Study for 2026 and Beyond

The California Public Utilities Commission has initiated a rulemaking process to oversee energy efficiency portfolios, policies, programs, and evaluation. In response, Southern California Edison Company (SCE) has submitted comments on the draft potential and goals study for 2026 and beyond. The company emphasizes the need for realistic and achievable energy efficiency targets, given the uncertainty surrounding the Inflation Reduction Act funds, tariffs, and mid-cycle updates to measure packages. SCE recommends maintaining current energy efficiency goals or adopting a "High TRC" scenario as a cost-effective approach.

Key Takeaways:

• SCE appreciates the Commission's efforts to address and establish energy efficiency goals for 2026 and beyond.
• The company emphasizes the importance of considering real-world market conditions and implementation challenges when setting energy efficiency targets.
• SCE requests that the Commission keep energy efficiency goals steady at the current 2023 levels or adopt a "High TRC" scenario.
• The potential elimination of IRA funds, tariffs affecting supply chains, and mid-cycle updates to measure packages are significant factors that must be considered in setting energy efficiency targets.
• SCE recommends a pragmatic and conservative approach to quickly and easily account for prevailing economic and regulatory conditions.
• The "High TRC" scenario uses the same inputs and calibration as the Reference scenario but employs a Total Resource Cost (TRC) benefit-to-cost ratio of 1.0 as the measure-level cost-effectiveness screen.

Statistics:

• The draft potential and goals study for 2026 and beyond was released by the Commission in May 2025.
• The study aims to establish energy efficiency goals for 2026 and beyond.
• SCE recommends maintaining current energy efficiency goals or adopting a "High TRC" scenario.
• The potential elimination of IRA funds is a significant factor to consider in setting energy efficiency targets.
• Tariffs affecting supply chains and mid-cycle updates to measure packages are also substantial factors to consider in setting energy efficiency targets.

Sources:

• BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA Order Instituting Rulemaking for Oversight of Energy Efficiency Portfolios, Policies, Programs, and Evaluation. Rulemaking 25-04-010 SOUTHERN CALIFORNIA EDISON COMPANY'S (U 338-E) COMMENTS ON DRAFT POTENTIAL AND GOALS STUDY FOR 2026 AND BEYOND (Comments).
• Southern California Edison Company (SCE) (2025) Comments on Draft Potential and Goals Study for 2026 and Beyond.