Californians pay some of the highest electricity rates in the country. These already expensive rates are also increasing rapidly, outpacing inflation. Electricity rate increases in California are driven in large part by sharply increasing transmission and distribution costs, including wildfire mitigation and grid-hardening efforts. But rising electricity rates also reflect the costs of other ratepayer-funded public purpose programs, such as energy efficiency (EE) programs.

This report considers pathways for reducing electricity bills by reshaping EE programs run by investor-owned utilities and other EE Program Administrators.  It analyzes EE program data with the goal of identifying programs that deliver systemwide benefits that are most appropriately socialized across a broader range of taxpayers rather than borne by utility ratepayers alone. It also assesses other potential changes to the administrative structure of EE programs that could reduce costs for ratepayers.

Students Luis Patiño and Krystsina Shabanava conducted the research and analysis underlying this report under the supervision of Professors Brennon Mendez and Julia Stein for UCLA’s California Environmental Legislation and Policy Clinic. 

Read the report.