Does the Standard Offer maximize EE investments?
Dollar for dollar, California IOU programs are saving 40% less energy capacity (kW) and 17% less kilowatt-hours than current Texas programs, because of CA’s high admin costs, and because many IOU programs are not cost-effective. Applying the results of the Texas program to California, without even considering potential economies of scale of CA’s much larger budget, and even excluding the gas savings benefits, we are looking at electricity savings of 1,337 MW and 4,543 Gigawatt/hrs per year, and bill reductions of almost $2.3 billion, with half going to Hard-to-Reach, Residential and Small Commercial customers.The Standard Offer model intrinsically lowers administrative costs and provides more money for energy-saving activities, because there is no need to micromanage programs. This creates a tremendous advantage in maximizing energy efficiency investments.
Dollar for dollar, California IOU programs are saving 40% less energy capacity (kW) and 17% less kilowatt-hours than current Texas programs, because of CA’s high admin costs, and because many IOU programs are not cost-effective. Applying the results of the Texas program to California, without even considering potential economies of scale of CA’s much larger budget, and even excluding the gas savings benefits, we are looking at electricity savings of 1,337 MW and 4,543 Gigawatt/hrs per year, and bill reductions of almost $2.3 billion, with half going to Hard-to-Reach, Residential and Small Commercial customers. The Standard Offer model intrinsically lowers administrative costs and provides more money for energy-saving activities, because there is no need to micromanage programs. This creates a tremendous advantage in maximizing energy efficiency investments.
