CPUC rejects SDG&E request to leave regional energy-efficiency programs

The California Public Utilities Commission voted 4-1 on Oct. 8 to reject San Diego Gas & Electric’s request to withdraw from administering its regional energy-efficiency programs.

In the commission’s voting-meeting record, Commissioner Hauke said SDG&E had not shown that withdrawal would preserve ratepayer and grid benefits or maintain a balanced portfolio through an alternative administrator. She said ending the utility’s role could reduce customers’ access to bill-saving programs, increase system load and affect equity, small-business and lower-income customers.

Commissioners said the decision does not resolve the broader debate over the programs’ cost-effectiveness. Hauke said those issues should be addressed in an energy-efficiency rulemaking or another process that can evaluate the programs and possible alternative administrators more broadly. Commissioner Douglas said the commission’s record showed the portfolio was cost-effective in 2025, citing a total-resource-cost ratio of 1.19.

Commissioner Baker dissented. He said the programs overlap with the San Diego Regional Energy Network, have low participation and face rising costs and diminishing returns. Baker said the regional programs are expected to collect about $300 million from ratepayers and produce about $286 million in total system benefits over the life of the measures — a roughly $14 million difference over six years.

Baker also said the average cost per kilowatt-hour saved rose 270% from 2021 to 2024 and the average cost per kilowatt saved rose 108%. He said SDG&E should be allowed to discontinue programs that are not cost-effective, while preserving statewide, equity and market-support programs he said would continue to provide benefits.

The roll call was yes from Commissioners Harada, Douglas and Hauke and President Reynolds, and no from Baker. SDG&E therefore remains responsible for administering the regional portfolio while the commission considers cost-effectiveness, program performance and whether an alternative administrator could take over some or all of the work.