Utilities Fail at Energy Efficiency, Win at Raising Rates

San Francisco — Consumers will pay millions more in utility bills under a scheme approved by the CPUC today.  Despite objections from TURN and other consumer groups, the Commission agreed to new charges that will mean higher profits for utility shareholders.

The so-called “shareholder incentives” are supposed to reward utility companies for running customer-funded energy efficiency programs effectively.  But the CPUC ignored evidence that the utility companies had not reached their goals, and gave them the money anyhow.

“The Commission is twisting itself into a pretzel to justify huge rewards for mediocre programs.   Too many consumers are struggling with high bills and getting no help from their utility company in lowering those bills," said TURN executive director Mark Toney.  “Absent evidence the rewards are deserved,” the Commission appears to be bribing utilities to run programs they are already paid handsomely to run.”

Previous decisions awarded $82 million in unearned incentives.  Today’s decision will cost consumers an additional $61 million.