CalChoice Petitions Funding Mechanism Established in Decision D.14-01-033

In May 2023, CalChoice submitted a petition to the California Public Utilities Commission (CPUC) seeking modifications to the funding mechanism outlined in Decision D.14-01-033. This decision had established the regulatory framework for allowing Community Choice Aggregators (CCAs) to elect to administer (ETA) energy efficiency funds for their retail customers. CalChoice is requesting that the CPUC reserve a minimum amount of funding for CCA’s ETA energy efficiency programs.

The framework for CCAs to access energy efficiency funds was established by Senate Bill 790, which provided two avenues: either electing to administer funds for their retail customers or applying to administer funds for a broader customer base within their geographic area. Decision D.14-01-033 was the Commission’s implementation of SB 790 and concerns only the CCAs that ETA energy efficiency funds for program offerings to their retail customers.

“CalChoice believes that this modification is necessary,” said CalChoice Executive Director Jason Caudle. “The recent shift in funds moving away from local programs has resulted in essentially no money being available to finance them, contrary to the intent of SB 790, which authorized the ETA option.”

Establishing a minimum threshold for ETA programs, set at 4 percent of overall energy efficiency funds collected, will ensure consistent funding and provide stability for these initiatives. This approach is based on historical funding levels and reflects the landscape when SB 790 was enacted. By setting this threshold, the CPUC can uphold the intent of SB 790 and support the advancement of energy efficiency goals across California’s communities. 

“CalChoice will continue to advocate for our Associate Members to ensure that they have the needed resources to help their customers and communities,” continued Jason. “It is important that we fight for improved funding so we can empower our CCAs to make a positive impact without limitations.”

A proposed decision by the Commission is scheduled to be considered on April 18, 2024.

About CalChoice

CalChoice is a California Joint Powers Authority (“JPA”) that provides Community Choice Aggregation (“CCA”) support services, which include energy portfolio management, power procurement and trading, settlements and invoice validations, regulatory compliance, regulatory advocacy, financial and accounting, and rate-setting support functions. Current operational CalChoice members include Lancaster Choice Energy, Apple Valley Choice Energy, Pico Rivera Innovative Municipal Energy, San Jacinto Power, the Rancho Mirage Energy Authority, Pomona Choice Energy, Santa Barbara Clean Energy and Energy for Palmdale’s Independent Choice. By joining together, CalChoice members are able to cut costs through economies of scale. Learn More at californiachoiceenergyauthority.com