Efficiency First

Governor Jerry Brown is asking the California Public Utilities Commission to come up with a way to extend a longstanding electric surcharge used to fund energy efficiency projects.  The public goods charge, set to expire this year, is a 1.5% tax on electricity bills that has been around since 1996.  The average utility customer is charged a small fee of $1 to $2 on each electric bill.  In total, the surcharge generates $400 million annually, $250 million of which goes directly to utility customers who purchase energy efficient appliances or retrofit their homes and businesses.

But this funding is currently under threat.  Because the charge is technically considered a tax, a two-thirds vote was required by the California legislature for renewal and the bill failed to get the necessary number of votes.  Governor Jerry Brown is asking the PUC to levy a fee to replace the expiring surcharge.  There are also efforts to rewrite the bill so as to require a simple-majority vote, rather than two-thirds.

In a letter addressed to Brown, Commission President Michael Peevey stated he will open up a formal proceeding to consider alternatives to pay for the energy efficiency programs previously funded by the surcharge.