June 2008

Itron Commissioned by California Public Utilities Commission to Conduct Energy Efficiency Study

Itron recently conducted a study on behalf of the California Public Utilities Commission (CPUC) to forecast potential energy savings for several scenarios, and provide recommendations for overall policy direction.

The findings will be used to guide utilities on efficiency goals that could influence the types of programs they design and encourage programs that deliver long-term energy savings. New targets for energy-efficiency savings—with a total market gross goal as well as

individual utility goals—could take effect in 2012 and guide investor-owned utilities' (IOU) programs through 2020.

Itron's scenario modeling incorporated such factors as utility programs, stricter codes and standards, requirements for all new residential and commercial construction to be zero net energy, the potential for naturally occurring savings from spillover and market transformation, and AB 1109*.

Overall electric energy savings could range from 23,135 GWh to 31,930 GWh by 2020 under three different scenarios according to Itron's findings. The CPUC's Energy Division staff recommended commissioners adopt the report's mid-case forecast—a savings of 28,783 GWh by 2020. IOU programs would make up two-thirds of that total with 19,278 GWh.

The Itron report noted that under any of the modeled scenarios, reaching even moderate savings requires coordinating IOU program designs with new standards for lighting, HVAC, homes and buildings. Moreover, annual gross savings from IOU programs will fall significantly in the 12-year forecast's second half because of market saturation and the forecast's dependence on today's technology. The decline in annual savings from IOU programs highlights a need for funding in research, development and deployment of emerging and new technologies, the report added.

For more information about this study or any of the products and services Itron provides to help optimize the usage of energy and water, please contact forecasting@itron.com.

*AB 1109 bans the sale of light bulbs that contain hazardous materials starting in 2010. It also requires the California Energy Commission to adopt lighting efficiency standards to cut average statewide electrical use by at least 50 percent from 2007 levels for indoor home lighting and at least 25 percent from 2007 levels for indoor commercial and outdoor lighting by 2018.