The California Public Utilities Commission (PUC) adopted a regulations to use financial incentives for energy conservation and to reduce greenhouse gases. Up to $450 million will be awarded over three years to Pacific Gas and Electric, Southern California Edison, San Diego Gas & Electric and Southern California Gas if they meet targets to cut energy consumption. On the other hand, if they do not meet the targets, then they would be penalized by rate reductions. The money comes from rate increases approved by the PUC. The PUC believes that individual consumers could offset any increased costs, by energy conservation.
However, The Utility Reform Network called the plan a "bribe" to utilities for doing their job.
San Diego Gas & Electric (SDG&E) welcomed the plan. Anne S. Smith, SDG&E's senior vice president for customer service, said: "The commission's decision is another clear demonstration of its commitment to energy conservation, and we applaud this groundbreaking move." Smith also said: "We continue to believe energy efficiency is the most cost-effective and environmentally responsible means to meet our long-term energy needs."
Over the past 15 years, SDG&E has invested $485 million in energy-efficiency programs to help customers save more than 2.9 million megawatt-hours of electricity -- or approximately the energy produced over a year's time by two power plants.
Question: Now that PUC has added financial incentives for energy conservation, when will SDG&E lower it's forecast of need for it's proposed Sunrise Powerlink?