May 23 2008

The More Things Change...

Posted by: Katie Romans

Yesterday, the American Gas Association (AGA) and the Natural Resources Defense Council (NRDC) came together in a press conference to highlight the importance of energy efficiency in combating global warming.

"By using a clean fuel, and using it efficiently, America's natural gas utilities and their customers are leading the way in the fight against global warming," said Laurence Downes, Chairman and Chief Executive Officer of New Jersey Resources. 

Sometimes, it's hard to remember -- here in California, here at PG&E -- that this is big news, that the more the rest of the country changes, the more things in California stay the same. That's the good news.

Thanks to a little policy called "decoupling," Californians already benefit from a regulatory structure whereby utilities do not earn based on how much energy they sell but, in large part, based on how little. A well-kept secret, but a great story in energy policy. (Still with me??) Add to that, performance-based mechanisms that make energy efficiency more than a neat thing for utilities to promote, it's a business driver.

There's the "a-ha:" So, THAT's why California utilities are so wild on energy efficiency. It's not a trick of the eye. Let down your guard, put aside your skepticism -- in addition to being great for the environment and good for your pocketbook, energy efficiency also makes good business sense. I get it.

Thanks to the work of the AGA, NRDC and many others, other states are following suit, but we clearly still have a long way to go. In the meantime, California will stay the course.

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