California's energy efficiency programs are costly and ineffective

California's high electricity bills have drawn criticism, with a new report highlighting potential waste in energy efficiency programs. State Auditor Grant Parks stated that the benefits of these programs may not justify their costs to consumers. The California Public Utilities Commission (CPUC) requires major utilities to invest in third-party energy efficiency programs. These programs cost around $1 billion each year, and the auditor's report found that utilities did not meet their energy savings goals for several years, including none since 2019. The CPUC claims the programs help reduce greenhouse gas emissions and support state climate goals. However, the audit suggests that the costs of these programs often exceed the savings they achieve. Almost 20% of utility customers are currently behind on their bills, and a significant portion goes toward these questionable programs. While supporters argue that previous successes in energy efficiency have made it harder to achieve new savings, the auditor recommends eliminating poorly performing programs. The CPUC has not acted on this advice but acknowledges its importance. The CPUC has a balance to maintain. They need to support utility companies financially while also meeting the state's ambitious climate targets. Rate hikes are often approved to ensure utilities don’t go bankrupt, leaving taxpayers to foot the bill instead. Wildfire costs are similarly passed on to ratepayers, which further complicates the financial landscape. The auditor's report notes a shift in the way cost-benefit calculations are conducted, introducing a new metric that accounts for factors beyond just energy savings. Critics see this as a way to justify continued spending on ineffective programs.