Advanced Energy United urges state leaders to take a careful approach to reevaluating clean energy programs that prioritize long-term affordability solutions.
SACRAMENTO, CA—Today, California Governor Gavin Newsom issued an executive order directing state agencies to address skyrocketing energy bills. The order instructs state agencies to eliminate underperforming programs in an effort to control rate increases for customers and maintain the state’s clean energy goals.
National business association Advanced Energy United (United) is focused on providing energy affordability solutions but emphasizes that this goal should not rely on short-term measures that offer small one-time affordability fixes at the expense of clean energy programs that offer long-term cost savings and directly support underserved communities.
“As the administration takes on the worthy goal of evaluating the effectiveness of ratepayer-funded programs and workloads, we urge them to prioritize long-term affordability solutions instead of temporary band-aid measures that offer quick fixes,” said Edson Perez, United’s California Policy lead. “Programs and initiatives that leverage innovative technologies and give consumers more control over their own energy—such as those taking advantage of distributed energy resources (DERs), facilitating virtual power plants (VPPs), or providing load flexibility—have the potential to deliver significant long-term affordability, resiliency, and climate benefits for every single ratepayer.”
United recognizes the importance of reevaluating programs periodically and encourages state leaders to comprehensively evaluate all existing initiatives rather than focus solely on immediate savings. Leaders should also consider reworking or consolidating programs where goals are not being met effectively, rather than discarding program goals entirely.
“Our priority should be investing in programs, initiatives, and studies that ensure energy costs remain affordable while also creating a stable market over the long-term and taking advantage of the full range of technologies needed to reach our state goals,” Perez added. “Focusing only on short-term solutions is penny-wise, but pound-foolish, as it may raise overall costs in the long-term and undermine support for our most vulnerable communities.”
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