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PG&E urges portfolio-level cost-effectiveness and highlights long-running programs
Summary
PG&E told the Assembly committee its diverse portfolio of 45+ programs remains cost-effective overall, and urged regulators to apply cost-effectiveness tests at the portfolio or segment level to preserve innovation and equity-focused programs.
Claire Brako, senior manager of energy efficiency policy and technical oversight at Pacific Gas and Electric Company, told the committee PG&E manages over 45 programs across sectors and emphasizes portfolio-level accountability. She described rules governing budget allocation (for example, at least 60% of the portfolio outsourced to third-party implementers and no more than 10% for PG&E administrative costs) and cited long‑running measures such as Home Energy Reports, which she said reaches more than 3,000,000 PG&E residential customers annually.
Brako argued that applying cost-effectiveness at the portfolio or resource-acquisition segment protects innovation and enables administrators to launch multi-year pilots (including building electrification pilots) that might be less cost-effective in their early years but produce long-term system benefits. "PG and E continues to advocate for the cost effectiveness requirements and should remain at the portfolio segment level and not the program level to allow the space for the variability in multi year program life cycles," she said.
In response to committee questions, PG&E staff emphasized monitoring and performance-improvement mechanisms (weekly/monthly implementer meetings, performance-improvement plans) and noted that some underperforming programs are closed when appropriate.
