Electric Utility Restructuring and Its Impact on Energy Efficiency and Measurement and Evaluation: Two Unfinished Stories (California and South Korea)

Edward Vine, Lawrence Berkeley National Laboratory
Chang-Ho Rhee and Keun-Dae Lee, Korea Electrotechnology Research Institute

Keywords

Abstract

This paper describes the experience of electric utility restructuring and its impact on energy efficiency in California and the Republic of Korea (Korea). The California case study focuses on the legislative and regulatory response to electric restructuring in promoting energy efficiency. After describing the early regulatory history of utilities in California, we review key decisions affecting energy efficiency and measurement and evaluation (M&E) – e.g., the creation of a public goods charge (PGC), the administration and implementation of PGC-funded energy efficiency programs, the role of utilities and third parties in implementing such programs, and the role of M&E. We show how one event (the Energy Crisis of 2001) can have a major impact on the type of energy efficiency programs that get implemented (e.g., resource acquisition versus market transformation). We also describe how California’s PGC-funded energy efficiency programs relate to the integrated resource planning activities recently reactivated for the investor-owned utilities in California.

The second part of the paper describes how Korea has restructured its energy industry, has created a PGC, and is developing programs for promoting energy efficiency, as well as setting aside funds for M&E. Korea will not be emulating the California experience, but will try to learn from California’s experience in developing the necessary infrastructure for promoting energy efficiency in a country that has historically been supply-side oriented.