Riverside City Council
June 16, 2026

RIVERSIDE
Riverside at a Glance
• Climate Zone(s): 10
• Customers: 113,082
• Total annual retail sales (MWh): 2,064,551
• Annual Retail Revenue: $352,501,989
• Annual energy efficiency expenditures for reporting year: $7,144,896 • Gross annual savings from reporting year portfolio (MWh): 12,696

Riverside Overview
Riverside Public Utilities (RPU) has been providing efficient, reliable water and electric services throughout the city since 1895. RPU is committed to providing the highest quality services at the lowest possible rates to benefit customers and the community.

RPU continues to help customers manage their energy use through a comprehensive range of education, rebates and incentives. In Fiscal Year (FY) 2024 RPU reached 57% of the kilowatt- hour (kWh) savings goal of 1% of retail sales as adopted by the Board of Public Utilities in 2021.

Residential,
3,862
Commercial,
8,399
Low Income, 435
Gross Energy Savings (MWh)
Residential Commercial Industrial Agricultural Other Low Income T&D Electrification

Major Program and Portfolio Changes
RPU continues to enhance and expand its energy efficiency program portfolio for the benefit of its customers and the community. Staff regularly review the program portfolio and make changes to the rebates and incentives as needed. Since 2020, RPU has developed new and enhanced programs for both commercial and residential customers. This has led to an increase in program participation and resulted in increased energy savings being realized.

Throughout FY 2024, RPU enhanced the program offer via the Tree Power Program, Commercial Outdoor Lighting program, and the Small Business Direct install programs.

Beginning FY 2024, RPU implemented some enhancements to the existing Energy Savings Assistance Program (ESAP) with Southern California Gas Co., expanding the program to include refrigerator replacement and whole house fans at no cost to qualifying customers.

Program and Portfolio Highlights
RPU has focused considerable attention on further developing commercial programs.

Commercial customers represent almost 12% of the customer base, but account for approximately 65% of the City’s load. In FY 2024 RPU entered a second year of the Medium and Large Business Outdoor Lighting Program, Small Business Direct Installation Program and Small Business Refrigerator Load Program.

Commercial, Industrial & Agricultural Programs
• Air Conditioning Incentives – Rebates for replacement of energy inefficient AC units. • Business Outdoor Lighting Program – Program provides direct installation for medium and large business with outdoor lighting conversion to efficient LED. • Key Account Energy Efficiency Program (KEEP) – Program targeting RPU’s largest Time of Use Customers and includes the top 300 RPU customers in terms of consumption. KEEP is intended to provide Key Account customers with a comprehensive energy efficiency plan including a priority list of recommended energy efficiency measures along with an estimated return on investment and applicable utility incentives. • LEED New Construction – Rebate for LEED certification for new buildings and major renovations.
• Lighting Incentive – Rebates for kWh savings on installation of more energy efficient lighting and controls.
• Performance Based Incentive – Rebates for customers who can demonstrate a kWh savings based on custom energy-efficiency measures.
• Refrigerator Load Program - Program offers the direct installation of energy efficiency measures such as air curtains, cooler gaskets, automatic door closures, LED case lighting retrofits and high-efficiency motor upgrades.
• Small Business Direct Install Program (SBDI) - Program provides small and medium-sized businesses with energy audits, and direct installation of energy efficiency measures such as lighting upgrades and controls, HVAC tune-ups, exit and open/closed signs, advanced power strips and weatherization.
• Weatherization – Rebates for installation of insulation, window film and cool roofs.

Residential Programs
• Air Conditioning Incentives – Rebates for replacing Central Air Conditioners with a SEER rating of 15 above and HVAC tune-up.
• Appliance Recycling – Free recycling service for old inefficient refrigerators and freezers. • Energy Savings Assistance Program (ESAP) – Direct installation program targeting low- income customers, offered in partnership and cooperation with SCGC. Measures include lighting efficiency upgrades, HVAC tune-ups, smart power strips, and refrigerator recycling (low- income assistance, Res Lighting, Res Cooling, Res Refrigeration). • Energy Star Appliances – Rebates for purchase of Energy Star-rated refrigerators, dishwashers, clothes washers, room air conditioners, ceiling fans, and televisions. • Heat Pumps – New rebate to residential electric customers when they purchase and install new energy-efficient heat pumps.
• Pool Saver – Rebates for purchase and installation of high efficiency, variable speed, or multi-flow pool pump motors.
• Tree Power – Rebates for purchasing and planting of up to five qualifying shade trees per year and one free qualifying shade tree coupon printed on the March back of the bill. • Weatherization – Rebates for installing attic insulation or wall insulation, standard rebates for duct replacement, duct testing/sealing, window film, solar and standard attic fans, whole house fans, and cool roofs.

Complementary Programs
• SHARE – This low-income assistance program credits $250 toward the electric deposit or as an emergency payment on delinquent balances and/ or assists with a $16 monthly bill payment and beginning January 1st, 2024, the monthly credit was increased to $20 to offset the rate increase for qualified low-income applicants annually • Energy Savings Assistance Program (ESAP) - In partnership with SoCal Gas, ESAP is designed to help lower monthly bills to income-qualified renters and homeowners, making homes more energy efficient through professional no-cost energy-saving home improvements by RPU's authorized contractor Synergy. Participation of ESAP for FY 2024 was 367 with 4,874 different EE measures installed.
• Pool Pump Timer Credit Load Shift Program – This program offers a bill credit of $5 per month for customers who agree to install and program their residential pool pump timer so that the pump operates only during off-peak hours.

Evaluation, Measurement & Verification Studies
• RPU is committed to providing cost-effective, ongoing evaluation, measurement, and verification (EM&V) efforts for its energy efficiency programs. EM&V costs are covered in the individual program budgets.
• In addition to periodic program audits, RPU consistently performs the following in support of EM&V activities.
• An onsite inspection rate of a selection of randomly selected residential program participants, performed by RPU staff and contractors.
• A pre-and post-inspection of 100% of large commercial rebate participants, including a review of historical energy usage, energy-saving calculations, and post-measure bill analysis. • Audits and installations performed by third-party contractors for RPU direct installation programs have high inspection rates that are performed by both the contractor and RPU staff. • Refrigerator recycling program administered by A&G Recycling Angels assures full inspection when the contractor picks up old appliances.

Major Differences or Diversions from CA POU TRM for Energy Savings None Noted.

TABLE 1. EnergyEfficiency Program Results by End Use
Summary by End Use Resource Savings Summary Cost Test Results End Use Gross Peak
Savings (kW)
Gross Annual
Energy Savings
(kWh)
Gross Lifecycle
Energy Savings
(kWh)
Net Peak
Savings (kW)
Net Annual
Energy Savings
(kWh)
Net Lifecycle
Energy Savings
(kWh)
Net Lifecycle GHG
Reductions (Tons)
Total Utility
Cost PAC TRC Utility
($/kWh)
Any 0 2,070,068 20,700,684 0 2,070,068 20,700,684 6,916 $335,406 7.03 9.56 0.020 Appliance & Plug Loads 241 874,538 5,224,956 229 829,256 4,948,015 1,818 $248,920 2.44 8.24 0.057 Building Envelope 175 192,465 3,557,903 159 175,207 3,231,945 1,229 $148,957 4.58 8.81 0.066 Commercial Refrigeration 0 116,984 1,359,252 0 116,984 1,359,252 485 $159,873 0.94 9.56 0.148 HVAC - Cooling 2,311 4,306,156 95,791,775 1,942 3,330,556 71,801,263 26,292 $2,198,098 5.91 8.42 0.047 Lighting - Indoor 2 415,233 4,177,098 2 415,233 4,177,098 1,395 $89,599 5.30 9.56 0.026 Lighting - Outdoor 0 1,372,825 13,728,250 0 1,372,825 13,728,250 6,432 $1,029,220 1.51 9.56 0.091 Miscellaneous 2 2,354,229 22,439,137 2 2,354,007 22,438,249 7,634 $2,319,499 1.09 9.55 0.125 Service & Domestic Hot Water 0 5,956 60,628 0 5,658 57,597 20 $2,067 2.85 8.56 0.044 Whole Building 0 552,494 8,287,410 0 552,494 8,287,410 2,936 $163,096 5.68 9.56 0.026 Energy Efficiency 2,732 12,260,949 175,327,094 2,334 11,222,289 150,729,763 55,156 $6,694,735 3.32 8.80 0.060 Appliance & Plug Loads 12,288 122,880 12,288 122,880 44 $24,591 0.67 9.56 0.242 Building Envelope 0 62,355 1,247,100 0 62,355 1,247,100 472 $146,321 1.96 9.56 0.173 HVAC - Cooling 0 186,806 2,493,777 0 186,806 2,493,777 949 $209,927 2.14 9.56 0.110 Lighting - Indoor 0 173,153 2,597,295 0 173,153 2,597,295 981 $69,322 4.22 9.56 0.036 Low-Income 0 434,602 6,461,052 0 434,602 6,461,052 2,446 $450,161 2.32 9.56 0.094 EE, Low Income and Electrification 2,732 12,695,551 181,788,146 2,334 11,656,891 157,190,815 57,602 $7,144,896 3.26 8.83 0.062

C&S and T&D $0

Utility Total 2,732 12,695,551 181,788,146 2,334 11,656,891 157,190,815 57,602 $7,144,896 3.26 8.83 0.062 TABLE 2. EnergyEfficiency Program Results by Sector
Summary by Sector Resource Savings Summary Cost Test Results Sector Gross Peak
Savings (kW)
Gross Annual
Energy Savings
(kWh)
Gross Lifecycle
Energy Savings
(kWh)
Net Peak
Savings (kW)
Net Annual
Energy Savings
(kWh)
Net Lifecycle
Energy Savings
(kWh)
Net Lifecycle GHG
Reductions (Tons)
Total Utility
Cost PAC TRC Utility
($/kWh)
Commercial 1,393 8,398,770 93,711,419 1,246 8,200,225 90,603,173 32,042 $4,086,481 2.49 9.29 0.056 Residential 1,338 3,862,179 81,615,675 1,088 3,022,064 60,126,589 23,114 $2,608,254 4.63 8.43 0.068 Energy Efficiency 2,732 12,260,949 175,327,094 2,334 11,222,289 150,729,763 55,156 $6,694,735 3.32 8.80 0.060 Residential 0 434,602 6,461,052 0 434,602 6,461,052 2,446 $450,161 2.32 9.56 0.094 Low-Income 0 434,602 6,461,052 0 434,602 6,461,052 2,446 $450,161 2.32 9.56 0.094 EE, Low Income and Electrification 2,732 12,695,551 181,788,146 2,334 11,656,891 157,190,815 57,602 $7,144,896 3.26 8.83 0.062

C&S and T&D $0

Utility Total 2,732 12,695,551 181,788,146 2,334 11,656,891 157,190,815 57,602 $7,144,896 3.26 8.83 0.062 TABLE 3. EnergyEfficiency Program Results by Building Type Summary by Building Type Resource Savings Summary Cost Test Results Building Type Gross Peak
Savings (kW)
Gross Annual
Energy Savings
(kWh)
Gross Lifecycle
Energy Savings
(kWh)
Net Peak
Savings (kW)
Net Annual
Energy Savings
(kWh)
Net Lifecycle
Energy Savings
(kWh)
Net Lifecycle GHG
Reductions (Tons)
Total Utility
Cost PAC TRC Utility
($/kWh)
Any 1,393 6,573,878 76,705,467 1,246 6,375,333 73,597,222 26,262 $2,655,990 3.11 9.23 0.045 Other Commercial 0 1,883,609 17,769,261 0 1,883,609 17,769,261 6,058 $1,802,219 1.11 9.56 0.122 Residential 1,338 3,803,463 80,852,366 1,088 2,963,348 59,363,280 22,837 $2,236,525 5.36 8.42 0.060 Energy Efficiency 2,732 12,260,949 175,327,094 2,334 11,222,289 150,729,763 55,156 $6,694,735 3.32 8.80 0.060 Residential 0 434,602 6,461,052 0 434,602 6,461,052 2,446 $450,161 2.32 9.56 0.094 Low-Income 0 434,602 6,461,052 0 434,602 6,461,052 2,446 $450,161 2.32 9.56 0.094 EE, Low Income and Electrification 2,732 12,695,551 181,788,146 2,334 11,656,891 157,190,815 57,602 $7,144,896 3.26 8.83 0.062

C&S and T&D $0

Utility Total 2,732 12,695,551 181,788,146 2,334 11,656,891 157,190,815 57,602 $7,144,896 3.26 8.83 0.062

RiversidePublicUtilities.com
1 RiversidePublicUtilities.com

GOOD MORNING, RIVERSIDE
July 10, 2025

RIVERSIDE PUBLIC UTILITIES

ANNUAL UPDATE
RiversidePublicUtilities.com
2 RPU - 30 YEARS IN EDUCATION
RPU’s Customer Engagement
Team has been inspiring and
educating Riverside’s youth for
three decades.

RiversidePublicUtilities.com
3 IT ALL STARTED IN 1995…

RiversidePublicUtilities.com
4 WHAT THE TEAM OFFERS
• Career Days
• Contests
• Family Science Technology Engineering
Art and Math (STEAM) Day Program
• Science Technology Engineering Math
Public Utilities Learning Labs STEM PULL
• STEM FUNdamentals
• Field Trips
• Hands-on learning opportunities

RiversidePublicUtilities.com
5 WHAT THE TEAM OFFERS

RiversidePublicUtilities.com
6 WHAT WE HAVE DONE SO FAR
Countless awards and Thank You cards
from event organizers and students
30 Years
of teaching Riversiders
3,000+
Classes
300,000+
Students

RiversidePublicUtilities.com
7 THANK YOU
RPU would like to thank the teachers, administrators, students, and Customer Engagement’s educators for their extraordinary effort over the last 30 years.

We’re looking forward to teaching the next generation of Riverside students.

MEMORANDUM
2025 CMUA Energy Efficiency Potential Forecasting Study 1 CONFIDENTIAL

MEMORANDUM
TO Riverside Public Utilities (Riverside)
FROM GDS Associates, Inc.

DATE March 13, 2025
RE 2025 CMUA Energy Efficiency Potential Forecasting Study

INTRODUCTION
This memo provides the Riverside Public Utilities (Riverside) results of the California Municipal Utilities Association (CMUA) Energy Efficiency (EE) Potential Forecasting Study conducted in 2025 by GDS Associates, Inc. (GDS). The results described here are specific to the Riverside service territory and account for unique characteristics of the service area, customer base, climate zone, economic conditions, and other relevant factors. This memo provides a summary of the EE Savings Forecast and Fuel Substitution/Electrification Efficiency program opportunity, as well as a description of the data provided in the detailed results spreadsheet file provided to the utility. Energy efficiency potential is followed by fuel substitution and electrification efficiency opportunities.

SUMMARY OF ENERGY EFFICIENCY POTENTIAL
This potential study provides a roadmap for Riverside as they develop strategies and programs for energy efficiency.

The development of market potential estimates for a range of feasible measures is useful for program planning and modification purposes.

The Riverside energy efficiency program target for the next 10 years (sum of incremental annual, 2026 through 2035) is set at 80,107 MWh. This results in an average annual target of 0.36 percent of total projected energy sales. Figure 1 provides the market potential for the residential and non-residential sectors, as well as the total incremental potential as a percentage of total sales for the 10-year period of 2026 to 2035.

FIGURE 1. NET INCREMENTAL MARKET POTENTIAL BY SECTOR (MWH) AND PERCENT OF SALES

0.00%

0.05%

0.10%

0.15%

0.20%

0.25%

0.30%

0.35%

0.40%

0.45%

0.50%
0 1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
% of Annual Sales
MWh
Residential NonResidential Total Incremental Potential as a % of Sales Table 1 below includes the specific inputs used to create Figure 1. The annual energy and demand impacts are provided.

The energy impacts are shown as a percentage of forecasted sector-level and total sales. Incremental annual savings range from 6,971 MWh to 9,244 MWh, which corresponds to 0.30% to 0.43% of the forecasted sales.

TABLE 1 NET INCREMENTAL MARKET POTENTIAL BY SECTOR – ENERGY AND DEMAND 110 Year Energy Goals (Incremental NNet MMWh)
AALL Sectors (MWh) 220266 220277 220288 220299 220330 220331 220332 220333 220334 220335 TTotal Market PPotential 8,936 9,244 8,203 8,413 8,109 8,339 7,423 7,366 6,971 7,103 RRes Market Potential 4,186 4,002 3,577 3,320 3,031 2,850 2,567 2,123 1,815 1,601 NNon--RRes Market Potential 4,751 5,242 4,626 5,093 5,078 5,489 4,856 5,243 5,156 5,502

TTotal PPotential as a % of
TTotal Sales 0.42% 0.43% 0.38% 0.38% 0.37% 0.37% 0.33% 0.32% 0.30% 0.30% RRes Potential as a % of
RRes Sales 0.60% 0.56% 0.50% 0.46% 0.41% 0.38% 0.34% 0.28% 0.24% 0.20% NNon--RRes Potential as a %
oof Non--RRes Sales 0.33% 0.36% 0.32% 0.35% 0.34% 0.36% 0.32% 0.34% 0.33% 0.35%

110 Year Demand Goals (Incremental kW)
AALL Sectors (kW) 220266 220277 220288 220299 220330 220331 220332 220333 220334 220335 TTotal Market Potential 2,955 2,983 2,733 2,714 2,548 2,579 2,279 2,166 1,887 1,809 RRes Market PPotential 1,674 1,605 1,475 1,376 1,229 1,206 1,055 897 665 545 NNon--RRes Market Potential 1,282 1,378 1,258 1,338 1,319 1,372 1,224 1,269 1,222 1,264

At a glance, Riverside’s results include:
† A 2026-2035 average annual gross savings target of 0.44% of forecasted retail sales † A 2026-2035 average annual net savings target of 0.36% of forecasted retail sales † No claim of savings from codes and standards (C&S)

Detailed Results
GDS has provided Riverside with a detailed results file which includes the summary information described above, as well as additional detailed results. The results file includes the following information:

† 10-yr gross incremental and cumulative annual energy and demand savings † 10-yr net incremental and cumulative annual energy and demand savings † 20-yr cumulative annual technical, economic and market potential by sector – energy and demand † 20-yr incremental annual market potential by sector – energy and demand † 20-yr market potential by program
† 20-yr market potential by end-use
† 20-yr costs by program
† Comprehensive measure mapping list

SUMMARY OF FUEL SUBSTITUTION AND ELECTRIFICATION EFFICIENCY The analysis of fuel substitution and electrification efficiency opportunities provides a roadmap for the Riverside as they develop strategies and programs to support fuel substitution and electrification efficiency. The development of program opportunity estimates account for converting fossil fuel heating (space heating and water heating), and cooking for a range of feasible measures associated with the eTRM fuel substitution measures. As the market for fuel substitution moves forward and the disposition of proposed CARB zero-emission rules for space heating and water heating become clearer, the results are useful for program planning and modification purposes. Fuel substitution and electrification are described separately, with a focus for fuel substitution on the 2026-2029 timeframe, prior to the modeling assumption of proposed CARB rules coming into effect in 2030.

The Riverside fuel substitution opportunity identifies a market opportunity from 2026-2029 of 7,219 net equivalent MWh (eMWh).1 This result grows from 1,799 in 2026 to 1,812 in 2029. Electricity sales are expected to increase by 1,520 MWh due to in-program measures over the 2026-2029 timeframe. Figure 2 provides program opportunities related to eMWh, MWh load increases, the combined residential and non-residential sectors, as well as the total net eMWh savings. Fuel substitution savings beyond 2029 are solely based on cooking measures, which may be speculative and subject to change given program design decisions and priorities.

FIGURE 2. NET INCREMENTAL FUEL SUBSTITUTION PROGRAM OPPORTUNITY (MWH) AND SAVINGS

Table 3, below, includes the specific inputs used to create Figure 2. The annual energy and demand impacts are provided. The energy impacts are shown as a percentage of forecasted sector-level and total sales.

TABLE 2 10-YEAR FUEL SUBSTITUTION ENERGY RESULTS, ENERGY AND DEMAND ALL Sectors (eMWh
saved)
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Total Incremental
Program Opportunity
(eMWh saved)
2,180 2,182 2,186 2,191 66 80 93 100 101 95
Res Incremental Program
Opportunity 2,051 2,054 2,057 2,063 41 50 58 60 55 44
Non-Res Incremental
Program Opportunity 128 128 128 128 25 30 35 41 46 51
AALL Sectors (actual MWh
ggrowth)
Total Incremental
Program Opportunity
(MWh growth)
-380 -380 -380 -379 -27 -33 -38 -41 -41 -38

1 Fuel substitution savings are calculated by converting therm savings from gas to equivalent kWh (ekWh). Therm savings are multiplied by 29.3 to create ekWh and divided by 1,000 to create eMWh. The increased electricity from these loads is subtracted from the eMWh to a rrive at the net ekWh or net eMWh of savings.
-1,000
-500
0 500
1,000
1,500
2,000
2,500
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
MWh
Total Incremental Program Opportunity
(eMWh Saved)
Total Incremental Program Opportunity
(MWh Growth)
Total Incremental Program Opportunity
(net eMWh)
ALL Sectors (eMWh
saved)
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
Res Incremental Program
Opportunity -357 -356 -356 -356 -17 -22 -25 -26 -24 -19 Non-Res Incremental
Program Opportunity -24 -24 -24 -24 -9 -11 -13 -15 -18 -19 AALL Sectors (net eMWh
ssavings)
Total Incremental
Program Opportunity (net
eMWh)
1,799 1,802 1,806 1,812 39 47 55 59 60 57
Res Incremental Program
Opportunity 1,695 1,697 1,701 1,707 23 29 33 34 31 25
Non-Res Incremental
Program Opportunity 105 105 105 105 15 18 22 25 28 31

Total Incremental
Program Opportunity as a
% of Total Sales
-0.018% -0.018% -0.018% -0.017% -0.001% -0.001% -0.002% -0.002% -0.002% -0.002% Res Incremental Program
Opportunity as a % of
Res Sales
-0.051% -0.050% -0.050% -0.049% -0.002% -0.003% -0.003% -0.003% -0.003% -0.002% Non-Res Incremental
Program Opportunity as a
% of Non-Res Sales
-0.002% -0.002% -0.002% -0.002% -0.001% -0.001% -0.001% -0.001% -0.001% -0.001%

ALL Sectors (kW) 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Total Incremental Program
Opportunity -26 -26 -26 -26 -2 -3 -3 -4 -4 -5
Res Incremental Program
Opportunity -23 -23 -23 -24 0 -1 -1 -1 -1 0
Non-Res Incremental Program
Opportunity -3 -3 -3 -3 -2 -2 -3 -3 -4 -4

The Riverside electrification efficiency opportunity identifies a market opportunity from 2030-2035 of 16,577 MWh in savings. This result is driven by the proposed CARB zero-emission rules and possible energy efficiency adoption level that could come through programs. These results are predicated on the proposed CARB rules, but indicate a significant program opportunity in the future should those rules come to pass. Figure 3 provides the program opportunity for energy savings relative to possible load growth driven by the proposed CARB rules and share of total energy sales after adding the impact of the proposed CARB rules to the baseline forecast. These savings and impacts are highly speculative and dependent on the implementation and timing of proposed CARB rules, as well as future program design decisions.

FIGURE 3. NET INCREMENTAL ELECTRIFICATION EFFICIENCY PROGRAM SAVINGS AND LOAD IMPACTS (MWH)

Table 4, below, includes the specific inputs used to create Figure 3. The annual energy and demand savings opportunities are provided, along with annual load growth factors.

At a glance, Riverside’s fuel substitution and electrification results include:
† Growing net eMWh program savings opportunities through 2029, followed by a sharp decline to the modeled impact of proposed CARB rules.
† Minor load growth from fuel substitution programs through 2029. † A large growth in electrification efficiency opportunities from 2030-2035, with substantial opportunities to offset load growth.

DDetailed Results
GDS has provided Riverside with a detailed results file which includes the summary information described above, as well as additional detailed results. The results file includes the following information:

† 10-yr gross incremental and cumulative annual energy and demand impacts from fuel substitution and electrification efficiency
† 20-yr incremental annual market impacts by sector impacts from fuel substitution and electrification efficiency load and demand growth, as well as program impacts

0.00%

0.02%

0.04%

0.06%

0.08%

0.10%

0.12%

0.14%

0.16%

0.18%
0 5,000
10,000
15,000
20,000
25,000
30,000
2026 2027 2028 2029 2030 2031 2032 2033 2034 2035
MWh
Total Incremental Program Opportunity Savings
Total Load Increase After Electrification Efficiency Program Electrification Efficiency Share of Total Sales After Adding CARB-Driven Electrification to Baseline Forecast TABLE 3 10-YEAR ELECTRIFICATION EFFICIENCY ENERGY RESULTS, ENERGY AND DEMAND ALL Sectors (MWh) 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Total Cumulative Increased Electricity 0 0 0 0 28,342 28,053 27,762 27,458 27,134 26,787 Res Cumulative Increased Electricity 0 0 0 0 16,072 16,027 15,975 15,908 15,821 15,718 Non-Res Cumulative Increased
Electricity 0 0 0 0 12,269 12,026 11,787 11,550 11,313 11,069

Total Cumulative Program Opportunity
Savings 0 0 0 0 1,842 2,210 2,579 2,947 3,315 3,684
Res Cumulative Program Opportunity
Savings 0 0 0 0 365 438 511 584 657 730
Non-Res Cumulative Program
Opportunity Savings 0 0 0 0 1,477 1,772 2,067 2,363 2,658 2,953

Total Load Increase After
Electrification Efficiency Program 0 0 0 0 26,500 25,842 25,183 24,511 23,819 23,103 Res Load Increase After Electrification
Efficiency Program 0 0 0 0 15,707 15,588 15,463 15,324 15,164 14,987 Non-Res Load Increase After
Electrification Efficiency Program 0 0 0 0 10,793 10,254 9,720 9,188 8,655 8,116

Total Cumulative Program Opportunity
as a % of Total Sales 0.00% 0.00% 0.00% 0.00% 0.08% 0.10% 0.11% 0.13% 0.14% 0.15% Res Cumulative Program Opportunity
as a % of Res Sales 0.00% 0.00% 0.00% 0.00% 0.05% 0.06% 0.07% 0.08% 0.08% 0.09% Non-Res Cumulative Program
Opportunity as a % of Non-Res Sales 0.00% 0.00% 0.00% 0.00% 0.10% 0.12% 0.13% 0.15% 0.17% 0.18%

ALL Sectors (kW) 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Total Incremental
Program Opportunity 0 0 0 0 0 709 851 993 1,134 1,276
Res Incremental
Program Opportunity 0 0 0 0 0 8 10 12 14 15
Non-Res Incremental
Program Opportunity 0 0 0 0 0 701 841 981 1,121 1,261

RIVERSIDE PUBLIC UTILITIES

Board Memorandum

▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄▄

BOARD OF PUBLIC UTILITIES DATE: FEBRUARY 10, 2025

SUBJECT: UPDATE ON THE STATE MANDATE D PUBLIC BENEFITS ENERGY

SURCHARGE FUND PROGRAM AND FINANCIAL UPDATE

ISSUE:

Consider receiving an update on the State Mandated Public Benefits Energy Surcharge Fund program and financial activity and direct staff to return to the Board of Public Utilities with a Public Benefits Energy Surcharge Plan considering current program enhancements and introduce new programs.

RECOMMENDATION:

That the Board of Public Utilities:

1. R eceive an update on the State Mandated Public Benefits Energy Surcharge Fund program and financial activity; and

2. Direct staff to return to the Board of Public Utilities with a Public Benefits Energy Surcharge plan to consider current program enhancements and to introduce new programs.

LEGISLATIVE HISTORY:

Assembly Bill (AB) 1890 (Brulte, 1996) requires each local publicly owned utility (POU) to establish a non- bypassable, usage based charge of 2.85% of electric revenue to be utilized to fund public benefits programming and which must be used in at least one of four areas: cost effective demand side management (energy efficiency and energy conservation), new investment in renewable energy, low -income assistance and education, or research, development, and demonstration.

Senate Bill (SB) 2 (Alarcon, 2001) required utilities that had not implemented programs for low - income electricity customers to prepare a needs assessment for those customers and required publicly owned utilities to consider increasing the level of discounts or raising eligibility levels to reflect customer need, streamline enrollment, and to establish participation goals.

SB 1037 (Kehoe, 2005) set ambitious energy conservation policies and goals requiring POU’s to report annually the kilowatt hour (kWh) savings to the California Energy Commission (CEC) and to its customers.

Public Benefits Energy Surcharge Fund Program and Financial Update – Page 2

AB 2021 (Levine, 2006) require d all California POU’s beginning in 2007, and every three years thereafter, to identify all potentially achievable cost-effective energy efficient savings and establish annual targets for energy savings and demand reduction over a ten-year period.

AB 2227 (Bradford, 2012) changed the frequency of the energy efficiency ten- year target setting requirements of AB 2021 from once every three years to once every four years.

SB 350 (De Leon, 2015) establishes annual targets for statewide energy efficiency savings and demand reduction that will achieve a cumulative doubling of statewide energy efficiency savings in electricity and natural gas by January 1, 2030. The bill requires local POU’s to establish annual targets for energy efficiency savings and demand reduction consistent with this goal.

BACKGROUND:

At the August 12, 2024, Board of Public Utilities Meeting, the Board requested that staff provide an overview of the Public Benefits Charge, programming and expenditure. This report provides the overview of the program, funds, and expenditures.

In January 1998, per AB 1890, RPU began collecting the State mandated Public Benefits Energy Surcharge on customer utility bills. The Public Benefits Energy Surcharge requires a minimum

2.85% charge on all electric sales to implement programs within four specific categories. These include:

1. Residential and Commercial Energy Efficiency and Energy Conservation Programs

2. New Investment in Renewable Energy

3. Low-Income Assistance Programs and education

4. Research, Demonstration and Development
An average residential RPU customer pays approximately $3.00 per month for this surcharge, and commercial customers pay approximately $10.00. The Surcharge collects approximately $10 million annually. W hile also adhering to the requirements set forth in AB 1890, programs and project expenditures that utilize Riverside’s Public Benefit Surcharge funds are considered and approved by the City Council and RPU Board.

Public Benefits funds are used in a variety of approved ways, all of which support our commercial and residential customers and promote education and outreach across our communities. RPU provides and manages energy efficiency programs and rebates, low -income assistance programs, marketing and outreach to support programs and a comprehensive educational program that starts younger residents thinking about being proactive towards energy efficiency.

RPU also provides face-to-face customer support for rebates and assistance programs at the Customer Resource Center, based in the Casa Blanca community where staff provide front line support for customer s in the heart of the com munity. The energy efficiency programs for commercial and residential customers help RPU achieve energy efficiency goals and the adopted ten-year annual energy savings goal equivalent to 1% of retail electric sales as approved by Board and City Council on May 10, 2021, and June 15, 2021, respectively.

Public Benefits Energy Surcharge Fund Program and Financial Update – Page 3

DISCUSSION:

PROGRAMS OVERVIEW

RPU offers a wide variety of residential and commercial energy efficiency rebate programs, which contribute to achieving mandated energy efficiency goals. The success of public benefit programs and the ability to meet kWh savings goals is dependent on voluntary customer participation in RPU’s programs. Since fiscal year (FY) 2014/15, RPU staff ha ve processed over 190,294 residential and 10,859 commercial rebate incentives. RPU currently offers 12 residential and 8 commercial energy efficiency programs (Attachment 2) that include rebates for energy star products, lighting, weatherization, air conditioning and direct installation programs. In addition, RPU offers several low-income assistance programs to support all communities in achieving energy efficiency goals. RPU also provides grant programs which support local higher education and businesses in developing energy efficiency innovations. Since FY 2014/15, RPU’s customers have saved nearly 153,482,359 kWh through programs by spending just over $34 million dollars on these programs.

Public Benefits funds can only be applied to the four categories outlined previously . T he table below highlights expenditures in these categories over the last ten years:

Category (Fiscal Years 2014/15 – 2023/24) Expenditure ($) % of Entire
Budget

1. Energy Efficiency and Conservation Programs $34,599,677 61%

2. New Renewable Energy (Solar) $3,802,885 7%

3. Low-Income Assistance Programs (SHARE, ESAP,
Reliability Refund, COVID)
$16,801,975 30%

4. Research, Demonstration and Development (RD&D) $1,200,889 2% Total $56,405,426 100%
Note: Program support costs associated with these programs as well as to provide educational programming totaled $14,630,484 in addition to the program expenditures show for the same period.

1. Energy Efficiency Programs

RPU has developed an array of energy efficiency programs for commercial and residential customers. As well as supporting customers to become more energy efficient, these programs help RPU in achieving energy efficiency goals and adopted an annual energy savings goal , currently the equivalent to 1% of retail electric sales, as approved by Board and Council.

a. Residential Programs
Efficiency programs include:

• AC Incentives Rebates for replacing Central Air Conditioners with a SEER rating of 15.2 and above.
• HVAC tune-up rebates
• Electric Heat Pump Air Conditioner SEER rating of 15.2 and above is a newly created (June 2024) rebate
• Appliance Recycling for old, inefficient refrigerators and freezers Public Benefits Energy Surcharge Fund Program and Financial Update – Page 4

• Energy Star® Appliances Rebates for purchase of Energy Star® - rated refrigerators, dishwashers, clothes washers, room air conditioners, ceiling fans, and televisions • Pool Saver Rebates for purchase and installation of high efficiency, variable speed, or multi-flow pool pump motors
• Tree Power Rebates for purchasing and planting of up to five qualifying shade trees per year and one free qualifying shade tree coupon

The new (August 2024) RPU Mobile -Home and Multi -Family Energy Efficiency Program in partnership with SoCal Gas provides direct install improvements. The Program provides these residents with the opportunity to benefit from no-cost energy efficiency savings with measures tailored specifically to their homes. Program qualification is based on housing type to streamline the administrative process while ensuring optimal participation amongst the residents in qualified homes.

b. Commercial Programs
RPU has a robust range of
commercial programs including:

• Business Outdoor Lighting Program which provides direct installation for medium and large business.
• Key Account EE Program (KEEP) which provides Key Account customers with a comprehensive energy efficiency plan.
• Lighting Incentive Rebates for kWh savings on installation of more energy efficient lighting and controls.
• Performance Based Incentive Rebates for customers who can demonstrate a kWh savings based on custom energy efficiency measures.
• Refrigerator Load Program which offers the direct installation of measures such as air curtains, cooler gaskets, automatic door closures, LED case lighting retrofits and high- efficiency motor upgrades.
• Small Business Direct Install Program (SBDI) that provides small and medium -sized businesses with energy audits, and direct installation of efficiency measures such as lighting upgrades and controls, HVAC tune- ups, exit and open/closed signs, advanced power strips and weatherization.
• Weatherization Rebates for installation of insulation, window film and cool roofs.

2. Renewable Energy

In 2008, RPU created the Solar Rebate program in response to the requirements of SB 1 Solar Energy. SB 1 required RPU to make available approximately $25 million over a ten- year period to fund solar rebates for commercial and residential customers. The solar rebate program was funded entirely through Public Benefit Funds and RPU allocate d $2.5 million per year to the program. The solar rebate program sunset on December 31, 2017. Over the course of the program RPU expended $17.9 million on almost 2,000commercial and residential solar rebates, equating to 13.5 megawatts of customer generated solar energy in Riverside.

3. Low-Income Assistance Programs

a. Sharing Households Assist Riverside’s Energy - SHARE

The Sharing Households Assist Riverside’s Energy (SHARE) program is a low-income assistance program that annually credits up to $250 towards electric deposit or urgent notice assistance for qualified low-income applicants. Customers also receive monthly bill credits of $20 towards the Public Benefits Energy Surcharge Fund Program and Financial Update – Page 5

electric portion of their bill ; the amount of monthly ass istance increases in alignment with rate changes. The income qualification for c ustomers participating in SHARE is set at 250% or less of Federal Poverty Guidelines (revised annually). RPU’s SHARE program assists approximately 5,000 low-income customers each year and in FY 2023/24 provided $1,165,250 to assist low- income households.

b. Energy Savings Assistance Program - ESAP

The Energy Savings Assistance Program (ESAP) is a low-income, direct installation program that offers a range of efficiency upgrades including lighting, HVAC tune -ups, smart power strips, refrigerators and refrigerator recycling. The program began in 2013 when RPU partnered with the Southern California Gas Company (SoCal Gas) to take a comprehensive utility approach to upgrades within qualified customer’s home s. Since 2015, the ESAP program served 3, 884 low- income customers and in Fiscal Year 20 23-24 only, ESAP served 398 customers with energy efficiency upgrades in their home. The income qualification mirrors the SHARE program and is set at 250% or below of Federal Poverty Guidelines.

c. Energy Recovery Assistance Program - ERAP (COVID-assistance)

The Emergency Recovery Assistance Program, or ERAP Program, was established in March 2020 as a COVID -19 assistance package using Public Benefit funds for residents who faced a temporary loss of household income due to the COVID-19 Emergency and Stay at Home orders.

The program was set up for a limited time and provided a one-time bill credit of $250 (increased to $400 in October 2020) to customers that are considered low-income or temporarily low-income due to the COVID-19 pandemic. Residential customers qualified as low-income for this program if they had lost their job, were furloughed or are faced a reduction of income due to the Stay-at- Home orders. This program ceased in May 2023 when the COVID-19 Emergency ended.

d. Reliability Charge Assistance

RPU offers low-income residents and seniors with disabilities a Reliability Charge refund on their monthly bill. Customers can apply annually for this refund to receive this assistance.

4. Research, Demonstration and Development (RD&D)

Grant Programs
RPU continues to invest in RD&D grant funded programs through partnerships with both businesses and local higher education institutions. RPU has expended approximately $1,200,889 in Public Benefit Funds through its Energy Innovation and Custom Energy Technology Grant Programs t hat support energy research at local institutions of higher learning and the local business community.

The Custom Energy Technology Grant program provides our business electric customers with the opportunity to request funds for the advancement of renewable energy and utility industry solutions. Winning proposals address changes in the utility industry by supporting the advancement of technology and by addressing impacts n the utility space.

The Energy Innovations Grant program provided research funds for local Universities, helping post-secondary institutions look for new ways to advance science and technology in energy - related fields.

Public Benefits Energy Surcharge Fund Program and Financial Update – Page 6

To date, RPU has awarded UC Riverside grant funding for a study of photovoltaic solar, battery storage systems and electric vehicle chargers at the distribution system level as well as California Baptist University to study solar powered HVAC equipment. RPU has also collaborated on grant projects with local businesses on battery storage and thermal energy storage.

Education Programing – Supports all permissible activities

RPU provides a comprehensive educational program that focuses on teaching younger people about electricity and the importance of being energy efficient for the future including:

• 4
th Grade Electricity Class

Includes a series of virtual lessons that are aligned with the 4th grade science standards.

Students learn the science of electricity how it is produced, the program includes:

1. What is Electricity? (atomic nature of electricity, circuit building, conductivity testing)

2. How Do We Measure Electricity So It Will Do Work for Us? (Amperes, Volts, Ohms, kWh)

3. How Does Electricity Make Things Move? (electromagnetics and power generation, build a motor)

4. Why Should I Conserve Electricity? (pros/cons of various renewable and non- renewable energy sources, learn the science behind why we conserve, build a model power plant, discuss ways to turn the turbines without pollution, call to action)

• TK/Kindergarten Community Helpers

Aligned with Kindergarten Social Science Standards: This is a partnership with our field crews.

RPU staff created a book, “The Sky is the Limit: The Story of a Lin eman” which is distributed to Transitional Kindergarten and Kindergarten classrooms, along with other age- appropriate materials on how to conserve electricity.

• 9
th – 10th grades STEM Public Utilities Learning Lab (STEM PULL)

In collaboration with the Science Technology Engineering Partnership, Riverside Public Utilities offers a weeklong summer learning lab for high school students, the purpose of which is to g ive students hands on experiences with career pathways in the utility industry . Provide them the opportunity to participate in the application of STEM topics they study in school, to specific real - world problems. Allow students to build models of power grid systems and challenges them to work collaboratively on a team to develop solutions to energy conservation problems, safety issues, etc.

• 7
th and 8th grade STEM FUNdamentals

In collaboration with the Science Technology Engineering Partnership, Riverside Public Utilities offers a 3- day summer learning lab for middle school students. This program is aligned to Engineering Standards for middle school students.

• Family STEAM Day at the Library

RPU offers a “pop-up” STEAM event at a different city library throughout the months of the year.

This is an all-ages events in which children, parents and others come to the library and participate Public Benefits Energy Surcharge Fund Program and Financial Update – Page 7

in STEAM themes that includes topics such as Wind Energy where they can d esign, build and test wind turbine blades to produce the highest possible voltage (Using KidWind Materials), Snap Circuits Table where they can build various circuits, understand loads and voltage. Participate in a ‘Tinker Table’ to learn what’s inside technology – participants can dissect old technology to find similar parts like gears, resistors, motors and magnets, etc.

ENERGY PROGRAM DEVELOPMENT

In addition to legislative and regulatory mandates, RPU staff determines new programs in consideration of customer’s market needs, new technology advances and achieving kWh savings potential. Previous programing included reaching customers upstream at the wholesale distribution and supplier level via an energy efficient commercial air conditioning program, midstream at the retail store level via a LED instant rebate program and downstream focusing on incentives paid through an application process once an energy efficiency project is comp leted.

These programs were discontinued in 2018 when City Council directed RPU to discontinue procurement of vendor supported programming previously procured through the Southern California Public Power Authority ( SCPPA) procurement process . Programming was further delayed in 2020 through 2023 due to the COVID -19 pandemic which rendered many programs infeasible due to limitations placed on social contact.

As RPU staff have pivoted to create a new suite of programs with procurement of program vendors conducted by the City and RPU staff , staff have continued to align programs with new market trends and with customer needs while considering technological advances to best position RPU customers for the future.

RPU’s customer base plays a major role in determining program offerings. RPU commercial customers represent 12% of the total customer base however, the combined energy load of all commercial customers represents approximately 65% of the total utility consumption. To this end, RPU has dedicated significant program resources to assist the commercial customer segment in achieving energy efficiency goals.

For new construction, RPU incentivizes customers who purchase products above California building code or the baseline efficiency, this includes measures such as lighting, building envelope, Energy Star appliances, etc.

RPU staff reviews potential programs for their greatest kWh savings in our climate zone and region. For example, RPU provides both A/C and Heat Pump rebate incentive programs for commercial and residential customers. The current air conditioning rebate realizes greater kWh savings than that of Northern California climates or nearby coastal communities where A/C load realizes less kWh savings. In Fiscal Year 2014- 15, RPU increased rebate amounts for the residential HVAC Replacement program for 16 SEER or hi gher rated units to incentivize customers to install more efficient HVAC equipment. Present incentives for A/C are $250 per ton for 16+ SEER and $150 per ton for below 16 SEER rating. As a utility located in Climate Zone 10, HVAC load is a major energy efficiency target and peak demand reduction measure. RPU recently introduced a Heat P ump program which provides a $750 per ton incentive for electric heat pumps with SEER of 15.2 or greater.

ENERGY EFFICIENCY AND DEMAND RESPONSE AS A RESOURCE

Energy efficiency is a critical element of the resource planning process for generation, transmission, distribution and demand- side management resources. The primary reason for Public Benefits Energy Surcharge Fund Program and Financial Update – Page 8

pursuing energy efficiency as a utility -sector resource is the long- term stream of benefits to the utility (e.g., avoided energy and capacity costs), to participating customers (e.g., reduced energy costs), and to society at large (e.g., avoided emissions and avoided adverse health impacts). RPU staff supports its customers who seek to participate in the Demand Side Grid Support program administered by the CEC.

RPU currently has had sufficient resources and capacity to meet summer season al demands through wholesale power procurement and use of RPU’s internal generation asset such as Riverside Energy Resource Center peaker plant. RPU staff is continuing to look at potential benefits of demand response as a tool for customers to reduce their peak load through programs.

In Fiscal Year 2014/15, RPU launched a new Thermal Energy Storage Pilot Program that replaced old HVAC equipment with new energy efficient equipment installed concurrently with Ice Energy’s Ice Bear thermal energy storage. This pilot program also included approximately one megawatt of demand response capability by direct load control of these Ice Bear enabled HVAC systems during peak energy demand periods. This program has been discontinued due to the bankruptcy of the company offering the Ice Bear systems though Customer Engagement Staff still co- manages existing customers with the Power Resources Division (ROSA).

Last year, the City Council approved a program to allow RPU customers to participate in the California Energy Commission’s Demand Side Grid Support program which provides incentive payment to large usage customers who reduce load during statewide grid emergencies.

COST EFFECTIVENESS EVALUATION

Staff reviews the cost of energy efficient measures to determine overall program benefit to the utility. Energy efficient measures are determined by dividing the cost of the measure by the total kWh savings the measure yields. RPU’s commercial programs offer the greatest energy savings per dollar spent, which results in an average price per kWh saved for commercial energy efficiency portfolio programs that is lower than residential programs (see charts below). RPU’s Key Account program is a tool to achieving these goals by leveraging relationships and partnerships with the business community. Although RPU sees greater participation within the residential sector (190,294 applications) compared to commercial (10, 859), this is due to a greater population of residents compared to businesses within the service territory. Staff balance high- cost programs that may have a greater customer benefit with low-cost programs to meet resource and program goals.

Staff reviews the “Cost to Conserve Energy” over the lifetime of particular measures for assessing the benefit and cost effectiveness of energy efficiency programs and for forecasting loads in resource planning. Lifetime savings is the length of time that a specific energy efficiency measure or activity saves energy over the life of measure (often the anticipated lifetime of an appliance or tree). Essentially, this measure identifies the cost per kWh saved and in all year ’s this cost or expenditure from the program is less than what it would have cost the utility to procure that electricity.

Public Benefits Energy Surcharge Fund Program and Financial Update – Page 9

Residential Rebate Programs

# of Rebates
Processed
$ Spent
towards
Rebates
Annual kWh
Savings
$ per
Annual
kWh
Cost to
Conserve
Energy*
FY 14/15 22,691 $1,765,042 5,675,211 $0.31 $0.04
FY 15/16 18,639 $1,521,110 6,726,489 $0.23 $0.06
FY 16/17 16,973 $1,594,986 7,293,244 $0.22 $0.03
FY 17/18 15,954 $1,372,694 4,497,314 $0.31 $0.04
FY 18/19 21,449 $1,370,299 8,287,410 $0.17 $0.02
FY 19/20 32,974 $1,189,621 6,966,471 $0.17 $0.02
FY 20/21 16,557 $1,269,834 3,143,710 $0.40 $0.06
FY 21/22 16,022 $1,070,269 3,964,074 $0.27 $0.04
FY 22/23 14,625 $1,123,576 3,718,261 $0.30 $0.04
FY 23/24 14,410 $1,065,244 3,354,610 $0.32 $0.05
Total 190,294 $13,342,675 53,626,794 $0.25 $0.04
Note: Cost to Conserve Energy is the approximate lifetime energy savings resulting from the measures implemented.

Commercial Rebate Programs

# of
Rebates
Processed
$ Spent
towards
Rebates
Annual kWh
Savings
$ per
Annual
kWh
Cost to
Conserve
Energy*
FY 14/15 1,441 $2,025,752 15,196,631 $0.13 $0.02
FY 15/16 4,205 $2,757,036 14,229,506 $0.19 $0.03
FY 16/17 1,424 $2,927,293 14,799,000 $0.20 $0.03
FY 17/18 1,440 $3,373,682 17,910,438 $0.19 $0.03
FY 18/19 846 $3,773,464 12,239,274 $0.31 $0.04
FY 19/20 83 $901,808 12,457,433 $0.07 $0.01
FY 20/21 46 $488,351 6,524,865 $0.07 $0.01
FY 21/22 38 $758,095 6,759,720 $0.11 $0.02
FY 22/23 298 $1,340,084 6,818,657 $0.20 $0.03
FY 23/24 1,038 $2,911,436 8,118,524 $0.36 $0.05
Total 10,859 $21,257,001 115,054,048 $0.18 $0.03
Note: Cost to Conserve Energy is the approximate lifetime energy savings resulting from the measures implemented.

Public Benefits Energy Surcharge Fund Program and Financial Update – Page 10

ENERGY PROGRAM REPORTING

Per state mandates such as SB 1037, AB 2021 and AB 2227, RPU staff set ambitious energy efficiency goals. On May 10, 2021 the RPU Board and on June 15, 2021 the City Council adopted an annual energy savings goal equivalent to 1% of retail electric sales for the ten-year period from 2022 to 2031.

Since the adoption of SB 1037 in 2005, publicly owned utilities (POU’s) have invested in the development of tools and resources for accurately reporting the results of energy efficiency programs through a partnership between SCPPA, California Municipal Utilities Association (CMUA) and the Northern California Power Agency (NCPA ). The Technical Reference Manual (TRM) is the primary source for calculating and reporting annual and lifetime program performance. The TRM provides the methods, formulas, and default assumptions for estimating energy savings and peak demand impacts from energy efficiency measures and projects. Energy savings are then submitted annually to the CEC and in accordance with CEC guidelines, POU’s report energy savings based upon first year kWh savings of the measure reported.

AB 2227 requires each POU to identify ten- year energy efficiency targets that are cost effective on a four -year basis. RPU last set these targets in 20 21 and is now participating in the next potential study for the subsequent ten-year targets. RPU Staff will review data and make an appropriate efficiency savings determination for approval by RPU Board and City Council for the next ten-year period.

The 1% energy savings goal that was recommended by RPU and approved by Board and Council was a n ambitious goal, although, it was considered attainable through t he use of previously administered SCPPA programs . After examining the performance of RPU programs and past results, the staff recommendation to maintain the 1% savings target, instead of the consultant identified market potential of 0.59%, for the 2022 through 2031 period. This higher target was anticipated to be achieved with an increase in outreach and continued direct installation programs in both the residential and commercial sectors once COVID-19 related restrictions are lifted. The higher target demonstrates RPU’s ongoing commitment to contributing to the statewide goal of doubling energy efficiency by 2030 as established under SB 350.

RPU’s accumulated savings since 201 5 is 75% of the ten- year goal with a total of 150,141,852 kWh saved through to-date FY 24/25. Due to the combination of COVID-19 impacts beginning in 2020, in conjunction with the move away from SCPPA programming RPU did not achieve its 1% target over the review period. Since RPU has developed a replacement suite of programming post-COVID, program participation has increased, and corresponding energy savings have increased.

--Report Continues on the next page--
Public Benefits Energy Surcharge Fund Program and Financial Update – Page 11

Total kWh Savings Targets (All Programs) – 1% of Retail Sales*

Note: In FYs 20/21 through 20/23, programming was significantly impacted by the COVID -19 pandemic. Rebate programs that required on-site installations or customer contact were limited due to health restrictions resulting in a decline in energy savings. Programs have been relaunched beginning in FY 23/24 through FY 24/25.

ENERGY PROGRAM INSPECTION AND COMPLIANCE

The Customer Engagement Team regularly performs inspections of residential and commercial rebate applications. This means that staff are on-site inspecting measure installations to ensure that they need set criteria to claim kWh savings and also make sure that customers are satisfied with the installation and service they have received from RPU.

Inspections take the form of the following:

1. An onsite inspection rate of 10% for all residential program participants, performed by RPU staff and contractors;

2. A pre- and post-inspection of 100% of commercial rebate participants, including a review of historical energy usage, energy-saving calculations and post measure bill analysis;

3. Contract with engineering firms to verify claimed energy savings on large, complex or technical commercial projects before issuing a rebate incentive;

4. Audits and installations performed by third- party contractors for RPU direct installation programs have high inspection rates that are performed by both the contractor and RPU staff.

PUBLIC BENEFITS ENERGY SURCHARGE FUND ACTIVITY

The financial details of funding in the Public Benefits Energy Surcharge Fund for the entirety of the Fund are provided in the following table. An explanation of each of the columns follows the table.

112% 112% 96% 88% 92% 46% 50% 49% 56% 18% 75%
-
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 10 Year Average
Target and Actual Energy Savings
(kWhs)
Actuals Target
Public Benefits Energy Surcharge Fund Program and Financial Update – Page 12

Total Public Benefits Energy Surcharge Fund Revenues and Expenditures (Costs): iscal Year
Surcharge
Collected
Other Credits,
Operating
Transfers,
Interest Earned,
& GASB 31*
Program
Costs
Program
Support Costs
Fund
Balance
FY 97-98 $1,886,928 $18,584 $109,658 $543,954 $1,251,901 FY 98-99 $4,572,458 $175,892 $614,328 $665,156 $4,720,767 FY 99-00 $4,804,365 $309,080 $1,074,946 $780,505 $7,978,761 FY 00-01 $4,799,089 $676,562 $4,167,085 $773,045 $8,514,282 FY 01-02 $4,742,624 $198,828 $8,370,691 $1,159,159 $3,925,883 FY 02-03 $5,004,769 $83,947 $4,746,030 $1,252,174 $3,016,395 FY 03-04 $5,699,519 $226,046 $3,978,361 $1,237,896 $3,725,703 FY 04-05 $5,837,735 $56,813 $3,555,945 $1,332,293 $4,732,013 FY 05-06 $6,210,315 $118,582 $4,526,933 $1,274,667 $5,259,310 FY 06-07 $6,819,439 $329,008 $2,806,367 $1,257,302 $8,344,089 FY 07-08 $7,371,687 $566,749 $5,954,997 $1,417,552 $8,909,975 FY 08-09 $7,802,433 $465,888 $7,369,927 $1,682,984 $8,125,386 FY 09-10 $7,874,337 $174,178 $6,925,397 $1,859,553 $7,388,950 FY 10-11 $7,986,633 $60,916 $10,272,679 $1,391,796 $3,772,024 FY 11-12 $8,640,314 ($950) $7,616,591 $773,528 $4,021,268 FY 12-13 $8,847,367 $4,076,682 $6,901,314 $966,605 $9,077,398 FY 13-14 $8,467,420 $119,808 $7,039,272 $893,644 $9,731,711 FY 14-15 $8,604,423 $89,504 $6,534,583 $335,594 $11,555,461 FY 15-16 $8,727,925 $196,066 $6,289,915 $367,560 $13,821,978 FY 16-17 $8,845,617 ($58,748) $5,872,508 $1,641,857 $15,094,481 FY 17-18 $8,763,414 $81,614 $6,137,337 $1,679,835 $16,122,337 FY 18-19 $8,729,101 $555,754 $7,127,302 $1,803,854 $16,476,036 FY 19-20 $8,872,837 $603,061 $4,289,881 $2,148,543 $19,513,510 FY 20-21 $9,204,829 $45,798 $4,521,710 $1,798,184 $22,444,244 FY 21-22 $9,623,577 ($646,979) $3,775,599 $1,588,184 $26,057,059 FY 22-23 $9,919,406 $301,925 $5,083,864 $1,556,997 $29,637,529 FY 23-24 $10,074,814 $1,251,988 $6,772,727 $1,709,876 $32,481,727 Total $198,733,376 $10,076,595 $142,435,949 $33,892,295 Note: GASB 31 Accounting and Financial Reporting for Certain Investments and for External Investment Pools

Public Benefits Energy Surcharge Fund Program and Financial Update – Page 13

Public Benefit Charge: Revenue Compared to Expenditures

Revenues for the Public Benefits Charge are shown in two columns: “ Surcharge Collected” and “Other credits, operating transfers, interest earned, and Governmental Accounting Standards Board rule 31 (GASB 31)”. “Surcharge Collected” represents the surcharge billed to all customers based on the 2.85% requirement of state law. “Other credits, et. al.” represents revenues or losses from other sources as stated. Unspent revenues are carried from one year to the next since their use is restricted. It is typical to carry these funds and have them available for new programs or for programs that receive high levels of participation. When this happens, the Board and Council are asked to approve an increase in the program expenditure for the program.

Unspent funds in the Fund Balance have increased recently principally due to the lack of programming during the COVID-19 pandemic and have grown to a total of $32,481,727.

It is important to note that in FY 12/13, the Board and City Council approved the transfer of electric reserve funds to the Public Benefit Charge Fund in order to meet program costs related to the mandated solar photovoltaic rebate program so as not to red uce program expenditure on other benefit programs. As can be seen in FYs 08/09 through FY 10/11, program expenses were greater than the revenues in the fund, necessitating the additional funds or a reduction in programming. The City chose to add funding. Additionally, staff time for program support was not charged to the public benefit charge fund and was instead charged to electric operating expenses. Upon the conclusion of the solar photovoltaic rebate program in 2017, staff positions were again charged to the public benefit charge fund. The additional funding in FY 12/13 is shown in the table and on the chart above. The changes to how staff charges were allocated are shown in the next table presented.

“Program Costs” are the direct payments or costs of the program including rebates, SHARE program support for customers, and payment to vendors (which include the measures included – such as for direct-install programs).

$0
$2
$4
$6
$8
$10
$12
$14Millions
Total Expenditures Public Benefit Charge Funds Collected & Other Revenue Public Benefits Energy Surcharge Fund Program and Financial Update – Page 14

“Program support costs ” include all staff and materials costs necessary for RPU to be able to provide the wide range of programs and services that support all customers. These costs incorporate staff responsibilities including program creation , development, implementation, marketing, and customer support form critical elements of how programs are delivered . For commercial customers, RPU staff manage business relationships, develop and manage incentive programs that encourage business retention as well as bringing new businesses to the area. This in turn supports economic development and boosts the local economy and well positions Riverside as a preferred business and residential destination.

For full transparency, the table below includes the breakdown of actual program support costs by category as tracked by RPU’s Finance Division. Categories shown in the table include:

1. FTE: The number of full-time equivalent (FTE) RPU personnel members authorized by the budget and dedicated to serving the Public Benefit Programs, Education, and collateral development.

2. Direct Charge for Personnel: Positions housed in other funds that were dedicated, either in-full or in -part, to support Public Benefit programming. T he proportional cost of each position is directly charged to RPU funds.
a. Until FY 20 -21, the costs associated with FTEs supporting the electric programs were identified by “Direct Charges for Personnel.”
b. Beginning in FY 20- 21, FTEs were and currently are estimated based on the allocation the portion of total authorized Customer Engagement FTEs assigned to energy efficiency programming and education. T he costs of these positions are included in “Charges from other RPU Funds”.

3. Non-personnel: Includes small programming expenses including software and licensing, as well as educational and office supplies.

4. Bad Debt: Public Benefit Fund accounting for the fund’s share of the utility accounts written off due to uncollected debt.

5. Cost Allocation Charges: Charges from the City’s General Fund internal service departments including Human Resources, General Services, City Manager’s Office, Finance, and Communications to recipient funds pursuant to the City’s Cost Allocation Plan.

6. Charges To and From Other RPU Funds: RPU costs for labor including full time equivalent staff and building occupancy related expenses.

Public Benefits Energy Surcharge Fund Program and Financial Update – Page 15

Breakdown of Program Support Costs:

Fiscal Year
FTEs
in
Electric
Programs
Direct
Charges for
Personnel
Non-
Personnel Bad Debt
Cost
Allocation
Charges
Charges to
and from
other RPU
Funds
FY 97-98* 0 $0 $242,463 $10,253 $291,237 $0
FY 98-99* 0 $210,743 $170,072 $1,076 $283,266 $0
FY 99-00* 0 $239,462 $172,077 $26,318 $342,648 $0
FY 00-01* 0 $298,053 $293,116 $10,571 $175,195 ($3,890) FY 01-02* 0 $581,411 $341,669 $10,754 $226,821 ($1,495) FY 02-03* 0 $719,554 $209,232 $12,510 $316,654 ($5,776) FY 03-04 14.90 $728,527 $300,920 $16,547 $191,902 $0 FY 04-05 14.15 $806,190 $218,482 $9,994 $322,011 ($24,384) FY 05-06 14.15 $835,897 $182,725 $6,353 $305,153 ($55,461) FY 06-07 13.65 $802,538 $133,791 $11,392 $292,120 $17,461 FY 07-08 11.15 $668,984 $241,686 $27,319 $452,161 $27,403 FY 08-09 11.15 $804,367 $181,665 $36,336 $586,655 $73,960 FY 09-10 12.50 $901,535 $228,459 $27,265 $623,373 $78,921 FY 10-11 10.50 $434,911 $248,276 $22,377 $761,197 ($74,966) FY 11-12 0 $0 $167,291 $24,058 $523,650 $58,530
FY 12-13 0 $0 $211,202 $26,177 $729,226 $0
FY 13-14 0 $0 $172,011 $16,237 $705,396 $0
FY 14-15 0 $0 $193,806 $22,600 $119,187 $0
FY 15-16 0 $0 $217,265 $22,777 $127,518 $0
FY 16-17 13.50 $1,026,118 $224,661 $14,952 $149,782 $226,343 FY 17-18 14.50 $1,048,252 $253,643 $20,064 $137,115 $220,761 FY 18-19 13.50 $976,797 $108,518 $20,865 $528,370 $169,305 FY 19-20 13.50 $1,189,734 $147,944 $51,940 $583,340 $175,585 FY 20-21** 13.00 $0 $0 $104,486 $423,443 $1,270,255 FY 21-22** 13.00 $0 $0 $53,460 $220,368 $1,314,356
FY 22-23** 13.00 $0 $0 $3,843 $128,455 $1,424,699
FY 23-24 13.00 $0 $0 $101,768 $149,329 $1,458,779
Subtotal $12,273,075 $4,860,973 $712,291 $9,695,571 $6,350,385 Total for Program Support Charges $33,892,295
* Information is not available for these fiscal years.
**Includes the corrections for the respective Fiscal Years for the Office of Communications Charges ; the audited financial statements included the total adjustment in FY 23-24.

Comparison of Program Support Costs to Program Costs

There are no established standards related to direct program costs compared to program support costs for the use of Public Benefits Charge funds for publicly owned utilities. However, the California Public Utilities Commission (CPUC) set standards for investor -owned utilities (IOUs) customer programming that addresses and limits through a cap and target system established by the CPUC on September 24, 2009 in Decision 09- 09-047. Under this decision, limits are set on Public Benefits Energy Surcharge Fund Program and Financial Update – Page 16

program support costs. While there have been subsequent decisions that clarify what costs may or may not be included as part of these expenditures, the percentages of expenditure have remained the same. Generally, these standards are set at the following levels and take into consideration national average and best practices for similar types of programming nationwide:
and can serve as a measure of the appropriate level of expenditure on these activities when undertaken by RPU staff.

1. Administrative costs capped at 10% of the energy efficiency budget. These costs include the costs to process rebates and other expenditures, management of the program, and finance administration costs as well as the systems that support them.

2. Marketing, Education, and Outreach (MEO) costs are capped at 6% of the energy efficiency budget. MEO funding provides awareness of the programs and helps to support behavioral change and attitude towards energy efficiency and energy use overall as they relate to the programming offered.

3. Evaluation, Measurement, and Verification (EM&V) costs capped at 4% of the total adopted energy efficiency budget. EM&V ensures that programs are audited to verify that measures are installed and to measure the energy savings that results.

4. Non-resource costs capped at 20% of the total adopted energy efficiency budget. Non- resource costs include activities that are not related to a direct rebate to a customer or program participant but that support strategic planning efforts of the IOUs and programs intended to support communities. It is important to note that not all programs offered by IOUs in this category are available to be offered to POUs as they do not fall into the categories specified in state law for the use of public benefit charge programming.

Therefore, the full amount of this capped item should not be considered for measurement of POU measures.

For IOUs, the CPUC considers staff time that includes direct interface with the customer or program participant as a Direct Implementation Cost and it is included in the “cost of the measure” and is not one of the above categories. Also included are custom er support for programs, some sup-programs such as energy audits, and project management. Some low -income support programs are also not included in the IOU customer programs funding and program development such as low-income utility rates.

Please note that for RPU, these staff time costs are included in the “Program Support” column of the table above and as they are not tracked separate from other support activities. For POUs, similar activities of administration, MEO, EM&V as well as direct implementation and non-resource costs could total between 20% and 40% of programming budgets. For most years except program start-up and during the COVID-19 pandemic, program support costs have been below 25% of the total programming cost.

Public Benefits Energy Surcharge Fund Program and Financial Update – Page 17

Comparison of Program Costs to Program Support Costs:

Fiscal Year Program
Costs
Program
Costs
as % of
Total
Program
Support
Costs
Support
Costs as
% of
Total
Total
Programming
Costs
Comment
FY 97-98 $109,658 17% $543,954 83% $653,612
Program Start FY 98-99 $614,328 48% $665,156 52% $1,279,484 FY 99-00 $1,074,946 58% $780,505 42% $1,855,451
FY 00-01 $4,167,085 84% $773,045 16% $4,940,130
FY 01-02 $8,370,691 88% $1,159,159 12% $9,529,850
FY 02-03 $4,746,030 79% $1,252,174 21% $5,998,204
FY 03-04 $3,978,361 76% $1,237,896 24% $5,216,257
FY 04-05 $3,555,945 73% $1,332,293 27% $4,888,238
FY 05-06 $4,526,933 78% $1,274,667 22% $5,801,600
FY 06-07 $2,806,367 69% $1,257,302 31% $4,063,669
FY 07-08 $5,954,997 81% $1,417,552 19% $7,372,549
FY 08-09 $7,369,927 81% $1,682,984 19% $9,052,911
State Mandated
Rebates for Solar
Photo-voltaic Systems
with Staff time charged
to other funds in FY
11/12 through FY 15/16
FY 09-10 $6,925,397 79% $1,859,553 21% $8,784,950
FY 10-11 $10,272,679 88% $1,391,796 12% $11,664,475
FY 11-12 $7,616,591 91% $773,528 9% $8,390,119
FY 12-13 $6,901,314 88% $966,605 12% $7,867,919
FY 13-14 $7,039,272 89% $893,644 11% $7,932,916
FY 14-15 $6,534,583 95% $335,594 5% $6,870,177
FY 15-16 $6,289,915 94% $367,560 6% $6,657,475
FY 16-17 $5,872,508 78% $1,641,857 22% $7,514,365
FY 17-18 $6,137,337 79% $1,679,835 21% $7,817,172
FY 18-19 $7,127,302 80% $1,803,854 20% $8,931,156
FY 19-20 $4,289,881 67% $2,148,543 33% $6,438,424
COVID-19 Pandemic FY 20-21 $4,521,710 72% $1,798,184 28% $6,319,894 FY 21-22 $3,775,599 70% $1,588,184 30% $5,363,783
FY 22-23 $5,083,864 77% $1,556,997 23% $6,640,861
FY 23-24 $6,772,727 80% $1,709,876 20% $8,482,603
Total and
overall
expenditure
%ages
$142,435,949 81% $33,887,233 19% $176,323,182

Total and
Expenditure
%ages
FY 14/15
through
FY 23/24*
$56,405,426 79% $14,630,484 21% $71,035,910

Note: FY 14/15 through FY 23/24 are shown in summary tables in this report and the information is presented here for reference.

The Public Benefit Fund is presented to the Board and City Council for each budget year as part of the annual budget process. Programs being offered by RPU are increasing and expanding as the utility comes out of the COVID -19 pandemic. Additionally, the development of a n Energy Efficiency and Electrification Programming Strategy is in development utilizing funding from the Energy Efficiency and Conservation Block Grant (EECBG) that was awarded to RPU in October of this year. RPU will be evaluating existing programs, identifying new programs, and planning Public Benefits Energy Surcharge Fund Program and Financial Update – Page 18

for the expenditure of the unspent funds in the Fund Balance during this strategic planning effort.

This effort is expected to take about 1 ½ years and should be completed by the middle to end of 2026.

STRATEGIC PLAN ALIGNMENT:

This report aligns with the High Performing Government strategic priority, specifically goal 5.3 Enhance communication and collaboration with community members to improve transparency, build public trust, and encourage shared decision-making.

This item aligns with each of the five Cross-Cutting Threads as follows:

1. Community Trust – The report analysis reflects the City's dedication to sound policy and the use of reliable information for the greater public good.

2. Equity – The report provides equal access to the details on the financial activity of the Public Benefits Energy Surcharge fund.

3. Fiscal Responsibility – Staff's continuous evaluation, improvement, and budgeting strategies align with industry best practices demonstrate dedication to fair and accurate distribution of costs.

4. Innovation – Staff’s dedication to continuous improvement and conformity with industry - wide best practices demonstrates innovation in meeting the City’s changing needs.

5. Sustainability & Resiliency – The Public Benefits Energy Surcharge financial activity and program update allows for a transparent method of providing program cost details to the community without compromising the needs of the future.

FISCAL IMPACT:

There is no fiscal impact for receiving this informational update.

Prepared by: Brian Seinturier, Utilities Assistant General Manager/Finance and Administration
Approved by:

David A. Garcia, Utilities General Manager
Certified as to
availability of funds: Kristie Thomas, Finance Director/Assistant Chief Financial Officer Approved by: Rafael Guzman, Assistant City Manager
Approved as to form: Jack Liu, Interim City Attorney

Attachments:

1. June 2024 General Manager Report presented to the Boad of Public Utilities on August 12, 2024

2. RPU Current Public Benefit Energy Surcharge Programs

3. Presentation

1/29/2025
1 RiversideCA.gov
1 RiversideCA.gov

UPDATE ON STATE MANDATED PUBLIC

BENEFITS ENERGY SURCHARGE FUND
Board of Public Utilities
February 10, 2025
Customer Engagement
RiversideCA.gov
2 1. Assembly Bill (AB) 1890 requires that 2.85% of electric revenue be utilized to fund public benefits programming and must be used in at least one of four areas:
a. demand side management (energy efficiency),
b. renewable energy,
c. low-income assistance, or
d. research, development, and demonstration

2. Senate Bill (SB) 1037 requires Publicly Owned Utilities to report annually kilowatt hour (kWh) savings to the California Energy Commission

LEGISLATIVE HISTORY
1 2
1/29/2025
2 RiversideCA.gov
3 3. AB 2021 requires all California POU’s to identify potentially achievable cost-effective energy efficient savings and establish annual targets for energy saving s and demand reduction every three years, over a ten-year period

4. AB 2227 changed the frequency of the energy efficiency ten-year target setting requirements of AB 2021 from once every three years to once every four years

5. SB 350 establishes annual targets for statewide energy efficiency savings and demand reduction that will achieve a cumulative doubling of statewide energy efficiency savings in electricity and natural gas by January 1, 2030

LEGISLATIVE HISTORY
RiversideCA.gov
4 1. January 1998 - State mandated P ublic Benefits Energy Surcharge of minimum 2.85% was included on customer bills

2. Today, the Public Benefits Surcharge means that on average residential customers pay about $3.00 and commercial customers about $10.00 per month

3. Annually, the Public Benefits Surcharge Fund collects approximately $10 million

BACKGROUND
3 4
1/29/2025
3 RiversideCA.gov
5 1. Since 2014/15 RPU has:
a. Processed 190,294 residential and 10,859 commercial rebates b. Saved nearly 168,680,842 kWh
c. Spent just over $34 million on Public Benefit efficiency programs

2. RPU currently offers 12 residential and 8 commercial energy efficiency programs

3. RPU has several low-income assistance programs

4. RPU provides two grant programs to support higher education and businesses in developing energy efficiency innovations

DISCUSSION
RiversideCA.gov
6 FUND EXPENDITURE BY PROGRAM TYPE (LAST 10 YEARS)
Energy Efficiency &
Conservation Programs
$34,599,677
61%
Low-Income Assistance
Programs (SHARE, ESAP,
Reliability Refund, COVID)
$16,801,975
30%
New Renewable Energy (Solar)
$3,802,885
7%
Research, Demonstration and
Development
$1,200,889
2%
5 6
1/29/2025
4 RiversideCA.gov
7 1. A/C incentives

2. HVAC Tune ups

3. Energy Star Appliances

4. Heat Pump Rebates

5. Pool Saver Rebates

6. Appliance Recycling

7. Tree Power

8. Mobile Home / Multi Family
Rebates

9. Weatherization Programs

RESIDENTIAL ENERGY EFFICIENCY PROGRAMS
RiversideCA.gov
8 1. Business Outdoor Lighting

2. Key Account EE Program (KEEP)

3. Lighting Incentives

4. Performance Based Incentive
Rebates

5. Refrigerator Load Program

6. Small Business Direct Install
Program

7. Weatherization Rebates

COMMERCIAL ENERGY EFFICIENCY PROGRAMS
7 8
1/29/2025
5 RiversideCA.gov
9 In 2008, SB-1 required RPU to:

1. Make available approximately $25 million
over a ten-year period to fund solar rebates
for commercial and residential customers

2. Create a Solar Rebate program
a. The solar rebate program was funded entirely
through Public Benefit Funds and RPU allocated
$2.5 million per year for the program
b. The solar rebate program, sunset on December 31,
2017, and RPU spent $17.3 million on 1,845
commercial and residential solar rebates, equating
to 11 megawatts of customer generated solar
energy in Riverside.

RENEWABLE ENERGY PROGRAMS
RiversideCA.gov
10 1. Sharing Households Assist Riverside’s Energy – SHARE Program a. SHARE credits annually up to $250 towards elec tric deposit or urgent notice assistance for qualified low-income applicants
b. Customers receive monthly bill credits of $20 towards the electric portion of their bill. c. Monthly assistance increases i n alignment with rate changes d. Income qualification is 250% or less of Federal Poverty Guidelines e. SHARE program assists approximately 5,000 customers each year f. Fiscal Year 2023/24 spent $1,165,250 on SHARE program assistance

2. Energy Savings Assistance Program - ESAP
a. ESAP is a direct installation program that offers efficiency upgrades including lighting, HVAC tune-ups, smart power strips, refrigerators and refrigerator recycling b. Established in 2013 RPU partnered with the Southern California Gas Company (SoCal Gas)
c. Since 2015, the ESAP program served 3,884 low-income customers d. Fiscal Year 2023/24, program assisted 398 customers with energy efficiency upgrades e. Income qualification mirrors SHARE program - 250% or below of Federal Poverty Guidelines

LOW-INCOME ASSISTANCE PROGRAMS
9 10
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6 RiversideCA.gov
11 3. Energy Recovery Assistance Program - ERAP (COVID-assistance) a. ERAP Program, was established in March 2020 as a COVID-19 assistance package b. For residents who faced a temporary loss of household income due to the COVID-19 Emergency and Stay at Home orders
c. The program was set up for limited time and provided a one-time bill credit of $250 (increased to $400 in October 2020)
d. Residential customers qualified as low-income for this program if they had lost their job, were furloughed or faced a reduction of income due to the Stay-at-Home orders e. This program ceased in May 2023

4. Reliability Charge Assistance
a. RPU offers financial assistance to low-income residents and seniors with disabilities with a Reliability Charge refund on their monthly bill
b. Customers can apply annually for this refund to receive this assistance

LOW-INCOME ASSISTANCE PROGRAMS
RiversideCA.gov
12 RPU invests in RD&D grant funded programs with both businesses and local higher education institutions

1. Programs expended approximately $1,200,889 on Energy Innovation and Custom Energy Technology Grant Programs

2. Energy Innovations Grant program provides research funds for local Universities to advance science and technology in energy-related fields

3. Custom Energy Technology Grant program provides RPU's business electric customers with the opportunity to request funds for the advancement of renewable energy and utility industry solutions

4. Previous awards made to UC Riverside grant funding for a study of photovoltaic solar, battery storage systems and electric vehicle ch argers at the distribution system level and California Baptist University to study solar powered HVAC equipment

5. RPU has also collaborated on grant projects with local businesses on battery storage and thermal energy storage

RESEARCH, DEMONSTRATION AND DEVELOPMENT
11 12
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7 RiversideCA.gov
13 RPU provides a comprehensive educational program that focuses on teaching younger people about electricity and the importance of being energy efficient for the future. The program includes:

EDUCATION PROGRAMS

1. 4th Grade Electricity Class: A series of virtual lessons that are aligned with the 4th grade science standards. Students
learn the science of electricity& how it is produced

2. TK/Kindergarten Community Helpers: Aligned with
Kindergarten Social Science Standards, offered
in partnership with our field crews. RPU staff created a book, “The Sky is the Limit: The Story of a Lineman”, which is distributed to Transitional Kindergarten and Kindergarten classrooms, along with other age-appropriate materials on how to conserve electricity
RiversideCA.gov
14 3. STEM Public Utilities Learning Lab (STEM PULL) for 9th –1 0th grades - In collaboration with the Science Technology Engineering Partnership, Riverside Public Utilities offers a weeklong summer learning lab for high sch ool students, the purpose of which is to give students hands on experiences with career pathways in the utility industry

4. STEM FUNdamentals for 7
th and 8th grades - In collaboration with the Science Technology Engineering Partnership (STEP), Riverside Public Utilities offers a 3-day summer learning lab for middle school students. This program is aligned to Engineering Standards for middle school students

5. Family STEAM Day at the Library – A “pop-up” STEAM event at a different city library each month. This is an all-ages events in which children, parents and others participate in STEAM themes, build circuits, understand loads and voltage. Participate in a ‘Tinker Table’ to learn what’s inside technology by dissecting old technology to find gears, resistors, motors and magnets, etc…

EDUCATION PROGRAMS
13 14
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8 RiversideCA.gov
15 1. RPU staff creates new programs in consideration of:
a. Customer’s market needs
b. New technology advances
c. Achieving kWh savings potential

2. Many programs were discontinu ed in 2018 when the City Council directed RPU discontinue procurement of programming through the Southern California Public Power Authority (SCPPA)

3. RPU staff pivoted bring procurement internal to the City and RPU and took the opportunity to create new programs, in consideration of market trends and aligned with customer needs

ENERGY PROGRAM DEVELOPMENT
RiversideCA.gov
16 4. RPU’s customer base plays a major role in
determining program offerings
 RPU commercial customers represent 12%
of the total customer base and
approximately 65% of the total utility
consumption

5. New construction - RPU incentivizes
customers who purchase products above
California building code:
a. Lighting
b. Building envelope
c. Energy Star appliances
d. Energy efficient windows

ENERGY PROGRAM DEVELOPMENT
Residential
35%
Commercial
65%
Percent of Load
Residential
88%
Commercial
12%
Percent of Accounts
15 16
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9 RiversideCA.gov
17 ENERGY PROGRAM DEVELOPMENT EXAMPLE

1. Riverside is in Climate Zone 10; HVAC load is a
major energy efficiency target and peak
demand reduction measure – market
opportunity

2. 2014 - RPU increased rebate amounts to
incentivize installation of more efficient HVAC
equipment

3. 2024 - With improvements to technology and
market demand, Heat Pump incentive
increased to $750 per ton to increase program
participation
RPU provides both A/C and Heat Pump rebate incentive
programs for commercial and residential customers :

RiversideCA.gov
18 ENERGY EFFICIENCY AND DEMAND RESPONSE

1. RPU Staff co-administers the
Demand Side Grid Support
program in collaboration with
the CEC

2. RPU offers the Power Partners
Program to its largest Key
Accounts
Energy efficiency is a critical
element of the resource planning
process for generation,
transmission, distribution and
demand-side management
resources:
17 18
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10 RiversideCA.gov
19 RESIDENTIAL REBATE PROGRAMS

1. Energy efficient measures
are determined by
dividing the cost of the
measure by the total kWh
savings the measure yields

2. Cost to Conserve Energy
over the lifetime
of measures is used to
assess the benefit
and cost effectiveness of
a program

3. Lifetime savings is
the energy saved from a
specific energy efficiency
measure or activity over
the life of measure
Cost to Conserve
Energy (Approx.

Lifetime Savings)
$ per
Annual
kWh
Annual kWh
Savings
$ Spent towards
Rebates
# of
Rebates
Processed
$0.04$0.315,675,211$1,765,04222,691FY 14/15
$0.06$0.236,726,489$1,521,11018,639FY 15/16
$0.03$0.227,293,244$1,594,98616,973FY 16/17
$0.04$0.314,497,314$1,372,69415,954FY 17/18
$0.02$0.178,287,410$1,370,29921,449FY 18/19
$0.02$0.176,966,471$1,189,62132,974FY 19/20
$0.06$0.403,143,710$1,269,83416,557FY 20/21
$0.04$0.273,964,074$1,070,26916,022FY 21/22
$0.04$0.303,718,261$1,123,57614,625FY 22/23
$0.05$0.323,354,610$1,065,24414,410FY 23/24
$0.04$0.2553,626,794$13,342,675190,294Total
RiversideCA.gov
20 COMMERCIAL REBATE PROGRAMS
Cost to Conserve
Energy (Approx.

Lifetime Savings)
$ per
Annual
kWh
Annual kWh
Savings
$ Spent
towards
Rebates
# of Rebates
Processed
$0.02$0.1315,196,631$2,025,7521,441FY 14/15
$0.03$0.1914,229,506$2,757,0364,205FY 15/16
$0.03$0.2014,799,000$2,927,2931,424FY 16/17
$0.03$0.1917,910,438$3,373,6821,440FY 17/18
$0.04$0.3112,239,274$3,773,464846FY 18/19
$0.01$0.0712,457,433$901,80883FY 19/20
$0.01$0.076,524,865$488,35146FY 20/21
$0.02$0.116,759,720$758,09538FY 21/22
$0.03$0.206,818,657$1,340,084298FY 22/23
$0.05$0.368,118,524$2,911,4361,038FY 23/24
$0.03$0.18115,054,048$21,257,00110,859Total
19 20
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11 RiversideCA.gov
21 ENERGY PROGRAM REPORTING
Per State mandates such as SB 1037, AB 2021 & AB 2227, RPU sets goals and reports annually on them

1. Since adopting SB 1037 in 2005, POU’s have invested in the development of tools and resources for accurately reporting the results of energy efficiency programs. Tools are adopted by:
a. Southern California Public Power Authority (SCPPA)
b. California Municipal Utilities Association (CMUA)
c. Northern California Power Agency (NCPA)

2. Currently, the Technical Reference Manual (TRM) is the primary source for calculating and reporting annual and lifetime program performance. TRM provides:
a. Methods
b. Formulas
c. Default assumptions for estimating energy savings and peak demand impacts from energy efficiency measures and projects
RiversideCA.gov
22 ENERGY PROGRAM REPORTING
112% 112% 96% 88% 92% 46% 50% 49% 56%
18%
75%
-
5 10
15 20
25 FY 15/16 FY 16/17 FY 17/18 FY 18/19 FY 19/20 FY 20/21 FY 21/22 FY 22/23 FY 23/24 FY 24/25 10 Year Average
Target and Actual Energy Savings (kWhs)
Millions
Actuals Target
COVID-19 Pandemic
limited programming
21 22
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12 RiversideCA.gov
23 1. The Customer Engagement Team regularly performs inspections of residential and commercial rebate applications

2. Staff are on-site inspecting measure installations

3. Inspections take the form of the following:
a. Onsite inspection rate of 10% for all residential program participants b. A pre- and post-inspection of 100% of commercial rebate participants, including a review of historical energy usage, energy-saving calculations and post measure bill analysis
c. Contract with engineering firms to verify claimed energy savings on large, complex or technical commercial projects before issuing a rebate incentive d. Audits and installations performed by third-party contractors for RPU direct installation programs have high inspection rates that are performed by both the contractor and RPU staff

ENERGY PROGRAM INSPECTION AND COMPLIANCE
RiversideCA.gov
24 1. Public Benefit Charge Fund Revenues
a. The 2.85% of Public Benefit Charge on all customer bills b. Other credits such as interest, operat ing transfers, and certain investments accounted for per GASB 31

2. Public Benefit Charge Expenditures
a. Direct Program Costs for customer rebates and direct program cost for program participant (e.g. value of a direct install measure)
b. Program Support Costs for program admi nistration, development, marketing, education, and outreach and evaluation, measurement and verification

3. Unspent funds from each year are carried to the next and retained in the fund balance

PUBLIC BENEFIT CHARGE FUND OVERVIEW
23 24
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13 RiversideCA.gov
25 PB FUND REVENUES AND EXPENDITURES
$0
$2
$4
$6
$8
$10
$12
$14Millions
Total Expenditures Public Benefit Charge Funds Collected & Other Revenue RiversideCA.gov
26 1. Direct Program Cost
a. Includes the value of the rebates, SHARE
benefit credit, and the costs of some measures
b. Direct install and contractor supported
programs include costs of the vendors labor to
install the measure as that is part of the
program cost that benefits the customer

2. Program Support
a. Includes program administration,
development, marketing, education, and
outreach and evaluation, measurement and
verification

TOTAL PROGRAM COSTS
CPUC established
Cap and Target Limits for
Investor-owned Utilities

1. Administration: 10%

2. Marketing, Education, and
Outreach: 6%

3. Evaluation, Measurement,
and Verification: 4%

4. Non-resource Costs: 20%
25 26
1/29/2025
14 RiversideCA.gov
27 PROGRAM SUPPORT AND PROGRAM COST
17%
48% 58% 84% 88% 79% 76% 73% 78% 69% 81% 81% 79% 88% 91% 88% 89% 95% 94% 78% 79% 80% 67% 72% 70% 77% 80%83% 52% 42%
16%
12%
21%
24% 27%
22%
31%
19%
19% 21%
12%
9%
12% 11%
5% 6% 22% 21%
20%
33% 28%
30%
23%
20%
$0
$1
$2
$3
$4
$5
$6
$7
$8
$9
$10
$11
$12Millions
Program Costs Program Support Costs
Program Support Costs overall are ~19% the total program costs RiversideCA.gov
28 1. Public Benefit Charge Funds are budgeted through the two-year budget process and reviewed each year

2. Program updates are provided each month in the GM report

3. New programs and program expenditure changes are brought to the Board throughout the year

4. Unspent funds from each year are carried to the next and retained as the fund balance which is currently over $32 million

5. Public Benefit Strategic Plan is being developed using Energy Efficiency and Conservation Block Grant funding to be completed in 2026

NEXT STEPS
27 28
1/29/2025
15 RiversideCA.gov
29 Strategic Priority 5 – High Performing Government
Goal 5.3 – Enhance communication and collaboration with community members to improve transparency, build public trust, and encourage shared decision-making
Cross – Cutting Threads

STRATEGIC PLAN ALIGNMENT
Community Trust
Equity
Fiscal Responsibility
Innovation
Sustainability & Resiliency
RiversideCA.gov
30 That the Board of Public Utilities:

1. Receive an update on the State Mandated Public
Benefits Energy Surcharge Fund program and financial
activity; and

2. Direct staff to return to the Board of Public Utilities with a Public Benefits Energy Surcharge plan to consider
current program enhancements and to introduce new
programs.

RECOMMENDATIONS
29 30
Public Utilities Code
Article 8
Section 385
(a) Each local publicly owned electric utility shall establish a nonbypassable, usage based charge on local distribution service of not less than the lowest expenditure level of the three largest electrical corporations in California on a percent of revenue basis, calculated from each utility's total revenue requirement for the year ended December 31, 1994, and each utility's total annual expenditure under paragraphs (1), (2), and (3) of subdivision (c) of Section 381 and Section 382, to fund investments by the utility and other parties in any or all of the following:

(1) Cost-effective demand-side management services to promote energy efficiency and energy conservation.

(2) New investment in renewable energy resources and technologies consistent with existing statutes and regulations which promote those resources and technologies.

(3) Research, development and demonstration programs for the public interest to advance science or technology which is not adequately provided by competitive and regulated markets.

(4) Services provided for low-income electricity customers, including, but not limited to, energy efficiency services, education, weatherization, and rate discounts.

(b) Each local publicly owned electric utility that has not implemented programs for low-income electricity customers including targeted energy efficiency services and rate discounts based upon the income level of the customer, or completed an assessment of need for those programs, on or before December 31, 2000, shall perform a needs assessment for the programs described in paragraph (4) of subdivision (a) and shall hold one or more public meetings, after notice, to review the findings of the needs assessment. Following the public meetings, the governing body of the local publicly owned electric utility shall determine the amount of the total funds collected pursuant to this section to be allocated to low-income programs, including, but not limited to, targeted energy efficiency services, education, weatherization, and rate discounts. In making its decision on the need for the programs, the governing body shall consider all of the following:
(1) The number and income level of low-income customers that reside in the service area of the utility.

(2) The availability of home weatherization services to low-income customers pursuant to Section 2790.

(3) The availability of in-home energy efficiency education in the utility's service area.

(4) Other factors that may indicate a need for low-income services.

(c) Following a determination pursuant to subdivision (b) that low-income services are needed, the local publicly owned utility shall promptly implement or expand those programs. The local publicly owned electric utility shall work with existing weatherization providers to implement energy efficiency, education, and weatherization programs.

Public Utilities Code
Article 8
Section 386

(a) Each local publicly owned electric utility shall ensure the following:

(1) Low-income families within the utility's service territory have access to affordable electricity.
(2) The current level of assistance reflects the level of need. (3) Low-income families are afforded no-cost and low-cost energy efficiency measures that reduce energy consumption.

(b) The local publicly owned electric utility shall consider increasing the level of the discount or raising the eligibility level for any existing rate assistance program to be reflective of customer need.

(c) A publicly owned electric utility shall streamline enrollment for low-income programs by collaborating with existing providers for the Low-Income Home Energy Assistance Program (LIHEAP) and other electric or gas providers within the same service territory.

(d) A local publicly owned electric utility shall establish participation goals for its rate assistance program participation.