Sunnyvale City Council
July 28, 2026

DRAFT 7/6/2026 ______
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Item No.:

ORDINANCE NO.

A N O R D I N A N C E O F T H E C I T Y C O U N C I L O F T H E C I T Y O F SUNNYVALE AMENDING ORDINANCE NO. 3248-25 TO MAKE

SUPPLEMENTAL FINDINGS FOR THE LOCALLY ADOPTED
ENERGY STANDARDS IN ORDINANCE NO. 3248-25 AND TO
AMEND VARIOUS SECTIONS OF TITLE 16 (BUILDINGS AND

C O N S T R U C T I O N ) O F T H E S U N N Y V A L E M U N I C I P A L C O D E T O

MAKE MINOR CORRECTIONS AND CLARIFICATIONS AND
REMOVE CERTAIN LOCAL AMENDMENTS TO THE 2025

CALIFORNIA BUILDING STANDARDS CODE
WHEREAS, on October 21, 2025, the City Council adopted Ordinance No. 3248-25, adopting the 2025 California Building Standards Code, including but not limited to the 2025 Green Building Standards Code and the 2025 Energy Code, together with local amendments to the state standards and required findings (referred to as the “2025 Triennial Building Code Update”), to be effective on January 1, 2026; and
WHEREAS, with respect to locally adopted energy standards that differ from the California Energy Code, Section 10-106 of the 2025 California Administrative Code establishes a process which allows local adoption of energy standards that are more stringent than the statewide standards, provided that a determination that the standards are cost effective is adopted at a public meeting and subsequently filed with the California Energy Commission, and the California Energy Commission finds that the standards will require buildings to be designed to consume less energy than permitted by the California Energy Code; and WHEREAS, in adopting Ordinance No. 3248-25, the City Council considered analysis presented by City staff and consultants on the energy savings and cost effectiveness of the proposed local energy standards, set forth in the Report to Council and Attachments 1 and 5 for t h e C i t y C o u n c i l m e e t i n g o n S e p t e m b e r 3 0 , 2 0 2 5 ( t h e s e A t t a c h m e n t s a r e i n c l u d e d w i t h t h i s Ordinance No. ___ as Exhibit A-1 and Exhibit A-2 and incorporated herein by reference); and WHEREAS, prior to the California Energy Commission’s review of the City’s local amendments to the Energy Code, the City desires to supplement the findings in support of the amendments related to the locally adopted energy standards (Sunnyvale Municipal Code [SMC] Section 16.43.070), consistent with information about cost-effectiveness included in the Report to Council (and attachments thereto) for the 2025 Triennial Building Code Update ordinance approved on September 30, 2025 (first reading) and adopted on October 21, 2025 (second reading); and
WHEREAS, after adoption of Ordinance No. 3248-25, City staff identified provisions of the State Green Building Standards Code regarding EV charging that had been inadvertently deleted Attachment 1

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through a local amendment (in Section 50 of that Ordinance, codified in Section 16.43.060(c) of the Sunnyvale Municipal Code), as well as other unintended local amendments and typographical errors that require correction. In further consultation with Silicon Valley Clean Energy (SCVE) who have experience with the CEC through this triennial update cycle, staff also proposed to incorporate clarifications consistent with the energy code model ordinance developed and updated by SCVE; these are addressed in Section 17 of this Ordinance. The Ordinance will also restore the definition of newly constructed buildings to be the same as the California Energy Code definition; and
WHEREAS, the findings herein are supplemental and in addition to the findings previously adopted by the City Council; and
THE CITY COUNCIL OF THE CITY OF SUNNYVALE DOES ORDAIN AS FOLLOWS:

SECTION 1. Findings.

A. Recitals. The recitals above are hereby adopted and incorporated herein by reference as findings.

B. Cost Effectiveness and Energy Efficiency. The City Council finds, based on evidence presented before the City Council on September 30, 2025, October 21, 2025, and July 2 1 , 2 0 2 6 ( i n c l u d i n g t h e c o s t e f f e c t i v e n e s s a n a l y s i s s e t f o r t h i n E x h i b i t s A - 1 a n d A - 2 ) , a n d i n accordance with Section 10-106 of the 2025 California Administrative Code, that the energy standards adopted as local amendments to the Green Building Standards Code contained in Ordinance No. 3248-25 are cost effective and will require buildings to be designed to consume less energy than permitted by the California Energy Code.

C. Local Conditions and All Previously Adopted Findings. Pursuant to California Health and Safety Code Sections 17958.5, 17958.7 and 18941.5, the City Council finds that each of the changes or modifications to measures referred to therein are reasonably necessary because of local climatic, geological, or topographical conditions in the area encompassed by the boundaries of Sunnyvale, and the City Council affirms and adopts the findings in Exhibit A of Ordinance No. 3248-25 with respect to this Ordinance No. ___________ [insert number of the subject ordinance after adoption].

D. The standards imposed by this Ordinance are identical to the standards imposed in Ordinance No. 3248-25 (adopted October 21, 2025), and substantially equivalent to standards imposed in Ordinance No. 3244-25 (adopted August 26, 2025), which amended the 2025 and 2022 California Building Energy Efficiency Standards and Green Building Standards.

Amendments for these standards were previously filed and approved by the California Building Standards Commission on November 14, 2025 (Ord. 3248-25) and September 23, 2025 (Ord. 3244-25) and will have no material change in regulatory effect.

Attachment 1

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SECTION 2. Section 16.16.030 AMENDED. Section 16.16.030 of Chapter 16.16 (Building Code) of Title 16 (Buildings and Construction) of the Sunnyvale Municipal Code is hereby amended to read as follows:

16.16.030. Administration.
2025 California Building Code, Chapter 1, Division II, is hereby amended as follows:
105.3.2 Time Limitation of Application[OSHPD 1, 1R, 2, 4 & 5] Time limitation shall be in accordance with the California Administrative Code, Chapter 7, Section 7-129.

An application for a permit for any proposed work shall be deemed to have been expired 180 days after the date of filing, unless such application has been pursued in good faith or a permit has been issued, the plans and other data submitted for review may thereafter be returned to the applicant or destroyed by the building official. The building official is authorized to grant one or more extensions of time for an additional period not exceeding 180 days each. The extension shall be requested in writing and justifiable cause demonstrated. In order to proceed with a project once an application has expired, a new application is required with new plan reviews fees and plans based on the code in effect at the time of the new application. [OSHPD 1, 1R, 2, 4&5] Time limitation shall be in accordance with the California Administrative Code, Chapter 7, Section 7-129
SECTION 3. Section 16.16.070 AMENDED. Section 16.16.070 of Chapter 16.16 (Building Code) of Title 16 (Buildings and Construction) of the Sunnyvale Municipal Code is hereby amended to read as follows:

16.16.070. Fire extinguishing systems.

Except for the application of Sections 504.2 and 506. 23 of the 2025 California Building Code, the installation requirements for fire extinguishing systems, including 2025 California Building Code Section 903, shall be governed by the applicable provisions of the 2025 California Fire Code as adopted by Section

16.52.903 of Chapter 16.52.

SECTION 4. Section 16.16.090 AMENDED. Section 16.16.090 of Chapter 16.16 (Building Code) of Title 16 (Buildings and Construction) of the Sunnyvale Municipal Code is hereby amended to read as follows:

16.16.090. Roof material rating.

Attachment 1

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2025 California Building Code Section 1505.1.2 is amended to read as follows:
1505.1.2 Roof coverings within all other areas other than Fire Hazard Severity Zones or in the Wildland-Urban Interface (WUI).

The entire roof covering of every existing structure where more than 50 percent of the total roof area is replaced within any one-year period, the entire roof covering of every new structure, and any roof covering applied in the alteration, repair or replacement of the roof of every existing structure, s h a l l b e a f i r e - r e t a r d a n t r o o f c o v e r i n g t h a t i s a t l e a s t C l a s sBC fire classification.

SECTION 5. Section 16.16.120 AMENDED. Section 16.16.120 of Chapter 16.16 (Building Code) of Title 16 (Buildings and Construction) of the Sunnyvale Municipal Code is hereby amended to read as follows:

16.16.120. Wall bracing methods.
2025 California Building Code Table 2308.10.3(1) (Bracing Method) of CBC Chapter 23 (Wood) is amended as follows:
(1) The title of Table 2308.10.3(1) is amended to read:

TABLE 2308.10.3(1)b, c
(2) Footnotes "b" and "c" are added to Table 2308.10.3(1), to read:
b. Methods PBS, HPS, LIB A N D S F B a r e n o t p e r m i t t e d i n Seismic Design Categories D or E.
c. Methods GB, DWB, AND PCP are not permitted in Seismic Design Category E.

SECTION 6. Section 16.17.060 AMENDED. Section 16.17.060 of Chapter 16.17 (Residential Code) of Title 16 (Buildings and Construction) of the Sunnyvale Municipal Code is hereby amended to read as follows:

16.17.060. Townhouse units.
2025 California Residential Code Section R302.2 is hereby amended as follows:

R302.2 Townhouse Units.

Attachment 1

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Walls separating townhouse units shall be constructed in accordance with Section R302.2.1 and shall comply with Sections R302.2.3 through R302.2.65.

SECTION 7. Section 16.17.080 AMENDED. Section 16.17.080 of Chapter 16.17 (Residential Code) of Title 16 (Buildings and Construction) of the Sunnyvale Municipal Code is hereby amended to read as follows:
(a) 2025 California Residential Code Sections R309.2 and R309.2.1 are hereby amended to read as follows:

R309.2 One- and two-family dwellings automatic fire systems. An automatic residential fire sprinkler system shall be installed in one- and two-family dwellings.

Existing one- and two-family dwellings. An automatic residential fire sprinkler system shall be installed in existing one and two-family dwellings when additions or conversions from non-habitable to habitable spaces are made that are in excess of 50 percent of the habitable building area.

Firewalls used to separate building areas shall be constructed in accordance with the 2025 California Building Code and shall be without openings or penetrations.

Exception:

2. Accessory Dwelling Unit, provided that all of the following are met:

2.1.1. The unit meets the definition of an Accessory Dwelling Unit as defined in the Government Code Section 65852.2.

2.2.2. The existing primary residence does not have automatic fire sprinklers.

2.3.3. The accessory detached dwelling unit does not exceed 1,200 square feet in size.

2.4.4. The unit is on the same lot as the primary residence.

R309.2.1 Design and Installation. Automatic residential fire sprinkler systems for one- and two-family dwellings shall be designed and installed in accordance with NFPA 13D and local standards.

SECTION 8. Section 16.17.100 AMENDED. Section 16.17.100 of Chapter 16.17 (Residential Code) of Title 16 (Buildings and Construction) of the Sunnyvale Municipal Code is hereby amended to read Attachment 1

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as follows:

16.17.100. Lath, gypsum board and plaster as wall bracing materials. 2025 California Residential Code Table R602.10.3(3) (Bracing Requirements Based On Seismic Design Category) of CRC Chapter 6 (Wall Construction) is amended as follows:
[Refer to 2025 California Residential Code for Table R602.10.3(3)] Table R602.10.3(3) i,j – Bracing Requirements Based on Seismis Seismic Design Category [Text of Table
unchanged]
…
SECTION 9. Section 16.18.030 AMENDED. Section 16.18.030 of Chapter 16.18 (Existing Building Code) of Title 16 (Buildings and Construction) of the Sunnyvale Municipal Code is hereby amended to read as follows:

16.18.030 Administration.
2025 California Existing Building Code Chapter 1 Division II is hereby amended as follows:
109.3.8 Other inspections. In addition to the inspections specified above the building official may make or require other inspections of any construction work to ascertain compliance with the provisions of this code and other laws which are enforced by the code enforcement agency.

Note: All noncompliant plumbing fixtures in any residential real property shall be replaced with water-conserving plumbing fixtures. Plumbing fixture replacement is required prior to issuance of a certificate of final completion, certificate of occupancy or final permit approval by the local building department. See Civil Code Section 1101.1, et seq., for the definition of a noncompliant plumbing fixture, types of residential buildings affected and other important enactment dates.

SECTION 10. Section 16.24.025 AMENDED. Section 16.24.025 of Chapter 16.24 (Plumbing Code) of Title 16 (Buildings and Construction) of the Sunnyvale Municipal Code is hereby amended to read as follows:

16.24.025. Administration.

Attachment 1

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2025 California Plumbing Code Chapter 1 Division II is hereby amended as follows:
101.2. Scope. The provisions of this chapter shall apply to grading and to the construction, alteration, movement, enlargement, replacement, repair, equipment, use and occupancy, location, maintenance, removal, and demolitions of every building or structure or any appurtenances connected or attached to such buildings or structures within the city, including all plumbing and drainage systems, mechanical systems, and electrical wiring and fire safety systems, or parts thereof, within and serving such building or structure, excluding therefrom the following:
(1) Any building or structure located on real property belonging to:
(A) United States of America,
(B) State of California, or any political subdivision thereof, (C) Any chartered city or non-chartered city, or
(D) Any school district, except when the proposed use is for non-classroom facilities;
(2) Work located primarily in a public way;
(3) Public utility towers and poles;
(4) Mechanical equipment not specifically regulated in any of the codes; and
(5) Hydraulic flood control structures.
(6) Detached one- and two-family dwellings and multiple single- family dwellings (townhouse units) not more than three stories above grade plane in height with a separate means of egress and their accessory structures shall comply with this code or the California Residential Code.

SECTION 11. Section 16.28.025 AMENDED. Section 16.28.025 of Chapter 16.28 (Mechanical Code) of Title 16 (Buildings and Construction) of the Sunnyvale Municipal Code is hereby amended to read as follows:

16.28.025. Administration.
2025 California Mechanical Code Chapter 1 Division II is hereby amended as follows:
101.2. Scope. The provisions of this chapter shall apply to grading and to the construction, alteration, movement, enlargement, replacement, repair, equipment, use and occupancy, location, maintenance, removal, and demolitions of every building or structure or any appurtenances connected or attached to such Attachment 1

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buildings or structures within the city, including all plumbing and drainage systems, mechanical systems, and electrical wiring and fire safety systems, or parts thereof, within and serving such building or structure, excluding therefrom the following:
(1) Any building or structure located on real property belonging to:
(A) United States of America,
(B) State of California, or any political subdivision thereof, (C) Any chartered city or non-chartered city, or
(D) Any school district, except when the proposed
use is for non- classroom facilities;
(2) Work located primarily in a public way;
(3) Public utility towers and poles;
(4) Mechanical equipment not specifically regulated in any of the codes; and
(5) Hydraulic flood control structures.
(6) Detached one- and two-family dwellings and multiple single-family dwellings (townhouse units) not more than three stories above grade plane in height with a separate means of egress and their accessory structures shall
comply with this code or the California Residential Code.

SECTION 12. Section 16.32.030 AMENDED. Section 16.32.030 of Chapter 16.32 (Electrical Code) of Title 16 (Buildings and Construction) of the Sunnyvale Municipal Code is hereby amended to read as follows:

16.32.030. Administration.
2025 California Electrical Code Section 89.101 is hereby amended as follows:

89.101.15 Placement of Permit. The building permit, along with all plans and documentation approved by the building official, shall be kept on the site of the work until final approval has been granted by the building official.

89.101.19 Refunds. The building official may authorize refunding of any fee paid hereunder which was erroneously paid or collected.

The building official may authorize refunding of not more than 80 percent of the permit fee paid when the permit is canceled and no work has been done under a permit issued in accordance with this section.

The building official may authorize refunding of the plan review fee paid with an application for a permit for which a plan review fee has been paid is withdrawn or canceled before any plan reviewing is done.

Attachment 1

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The building official shall not authorize refunding of any fee paid except by written request filed by the original permittee and forbuilding permits that are not expired.

SECTION 13. Section 16.42.030 REPEALED AND REPLACED. Section 16.42.030 of Chapter

16.42 (Energy Code) of Title 16 (Buildings and Construction) of the Sunnyvale Municipal Code is hereby repealed and replaced in its entirety with a new Section 16.42.030 to read as follows:

16.42.030. Definitions.
2025 California Energy Code Section 100.1 (Definitions), subsection (b) is hereby amended to add or amend the following definitions, reading as follows:

LEVEL 2 ELECTRIC VEHICLE (EV) CHARGING RECEPTACLE is a 208/240-volt 40-ampere minimum branch circuit and a receptacle.

LOW POWER LEVEL 2 ELECTRIC VEHICLE (EV) CHARGING RECEPTACLE is a 208/240-volt 20-ampere minimum branch circuit and a receptacle.

NEWLY CONSTRUCTED BUILDING is a building that has never been used or occupied for any purpose. It shall also include newly constructed additions and improvements in existing buildings where more than 50 percent of the exterior wall is modified. The Chief Building Official shall make the final determination regarding the application of this definition. NEWLY CONSTRUCTED BUILDING is a building that has never been used or occupied for any purpose.

SECTION 14. Section 16.42.040 AMENDED. Section 16.42.040 of Chapter 16.42 (Energy Code) of Title 16 (Buildings and Construction) of the Sunnyvale Municipal Code is hereby amended to read as follows:

16.42.040. Mandatory Features and Devices.
2025 California Energy Code Section 150.0 (Mandatory Features and Devices), is hereby amended to add new subsection (w), and to read as follows:

Single-family residential buildings shall comply with the applicable requirements of Section 150(a) to 150(w).

NOTE: [Text of 2025 California Energy Code unchanged] The requirements of Sections 150.0(a) through 150.0(v) apply to newly constructed buildings.

Sections 150.2(a) and 150.2(b) specify which requirements of Sections 150.0(a) through 150.0(w) also apply to additions or alterations.

Attachment 1

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(a) – (v) [Text of 2025 California Energy Code Section 150.0 unchanged] (w) Electric Readiness for Remodels, Alterations, and Additions.

1. – 4. [Text of Section 16.42.040 unchanged]

5. Electrical Power Upgrades. Increases in the electrical power infrastructure capacity serving a building shall only be permitted when all the following are documented and submitted to the building official:

A. Calculations in accordance with California Electrical Code Article 220.83 determining future loads will exceed the capacity of the current electrical power infrastructure.

B. Where data is available, calculations in accordance with California Electrical Code Article 220.87 determining that future loads exceed the capacity of the current electrical service infrastructure.

C. Calculations for item (A) and item (B) above shall include at least one of the following:
(i) At least one power management or circuit controlling device, serving electric-only appliances such as:
a. Water heater(s)
b. Clothes dryer(s)
c. Range(s)
d. Level 2 EV Charging Receptable or
e. Low Power Level 2 EV Charging Receptable
(ii) At least one of the following electric-only appliances operating on 120V:
a. Water heater(s)
b. Clothes dryer(s)
c. Range(s)
(iii) Circuit control between whole home load and Level 2 EV Charging Receptacle or Low Power Level 2 EV Charging
Receptacle
Exception to Section 150.0(w)5: The upgrade is solely the result of a project proposing electrical improvements supporting loads related to devices and uses not regulated by 150.0(w).

Attachment 1

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Exceptions 1 – 7 to Section 150.0(w) [Text of Section 16.42.040 unchanged]
2025 California Energy Code Section 150.2 (Energy Efficiency Standards for Additions and Alterations to Existing Single-Family Residential Buildings) is hereby amended as follows:

The first paragraph of Section 150.2(a) (Additions) is modified to read as follows:
(a) Additions. Additions to existing single-family residential buildings shall meet the requirements of Sections 110.0 through 110.9, Sections 150.0(a) through (n), (p), (q), (w), and either Section 150.2(a)1 or 2.

The first paragraph of Section 150.2(b) (Alterations) is modified to read as follows:
(b) Alterations. Alterations to existing single-family residential buildings or alterations in conjunction with a change in building occupancy to a single-family residential occupancy shall meet the requirements of Section 150.0(w) and either Item 1 or 2 below.

SECTION 15. Section 16.43.040 AMENDED. Section 16.43.040 of Chapter 16.43 (Green Building Code) of Title 16 (Buildings and Construction) of the Sunnyvale Municipal Code is hereby amended to read as follows:

16.43.040. Definitions.
2025 California Green Building Code Section 201 202 (Definitions) is hereby amended as follows:

Electric Vehicle Charging Station (EVCS): A parking space that includes installation of electric vehicle supply equipment (EVSE). EVCS installation may be used to satisfy a Level 2 EV Ready Space requirement.

Level 3 Electric Vehicle Charging Station (EVCS): A parking space that includes installation of electric vehicle supply equipment (EVSE) connected to a circuit serving a Level 3 EV Ready Space. EVCS installation may be used to satisfy a Level 3 EV Ready Space requirement.

SECTION 16. Section 16.43.060 AMENDED. Section 16.43.060 of Chapter 16.43 (Green Building Code) of Title 16 (Buildings and Construction) of the Sunnyvale Municipal Code is hereby Attachment 1

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amended to read as follows:

Section 16.43.060. Nonresidential mandatory measures—Electric vehicle (EV) charging
(a) [Text unchanged]
(b) 2025 California Green Building Code Section 5.106.5.3.1 (EV capable spaces) is hereby amended to read as follows:

EV capable spaces shall be provided in accordance with the following requirements:

1. Raceways complying with the California Electrical Code and no less than 1-inch (25 mm) diameter shall be provided and shall originate at a service panel or a subpanel(s) serving the area, and shall terminate in close proximity to the proposed location of the EV capable space and into a suitable listed cabinet, box, enclosure or equivalent. A common raceway may be used to serve multiple EV capable spaces.

2. A service panel or subpanel(s) shall be provided with panel space and electrical load capacity for a dedicated 208/240 volt, 40-ampere minimum branch circuit for each EV capable space, with delivery of 30-ampere minimum to an installed EVSE at each EVCS.

3. The electrical system and any on-site distribution
transformers shall have sufficient capacity to supply full rated amperage at each EV capable space.

4. The service panel or subpanel circuit directory shall identify the reserved overcurrent protective device space(s) as “EV CAPABLE”. The raceway termination location shall be
permanently and visibly marked as “EV CAPABLE.” Note: A parking space served by electric vehicle supply equipment or designed as a future EV charging space shall count as at least one standard automobile parking space only for the purpose of complying with any applicable minimum parking space
requirements established by an enforcement agency. See
Vehicle Code Section 22511.2 for further details.

Note: A parking space served by electric vehicle supply equipment or designed as a future EV charging space shall count as at least one standard automobile parking space only for the purpose of complying with any applicable minimum parking Attachment 1

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space requirements established by an enforcement agency. See Vehicle Code Section 22511.2 for further details.
(c) 2025 California Green Building Code Section 5.106.5.3.2 (Electric vehicle charging stations (EVCS), is hereby deleted. Reserved
(d) 2025 California Green Building Code Section 5.106.5.4.1 Existing buildings or parking areas without previously installed EV capable infrastructure shall be amended:

When EV capable infrastructure does not exist at an existing parking facility or building, and the parking facility or building undergoes an addition or alteration listed in Section 5.106.5.4, construction shall include electric vehicle charging in compliance with either Section 5.106. 5.36 or Section

5.106.5. 3. 6 for the total number of actual parking spaces being added or altered.
(e)-(h) [Text unchanged]
SECTION 17. Section 16.43.070 AMENDED. Section 16.43.070 of Chapter 16.43 (Green Building Code) of Title 16 (Buildings and Construction) of the Sunnyvale Municipal Code is hereby amended to read as follows:

16.43.070. Energy Efficiency.
2025 California Green Building Standards Code Division 4.2 (Energy Efficiency) is hereby amended to add Section A4.204 (Requirements for Alterations to Existing Buildings) to read as follows:

A4.204 Requirements for Alterations to Existing Buildings A4.204.1 Energy Efficiency. Alterations to existing residential buildings shall comply with Sections A4.204.1.1.

A4.204.1.1 Altered Space-Conditioning System Serving Existing Single- Family Dwelling Units – Mechanical Cooling. When a space-conditioning system serving an existing single-family dwelling unit is altered in climate zone 4 by installation or replacement of an air conditioner, the altered system shall comply with either a, or b or c below in addition to the requirements for installation specified by Title 24, Part 6, Sections 150.2(b)1E and 150.2(b)1F:
a. A heat pump shall be the primary heating source and sized according to the system selection requirements specified by Title 24, Part 6 , of Attachment 1

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Section 150.0(h)5. Supplemental heating may be provided by a gas furnace or electric resistance heating as specified in Title 24, Part 6, Sections 150.0(h)7 and 150.0(i); or
b. An air conditioner shall meet all the requirements in either subsection I or II below:

I. Systems with Existing Duct Distribution Systems:

A. The duct system measured air leakage shall be equal to or less than 10 percent of the system air handler airflow as confirmed through field verification and diagnostic testing, per the requirements in Title 24, Part 6, Reference
Residential Appendix Section RA3.1.4.3.; and
Exception 1 to A4.204.1.1.b.I.A. If it is not possible to meet the duct sealing requirements, all accessible leaks shall be sealed and verified through a visual inspection and a smoke test by a certified ECC-Rater utilizing the methods specified in Reference Residential Appendix
Section RA3.1.4.3.5.

Exception 2 to A4.204.1.1.b.I.A: Existing duct
systems, constructed, insulated or sealed with
asbestos.

B. Demonstrate, in every control mode, airflow greater than or equal to 300 CFM per ton of nominal cooling capacity through the return grilles, and an air-handling unit fan efficacy less than or equal to 0.45 W/CFM. The airflow rate and fan efficacy requirements in this section shall be
confirmed through field verification and diagnostic testing, following the procedures outlined in Title 24, Part 6,
Reference Residential Appendix RA3.3; and
Exception 1 to A4.204.1.1.b.I.B: Systems unable to
comply with the minimum airflow rate and system
efficacy requirements shall demonstrate compliance by
satisfying all of the following:

1. Following the procedures in Section
RA3.3.3.1.5;

2. Installing a system thermostat that conforms
Attachment 1

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to the specifications in Section 110.12;

3. For standard ducted systems (without zoning
dampers), meet the applicable minimum total return
filter grille nominal area requirements in Table 150.0-B or 150.0-C as confirmed by field verification and
diagnostic testing in accordance with the procedures in Reference Residential Appendix Sections RA3.1.4.4 and
RA3.1.4.5. The design clean-filter pressure drop
requirements specified by Section 150.0(m)12D for the
system air filter(s) shall conform to the requirements
given in Tables 150.0-B and 150.0-C.

Exception 2 to Section A4.204.1.1.b.I.B: Multispeed
compressor systems or variable speed compressor
systems shall verify air flow (cfm/ton) and fan efficacy (watts/cfm) for system operation at the maximum
compressor speed and the maximum air handler fan
speed.

Exception 3 to Section A4.204.1.1.b.I.B: Gas furnace
air- handling units manufactured prior to July 3, 2019
shall comply with a fan efficacy value less than or equal to 0.58 W/cfm as confirmed by field verification and
diagnostic testing in accordance with the procedures
given in Reference Residential Appendix RA3.3.

C. In all climate zones, refrigerant charge verification requirements shall meet the requirements in Title 24, Part 6, Section 150.2(b)1Fiib, including the minimum airflow rate specified in Section 150.2(b)1Fiia; and
D. Vented attics shall have insulation installed to achieve a U- factor of 0.020 or insulation installed at the ceiling level shall result in an insulated thermal resistance of R-49 or greater for the insulation alone; luminaires not rated for insulation contact must be replaced or retrofitted with a fireproof cover that allows for insulation to be installed directly over the cover; and
Exception 1 to Section A4.204.1.1.b.I.D: Dwelling
units with at least R-38 existing insulation installed at the ceiling level.

Exception 2 to Section A4.204.1.1.b.I.D: Dwelling units Attachment 1

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where the alteration would directly cause the disturbance of asbestos unless the alteration is made in conjunction with asbestos abatement.

Exception 3 to Section A4.204.1.1.b.I.D: Dwelling
units with knob and tube wiring located in the vented
attic.

Exception 4 to Section A4.204.1.1.b.I.D: Where the
accessible space in the attic is not large enough to
accommodate the required R-value, the entire
accessible space shall be filled with insulation
provided such installation does not violate Section
806.3 of Title 24, Part 2.5.

E. Air seal all accessible areas of the ceiling plane between the attic and the conditioned space including all joints, penetrations and other openings that are potential
sources of air leakage by caulking, gasketing, weather- stripping or otherwise sealing to limit infiltration and exfiltration.

Exception 1 to Section A4.204.1.1.b.I.E: Dwelling
units with at least R-38 existing insulation installed
at the ceiling level.

Exception 2 to Section A4.204.1.1.b.I.E: Dwelling
units where the alteration would directly cause the
disturbance of asbestos unless the alteration is made
in conjunction with asbestos abatement.

Exception 3 to Section A4.204.1.1.b.I.E: Dwelling
units with atmospherically vented space heating or
water heating combustion appliances located inside
the pressure boundary of the dwelling unit.

II. Entirely New or Complete Replacement Duct Systems:

A. R-8 duct insulation shall be installed for all new ducts located in unconditioned space; and
B. The total duct system measured air leakage shall be equal to or less than 5 percent of the system air handler airflow as confirmed through field verification and diagnostic
testing, per the requirements in Title 24, Part 6, Reference Residential Appendix Section RA3.1.4.3.1; and
Attachment 1

17 T-DPS-160230/87526
Council Agenda: 7/28/26
Item No.: 3
C. Demonstrate, in every control mode, airflow greater than or equal to 350 CFM per ton of nominal cooling capacity through the return grilles, and an air-handling unit fan efficacy less than or equal to 0.35 W/CFM. The airflow rate and fan efficacy requirements in this section shall be
confirmed through field verification and diagnostic testing, following the procedures outlined in Title 24, Part 6,
Reference Residential Appendix RA3.3.; and
D. In all climate zones, refrigerant charge verification requirements shall meet the requirements in Title 24, Part 6, Section 150.2(b)1Fiib; and
E. If the air handler and ducts are located within a vented attic, vented attics shall have insulation installed to achieve a U-factor of 0.020 or insulation installed at the ceiling level shall result in an insulated thermal resistance of R-49 or greater for the insulation alone; luminaires not rated for insulation contact must be replaced or retrofitted with a fireproof cover that allows for insulation to be installed directly over the cover; and
Exception 1 to Section A4.204.1.1bIIE: In
dwelling units with at least R-19 existing insulation
installed at the ceiling level.

Exception 12 to Section A4.204.1.1.b.II.E: Dwelling
units where the alteration would directly cause the
disturbance of asbestos unless the alteration is made
in conjunction with asbestos abatement.

Exception 23 to Section A4.204.1.1.b.II.E:

Dwelling units with knob and tube wiring located
in the vented attic.

Exception 34 to Section A4.204.1.1.b.II.E: Where the
accessible space in the attic is not large enough to
accommodate the required R-value, the entire
accessible space shall be filled with insulation
provided such installation does not violate Section
806.3 of Title 24, Part 2.5.

F. Air seal all accessible areas of the ceiling plane between the attic and the conditioned space including all joints, penetrations and other openings that are potential
sources of air leakage by caulking, gasketing, weather- Attachment 1

18 T-DPS-160230/87526
Council Agenda: 7/28/26
Item No.: 3
stripping or otherwise sealing to limit infiltration and exfiltration.

Exception 1 to Section A4.204.1.1.b.II.F:

Dwelling units with at least R-19 existing
insulation installed at the ceiling level.

Exception 2 to Section A4.204.1.1.b.II.F: Dwelling
units where the alteration would directly cause the
disturbance of asbestos unless the alteration is made
in conjunction with asbestos abatement.

Exception 3 to Section A4.204.1.1.b.II.F: Dwelling
units with atmospherically vented space heating or
water heating combustion appliances located inside
the pressure boundary of the dwelling unit.
c. Performance approach.

The energy budget for alterations is expressed in terms of Long-term System Cost (LSC), and the altered component(s) and any newly installed equipment serving the alteration shall meet the applicable requirements of Subsections A, B, and C below.

A. The altered components shall meet the applicable
requirements of Title 24, Part 6, Sections 110.0 through 110.9, Sections 150.0(a) through (l), Sections 150.0(m)1 through 150.0 (m)10, and Sections 150.0(p) through (q). Entirely new or complete replacement mechanical ventilation systems as these terms are used in Section 150.2(b)1L, shall comply with the requirements in Section 150.2(b)1L. Altered mechanical ventilation systems shall comply with the requirements of Section 150.2(b)1M. Entirely new or complete replacement space-conditioning systems, and entirely new or complete replacement duct systems, as these terms are used in Sections 150.2(b)1C and 150.2(b)1Diia, shall comply with the
requirements of Sections 150.0(m)12 and 150.0(m)13.

B. The standard design for an altered component shall be the higher efficiency of existing conditions or the requirements stated in Table A4.204.1.1-A . For components not being altered, the standard design shall be based on the existing conditions. When the third party verification option is specified as a requirement, all components proposed for a l t e r a t i o n f o r w h i c h t h e a d d i t i o n a l c r e d i t i s t a k e n , m u s t b e Attachment 1

19 T-DPS-160230/87526
Council Agenda: 7/28/26
Item No.: 3
verified by a certified ECC-rater.

Table A4.204.1.1-A Standard Design for an Altered Component Altered
Component
Standard Design Without Third Party
Verification of Existing Conditions Shall
be Based On
Standard Design With Third Party
Verification of Existing
Conditions Shall be Based On
Ceiling
Insulation,
Wall
Insulation,
and Raised-
floor
Insulation
The requirements of Sections 150.0(a),
(c), and (d).

The requirements of Section 150.2(b)1J
for altered ceilings and for entirely new or
complete replacement duct systems
where the air handler and ducts are
located within a vented attic.

The requirements of Section A4.204.1.1b
for alterations which include new or
replacement air-cooled air conditioners.

The existing insulation R-value
Fenestration The requirements of Section 150.1(c)3A. The existing fenestration U-factor and
SHGC values as verified.

Window Film The requirements of Section 150.1(c)3A. The existing fenestration in the alteration shall be based on
TABLE 110.6-A and TABLE 110.6-
B.

Doors The U-factor of 0.20. The door area shall
be the door area of the existing building.

If the proposed U-factor is < 0.20,
the standard design shall be
based on the existing U-factor
value as verified. Otherwise, the
standard design shall be based on
the U-factor of 0.20. The door
area shall be the door area of the
existing building.

Space-
Heating and
Space-
Table 150.1-A for equipment efficiency
requirements;
The existing efficiency levels.

Attachment 1

20 T-DPS-160230/87526
Council Agenda: 7/28/26
Item No.: 3
Cooling
Equipment
Section 150.2(b)1C for entirely new or
complete replacement systems;
Section 150.2(b)1F for refrigerant charge
verification, airflow, and fan efficacy
requirements.

Section A4.204.1.1b for new or
replacement air-cooled air conditioners
Air
Distribution
System –
Duct Sealing
The requirements of Sections 150.2(b)1D
and 150.2(b)1E
The requirements of Sections
150.2(b)1D and 150.2(b)1E
Air
Distribution
System –
Duct
Insulation
The proposed efficiency levels.

The requirements of Sections 150.2(b)1D,
and for new or replacement air-cooled air
conditioners, Section A4.204.1.1b.

The existing efficiency levels.

Water
Heating
Systems
The requirements of Section 150.2(b)1Hii The existing efficiency level.

Roofing
Products
The requirements of Section 150.2(b)1I. The requirements of Section 150.2(b)1I
All Other
Measures
The proposed efficiency levels. The existing efficiency levels.

C. The proposed design shall be based on the actual values of the altered components.

Exception 1 to Section A4.204.1.1 : Where the capacity of the existing main electrical service panel is insufficient to supply the electrical capacity of a heat pump and where the existing main electrical service panel is sufficient to supply a new or replacement air conditioner, as calculated according to the requirements of California Electrical Code Article 220.83 or Article 220.87. Documentation of electrical load calculations in accordance with Attachment 1

21 T-DPS-160230/87526
Council Agenda: 7/28/26
Item No.: 3
Article 220 must be submitted to the enforcement agency prior to permitting for both the heat pump and proposed air conditioner.

Exception 2 to Section A4.204.1.1 : Where the required capacity of a heat p u m p t o m e e t t h e s y s t e m s e l e c t i o n r e q u i r e m e n t s o f S e c t i o n 1 5 0 . 0 ( h ) 5 i s greater than or equal to 12,000 Btu/h more than the greater of the required capacity of an air conditioner to meet the design cooling load OR the capacity of the existing air conditioner. Documentation of heating and cooling load calculations in accordance with 150.0(h) must be submitted to the enforcement agency prior to permitting for both the heat pump and proposed air conditioner.

SECTION 15. STATUTORY REFERENCES, INCLUSIONS OF AMENDMENTS AND ADDITIONS.

Whenever reference is made to any portion of this ordinance, or of any other chapter or section of the Sunnyvale Municipal Code, or of any other ordinance of the city of Sunnyvale, or of any law of the State of California, the reference applies to all amendments and additions now or thereafter made.

SECTION 16. INTERPRETATIONS. In interpreting and applying the provisions of this ordinance, the requirements contained herein are declared to be minimum requirements for the purposes set forth. The provisions of this ordinance, insofar as they are substantially the same as existing statutory provisions relating to the same subject matter, shall be construed as restatements and continuations and not as new enactments. This ordinance shall not nullify the more restrictive provisions of covenants, agreements or other ordinances or laws, but shall prevail as to such provisions which are less restrictive.

S E C T I O N 1 7 . C E Q A - E X E M P T I O N . T h e C i t y C o u n c i l f i n d s , p u r s u a n t t o T i t l e 1 4 o f t h e C a l i f o r n i a C o d e o f R e g u l a t i o n s , S e c t i o n 1 5 0 6 1 o f t h e C E Q A G u i d e l i n e s , t h a t t h i s o r d i n a n c e i s exempt from the requirements of the California Environmental Quality Act (CEQA) because it can be seen with certainty that there is no possibility that the changes adopted will have a significant effect on the environment, as the ordinance principally adopts supplemental findings in support of the local amendments to the Green Building Standards Code and makes minor corrections and clarifications to local amendments to the 2025 Building Codes previously adopted by the City C o u n c i l . T h e o r d i n a n c e i s a l s o e x e m p t f r o m C E Q A u n d e r S e c t i o n 1 5 3 0 8 ( C l a s s 8 ) A c t i o n s b y Regulatory Agencies for Protection of the Environment and Section 15305 (Class 5) Minor alterations in Land Use Limitations.

SECTION 18. CONSTITUTIONALITY; SEVERABILITY. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision or decisions shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.

Attachment 1

22 T-DPS-160230/87526
Council Agenda: 7/28/26
Item No.: 3
SECTION 19. EFFECTIVE DATE. This ordinance shall be in full force and effect thirty (30) days from and after the date of its adoption.

SECTION 20. POSTING AND PUBLICATION. The City Clerk is directed to cause copies of this ordinance to be posted in three (3) prominent places in the City of Sunnyvale and to cause publication once in The Sun, the official publication of legal notices of the City of Sunnyvale, of a notice setting forth the date of adoption, the title of this ordinance, and a list of places where copies of this ordinance are posted, within fifteen (15) days after adoption of this ordinance.

Introduced at a regular meeting of the City Council held on ____________, 2026, and adopted as an ordinance of the City of Sunnyvale at a regular meeting of the City Council held on _____________, 2026, by the following vote:

AYES:

NOES:

ABSTAIN:

ABSENT:

RECUSAL:

ATTEST: APPROVED:

DAVID CARNAHAN
City Clerk
Date of Attestation: _______________________

LARRY KLEIN
Mayor
(SEAL)
APPROVED AS TO FORM:
________________________________________

REBECCA MOON
City Attorney
Attachment 1

2025 Cost-
Effectiveness Study :

Single Family AC to Heat
Pump Replacement
Prepared by:

Ada Shen, Alea German, Keith
Saechao, & Marc Hoeschele,
Frontier Energy, Inc
Misti Bruceri, Misti Bruceri &
Associates, LLC
Prepared for:

Kelly Cunningham, Codes and
Standards Program, Pacific Gas
and Electric
Revision: 1.0
Last modified: 2025/06/09
Exhibit A-1
Attachment 1

Legal Notice
This report was prepared by
Pacific Gas and Electric Company
and funded by the California utility
customers under the auspices of
the California Public Utilities
Commission.

Copyright 2025, Pacific Gas and
Electric Company. All rights
reserved, except that this
document may be used, copied,
and distributed without
modification.

Neither PG&E nor any of its
employees makes any warranty,
express or implied; or assumes
any legal liability or responsibility
for the accuracy, completeness or
usefulness of any data,
information, method, product,
policy or process disclosed in this
document; or represents that its
use will not infringe any privately-
owned rights including, but not
limited to, patents, trademarks or
copyrights.

Table 1. Summary of Revisions
Date Description Reference (page or section)
6/09/2025 Original Release N/A
Attachment 1

Acronym List
AC – Air conditioner
ACH50 – Air Changes per
Hour at 50 pascals pressure
differential
AFUE – Annual Fuel
Utilization Efficiency
B/C – Lifecycle Benefit-to-
Cost Ratio
BSC – Building Standards
Commission
CA IOUs – California
Investor-Owned Utilities
CARE – California Alternate
Rates for Energy
CASE – Codes and
Standards Enhancement
CBECC-Res – Computer
program developed by the
California Energy
Commission for
demonstrating compliance
with the California
Residential Building Energy
Efficiency Standards
CFM – Cubic Feet per
Minute
CO
2 – Carbon Dioxide
CPAU – City of Palo Alto
Utilities
CPUC – California Public
Utilities Commission
CZ – California Climate
Zone
DFHP – Dual Fuel Heat
Pump
DHW – Domestic Hot Water
DOE – Department of
Energy
EDR – Energy Design
Rating
EER – Energy Efficiency
Ratio
EF – Energy Factor
GHG – Greenhouse Gas
HPWH – Heat Pump Water
Heater
HSPF – Heating Seasonal
Performance Factor
HVAC – Heating,
Ventilation, and Air
Conditioning
IOU – Investor Owned
Utility
kBtu – kilo-British thermal
unit
kWh – Kilowatt Hour
LCC – Lifecycle Cost
LLAHU – Low Leakage Air
Handler Unit
VLLDCS – Verified Low
Leakage Ducts in
Conditioned Space
NEEA – Northwest Energy
Efficiency Alliance
NEM – Net Energy Metering
NPV – Net Present Value
PG&E – Pacific Gas and
Electric Company
PV – Photovoltaic
SCE – Southern California
Edison
SDG&E – San Diego Gas
and Electric
SEER – Seasonal Energy
Efficiency Ratio
SF – Single Family
SMUD – Sacramento
Municipal Utility District
SoCalGas – Southern
California Gas Company
TDV – Time Dependent
Valuation
Therm – Unit for quantity of
heat that equals 100,000
British thermal units
Title 24 – Title 24, Part 6
TOU – Time-Of-Use
UEF – Uniform Energy
Factor
Attachment 1

Table of Contents
Executive Summary............................................................................................................ 4 1 Introduction.................................................................................................................. 7 2 Methodology and Assumptions .................................................................................. 9

2.1 Modeling............................................................................................................... 9

2.2 Prototype Characteristics.....................................................................................10

2.3 Cost-Effectiveness Approach..............................................................................13

2.3.1 Benefits ...........................................................................................................13

2.3.2 Costs ...............................................................................................................13

2.3.3 Metrics.............................................................................................................15

2.3.4 Utility Rates .....................................................................................................16

2.4 Measure Details and Cost....................................................................................18

2.4.1 Lifecycle Cost Assuming Zero-NOx Standards for Space Heating After 2030 ..20 3 Results........................................................................................................................ 22

3.1 Cost-Effectiveness Results..................................................................................22

3.1.1 Cost Effectiveness Results Using Standard Tariffs...........................................23

3.1.2 Cost Effectiveness Results Using CARE Tariffs ...............................................26

3.2 Zero-NOx Scenario Results.................................................................................28

3.3 AC Pathways for Heat Pump Replacements........................................................30 4 Recommendations and Discussion.......................................................................... 33 5 References ................................................................................................................. 36 6 Appendices ................................................................................................................ 38

6.1 Map of California Climate Zones..........................................................................38

6.2 Cost-Effectiveness Results..................................................................................39

6.2.1 Standard Rates................................................................................................39

6.2.2 CARE tariffs.....................................................................................................45

6.3 Utility Rate Schedules..........................................................................................51

6.3.1 Pacific Gas & Electric.......................................................................................51

6.3.2 Southern California Edison ..............................................................................60

6.3.3 Southern California Gas...................................................................................64

6.3.4 San Diego Gas & Electric ................................................................................65 Attachment 1

10 20
30 40
50 6.3.5 City of Palo Alto Utilities ...................................................................................72

6.3.6 Sacramento Municipal Utilities District (Electric Only) ...................................... 74

6.3.7 Fuel Escalation Assumptions ...........................................................................76 List of Tables
Table 1. Summary of Revisions............................................................................................ 1 Table 2. Residential Prototype Characteristics ....................................................................

Table 9. HVAC Measure Cost Assumptions – 4-Ton Electric Replacements........................

Table 11. Lifecycle Incremental Cost Breakdown for 4-Ton System with no Gas Furnaces Table 19. DFHP Existing Furnace LSC Savings (Zero-NOx Rule).......................................

Table 23. [Pre-1978] Standard Efficiency HPSH..................................................................

Table 33. [1978-1991] High Efficiency HPSH CARE............................................................

Table 3. Efficiency Characteristics for Three Vintage Cases................................................12 Table 4. System Sizing by Climate Zone .............................................................................15 Table 5. Investor-Owned Utility Tariffs Used Based on Climate Zone ..................................16 Table 6. Publicly Owned Utility Tariffs Used Based on Climate Zone...................................17 Table 7. Lifecycle Incremental Cost Breakdown for a 4-Ton DFHP Existing Furnace...........19 Table 8. Lifecycle Incremental Cost Breakdown for 4-Ton HPSH ........................................19 Table 10. SCAQMD Rule 1111 Proposed Manufacturer Compliance Targets.......................20 after 2030............................................................................................................................21 Table 12. [1992-2010] DFHP Existing Furnace....................................................................23 Table 13. [1992-2010] Standard Efficiency HPSH ...............................................................24 Table 14. [1992-2010] High Efficiency HPSH ......................................................................25 Table 15. [1992-2010] DFHP Existing Furnace CARE.........................................................26 Table 16. [1992-2010] Standard Efficiency HPSH CARE ....................................................27 Table 17. [1992-2010] High Efficiency HPSH CARE............................................................28 Table 18. DFHP Existing Furnace On-Bill NPV (Zero-NOx Rule).........................................29 Table 20. New AC Only Path Cost Estimates ......................................................................32 Table 21. New AC/Furnace and New Ducts Path Cost Estimates........................................32 Table 22. [Pre-1978] DFHP Existing Furnace......................................................................39 Table 24. [Pre-1978] High Efficiency HPSH.........................................................................41 Table 25. [1978-1991] DFHP Existing Furnace....................................................................42 Table 26. [1978-1991] Standard Efficiency HPSH ...............................................................43 Table 27. [1978-1991] High Efficiency HPSH ......................................................................44 Table 28. [Pre-1978] DFHP Existing Furnace CARE ...........................................................45 Table 29. [Pre-1978] Standard Efficiency HPSH CARE.......................................................46 Table 30. [Pre-1978] High Efficiency HPSH CARE..............................................................47 Table 31. [1978-1991] DFHP Existing Furnace CARE.........................................................48 Table 32. [1978-1991] Standard Efficiency HPSH CARE ....................................................49 Table 34. PG&E Baseline Territory by Climate Zone............................................................51 Table 35. PG&E Monthly Gas Rate ($/therm)......................................................................52 Attachment 1

Table 36. SCE Baseline Territory by Climate Zone ..............................................................60 Table 37. SoCalGas Baseline Territory by Climate Zone .....................................................64 Table 38. SoCalGas Monthly Gas Rate ($/therm)................................................................65 Table 39. SDG&E Baseline Territory by Climate Zone.........................................................65 Table 40. SDG&E Monthly Gas Rate ($/therm) ................................................................... 66 Table 41. CPAU Monthly Gas Rate ($/therm) ......................................................................72 Table 42. Real Utility Rate Escalation Rate Assumptions, CPUC En Banc and 2022 TDV Basis...................................................................................................................................77 Table 43. Real Utility Rate Escalation Rate Assumptions, 2025 LSC Basis.........................78 List of Figures
Figure 1. AC vs. Heat Pump Pathway Requirements ..........................................................31 Figure 2. AC vs. Heat Pump Energy Comparison................................................................31 Figure 3. Map of California climate zones. ..........................................................................38 Attachment 1

Executive Summary
The California Codes and Standards (C&S) Reach Codes program, also known as the Local Energy Codes program, provides technical support to local governments considering adopting a local ordinance (reach code) intended to support meeting local and/or statewide energy efficiency and greenhouse gas (GHG) reduction goals. The program facilitates adoption and implementation of the code when requested by local jurisdictions by providing resources such as cost-effectiveness studies, model language, sample findings, and other supporting documentation.

It is important to note that there is a voluntary measure in the 2025 CALGreen for replacing an air conditioner with a heat pump at time of air conditioner replacement, which can be adopted as is. This report seeks to provide options to modify the heat pump measure, and demonstrate the cost-effectiveness of these options.

This analysis used two different metrics to assess the cost-effectiveness of the proposed upgrades for a 1,665 square foot single family home prototype with an attached garage.

Both methodologies require estimating and quantifying the incremental costs and energy savings associated with each energy efficiency measure over a 30-year analysis period. On- Bill cost-effectiveness is an occupant-based lifecycle cost (LCC) approach that values energy based upon estimated site energy usage and customer utility bill savings using today’s electricity and natural gas utility tariffs. To reflect how natural gas prices fluctuate with seasonal supply and demand, a normalized curve was used to estimate the cost for the remaining months relative to today’s rates. Long-term Systemwide Cost (LSC) is the California Energy Commission’s metric for determining cost-effectiveness of efficiency measures in the 2025 Energy Code. This metric is intended to capture the long-term projected cost of energy including costs for providing energy during peak periods of demand, carbon emissions, grid transmission and distribution impacts.

Local jurisdictions may adopt ordinances that amend different parts of the California Building Standards Code or may elect to amend other state or municipal codes. The decision regarding which code to amend will determine the specific requirements that must be followed for an ordinance to be legally enforceable. For example, reach codes that amend Part 6 of the California Building Code (the Energy Code) and require energy performance beyond state code minimums must demonstrate the proposed changes are cost-effective and obtain approval from the Energy Commission as well as the Building Standards Commission (BSC). Amendments to Part 11, such as requirements for increased water efficiency or electric vehicle infrastructure only require BSC approval and do not require the Energy Commission approval. Although a cost-effectiveness study is only required to amend Part 6 of the California Building Code, this study provides valuable context for jurisdictions pursuing other ordinance paths to understand the economic impacts of the policy decision.

This study documents the estimated costs, benefits, energy impacts and greenhouse gas emission reductions that may result from implementing an ordinance based on the results to help residents, local leadership, and other stakeholders make informed policy decisions.

Attachment 1

The following summarizes key results:

1. H
eat pumps are significantly more efficient than gas furnaces, requiring less than hal
f the energy to meet the heating load. However, despite this reduction in heating ener
gy use, the cost of heating a home using electricity (heat pump) could be higher t
han the cost to heat that same home with natural gas (furnace), depending on the el
ectricity tariffs relative to the gas tariffs. Therefore, while a heat pump measure c
ould be deemed as cost-effective over its lifecycle, installing a heat pump could r
esult in a decrease or an increase in utility costs in the first years relative to a gas f
urnace and AC system.

2. The s
tudy assumes utility rates escalate over time. Because it is very difficult to pr
edict how the rates will change, the analysis presents two escalation scenarios (
modest and high gas escalation) to represent a range of outcomes.

3. The LS
C metric most often produces more favorable cost-effectiveness results r
elative to the results produced using actual utility costs (On-Bill). When the analysis as
sumes a higher escalation rate for natural gas costs relative to electricity in future y
ears (high gas escalation), the On-Bill results are more favorable in some cases. a. I
n the oldest (pre-1978) vintage, all three measures (dual fuel heat pump with ex
isting furnace, standard heat pump space heater, and high efficiency heat pum
p space heater) are cost-effective using the LSC metric in all climate z
ones. When using the On-Bill metric, the measures remain cost-effective in m
ost climate zones.
b. I
n the newer (1978-1991 and 1992-2010) vintages, the dual fuel heat pump (D
FHP Existing Furnace) and the standard efficiency HPSH are cost-effective bas
ed on LSC in all cases except for Climate Zone 15 when using both the s
tandard and California Alternate Rates for Energy (CARE) tariff.

4. U
sing the CARE tariff results in higher cost savings and cost-effectiveness relative to s
tandard rates, with almost all cases yielding first year utility cost savings. The DFHP E
xisting Furnace is On-Bill cost-effective based on the high gas escalation scenario i
n all cases in the pre-1978 vintage, and almost all cases in the 1978-1991 and 1992
-2010 vintage. It is also On-Bill cost-effective in most climate zones for the m
odest gas escalation scenario across all vintages. In Climate Zones 5, 8, 9, 10, 14, and 15,
cost-effectiveness declines relative to other areas, and in some cases is not co
st-effective from an On-Bill perspective. This is the case for both the CARE tariff and t
he standard rate.

5. The anal
ysis also modeled the cost impact of using a standard time-of-use electricity t
ariff versus switching to a newer electrification tariff, designed to reduce costs in hom
es with heat pumps and/or electric vehicles. Older homes tend to be the least ef
ficient and achieve the most savings from improving equipment efficiency. In most of
the state, because older homes tend to use more electricity than a similarly sized, new
er vintage home, they realize more costs savings under the electrification tariff.

New
er homes tend to use less electricity and therefore do not realize the same cost Attachment 1

savings from switching tariffs; they generally perform better under the standard tariff.

This trend is different in milder climate zones in SCE territory (excluding CZ 15), where newer homes realize more cost savings. Both the standard and electrification tariffs in SCE territory include a daily allocation of lower-cost baseline electricity and a second, higher-priced tier when the baseline is exceeded. In many newer homes, a higher percentage of overall electricity use is within the baseline allocation, resulting in greater cost savings.

6. H
igher efficiency equipment reduces utility costs in all cases and improves cost- effectiveness in many climate zones in the oldest vintage relative to standard ef
ficiency equipment. However, in more efficient newer homes, where cost- effectiveness is generally lower, the savings are insufficient to offset the roughly $3,
000 increase in incremental cost.

7. G
iven the adopted Bay Area Air Quality Management District (BAAD) Zero NOx rule, and t
he proposed California Air Resource Board or South Coast Air Quality M
anagement District (SCAQMD) Zero-NOx rules, and gas furnaces are no longer av
ailable or less available to be installed in 2030, a sensitivity analysis was per
formed for the Zero NOx scenario and found that cost-effectiveness declines in m
any cases except in Climate Zones 8-10, some results improve enough to become co
st-effective. The improved cost-effectiveness in Climate Zones 8-10 is due to the hi
gher baseline cost when a HPSH must be installed at year 10 when the furnace m
ust be replaced. However, the overall magnitude of 30-year On-Bill cost- effectiveness is lower because there are only 10 years of utility cost savings. After y
ear 10 the base case and upgrade measures are both heat pumps.

Thi
s report documents the key results and conclusions from the Reach Codes Team analysis. A full dataset of all results can be downloaded at https://localenergycodes.com/content/resources. Results alongside policy options can also be explored using the Cost-effectiveness Explorer at https://explorer.localenergycodes.com/.

Model ordinance language and other resources are posted on the C&S Reach Codes Program website at LocalEnergyCodes.com. Local jurisdictions that are considering adopting an ordinance may contact the program for further technical support at [email protected].

Attachment 1

1 Introduction
The California Codes and Standards Reach Codes program, also known as the Local Energy Codes program, provides technical support to local governments considering adopting a local ordinance intended to support meeting local and/or statewide energy efficiency and greenhouse gas (GHG) reduction goals. The program facilitates adoption and implementation of the code when requested by local jurisdictions by providing resources such as cost-effectiveness studies, model language, sample findings, and other supporting documentation.

Local jurisdictions may adopt ordinances that amend different parts of the California Building Standards Code or may elect to amend other state or municipal codes. The decision regarding which code to amend will determine the specific requirements that must be followed for an ordinance to be legally enforceable. For example, reach codes that amend Part 6 of the California Building Code (the Energy Code) (CEC, 2025) and require energy performance beyond state code minimums must demonstrate the proposed changes are cost-effective and obtain approval from the Energy Commission as well as the Building Standards Commission (BSC). Amendments to Part 11, such as requirements for increased water efficiency or electric vehicle infrastructure only require BSC approval and do not require the Energy Commission approval. Although a cost-effectiveness study is only required to amend Part 6 of the California Building Code, this study provides valuable context for jurisdictions pursuing other ordinance paths to understand the economic impacts of the policy decision. This study documents the estimated costs, benefits, energy impacts and greenhouse gas emission reductions that may result from implementing an ordinance based on the results to help residents, local leadership, and other stakeholders make informed policy decisions.

This report is an update to the 2022 Single Family Retrofit Cost-effectiveness Study (Statewide Reach Codes Team, 2024) focused on an ordinance structure that encourages air conditioner (AC) to heat pump replacement. The methodology, prototype characteristics, and relevant measure packages are retained from the main study referenced above. The study includes updated utility rates, revised costs based on the TECH Clean California 1 incremental cost study data, estimated costs for the AC path, updated and expanded AC path options, and a new cost-effectiveness scenario that considers upcoming proposed zero-NOx emission regulations (SCAQMD, 2025) (California Air Resources Board, 2022) (BAAD, 2025).

Local jurisdictions in California may consider adopting local energy ordinances to achieve energy savings beyond what will be accomplished by enforcing building efficiency requirements that apply statewide.

Local jurisdictions may also adopt ordinances that amend different parts of the California Building Standards Code or may elect to amend other state or municipal codes. The 1 https://techcleanca.com/
Attachment 1

decision regarding which code to amend will determine the specific requirements that must be followed for an ordinance to be legally enforceable. Although a cost-effectiveness study is only required to amend Part 6 of the CA Building Code, it is important to understand the economic impacts of any policy decision. This study documents the estimated costs, benefits, energy impacts and greenhouse gas emission reductions that may result from implementing an ordinance based on the results to help local leadership, residents, and other stakeholders make informed policy decisions.

This report was developed in coordination with the California Statewide Investor-Owned Utilities (IOUs) Codes and Standards Program, the California Energy Commission (CEC), key consultants, and engaged cities—collectively known as the Statewide Reach Codes Team. Model ordinance language and other resources are posted on the C&S Reach Codes Program website at LocalEnergyCodes.com. Local jurisdictions that are considering adopting an ordinance may contact the program for further technical support at [email protected].

Attachment 1

2 Methodology and Assumptions
This study evaluates a potential reach code that encourages a heat pump or dual fuel system that includes a heat pump combined with a furnace when an air conditioner is replaced or installed new in existing single family homes. The ordinance structure and this analysis is based on the voluntary requirements adopted in 2025 Title 24, Part 11 California Green Building Standards Code (CALGreen), Section A4.204.1.1 for heat pump space conditioning alterations in single family homes (California Energy Commission, 2025). The proposed reach code also defines pathways for air conditioning equipment to be installed combined with additional efficiency measures. The heat pump path requires the heat pump as the primary heat source, with backup heating allowable either provided by electric resistance or natural gas. In cases where the existing furnace remains, the heat pump is installed alongside the existing furnace with integrated controls to allow for the furnace to provide backup heating. In alignment with the 2025 Energy Code requirements the heat pump must be sized to satisfy the heating load at the design heating temperature without the use of backup heat.

All methodology and assumptions are consistent with prior statewide analysis (Statewide Reach Codes Team, 2024) with the following exceptions:

1. Updated utility rates to January 2025

2. Equipment costs based on TECH data where available; the original report was based on Statewide contractor survey costs

3. Cost estimates were obtained for the AC path

4. Expanded AC path options

5. Cost-effectiveness results for the scenario if gas furnaces are no longer available for sale in California in 2030

2.1 Modeling
The Reach Codes Team performed energy simulations using the 2025 research version of the Residential California Building Energy Code Compliance software (CBECC). The 2025 version of CBECC includes updated weather files, metrics, and the weather stations were changed in Climate Zones 4 and 6 from San Jose to Paso Robles and Torrance to Los Angeles International Airport, respectively. Note that at the time of this report, the Energy Commission was working on integrating a new heat pump model into the CBECC-Res software to better reflect the actual energy use of heat pumps. The updated model results in lower heating energy use than is currently estimated. Once the revised software is released, the reach codes team plans to update this analysis.

Three unique building vintages are included: pre-1978, 1978-1991, and 1992-2010. The vintages were defined based on review of historic building code requirements and defining periods with distinguishing features. The proposed measures were modeled to determine the projected site energy (therm and kWh), source energy, GHG emissions, and long-term systemwide cost (LSC) impacts. Annual utility costs were calculated using hourly data Attachment 1

output from CBECC, and updated (as of 1/1/2025) electricity and natural gas tariffs for each of the investor-owned utilities (IOUs) as appropriate for that climate zone.

Site energy results are similar between CBECC-Res 2022 and 2025. The 2025 compliance metrics include assumptions that more appliances will be electric in the future. This is predicted to result in higher natural gas retail rates as a result of gas utilities continuing to maintain safe and reliable infrastructure amidst declining natural gas use.

Equivalent CO2 emission reductions were calculated based on outputs from the CBECC- Res simulation software. Electricity emissions vary by region and by hour of the year.

CBECC-Res applies two distinct hourly profiles, one for Climate Zones 1 through 5 and 11 through 13 and another for Climate Zones 6 through 10 and 14 through 16. Natural gas emissions do not vary hourly. To compare the mixed-fuel and all-electric cases side-by-side, GHG emissions are presented as pounds of CO2-equivalent (CO2e) emissions.

The Statewide Reach Codes Team designed the approach and selected measures for evaluation based on the 2019 existing building single family reach code analysis (Statewide Reach Codes Team, 2021) and supporting analysis used in the 2025 Energy Code development cycle as well as from outreach to architects, builders, and engineers.

2.2 Prototype Characteristics
The Energy Commission defines building prototypes which it uses to evaluate the cost- effectiveness of proposed changes to Energy Code requirements. Average home size has steadily increased over time, and the Energy Commission single family new construction prototypes are larger than many existing single family homes across California. For this analysis, a 1,665 square foot prototype was evaluated. Table 2 describes the basic characteristics of the single family prototype. Additions are not evaluated in this analysis as they are already addressed in Section 150.2 of the Energy Code. In the 2025 Energy Code heat pumps are prescriptively required for space and water heating for additions (California Energy Commission, 2023).

Table 2. Residential Prototype Characteristics
Climate Zone Specification
Existing Conditioned Floor Area 1,665 ft2
Num. of Stories 1
Num. of Bedrooms 3
Window-to-Floor Area Ratio 13%
Attached Garage 2-car garage
Three building vintages were evaluated to determine sensitivity of existing building performance on cost-effectiveness of upgrades. For example, it is widely recognized that adding attic insulation in an older home with no insulation is cost-effective, however, newer homes will likely have existing attic insulation reducing the cost-effectiveness of an incremental addition of insulation. The building characteristics for each vintage were 2025/06/09
Attachment 1

determined based on either prescriptive requirements from the building code that were in effect or standard construction practice during that time period. For example, homes built under 2001 Title 24 are subject to prescriptive envelope code requirements very similar to homes built under the 2005 code cycle, which was in effect until January 1, 2010.

Table 3 summarizes the assumptions for each of the three vintages. Additionally, the analysis assumed the following features when modeling the prototype buildings. • Efficiencies were defined by year of the most recent equipment replacement based on standard equipment lifetimes.
• Individual space conditioning and water heating systems, one per single family building.
• Split-system air conditioner with natural gas furnace. • Gas cooktop, oven, and clothes dryer.

The methodology applied in the analyses begins with a design that matches the specifications as described in Table 3 for each of the three vintages. Heat pump space conditioning measures were modeled to determine the projected energy performance and utility cost impacts relative to the baseline vintage.

Attachment 1

Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 12 Building Component Efficiency
Feature Pre-1978 Vintage 1978-1991 Vintage 1992-2010 Vintage Envelope
Exterior Walls 2x4, 16-inch on center wood frame,
R-02
2x4 16 inch on center wood frame,
R-11
2x4 16 inch on center wood frame,
R-13
Foundation Type & Insulation Uninsulated slab (CZ 2-15) Raised floor, R-0 (CZ 1 & 16)
Uninsulated slab (CZ 2-15)
Raised floor, R-0 (CZ 1 & 16)
Uninsulated slab (CZ 2-15)
Raised floor, R-19 (CZ 1 & 16)
Ceiling Insulation & Attic Type
Vented attic, R-5 @ ceiling level for CZ
6 & 7,
Vented attic, R-11 @ ceiling level
(all other CZs)
Vented attic, R-19 @ ceiling level Vented attic, R-30 @ ceiling level Roofing Material & Color Asphalt shingles, dark
(0.10 reflectance, 0.85 emittance)
Asphalt shingles, dark
(0.10 reflectance, 0.85 emittance)
Asphalt shingles, dark
(0.10 reflectance, 0.85 emittance)
Radiant Barrier No No No
Window Type: U-factor/SHGC3 Metal, single pane: 1.16/0.76 Metal, dual pane: 0.79/0.70 Vinyl, dual pane Low-E: 0.55/0.40 House Infiltration at 50 Pascals 15 ACH50 10 ACH50 7 ACH50 HVAC Equipment
Heating Efficiency 78 AFUE (assumes 2 replacements) 78 AFUE (assumes 1 replacement) 78 AFUE Cooling Efficiency 10 SEER (assumes 2 replacements) 10 SEER (assumes 1 replacement) 13 SEER, 11 EER Duct Location & Details Attic, R-2.1, 30% leakage at 25 Pa Attic, R-2.1, 25% leakage at 25 Pa Attic, R-4.2, 15% leakage at 25 Pa Whole Building Mechanical
Ventilation None None None
Water Heating Equipment
Water Heater Efficiency 0.575 Energy Factor (assumes 2
replacements)

0.575 Energy Factor (assumes 1
replacement) 0.575 Energy Factor
Water Heater Type 40-gallon gas storage 40-gallon gas storage 40-gallon gas storage Pipe Insulation None None None
Hot Water Fixtures Standard, non-low flow Standard, non-low flow Standard, non-low flow 2 Pre-1978 wall modeled with R-5 cavity insulation to better align wall system performance with monitored field data and not overestimate energy use. 3 Window type selections were made based on conversations with window industry expert, Ken Nittler. If a technology was entering the market during the time period (e.g., Low-E during 1992-2010 or dual-pane during 1978-1991) that technology was included in the analysis. This provides a conservative assumption for overall building performance and additional measures may be cost-effective for buildings with lower performing windows, for example buildings with metal single pane windows in the 1978-1991 vintage
2025/06/09
Attachment 1

2.3 Cost-Effectiveness Approach

2.3.1 Benefits
This analysis used two different metrics to assess the cost-effectiveness of the proposed upgrades. Both methodologies require estimating and quantifying the incremental costs and energy savings associated with each energy efficiency measure. The main difference between the methodologies is the way they value energy impacts:
• On-Bill: Customer-based lifecycle cost approach that values energy based upon es
timated site energy usage and customer On-Bill savings using electricity and nat
ural gas utility rate schedules over a 30-year duration, accounting for a three per
cent discount rate and energy cost inflation per Appendix 6.3.7. • Long
-term Systemwide Cost (LSC): Formerly known as Time Dependent Valuation (
TDV) energy cost savings, LSC reflects the Energy Commission’s current lifecycle co
st (LCC) methodology, which is intended to capture the total value or cost of ener
gy use over 30 years. This method accounts for the hourly cost of marginal gener
ation, transmission and distribution, fuel, capacity, losses, and cap-and-trade- based CO2 emissions (California Energy Commission, 2023). This is the m
ethodology used by the Energy Commission in evaluating cost-effectiveness for m
easures in the 2025 Energy Code.

Ener
gy simulations were completed using the 2025 research version of the Residential California Building Energy Code Compliance software (CBECC).

2.3.2 Costs
The Reach Codes Team assessed the incremental costs and savings of the packages over the lifecycle of 30-years. Incremental costs represent the equipment, installation, replacement, and maintenance costs of the proposed measure relative to the 2025 Energy Code minimum requirements or standard industry practices.

In February 2024, the TECH Clean California statewide program completed an incremental cost study from cost data collected from 64 contractor participants (Opinion Dynamics, 2024). This report directly uses the TECH costs for all the scenarios for which there was TECH cost data available. These costs were supplemented with measure costs the Reach Codes Team obtained from a contractor survey conducted in the summer of 2023. Additional detail on the contractor cost survey is available in the prior existing building statewide study (Statewide Reach Codes Team, 2024). The following summarizes key assumptions in this costing approach.
• Average statewide costs from the TECH Study were used, no regional specific cost s
w
ere applied.
• C
osts for 3-ton and 4-ton units were scaled for smaller and larger systems based on l
inear interpolation between the 3-ton and 4-ton costs.

Attachment 1

• The TECH study provided cost for a minimum efficiency 60,000 Btu/h gas furnace.

H
owever, beginning in 2028, newly installed residential gas furnaces must comply w
ith updated federal efficiency standards requiring a minimum of 95% AFUE4.

B
ecause the TECH study did not include cost estimates for a 95% AFUE condensing f
urnace, an adjustment was made using data from the statewide contractor cost s
urvey. For systems requiring larger furnace capacities, cost estimates were derived a
s follows:
o 80,
000 Btu/h furnaces (serving systems sized 3 tons): The cost difference bet
ween the minimum efficiency and 95% AFUE versions of the 80,000 Btu/h f
urnace and the cost difference between the minimum efficiency 80,000 Btu/h f
urnace and the minimum efficiency 60,000 Btu/h furnace, as reported in the c
ontractor survey, was added to the TECH cost for the 60,000 Btu/h unit. o 100,
000 Btu/h furnaces (serving systems 4 tons and larger): The same m
ethod was applied using the corresponding cost differential for 100,000 B
tu/h units.
• A
t time of replacement for the heat pump, based on heating loads and contractor f
eedback it is assumed an electric resistance backup coil would be installed with the ai
r handler for Climate Zones 1 and 16. The CBECC-Res software applies back up el
ectric resistance heating for all climate zones whenever it is assumed that the heat pum
p cannot meet the heating load based on the performance of currently available pr
oducts (Heinemeier, 2025).The TECH costs did not include this option. The $819 i
ncremental cost from the statewide study was added in this case. • A
t the time of replacement for a furnace when it fails, the statewide study assumed a f
an motor replacement. The TECH costs did not include this option. A $1,200 i
ncremental cost was added to the TECH cost.
• A
t time of replacement for high efficiency heat pump, the sum of the TECH cost for s
tandard efficiency heat pump and the incremental cost difference from the s
tatewide study for high efficiency and standard efficiency heat pump was applied.

C
osts were applied based on the system capacity from heating and cooling load calculations in CBECC-Res as presented in Table 4. Air conditioner nominal capacity was calculated as the CBECC-Res cooling load, rounded up to the nearest half ton. Heat pump nominal capacity was calculated as the maximum of either the CBECC-Res heating or cooling load, rounded up to the nearest half ton. In both cases a minimum capacity of 1.5- ton was applied as this represents the typical smallest available split system heat pump equipment. Load calculations revealed that Climate Zones 2 through 15 were cooling- dominated, whereas Climate Zones 1 and 16 were heating-dominated. In these heating- 4 https://www.energy.gov/articles/doe-finalizes-energy-efficiency-standards-residential-furnaces-save- americans-15-
billion#:~:text=These%20furnace%20efficiency%20standards%20were,heat%20for%20the%20living %20space.

Attachment 1

dominated zones, the heat pump was upsized compared to an air conditioner designed solely for cooling to ensure adequate heating performance.

Table 4. System Sizing by Climate Zone
Climate
Zone
Air Conditioner
Capacity (tons)
Heat Pump
Capacity (tons)
1 1.5 3.0
2 3.5 3.5
3 2.5 2.5
4 3.5 3.5
5 3.0 3.0
6 3.0 3.0
7 3.0 3.0
8 4.0 4.0
9 4.0 4.0
10 4.0 4.0
11 4.5 4.5
12 4.0 4.0
13 4.5 4.5
14 4.0 4.0
15 5.0 5.0
16 3.5 4.0

2.3.3 Metrics
Cost-effectiveness is presented using net present value (NPV). • NPV: The Reach Codes Team uses net savings (NPV benefits minus NPV costs) as t
he cost-effectiveness metric. If the net savings of a measure or package is positive, i
t is considered cost effective. Negative net savings represent net costs to the c
onsumer. A measure that has negative energy cost benefits (energy cost increase) c
an still be cost effective if the costs to implement the measure are even more negat
ive (i.e., construction and maintenance cost savings).

I
mproving the energy performance of a building often requires an initial investment. In most cases the benefit is represented by annual On-Bill utility or LSC savings, and the cost by incremental first cost and replacement costs. However, some packages result in initial construction cost savings (negative incremental cost), and either energy cost savings (positive benefits), or increased energy costs (negative benefits). In cases where both construction costs and energy-related savings are negative, the construction cost savings are treated as the benefit while the increased energy costs are the cost. In cases where a measure or package is cost-effective immediately (i.e., upfront construction cost savings and lifetime energy cost savings).

Attachment 1

2.3.4 Utility Rates
In coordination with the CA IOU rates team (comprised of representatives from Pacific Gas and Electric (PG&E), Southern California Edison (SCE) and San Diego Gas and Electric (SDG&E)) and two Publicly-Owned-Utilities (POUs) (Sacramento Municipal Utility District (SMUD) and City of Palo Alto Utilities (CPAU)), the Reach Codes Team determined appropriate utility rates for each climate zone to calculate utility costs and determine On-Bill cost-effectiveness for the proposed measures and packages. The utility tariffs, summarized in Table 5 and Table 6 with details in Section 6.2.26.2.2, were determined based on the appropriate rate for each. Utility rates were applied to each climate zone based on the predominant IOU serving the population of each zone, with a few climate zones evaluated multiple times under different utility scenarios. Climate Zones 10 and 14 were evaluated with both SCE for electricity and Southern California Gas Company (SoCalGas) for gas and SDG&E tariffs for both electricity and gas since each utility has customers within these climate zones. Climate Zone 5 is evaluated under both PG&E and SoCalGas natural gas rates. Two POU or municipal utility rates were also evaluated: SMUD in Climate Zone 12 and CPAU in Climate Zone 4.

First-year utility costs were calculated using hourly electricity and natural gas output from CBECC-Res and applying the utility tariffs summarized in Table 5 and Table 6. Homes with a heat pump in IOU territory are eligible for either the electrification or the standard tariff. Utility costs were calculated under both tariffs with results presented using the one that yielded the lower annual utility cost. The electrification tariff resulted in better utility costs savings when there was high kWh usage, typically in older, less efficient homes. Conversely, newer homes which are more efficient, tend to benefit more under the standard tariff. However, in SCE’s milder climate zones, older homes benefit more under the standard tariff. Annual costs were also estimated for IOU customers eligible for the CARE tariff discounts on both electricity and natural gas bills.

Table 5. Investor-Owned Utility Tariffs Used Based on Climate Zone Climate
Zones
Electric / Gas
Utility
Electricity
Tariff:

Standard
Rate
Electricity
Tariff:

Electrification
Rate
Natural Gas
Tariff
1-5,11-13,16 PG&E / PG&E E-TOU-C E-ELEC G1
5 PG&E / SoCalGas E-TOU-C E-ELEC GR
6, 8-10, 14, 15 SCE / SoCalGas TOU-D-4-9 TOU-D-PRIME GR 7, 10, 14 SDG&E / SDG&E TOU-DR-1 EV-TOU-5 GR
Attachment 1

Table 6. Publicly Owned Utility Tariffs Used Based on Climate Zone Climate
Zones
Electric / Gas Utility
Electricity Tariff: Standard
Rate
Electricity
Tariff:

Electrification
Rate
Natural Gas
Tariff
4 CPAU / CPAU E-1 G1
12 SMUD / PG&E R-TOD G1
Utility rates are assumed to escalate over time. Because it is very difficult to predict how rates will change, two escalation scenarios are presented in this study to represent a range of outcomes. See Appendix 6.3.7 Fuel Escalation Assumptions for details. 1) M
odest Gas Escalation: This scenario is based on assumptions from the CPUC 2021 E
n Banc hearings on utility costs through 2030 (California Public Utilities C
ommission, 2021a). Escalation rates throughout the remainder of the 30-year ev
aluation period are based on the escalation rate assumptions within the 2022 E
nergy Code TDV factors developed by the Energy Commission (California Energy C
ommission. 2021b).
2) Hig
h Gas Escalation: This scenario is based on escalation rates developed by the E
nergy Commission and used within the 2025 Energy Code LSC factors (LSC r
eplaces TDV in the 2025 Energy Code) which assumed steep increases in gas r
ates in the latter half of the analysis period.

El
ectricity tariff structures will evolve over time. Most recently, the CPUC approved an income-graduated fixed charge intended to benefit low-income customers and support electrification measures.5 The IOUs are currently developing tariffs that meet the direction given by the CPUC in this proceeding. These tariffs were not available at the time of this study, but this analysis may be re-evaluated later in 2025 once the rates are finalized. 5 https://www.cpuc.ca.gov/industries-and-topics/electrical-energy/electric-costs/demand-response- dr/demand-flexibility-rulemaking
Attachment 1

2.4 Measure Details and Cost
This section describes the details of the measures and documents incremental costs. All measure costs were obtained from the TECH cost survey and contractor survey unless otherwise noted. These surveys reflect the cost to the customer and include equipment, labor, permit fees, and required HERS testing.

The following heat pump space heater (HPSH) measures were evaluated as described below. All included HERS verified refrigerant charge, 10% duct sealing, and 300 CFM/ton airflow, aligned with the proposed code requirements for the 2025 Title 24 code. 1) D
ual Fuel Heat Pump (DFHP Existing Furnace): Replace existing ducted AC with an el
ectric heat pump and install controls to operate the heat pump as the primary s
pace conditioning source and to use the existing gas furnace (78 AFUE) for backup heat w
hen heating demands cannot be met by the heat pump. In this report, dual f
uel heat pumps were modeled to disable furnace operation above an outdoor t
emperature of 35°F in compliance with Energy Code Section 150.0(h)7, which r
equires this lockout for any heat pump with supplemental heating. A minimum f
ederal efficiency (14.3 SEER2, 11.7 EER2, 7.5 HSPF2) heat pump was evaluated.

S
avings are compared to a new AC (14.3 SEER2, 11.7 EER2) alongside the existing f
urnace (78 AFUE). A new evaporator coil is assumed to be installed with the AC syst
em.
2) H
PSH: Replace existing ducted AC and natural gas furnace with an electric heat pum
p and air handler. Minimum federal efficiency (14.3 SEER2, 11.7 EER2, 7.5 H
SPF2) heat pumps were evaluated. Savings are compared to a new ducted natural gas
furnace and AC (14.3 SEER2, 11.7 EER2, 80 AFUE).
3) H
igh Efficiency HPSH: Replace existing ducted AC and natural gas furnace with an el
ectric heat pump and air handler. Higher efficiency (17 SEER2, 12.48 EER2, 9.5 H
SPF2) heat pumps were evaluated. Savings are compared to a new ducted natural gas
furnace and AC (14.3 SEER2, 11.7 EER2, 80 AFUE).

O
ver the 30-year analysis period, certain changes are assumed when the equipment is replaced that impact both lifetime costs and energy use. Table 7 and Table 8 present the lifetime scenario for the DFHP Existing Furnace and HPSH measures, respectively. The analysis assumed a 20-year effective useful lifetime (EUL) for a furnace, a 15-year EUL for an air conditioner and a 15-year EUL for a heat pump. Lifetimes are based on the Database for Energy Efficient Resources (DEER) (California Public Utilities Commission, 2021b). The existing furnace is assumed to be halfway through its EUL at the beginning of the analysis period. After 10 years when the furnace reaches the end of its life and needs to be replaced, it will be subject to new federal efficiency standards for residential gas furnaces that go into effect in 2028 requiring 95 AFUE

6. Five years later the air conditioner reaches the end of its life and is replaced with a new air conditioner.
6 https://www.energy.gov/articles/doe-finalizes-energy-efficiency-standards-residential-furnaces-save- americans-15-
billion#:~:text=These%20furnace%20efficiency%20standards%20were,heat%20for%20the%20livin g%20space.

Attachment 1

For the DFHP upgrade case, after 10 years when the furnace fails it’s expected that the furnace is abandoned in place since the heat pump serves primary heating and was sized to provide the full design heating load. In this case it is assumed that the fan motor is replaced with a new aftermarket unit and operates another five years until the heat pump fails and is replaced with a new heat pump and air handler. Table 7 through Table 8 present the lifecycle incremental cost breakdown for a 4-ton system. The heat pump is sized for each climate zone based on the heating and cooling load as shown in Table 4, and the 4-ton system was selected as an example to show the lifecycle cost breakdown.

Table 7. Lifecycle Incremental Cost Breakdown for a 4-Ton DFHP Existing Furnace Calendar
Year
Baseline AC
Replacement
Schedule
Baseline
Future
Cost
Baseline
Present
Value
Cost
Heat Pump
Heat
Pump
Future
Cost
Heat
Pump
Present
Value
Cost
2026 AC fails, install new
AC, keep existing
furnace
$10,431 $10,431 AC fails, install new
HP , keep existing
furnace
$12,347 $12,347
2036 Furnace fails, install
new 95AFUE
furnace
$7,476 $5,563 Furnace fails,
replace fan motor
$1,200 $893
2041 AC fails, install new
AC
$10,431 $6,695 HP fails, install new
HP and air handler
$14,529 $9,326
Total $22,689 $22,566
Incremental Cost -$123
Table 8. Lifecycle Incremental Cost Breakdown for 4-Ton HPSH Calendar
Year
Baseline AC
Replacement
Schedule
Baseline Future
Cost
Baseline
Present
Value
Cost
Heat Pump
Heat Pump
Future
Cost
Heat
Pump
Present
Value
Cost
2026 AC fails, install
new AC &
furnace
$13,808 $13,808 AC fails,
install new

HP & AHU
$14,529 $14,529
2041 AC fails, install
new AC
$10,431 $6,695 HP fails,
install new

HP & AHU
$13,529 $8,684
2046 Furnace fails,
install new
95AFUE
furnace
$7,476 $4,139
- - -
2056 Remaining
useful life for
furnace
-
-$1,540
- - -
Total $23,103 $23,213
Incremental Cost $110
Attachment 1

Table 9 presents estimated first and lifetime costs for the baseline and heat pump scenarios for 4-ton equipment. Costs include all material and installation labor including providing new 240 V electrical service to the air handler location for all new air handler installations and decommissioning of the furnace for the cases where the furnace is removed. DFHP costs incorporate controls installation and commissioning to ensure the heat pump and the furnace communicate properly and don’t operate at the same time. Future replacement costs do not include any initial costs associated with 240V electrical service or furnace decommissioning.

Table 9. HVAC Measure Cost Assumptions – 4-Ton Electric Replacements Measure Case
AC +
Evaporator
Coil
Gas
Furnace
/AC
DFHP Existing
Furnace HPSH
High
Efficiency
HPSH
Base Case - - AC +
Evaporator Coil
Gas
Furnace
/AC
Gas
Furnace
/AC
First Cost $10,431 $13,808 $12,347 $14,529 $17,506
Replacement Cost
(Future Value) $17,907 $17,907 $15,729 $13,529 $16,506
Replacement Cost
(Present Value) $12,258 $11,639 $10,219 $8,684 $10,594
Remaining Value at
Year 30 $0 -$1,540 $0 $0 $0
Total Lifecycle Cost $22,689 $23,103 $22,566 $23,213 $28,100 Incremental Cost - - -$123 $110 $4,997

2.4.1 Lifecycle Cost Assuming Zero-NOx Standards for Space Heating After 2030
The California Air Resource Board proposed a strategy for reducing emissions in their 2022 Scoping Plan for Achieving Carbon Neutrality that includes a zero-emission standard for space and water heaters sold in California that would go into effect in 2030 (California Air Resources Board, 2022).

The South Coast Air Quality Management District (SCAQMD) proposed Rule 1111 for the Reduction of NOx Emissions from Natural Gas-Fired Furnaces. This rule applies to furnaces less than 175,000 Btu/hr and sets compliance goals for manufacturers with the proposed dates in Table 10. The sale of gas furnaces above the compliance target will incur a mitigation fee (SCAQMD, 2025).

Table 10. SCAQMD Rule 1111 Proposed Manufacturer Compliance Targets Target Dates 2027-2028 2029-2032 2033-2035 2036 and after NOx Emitting Units (e.g. gas) 70% 50% 25% 10%
Zero-Emission Units 30% 50% 75% 90%
Attachment 1

The Bay Area Air Quality Management District (BAAD) adopted Rule 9-4 that similarly requires zero NOx standards for space heating systems sold in the Bay Area.

Implementation for residential furnaces will begin January 2029 (BAAD, 2025).

The BAAD Rule 9-4 has been adopted, but both the California Air Resources Board and SCAQMD Rule 1111 are proposed rules that have not yet been adopted, but given the implications these rulings would have on the 30-year cost-effectiveness if gas furnaces were very limited or no longer available in 2030, a sensitivity analysis for this scenario is included in this study for the DFHP Existing Furnace scenario. The other heat pump measures would also be impacted by this ruling; however, for simplicity the team selected one measure to give a sense of the impact on the results. The following costs reflect the scenario where gas furnaces are not available in 2030. This 30-year lifecycle analysis assumes that in 10 years when the furnace reaches the end of its useful life and needs to be replaced, it will be subjected to the SCAQMD Rule 1111 or California Air Resources Board proposal and will be replaced with a heat pump.

Table 11. Lifecycle Incremental Cost Breakdown for 4-Ton System with no Gas Furnaces after 2030
Calendar
Year
Baseline AC
Replacement
Schedule
Baseline
Future
Cost
Baseline
Present
Value
Cost
Heat Pump
Heat
Pump
Future
Cost
Heat
Pump
Present
Value
Cost
2026
AC fails, install new
AC, keep existing
furnace
$10,431 $10,431
AC fails, install new
HP , keep existing
furnace
$12,347 $12,347
2036 Furnace fails, install
new HP $14,529 $10,811 Furnace fails,
replace fan motor $1,200 $893
2041 - - - HP fails, install new
HP and air handler $14,529 $9,326
2051 HP fails, install new
HP $13,529 $6,462 - - -
2056 Remaining useful
life for HP - -$4,459 - - -
Total $23,244 $22,566
Incremental Cost -$679
Attachment 1

3 Results
The primary objective of the evaluation is to identify cost-effective HPSH upgrade measures for existing single family buildings, to support the design of local ordinances encouraging installation of a heat pump when replacing an air conditioner. While this section focuses primarily on the results of the cost-effectiveness analysis, it is important to highlight that the associated greenhouse gas (GHG) emissions savings are significant – averaging a 25% annual reduction across the climate zones and vintages. A full dataset of all results, including site energy, source energy, LSC and GHG emissions, can be downloaded at https://localenergycodes.com/content/resources. Results alongside policy options can also be explored using the Cost-effectiveness Explorer at https://explorer.localenergycodes.com/.

3.1 Cost-Effectiveness Results
Table 12 through Table 14 present results across the 16 climate zones for the 1992-2010 vintage using standard tariffs and Table 15 through Table 17 present results across the 16 climate zones and three vintages using CARE tariffs. Results show the incremental cost and utility bill savings for the first year along with cost effectiveness results for LSC and On-Bill under both the modest and high gas escalation scenarios. Results for additional vintages using standard tariffs are in Appendix 6.2 Cost-Effectiveness Results.

Attachment 1

3.1.1 Cost Effectiveness Results Using Standard Tariffs Table 12. [1992-2010] DFHP Existing Furnace
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $2,405 $60 $10,843 $5,471 $21,616
CZ02 PGE $1,670 ($86) $8,387 $2,238 $12,692
CZ03 PGE $1,178 $15 $8,383 $4,891 $13,958
CZ04 PGE $1,670 ($68) $7,322 $1,880 $10,049
CZ04 CPAU $1,670 ($9) $7,322 $2,132 $7,104
CZ05 PGE $1,424 ($12) $6,848 $3,425 $11,150
CZ05 PGE/SCG $1,424 ($195) $6,848 ($1,864) $2,099
CZ06 SCE/SCG $1,424 ($34) $2,647 $675 $1,468
CZ07 SDGE $1,424 ($36) $2,691 $599 $1,734
CZ08 SCE/SCG $1,916 ($65) $1,879 ($811) $162
CZ09 SCE/SCG $1,916 ($90) $2,600 ($1,186) $288
CZ10 SCE/SCG $1,916 ($79) $2,295 ($982) $394
CZ10 SDGE $1,916 $54 $2,295 $2,201 $4,708
CZ11 PGE $2,162 $68 $7,597 $4,639 $14,675
CZ12 PGE $1,916 $44 $8,317 $4,702 $15,222
CZ12 SMUD/PGE $1,916 $353 $8,317 $11,622 $22,364
CZ13 PGE $2,162 $76 $5,244 $3,897 $11,138
CZ14 SCE/SCG $1,916 ($179) $4,654 ($2,364) $1,340
CZ14 SDGE $1,916 ($22) $4,654 $1,282 $7,058
CZ15 SCE/SCG $2,408 ($133) ($271) ($3,438) ($3,209)
CZ16 PGE $2,243 ($66) $8,842 $1,260 $11,982
Attachment 1

Table 13. [1992-2010] Standard Efficiency HPSH
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $3,067 ($145) $10,949 ($34) $17,899
CZ02 PGE $652 ($229) $9,362 ($702) $11,825
CZ03 PGE $514 ($62) $8,244 $2,373 $11,665
CZ04 PGE $652 ($205) $8,680 ($572) $10,753
CZ04 CPAU $652 ($85) $8,680 $556 $7,194
CZ05 PGE $583 ($113) $6,957 $752 $9,206
CZ05 PGE/SCG $583 ($316) $6,957 ($5,101) ($811)
CZ06 SCE/SCG $583 ($37) $2,134 ($63) $716
CZ07 SDGE $583 ($39) $2,156 ($149) $981
CZ08 SCE/SCG $721 ($79) $1,812 ($1,356) ($371)
CZ09 SCE/SCG $721 ($118) $2,589 ($2,038) ($524)
CZ10 SCE/SCG $721 ($103) $2,311 ($1,723) ($259)
CZ10 SDGE $721 $34 $2,311 $1,533 $4,218
CZ11 PGE $790 ($35) $8,817 $2,833 $14,504
CZ12 PGE $721 ($94) $9,199 $1,812 $13,563
CZ12 SMUD/PGE $721 $363 $9,199 $12,027 $24,107
CZ13 PGE $790 $6 $5,948 $2,558 $10,687
CZ14 SCE/SCG $721 ($412) $6,635 ($6,964) ($1,073)
CZ14 SDGE $721 ($107) $6,635 $166 $10,249
CZ15 SCE/SCG $859 ($139) ($112) ($3,434) ($3,186)
CZ16 PGE $2,095 ($385) $13,600 ($2,842) $19,424
Attachment 1

Table 14. [1992-2010] High Efficiency HPSH
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $5,998 $56 $9,783 ($350) $17,727
CZ02 PGE $3,606 ($94) $7,527 ($2,544) $10,080
CZ03 PGE $3,422 $59 $5,701 $312 $9,692
CZ04 PGE $3,606 ($61) $6,961 ($2,193) $9,235
CZ04 CPAU $3,606 $0 $6,961 ($2,389) $4,310
CZ05 PGE $3,514 $4 $4,176 ($1,450) $7,088
CZ05 PGE/SCG $3,514 ($199) $4,176 ($7,303) ($2,929)
CZ06 SCE/SCG $3,514 ($14) ($2,162) ($4,367) ($3,567)
CZ07 SDGE $3,514 ($12) ($2,090) ($4,312) ($3,191)
CZ08 SCE/SCG $3,698 $13 ($1,660) ($4,217) ($3,149)
CZ09 SCE/SCG $3,698 ($26) ($750) ($4,883) ($3,284)
CZ10 SCE/SCG $3,698 ($4) ($844) ($4,418) ($2,864)
CZ10 SDGE $3,698 $132 ($844) ($1,068) $1,587
CZ11 PGE $3,789 $186 $7,738 $2,845 $14,675
CZ12 PGE $3,698 $88 $7,575 $996 $12,879
CZ12 SMUD/PGE $3,698 $422 $7,575 $8,459 $20,580
CZ13 PGE $3,789 $208 $4,419 $2,165 $10,439
CZ14 SCE/SCG $3,698 ($219) $5,760 ($7,575) ($1,506)
CZ14 SDGE $3,698 $77 $5,760 ($424) $9,604
CZ15 SCE/SCG $3,881 $50 ($2,144) ($4,209) ($3,786)
CZ16 PGE $5,071 ($97) $14,557 ($1,291) $21,181
Attachment 1

3.1.2 Cost Effectiveness Results Using CARE Tariffs
Table 15. [1992-2010] DFHP Existing Furnace CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $2,405 $153 $10,843 $6,436 $19,266
CZ02 PGE $1,670 $18 $8,387 $3,842 $12,159
CZ03 PGE $1,178 $73 $8,383 $5,574 $12,777
CZ04 PGE $1,670 $14 $7,322 $3,143 $9,641
CZ04 CPAU $1,670 $0 $7,322 $711 $711
CZ05 PGE $1,424 $47 $6,848 $4,198 $10,337
CZ05 PGE/SCG $1,424 ($98) $6,848 $23 $3,191
CZ06 SCE/SCG $1,424 ($18) $2,647 $967 $1,600
CZ07 SDGE $1,424 ($16) $2,691 $1,000 $1,887
CZ08 SCE/SCG $1,916 ($38) $1,879 ($285) $495
CZ09 SCE/SCG $1,916 ($52) $2,600 ($450) $731
CZ10 SCE/SCG $1,916 ($45) $2,295 ($331) $771
CZ10 SDGE $1,916 $51 $2,295 $1,998 $3,963
CZ11 PGE $2,162 $115 $7,597 $4,993 $12,965
CZ12 PGE $1,916 $103 $8,317 $5,287 $13,643
CZ12 SMUD/PGE $1,916 $418 $8,317 $12,339 $20,922
CZ13 PGE $2,162 $100 $5,244 $3,939 $9,686
CZ14 SCE/SCG $1,916 ($98) $4,654 ($849) $2,119
CZ14 SDGE $1,916 $23 $4,654 $2,007 $6,528
CZ15 SCE/SCG $2,408 ($88) ($271) ($2,456) ($2,260)
CZ16 PGE $2,243 $33 $8,842 $2,737 $11,267
Attachment 1

Table 16. [1992-2010] Standard Efficiency HPSH CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $3,067 $33 $10,949 $2,703 $16,973
CZ02 PGE $652 ($59) $9,362 $2,211 $12,188
CZ03 PGE $514 $25 $8,244 $3,685 $11,074
CZ04 PGE $652 ($53) $8,680 $2,048 $11,067
CZ04 CPAU $652 $0 $8,680 $255 $255
CZ05 PGE $583 ($13) $6,957 $2,389 $9,117
CZ05 PGE/SCG $583 ($173) $6,957 ($2,232) $1,208
CZ06 SCE/SCG $583 ($20) $2,134 $249 $872
CZ07 SDGE $583 ($18) $2,156 $279 $1,161
CZ08 SCE/SCG $721 ($47) $1,812 ($728) $62
CZ09 SCE/SCG $721 ($70) $2,589 ($1,094) $122
CZ10 SCE/SCG $721 ($61) $2,311 ($892) $281
CZ10 SDGE $721 $39 $2,311 $1,509 $3,612
CZ11 PGE $790 $60 $8,817 $4,141 $13,421
CZ12 PGE $721 $22 $9,199 $3,592 $12,940
CZ12 SMUD/PGE $721 $471 $9,199 $13,622 $23,292
CZ13 PGE $790 $61 $5,948 $3,234 $9,693
CZ14 SCE/SCG $721 ($241) $6,635 ($3,632) $1,098
CZ14 SDGE $721 ($5) $6,635 $1,996 $9,885
CZ15 SCE/SCG $859 ($91) ($112) ($2,414) ($2,201)
CZ16 PGE $2,095 ($92) $13,600 $2,163 $19,892
Attachment 1

Table 17. [1992-2010] High Efficiency HPSH CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $5,998 $164 $9,783 $813 $15,177
CZ02 PGE $3,606 $28 $7,527 ($683) $9,357
CZ03 PGE $3,422 $104 $5,701 $674 $8,120
CZ04 PGE $3,606 $41 $6,961 ($703) $8,383
CZ04 CPAU $3,606 $0 $6,961 ($4,595) ($4,595)
CZ05 PGE $3,514 $62 $4,176 ($727) $6,056
CZ05 PGE/SCG $3,514 ($98) $4,176 ($5,348) ($1,853)
CZ06 SCE/SCG $3,514 ($5) ($2,162) ($4,219) ($3,583)
CZ07 SDGE $3,514 ($0) ($2,090) ($4,112) ($3,235)
CZ08 SCE/SCG $3,698 $15 ($1,660) ($4,248) ($3,401)
CZ09 SCE/SCG $3,698 ($8) ($750) ($4,603) ($3,330)
CZ10 SCE/SCG $3,698 $6 ($844) ($4,300) ($3,065)
CZ10 SDGE $3,698 $103 ($844) ($1,892) $191
CZ11 PGE $3,789 $203 $7,738 $2,425 $11,808
CZ12 PGE $3,698 $141 $7,575 $1,351 $10,784
CZ12 SMUD/PGE $3,698 $471 $7,575 $8,735 $18,405
CZ13 PGE $3,789 $192 $4,419 $1,255 $7,809
CZ14 SCE/SCG $3,698 ($111) $5,760 ($5,632) ($783)
CZ14 SDGE $3,698 $115 $5,760 ($98) $7,755
CZ15 SCE/SCG $3,881 $36 ($2,144) ($4,549) ($4,220)
CZ16 PGE $5,071 $95 $14,557 $1,460 $19,324

3.2 Zero-NOx Scenario Results
This section presents cost-effectiveness results for the DFHP Existing Furnace under the scenario where proposed air quality district zero-NOx rules go into effect over the next 10 years. In the base case, at time of replacement of the gas furnace at year 10 a heat pump is installed. The energy profile between the base case and the heat pump upgrade case are subsequently identical for the remaining 20 years of the 30-year analysis period. As a result, energy and cost savings only persist for the first 10 years.

Table 18 shows the On-Bill NPV cost-effectiveness results and Table 19 the LSC cost- effectiveness results for all three vintages. 2025 LSC savings were calculated using individual year multipliers for the first 10 years, 2026 through 2035.

Attachment 1

Table 18. DFHP Existing Furnace On-Bill NPV (Zero-NOx Rule) Climate
Zone
Electric/
Gas Utility
On-Bill NPV
Pre-1978 1978-1991 1992-2010
CZ01 PGE $5,473 $4,136 $2,349
CZ02 PGE $1,785 $1,031 $1,101
CZ03 PGE $2,863 $2,097 $2,052
CZ04 PGE $2,133 $1,162 $1,019
CZ04 CPAU $2,340 $1,599 $1,213
CZ05 PGE $1,918 $1,486 $1,576
CZ05 PGE/SCG ($1,308) ($834) ($491)
CZ06 SCE/SCG $401 $605 $635
CZ07 SDGE $1,473 $999 $641
CZ08 SCE/SCG ($125) $99 $195
CZ09 SCE/SCG ($563) ($183) $22
CZ10 SCE/SCG ($259) $53 $110
CZ10 SDGE $2,985 $2,261 $1,430
CZ11 PGE $3,287 $2,866 $2,279
CZ12 PGE $2,935 $2,578 $2,202
CZ12 SMUD/PGE $7,877 $5,978 $5,040
CZ13 PGE $2,927 $2,556 $2,053
CZ14 SCE/SCG ($864) ($943) ($543)
CZ14 SDGE $2,204 $1,655 $1,064
CZ15 SCE/SCG $1,338 $396 ($688)
CZ16 PGE $1,192 $1,071 $1,096
Attachment 1

Table 19. DFHP Existing Furnace LSC Savings (Zero-NOx Rule) Climate
Zone
Electric/
Gas Utility

LSC NPV
Pre-1978 1978-1991 1992-2010
CZ01 PGE $3,019 $2,510 $1,558
CZ02 PGE $1,256 $1,025 $1,006
CZ03 PGE $1,460 $1,120 $1,036
CZ04 PGE $1,242 $949 $887
CZ04 CPAU $1,242 $949 $887
CZ05 PGE $1,127 $816 $820
CZ05 PGE/SCG $1,127 $816 $820
CZ06 SCE/SCG $545 $318 $251
CZ07 SDGE $639 $403 $314
CZ08 SCE/SCG $428 $279 $244
CZ09 SCE/SCG $608 $424 $372
CZ10 SCE/SCG $469 $320 $293
CZ10 SDGE $469 $320 $293
CZ11 PGE $1,871 $1,475 $1,263
CZ12 PGE $1,924 $1,539 $1,356
CZ12 SMUD/PGE $1,375 $1,090 $939
CZ13 PGE ($206) ($186) $50
CZ14 SCE/SCG ($206) ($186) $50
CZ14 SDGE $127 $60 $38
CZ15 SCE/SCG ($185) ($12) $77
CZ16 PGE $3,019 $2,510 $1,558

3.3 AC Pathways for Heat Pump Replacements
Many jurisdictions are interested in seeing alternative pathways for residents who may prefer to replace an air conditioner with similar equipment, rather than migrating to a heat pump system. Alternative packages analyzed to support this request include air conditioning equipment combined with additional efficiency measures resulting in options that are reasonably energy or LSC cost equivalent to a heat pump system, to the extent feasible.

Figure 1 shows two AC pathways, one with an existing duct system and another path with a new duct system, alongside the heat pump pathways. The figure presents the proposed efficiency upgrade measures that would be part of a reach code (solid blue) along with the relevant requirements from Title 24, Part 6 that are triggered as part of equipment replacements (white or gradient blue). A reach code that establishes requirements when an air conditioner is replaced or installed new could allow for either a heat pump to be installed or an AC as long as the performance measures listed below are met.

Attachment 1

Figure 1. AC vs. Heat Pump Pathway Requirements
The heat pump only and two AC pathways are presented in Figure 2 comparing total LSC energy use relative to the existing home for the 1992-2010 vintage. The heat pump path is represented by the DFHP Existing Furnace scenario. In most climate zones, the heat pump path results in higher energy savings, in the milder climates the AC and new ducts and New AC Only paths save marginally more energy.

Figure 2. AC vs. Heat Pump Energy Comparison
Attachment 1

Though the AC path does not need to meet cost-effectiveness criteria to be adopted as a reach code since it’s an alternative path, in order to understand the implications of the AC path on the customer, Table 20 and Table 21 present estimated costs for the new AC only and the new AC + new ducts paths respectively.

Table 20. New AC Only Path Cost Estimates
New AC Only Path Pre-1978 1978-1991 1992-2010
Fan Efficacy: 0.45 W/CFM - - -
Refrigerant Charge Verification $100 $100 $1007
R-49 Attic Insulation $5,483 $3,612 $1,827
Air Sealing $1,963 $1,963 $1,963
Total $7,546 $5,675 $3,790
Table 21. New AC/Furnace and New Ducts Path Cost Estimates New AC and New Ducts Path Pre-1978 1978-1991 1992-2010
New R-8 Ducts $6,311 $6,311 $6,311
Furnace $5,951 $5,951 $5,951
Fan Efficacy: 0.35 W/CFM $500 $500 $500
Refrigerant Charge Verification $100 $100 $100
Total $12,862 $12,862 $12,862
7 This is an incremental cost and in some climate zones, refrigerant charge verification is required so there is no incremental cost added.
2025/06/09
Attachment 1

4 Recommendations and Discussion
This analysis evaluated the feasibility and cost-effectiveness of AC to heat pump measures in California existing homes built before 2010. To meet the needs of jurisdictions evaluating this option, Statewide Reach Codes Team used both On-Bill and LSC-based lifecycle cost approaches to evaluate cost-effectiveness and quantify the energy cost savings associated with energy efficiency measures compared to the incremental costs associated with the measures.

Conclusions and Discussion:

1. H
eat pumps are significantly more efficient than gas furnaces, requiring less than hal
f the energy to meet the heating load. However, despite this reduction in heating ener
gy use, the cost of heating a home using electricity (heat pump) could be higher t
han the cost to heat that same home with natural gas (furnace), depending on the el
ectricity tariffs relative to the gas tariffs. Therefore, while a heat pump measure c
ould be deemed as cost-effective over its lifecycle, installing a heat pump could r
esult in a decrease or an increase in utility costs in the first years relative to a gas f
urnace and AC system. For example, the heat pump space heater measure in c
limate zone 12 in the newest vintage results in the customer saving money on their u
tility bill in SMUD territory but paying more on their utility bill in PG&E territory. Both P
G&E and SMUD territory use PG&E gas rates, but SMUD has lower electricity r
ates than PG&E. With fuel switching measures like the AC to HP measure, the el
ectricity to gas ratio has a significant impact on the savings or costs the customer w
ill see by switching from gas to an electric heat pump space heater.

2. The LS
C metric most often produces more favorable cost-effectiveness results r
elative to the results produced using actual utility costs (On-Bill). When the analysis as
sumes a higher escalation rate for natural gas costs relative to electricity in future y
ears (high gas escalation), the On-Bill results are more favorable in some cases. a. I
n the oldest (pre-1978) vintage, all three measures (dual fuel heat pump wit
h existing furnace, standard heat pump space heater, and high efficiency heat
pump space heater) are cost-effective using the LSC metric in all c
limate zones. When using the On-Bill metric, the measures remain cost- effective in most climate zones.
b. I
n the newer (1978-1991 and 1992-2010) vintages, the dual fuel heat pump (D
FHP Existing Furnace) and the standard efficiency HPSH are cost-effective bas
ed on LSC in all cases except for Climate Zone 15 when using both the s
tandard and California Alternative Rates for Energy (CARE) tariff.

3. U
sing the CARE tariff results in higher cost savings and cost-effectiveness relative to s
tandard rates, with almost all cases yielding first year utility cost savings. The DFHP E
xisting Furnace is On-Bill cost-effective based on the high gas escalation scenario i
n all cases in the pre-1978 vintage, and almost all cases in the 1978-1991 and 1992
-2010 vintage. It is also On-Bill cost-effective in most climate zones for the Attachment 1

modest gas escalation scenario across all vintages. In Climate Zones 5, 8, 9, 10, 14, and 15, cost-effectiveness declines relative to other areas, and in some cases is not cost-effective from an On-Bill perspective. This is the case for both the CARE tariff and the standard rate.

4. The anal
ysis also modeled the cost impact of using a standard time-of-use electricity t
ariff versus switching to a newer electrification tariff, designed to reduce costs in hom
es with heat pumps and/or electric vehicles. Older homes tend to be the least ef
ficient and achieve the most savings from improving equipment efficiency. In most of
the state, because older homes tend to use more electricity than a similarly sized, new
er vintage home, they realize more costs savings under the electrification tariff.

N
ewer homes tend to use less electricity and therefore do not realize the same cost s
avings from switching tariffs; they generally perform better under the standard tariff.

Thi
s trend is different in milder climate zones in SCE territory (excluding CZ 15), w
here newer homes realize more cost savings than older homes. Both the standard and el
ectrification tariffs in SCE territory include a daily allocation of lower-cost bas
eline electricity and a second, higher-priced tier when the baseline is exceeded.

I
n many newer homes, a higher percentage of overall electricity use is within the bas
eline allocation, resulting in greater cost savings.

5. H
igher efficiency equipment reduces utility costs in all cases and improves cost- effectiveness in many climate zones in the oldest vintage relative to standard ef
ficiency equipment. However, in more efficient newer homes, where cost- effectiveness is generally lower, the savings are insufficient to offset the roughly $3,
000 increase in incremental cost.

6. G
iven the adopted Bay Area Air Quality Management District Zero NOx rule, and the pr
oposed California Air Resource Board or South Coast Air Quality Management Dis
trict (SCAQMD) Zero-NOx rules, and gas furnaces may not be available to be i
nstalled in 2030, a sensitivity analysis was performed for the Zero NOx scenario and f
ound that cost-effectiveness decreases in many cases except in Climate Zones 8- 10, some results improve enough to become cost-effective. The improved cost- effectiveness in Climate Zones 8-10 is due to the higher baseline cost when a HPSH m
ust be installed at year 10 when the furnace must be replaced. However, the ov
erall magnitude of 30-year On-Bill cost-effectiveness is lower because there are onl
y 10 years of utility cost savings. After year 10 the base case and upgrade m
easures are both heat pumps.

7. W
hile not evaluated in this report, the 2022 Single Family Retrofit Cost-effectiveness S
tudy (Statewide Reach Codes Team, 2024) shows it is beneficial to combine a heat pum
p space conditioning system with photovoltaics (PV) because the additional el
ectricity required by the heat pump can be met by the PV system and result in r
educed utility bills.

8. I
n this study the dual fuel heat pump is evaluated with an existing furnace, however t
he homeowner could choose to replace the existing furnace with a new furnace at Attachment 1

this time as well. This measure (DFHP New Furnace) was evaluated in the 2022 Single Family Retrofit Cost-effectiveness Study (Statewide Reach Codes Team, 2024) but found to be less cost-effective than the DFHP Existing Furnace case.

Attachment 1

5 References
BAAD. (2025, May 7). Rules 9-4 and 9-6 Building Appliances. Retrieved from Bay Area Air District: https://www.baaqmd.gov/en/rules-and-compliance/rule- development/building-appliances
California Air Resources Board. (2022, August 12). 2022 State Strategy for the State Implementation Plan (2022 State SIP Strategy). Retrieved from California Air Resources Board Web site: https://ww2.arb.ca.gov/sites/default/files/2022- 11/Proposed_2022_State_SIP_Strategy.pdf
California Energy Commission. (2017). Rooftop Solar PV System. Measure number: 2019- Res-PV-D Prepared by Energy and Environmental Economics, Inc. Retrieved from https://efiling.energy.ca.gov/getdocument.aspx?tn=221366 California Energy Commission. (2021b). Final Express Terms for the Proposed Revisions to the 2022 Energy Code Reference Appendices. Retrieved from https://efiling.energy.ca.gov/Lists/DocketLog.aspx?docketnumber=21-BSTD-01 California Energy Commission. (2023). 2025 Energy code Hourly Factors. Retrieved from https://www.energy.ca.gov/files/2025-energy-code-hourly-factors California Energy Commission. (2023). Draft 2025 Energy Code Express Terms. Retrieved from
https://efiling.energy.ca.gov/GetDocument.aspx?tn=252915&DocumentContentId=88 051
California Energy Commission. (2025). Final Express Terms for the Proposed Revisions to 2025 Title 24, Part 11 (CALGreen). Retrieved from
https://efiling.energy.ca.gov/GetDocument.aspx?tn=261229&DocumentContentId=97 592
California Public Utilities Commission. (2021a). Utility Costs and Affordability of the Grid of the Future: An Evaluation of Electric Costs, Rates, and Equity Issues Pursuant to P.U. Code Section 913.1. Retrieved from https://www.cpuc.ca.gov/-/media/cpuc- website/divisions/office-of-governmental-affairs-division/reports/2021/senate-bill-695- report-2021-and-en-banc-whitepaper_final_04302021.pdf
California Public Utilities Commission. (2021b). Database for Energy-Efficient resources (DEER2021 Update). Retrieved April 13, 2021, from
http://www.deeresources.com/index.php/deer-versions/deer2021 Department of Energy. (2023). DOE Finalizes Energy Efficiency Standards for Residential Furnaces to Save Americans $1.5 Billion In Annual Utility Bills. Retrieved from www.energy.gov: https://www.energy.gov/articles/doe-finalizes-energy-efficiency- standards-residential-furnaces-save-americans-15-billion Attachment 1

E-CFR. (2020). https://www.ecfr.gov/cgi-
bin/retrieveECFR?gp=&SID=8de751f141aaa1c1c9833b36156faf67&mc=true&n=pt1

0.3.431&r=PART&ty=HTML#se10.3.431_197. Retrieved from Electronic Code of Federal Regulations: https://www.ecfr.gov/cgi-
bin/retrieveECFR?gp=&SID=8de751f141aaa1c1c9833b36156faf67&mc=true&n=pt1

0.3.431&r=PART&ty=HTML#se10.3.431_197
Heinemeier, K. (2025). Residential HVAC Performance. Retrieved from https://title24stakeholders.com/wp-content/uploads/2025/03/Residential-HVAC- Performance.pdf
SCAQMD. (2025). Proposed Amended Rules (PAR) 1111 and 1121. Retrieved from aqmd.gov.

SCAQMD. (2025, February 21). Space and Water Heating Building Appliances. Retrieved from South Coast AQMD: https://www.aqmd.gov/docs/default- source/Agendas/ssc/ssc-agenda-2-21-2025.pdf
Statewide CASE Team. (2023). Multifamily Domestic Hot Water. Retrieved from https://title24stakeholders.com/wp-content/uploads/2023/08/2025_T24_CASE- Report-_MF-DHW-Final-1.pdf
Statewide CASE Team. (2023). Residential HVAC PErformance. Retrieved from https://title24stakeholders.com/wp-
content/uploads/2023/11/Revised_2025_T24_Final-CASE-Report-RES-HVAC- Performance.pdf
Statewide Reach Codes Team. (2021). 2019 Cost-Effectiveness Study: Existing Single Family Residential Buidling Upgrades. Retrieved from
https://localenergycodes.com/content/resources
Statewide Reach Codes Team. (2024). 2022 Cost-Effectiveness Study: Existing Single Family Building Upgrades. Prepared by Frontier Energy. Retrieved from https://localenergycodes.com/download/1222/file_path/fieldList/Single%20Family%2 0Retrofits%20CostEff%20Report.pdf
Attachment 1

6 Appendices

6.1 Map of California Climate Zones
Climate zone geographical boundaries are depicted in Figure 3. The map in Figure 3 along with a zip-code search directory is available at:
https://ww2.energy.ca.gov/maps/renewable/building_climate_zones.html Figure 3. Map of California climate zones.

Attachment 1

6.2 Cost-Effectiveness Results

6.2.1 Standard Rates
The following tables present results across the16 climate zones for the pre-1978 (Table 22 through Table 24) and the 1978-1991 (Table 25 through Table 27) vintages supplementing the results in Section 3.

Table 22. [Pre-1978] DFHP Existing Furnace
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $2,405 $155 $25,223 $14,524 $51,831
CZ02 PGE $1,670 ($81) $11,551 $4,316 $20,806
CZ03 PGE $1,178 $39 $11,680 $7,248 $21,906
CZ04 PGE $1,670 ($7) $10,574 $4,948 $18,321
CZ04 CPAU $1,670 $63 $10,574 $5,177 $14,531
CZ05 PGE $1,424 ($29) $9,462 $4,574 $16,955
CZ05 PGE/SCG $1,424 ($314) $9,462 ($3,674) $2,838
CZ06 SCE/SCG $1,424 ($70) $4,223 $179 $1,795
CZ07 SDGE $1,424 $41 $4,278 $2,725 $5,055
CZ08 SCE/SCG $1,916 ($111) $3,216 ($1,507) $375
CZ09 SCE/SCG $1,916 ($168) $4,238 ($2,500) $125
CZ10 SCE/SCG $1,916 ($133) $3,755 ($1,774) $774
CZ10 SDGE $1,916 $201 $3,755 $6,175 $10,683
CZ11 PGE $2,162 $93 $11,970 $7,593 $24,951
CZ12 PGE $1,916 $46 $12,302 $6,948 $24,190
CZ12 SMUD/PGE $1,916 $584 $12,302 $18,997 $36,626
CZ13 PGE $2,162 $112 $8,180 $6,374 $18,740
CZ14 SCE/SCG $1,916 ($244) $6,646 ($2,926) $3,332
CZ14 SDGE $1,916 $65 $6,646 $4,203 $13,297
CZ15 SCE/SCG $2,408 $80 $401 $1,506 $2,532
CZ16 PGE $2,243 ($199) $17,538 $2,333 $25,276
Attachment 1

Table 23. [Pre-1978] Standard Efficiency HPSH
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $3,067 ($127) $27,155 $7,800 $48,445
CZ02 PGE $652 ($242) $13,342 $1,420 $21,282
CZ03 PGE $514 ($46) $11,946 $4,614 $19,670
CZ04 PGE $652 ($139) $13,059 $3,274 $21,888
CZ04 CPAU $652 ($48) $13,059 $3,194 $15,372
CZ05 PGE $583 ($131) $9,998 $2,045 $15,648
CZ05 PGE/SCG $583 ($449) $9,998 ($7,152) ($94)
CZ06 SCE/SCG $583 ($76) $3,860 ($652) $931
CZ07 SDGE $583 $35 $3,876 $1,901 $4,218
CZ08 SCE/SCG $721 ($128) $3,305 ($2,112) ($199)
CZ09 SCE/SCG $721 ($219) $4,415 ($3,839) ($1,141)
CZ10 SCE/SCG $721 ($188) $3,982 ($3,168) ($483)
CZ10 SDGE $721 $166 $3,982 $5,200 $10,049
CZ11 PGE $790 ($74) $14,045 $4,727 $24,836
CZ12 PGE $721 ($179) $13,850 $2,374 $21,622
CZ12 SMUD/PGE $721 $601 $13,850 $19,845 $39,654
CZ13 PGE $790 ($14) $9,394 $3,998 $17,858
CZ14 SCE/SCG $721 ($450) $10,103 ($6,294) $4,015
CZ14 SDGE $721 ($66) $10,103 $2,757 $18,994
CZ15 SCE/SCG $859 $68 $643 $1,364 $2,430
CZ16 PGE $2,095 ($484) $27,492 $2,918 $49,419
Attachment 1

Table 24. [Pre-1978] High Efficiency HPSH
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $5,998 $249 $30,518 $11,401 $52,316
CZ02 PGE $3,606 ($24) $13,354 $1,431 $21,449
CZ03 PGE $3,422 $100 $10,768 $3,122 $18,282
CZ04 PGE $3,606 $118 $13,537 $4,185 $22,984
CZ04 CPAU $3,606 $101 $13,537 $1,665 $13,950
CZ05 PGE $3,514 $10 $8,416 $384 $14,087
CZ05 PGE/SCG $3,514 ($308) $8,416 ($8,814) ($1,654)
CZ06 SCE/SCG $3,514 $3 $380 ($3,709) ($2,052)
CZ07 SDGE $3,514 $114 $430 ($1,063) $1,230
CZ08 SCE/SCG $3,698 $31 $1,065 ($3,478) ($1,420)
CZ09 SCE/SCG $3,698 ($40) $2,358 ($4,759) ($1,897)
CZ10 SCE/SCG $3,698 $6 $2,191 ($3,746) ($882)
CZ10 SDGE $3,698 $344 $2,191 $4,481 $9,276
CZ11 PGE $3,789 $283 $15,614 $7,801 $28,167
CZ12 PGE $3,698 $152 $14,490 $4,899 $24,385
CZ12 SMUD/PGE $3,698 $708 $14,490 $17,350 $37,236
CZ13 PGE $3,789 $326 $10,164 $6,697 $20,802
CZ14 SCE/SCG $3,698 ($173) $11,876 ($5,041) $5,522
CZ14 SDGE $3,698 $244 $11,876 $5,111 $21,254
CZ15 SCE/SCG $3,881 $335 $393 $2,323 $3,635
CZ16 PGE $5,071 $45 $34,043 $9,856 $56,737
Attachment 1

Table 25. [1978-1991] DFHP Existing Furnace
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $2,405 $99 $20,184 $10,746 $40,368
CZ02 PGE $1,670 ($114) $9,142 $2,185 $14,361
CZ03 PGE $1,178 $3 $9,033 $5,101 $15,624
CZ04 PGE $1,670 ($68) $8,160 $2,319 $11,818
CZ04 CPAU $1,670 $18 $8,160 $3,161 $9,418
CZ05 PGE $1,424 ($32) $7,070 $3,268 $11,902
CZ05 PGE/SCG $1,424 ($238) $7,070 ($2,666) $1,747
CZ06 SCE/SCG $1,424 ($39) $2,941 $614 $1,557
CZ07 SDGE $1,424 $1 $3,046 $1,512 $2,837
CZ08 SCE/SCG $1,916 ($78) $2,145 ($1,026) $145
CZ09 SCE/SCG $1,916 ($116) $2,978 ($1,655) $122
CZ10 SCE/SCG $1,916 ($89) $2,606 ($1,096) $571
CZ10 SDGE $1,916 $139 $2,606 $4,321 $7,320
CZ11 PGE $2,162 $103 $9,118 $6,239 $18,777
CZ12 PGE $1,916 $60 $9,604 $5,770 $18,506
CZ12 SMUD/PGE $1,916 $430 $9,604 $14,059 $27,062
CZ13 PGE $2,162 $111 $6,237 $5,242 $14,247
CZ14 SCE/SCG $1,916 ($230) $4,931 ($3,277) $1,039
CZ14 SDGE $1,916 $35 $4,931 $2,793 $9,271
CZ15 SCE/SCG $2,408 ($17) ($99) ($807) ($310)
CZ16 PGE $2,243 ($161) $14,397 $1,740 $20,318
Attachment 1

Table 26. [1978-1991] Standard Efficiency HPSH
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $3,067 ($128) $21,427 $5,043 $37,346
CZ02 PGE $652 ($235) $10,428 ($90) $14,711
CZ03 PGE $514 ($67) $8,999 $2,767 $13,608
CZ04 PGE $652 ($164) $9,984 $1,062 $14,605
CZ04 CPAU $652 ($66) $9,984 $1,535 $9,914
CZ05 PGE $583 ($132) $7,290 $703 $10,264
CZ05 PGE/SCG $583 ($361) $7,290 ($5,939) ($1,104)
CZ06 SCE/SCG $583 ($43) $2,450 ($151) $775
CZ07 SDGE $583 ($3) $2,539 $747 $2,065
CZ08 SCE/SCG $721 ($96) $2,111 ($1,658) ($472)
CZ09 SCE/SCG $721 ($152) $3,022 ($2,659) ($831)
CZ10 SCE/SCG $721 ($121) $2,672 ($2,017) ($239)
CZ10 SDGE $721 $114 $2,672 $3,568 $6,801
CZ11 PGE $790 ($46) $10,682 $3,545 $18,156
CZ12 PGE $721 ($110) $10,747 $2,278 $16,574
CZ12 SMUD/PGE $721 $445 $10,747 $14,697 $29,392
CZ13 PGE $790 $1 $7,141 $3,112 $13,232
CZ14 SCE/SCG $721 ($398) $7,556 ($6,191) $1,058
CZ14 SDGE $721 ($53) $7,556 $1,909 $13,834
CZ15 SCE/SCG $859 ($25) $71 ($848) ($322)
CZ16 PGE $2,095 ($445) $22,236 $708 $37,873
Attachment 1

Table 27. [1978-1991] High Efficiency HPSH
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $5,998 $169 $23,092 $6,895 $39,412
CZ02 PGE $3,606 ($75) $9,242 ($1,370) $13,547
CZ03 PGE $3,422 $53 $6,872 $675 $11,602
CZ04 PGE $3,606 $26 $9,114 $463 $14,143
CZ04 CPAU $3,606 $43 $9,114 ($868) $7,590
CZ05 PGE $3,514 ($16) $4,859 ($1,522) $8,122
CZ05 PGE/SCG $3,514 ($246) $4,859 ($8,164) ($3,246)
CZ06 SCE/SCG $3,514 ($1) ($1,546) ($4,024) ($3,059)
CZ07 SDGE $3,514 $47 ($1,407) ($2,879) ($1,576)
CZ08 SCE/SCG $3,698 $37 ($828) ($3,608) ($2,300)
CZ09 SCE/SCG $3,698 ($17) $232 ($4,573) ($2,623)
CZ10 SCE/SCG $3,698 $20 $82 ($3,764) ($1,856)
CZ10 SDGE $3,698 $251 $82 $1,869 $5,060
CZ11 PGE $3,789 $259 $10,685 $5,452 $20,283
CZ12 PGE $3,698 $138 $10,023 $2,954 $17,430
CZ12 SMUD/PGE $3,698 $525 $10,023 $11,609 $26,363
CZ13 PGE $3,789 $289 $6,612 $4,624 $14,951
CZ14 SCE/SCG $3,698 ($188) $7,697 ($6,429) $1,012
CZ14 SDGE $3,698 $182 $7,697 $2,525 $14,378
CZ15 SCE/SCG $3,881 $193 ($1,111) ($992) ($267)
CZ16 PGE $5,071 ($30) $26,407 $5,118 $42,581
Attachment 1

6.2.2 CARE tariffs
Table 28. [Pre-1978] DFHP Existing Furnace CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $2,405 $364 $25,223 $16,641 $46,300
CZ02 PGE $1,670 $64 $11,551 $6,432 $19,553
CZ03 PGE $1,178 $128 $11,680 $8,248 $19,898
CZ04 PGE $1,670 $90 $10,574 $6,198 $16,835
CZ04 CPAU $1,670 $0 $10,574 $711 $711
CZ05 PGE $1,424 $69 $9,462 $5,901 $15,746
CZ05 PGE/SCG $1,424 ($157) $9,462 ($613) $4,598
CZ06 SCE/SCG $1,424 ($37) $4,223 $776 $2,067
CZ07 SDGE $1,424 $42 $4,278 $2,609 $4,434
CZ08 SCE/SCG $1,916 ($63) $3,216 ($595) $911
CZ09 SCE/SCG $1,916 ($97) $4,238 ($1,132) $972
CZ10 SCE/SCG $1,916 ($75) $3,755 ($660) $1,379
CZ10 SDGE $1,916 $160 $3,755 $4,963 $8,500
CZ11 PGE $2,162 $183 $11,970 $8,415 $22,212
CZ12 PGE $1,916 $152 $12,302 $8,126 $21,834
CZ12 SMUD/PGE $1,916 $686 $12,302 $20,080 $34,172
CZ13 PGE $2,162 $160 $8,180 $6,595 $16,418
CZ14 SCE/SCG $1,916 ($126) $6,646 ($779) $4,233
CZ14 SDGE $1,916 $101 $6,646 $4,530 $11,652
CZ15 SCE/SCG $2,408 $60 $401 $982 $1,788
CZ16 PGE $2,243 $34 $17,538 $5,963 $24,236
Attachment 1

Table 29. [Pre-1978] Standard Efficiency HPSH CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $3,067 $205 $27,155 $12,440 $44,777
CZ02 PGE $652 ($16) $13,342 $5,095 $20,910
CZ03 PGE $514 $76 $11,946 $6,319 $18,293
CZ04 PGE $652 $41 $13,059 $6,031 $20,843
CZ04 CPAU $652 $0 $13,059 $255 $255
CZ05 PGE $583 $12 $9,998 $4,285 $15,110
CZ05 PGE/SCG $583 ($240) $9,998 ($2,978) $2,679
CZ06 SCE/SCG $583 ($42) $3,860 ($7) $1,259
CZ07 SDGE $583 $37 $3,876 $1,837 $3,652
CZ08 SCE/SCG $721 ($75) $3,305 ($1,076) $457
CZ09 SCE/SCG $721 ($131) $4,415 ($2,095) $72
CZ10 SCE/SCG $721 ($110) $3,982 ($1,649) $504
CZ10 SDGE $721 $139 $3,982 $4,305 $8,106
CZ11 PGE $790 $94 $14,045 $7,108 $23,108
CZ12 PGE $721 $20 $13,850 $5,506 $20,829
CZ12 SMUD/PGE $721 $772 $13,850 $22,326 $38,189
CZ13 PGE $790 $89 $9,394 $5,347 $16,369
CZ14 SCE/SCG $721 ($241) $10,103 ($2,418) $5,836
CZ14 SDGE $721 $62 $10,103 $4,832 $17,541
CZ15 SCE/SCG $859 $52 $643 $930 $1,769
CZ16 PGE $2,095 $16 $27,492 $10,883 $47,907
Attachment 1

Table 30. [Pre-1978] High Efficiency HPSH CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $5,998 $450 $30,518 $13,096 $45,609
CZ02 PGE $3,606 $126 $13,354 $3,405 $19,322
CZ03 PGE $3,422 $172 $10,768 $3,678 $15,720
CZ04 PGE $3,606 $209 $13,537 $4,926 $19,859
CZ04 CPAU $3,606 $0 $13,537 ($4,595) ($4,595)
CZ05 PGE $3,514 $103 $8,416 $1,521 $12,412
CZ05 PGE/SCG $3,514 ($148) $8,416 ($5,742) ($19)
CZ06 SCE/SCG $3,514 $11 $380 ($3,634) ($2,319)
CZ07 SDGE $3,514 $89 $430 ($1,774) $25
CZ08 SCE/SCG $3,698 $33 $1,065 ($3,586) ($1,955)
CZ09 SCE/SCG $3,698 ($10) $2,358 ($4,304) ($2,027)
CZ10 SCE/SCG $3,698 $21 $2,191 ($3,628) ($1,354)
CZ10 SDGE $3,698 $255 $2,191 $2,127 $5,893
CZ11 PGE $3,789 $327 $15,614 $7,382 $23,549
CZ12 PGE $3,698 $236 $14,490 $5,437 $20,914
CZ12 SMUD/PGE $3,698 $772 $14,490 $17,439 $33,302
CZ13 PGE $3,789 $310 $10,164 $5,378 $16,558
CZ14 SCE/SCG $3,698 ($54) $11,876 ($3,161) $5,265
CZ14 SDGE $3,698 $263 $11,876 $4,651 $17,300
CZ15 SCE/SCG $3,881 $232 $393 ($35) $970
CZ16 PGE $5,071 $360 $34,043 $13,682 $50,953
Attachment 1

Table 31. [1978-1991] DFHP Existing Furnace CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $2,405 $273 $20,184 $12,619 $36,168
CZ02 PGE $1,670 $12 $9,142 $4,166 $13,857
CZ03 PGE $1,178 $76 $9,033 $6,011 $14,375
CZ04 PGE $1,670 $23 $8,160 $3,702 $11,261
CZ04 CPAU $1,670 $0 $8,160 $711 $711
CZ05 PGE $1,424 $40 $7,070 $4,285 $11,150
CZ05 PGE/SCG $1,424 ($122) $7,070 ($400) $3,130
CZ06 SCE/SCG $1,424 ($21) $2,941 $952 $1,705
CZ07 SDGE $1,424 $9 $3,046 $1,631 $2,667
CZ08 SCE/SCG $1,916 ($45) $2,145 ($395) $544
CZ09 SCE/SCG $1,916 ($67) $2,978 ($712) $712
CZ10 SCE/SCG $1,916 ($50) $2,606 ($357) $976
CZ10 SDGE $1,916 $110 $2,606 $3,472 $5,826
CZ11 PGE $2,162 $155 $9,118 $6,542 $16,502
CZ12 PGE $1,916 $128 $9,604 $6,434 $16,553
CZ12 SMUD/PGE $1,916 $506 $9,604 $14,879 $25,269
CZ13 PGE $2,162 $135 $6,237 $5,170 $12,318
CZ14 SCE/SCG $1,916 ($128) $4,931 ($1,351) $2,112
CZ14 SDGE $1,916 $65 $4,931 $3,123 $8,195
CZ15 SCE/SCG $2,408 ($9) ($99) ($653) ($256)
CZ16 PGE $2,243 $28 $14,397 $4,676 $19,471
Attachment 1

Table 32. [1978-1991] Standard Efficiency HPSH CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $3,067 $146 $21,427 $8,941 $34,641
CZ02 PGE $652 ($47) $10,428 $3,076 $14,864
CZ03 PGE $514 $33 $8,999 $4,259 $12,882
CZ04 PGE $652 ($10) $9,984 $3,558 $14,338
CZ04 CPAU $652 $0 $9,984 $255 $255
CZ05 PGE $583 ($18) $7,290 $2,586 $10,196
CZ05 PGE/SCG $583 ($199) $7,290 ($2,659) $1,219
CZ06 SCE/SCG $583 ($24) $2,450 $215 $956
CZ07 SDGE $583 $6 $2,539 $898 $1,929
CZ08 SCE/SCG $721 ($57) $2,111 ($896) $57
CZ09 SCE/SCG $721 ($91) $3,022 ($1,455) $13
CZ10 SCE/SCG $721 ($71) $2,672 ($1,035) $390
CZ10 SDGE $721 $96 $2,672 $2,939 $5,474
CZ11 PGE $790 $74 $10,682 $5,209 $16,830
CZ12 PGE $721 $30 $10,747 $4,418 $15,794
CZ12 SMUD/PGE $721 $573 $10,747 $16,567 $28,332
CZ13 PGE $790 $72 $7,141 $4,003 $12,047
CZ14 SCE/SCG $721 ($224) $7,556 ($2,880) $2,930
CZ14 SDGE $721 $42 $7,556 $3,476 $12,809
CZ15 SCE/SCG $859 ($13) $71 ($639) ($219)
CZ16 PGE $2,095 ($25) $22,236 $7,529 $37,120
Attachment 1

Table 33. [1978-1991] High Efficiency HPSH CARE
Climate
Zone
Electric/ Gas
Utility
First
Incremental
Cost
First-year
Utility
Savings
Lifecycle NPV Savings
2025

LSC NPV
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ01 PGE $5,998 $339 $23,092 $8,460 $34,300
CZ02 PGE $3,606 $57 $9,242 $547 $12,409
CZ03 PGE $3,422 $111 $6,872 $1,228 $9,907
CZ04 PGE $3,606 $113 $9,114 $1,472 $12,340
CZ04 CPAU $3,606 $0 $9,114 ($4,595) ($4,595)
CZ05 PGE $3,514 $58 $4,859 ($544) $7,120
CZ05 PGE/SCG $3,514 ($124) $4,859 ($5,789) ($1,857)
CZ06 SCE/SCG $3,514 $5 ($1,546) ($3,963) ($3,196)
CZ07 SDGE $3,514 $39 ($1,407) ($3,143) ($2,122)
CZ08 SCE/SCG $3,698 $32 ($828) ($3,800) ($2,766)
CZ09 SCE/SCG $3,698 ($0) $232 ($4,336) ($2,784)
CZ10 SCE/SCG $3,698 $25 $82 ($3,803) ($2,290)
CZ10 SDGE $3,698 $184 $82 $124 $2,631
CZ11 PGE $3,789 $272 $10,685 $4,725 $16,488
CZ12 PGE $3,698 $191 $10,023 $3,148 $14,639
CZ12 SMUD/PGE $3,698 $573 $10,023 $11,680 $23,445
CZ13 PGE $3,789 $259 $6,612 $3,262 $11,441
CZ14 SCE/SCG $3,698 ($82) $7,697 ($4,629) $1,311
CZ14 SDGE $3,698 $195 $7,697 $2,166 $11,452
CZ15 SCE/SCG $3,881 $133 ($1,111) ($2,349) ($1,794)
CZ16 PGE $5,071 $245 $26,407 $8,685 $38,470
Attachment 1

6.3 Utility Rate Schedules

6.3.1 Pacific Gas & Electric
The following pages provide details on the PG&E electricity and natural gas tariffs applied in this study. Table 34 describes the baseline territories that were assumed for each climate zone. A net surplus compensation rate of $ 0.03396/ kWh was applied to any net annual electricity generation based on a one-year average of the rates between February 2024 and January 2025.

Table 34. PG&E Baseline Territory by Climate Zone
Climate Baseline
Zone Territory
CZ01 V
CZ02 X
CZ03 T
CZ04 X
CZ05 T
CZ11 R
CZ12 S
CZ13 R
CZ16 Y
The PG&E monthly gas rate in $/therm was applied on a monthly basis according to the rates shown in Table 35. The gas rates were developed based on the latest available gas rate for January 2025 and a curve to reflect how natural gas prices fluctuate with seasonal supply and demand. The seasonal curve was estimated from PG&E’s monthly residential tariffs between 2015 and 2024. 12-month curves were created from monthly gas rates for each of the ten years. The ten annual curves were then averaged to arrive at an average normalized annual curve. The baseline and excess transmission charges were found to be consistent over the course of a year and applied for the entire year based on January 2025 rates. The costs presented in Table 35 were then derived by establishing the baseline and excess rates from the latest January 2025 tariff as a reference point, and then using the normalized curve to estimate the cost for the remaining months relative to the January rates.

Corresponding CARE tariffs reflect the 20 percent discount per the GL-1 tariff.

Attachment 1

Table 35. PG&E Monthly Gas Rate ($/therm)
Month
Total Charge
Baseline Excess
January $2.63 $3.15
February $2.64 $3.16
March $2.41 $2.94
April $2.24 $2.77
May $2.21 $2.74
June $2.23 $2.77
July $2.26 $2.80
August $2.36 $2.90
September $2.42 $2.98
October $2.52 $3.07
November $2.63 $3.17
December $2.70 $3.23
Attachment 1

ial
GAS
Baseline Territories and Quantities 11
Effective A ril 1, 2022 • Present
BASELINE QUANITTIES (Therms Per Day Per Dwelling Unit)
ln divid ualli M etered
Baseline Summer Winie r Off-Peak
Territor ies (April-October) (Nov, Feb, Mar)
Effective Al!r, 1, 2022 Effective Nov. 11 2022
p 0.39 1.88
Q 0.56 1.48
R 0.36 1.24
s 0 39 1.38
T 0.56 1.31
V 0.59 1.51
w 0.39 1.14
X 0.49 1.48
y 0.72 2.22
Master Metere d
Baseline Summer
Territories (April-October)
Elfecllve Apr. 1, 2022
p 0.29
Q 0.56
R 0.33
s 0.29
T 0 56
V 0.59
w 0 26
X 0.33
y 0.52
Summer Season: Apr.Oct
Winter Off-Peak : Nov, Feb, Mar
Winier On.Pea k: Dec, Jan
Advice Leit er: 4589-G
Decision 21 -1 1-016
GRC 2020 Ph II [Application 19-11 -019]
Filed: Nov 22. 2019
Winter Off-Pea k
(Nov, Feb, Mar)
Effective Nov. 1, 2022

1.01 0.67

0.87 0.61

1.01 1.28

0.71 0.67

1.01 Winter On-Peak
(Dec, Jan)
Effective Dec. 11 2022

2.19 2.00

1.81 1 94

1.68 1.71

1.68 2.00

2.58 Winter On-Peak
(Dec, Jan)
Effective Dec. 1, 2022

1.13 0.77

1.16 0.65

1. 10

1.32 0.87

0.77 1.13
Attachment 1

Gas and
Electric Compa.ny·
U 39 Oekland, Gafifomia
Revised
cancel ling Revised
Gal. P.UC. Sheet No.

Gal. P.U.C. Sheet No.
5912().E
58758-E
EIUECTRIC SCHEDULE E-TOU-C Sheet 2
RESIDENTIAL TIME-OF-USE (PEAK :PRICING 4 - 9 p.m. EVERY DAY) RATES:
(Cont'd}

E-TOU-CTOT AL BUNDLED RATES
Total Energy Rates ($ per kWh)
Summer
Total Usage
Baseline Credlt (Applied to Baseline Usage Only)
\Mnter
Total Usage
Base1tne Credit (Applied to Baseline Usage Only)
Delivery Minimum Bill Amourrt ($ per meter per day)
California Climate Credit (per household, per semi­
annua1 payment occurring in the Apnl and October bill
cycles}

PEAK OFF-PEAK
ro.oong (R ) S0.50429 (R)
($0.10135) (R ) (SO 10135) (R)
$0.49312 (R ) S0.46312 (R )
($.0.10135) (R ) (S0.10135) (R )
$,0.39167
($58.23 ) ,(R)
Total bund ed: service charges shO'Wll on customer s bills are unb 111dled according to the component rates shOWTil, below. lMlere the del1very minimum bi[I ammmt appres, the ,customer's bill wi[I equal tile sum of (1 ) lhe delivery minimum bill amount plus (2) for bundled service, the generation rate times the number of kWh used. For revenue aroounling purposes, tile revenues from the delivery minimum bi[I amount wm be assigned to the Transmission, Transmission Rate Adj;ustments, Reliability Services, Public Purpose Programs, Nuclear Derommissiontng,, Competition Transition Charges, E111ergy Cost Recovery Amount, Wil'.dfire Fund Ciharg:e, arnd New System Generation Charges based on kWh usage times the correspmding unbundled rate compo111ent per kWh, with any residual revenue assigned to Distribution.

Advice 7469-E
Dedsion
Issued by
Shi/pa Ramaiya
Vice President
Regulatory Proceedings ana Rates
Submitted
Effective
Resolution
(Continued)
December 30, 2024
January 1, 2025
Attachment 1

Gas and
Elec.tric Company"
Revised
Cancelling Revised
Gal. P.U.C. Shee.t No.

Gal. P.U.C. Shee.t No.
u 39 Dakland, Galifomia
ElJECTRIC SCHEDULE E-TOU-C Sheet 3
IRESIDENT AL TIME-OF-USE (PEAK PRICING 4 - 9 p.m. EVERYDAY) RATES:
(Cont'd.) UNBUNDLING OF E-TOU-C l OTAL RAlES
5ne rgy Rates by Com,ponent (S pe:r kWh )
Generati on:

Summer (a'II usag.e)
Wi:nter (al l usage)
Distribution••.:

Summer (a'II usage )
Wi:nter (all u,sage)
PEAK
$0.24730
$0.18725
$0.24056
$0.HIM 5
Conservatio n Incentive Adj'u ,stment (Basel ine Usage) Conservatio n Incentive Adjlllstment (OYer Baseline Usage) T,ransm·ission* (all u.sage)
Transmission Rate Adjustme nts• {am usag e)
Reliability Serv ices•· (a us age)
Publ'lc Purpose Progra m s (all usage)
Nuc,lear Deco mmissioning (all usage)
Com petition Transition Charges (all usage )
Energy Cost Reco v-e:ry Amou rrt (all usage)
W fldlir e Fund Charge (all usage )
New System , Generat ion Charge (all usage)""
Wrldlire Harde ning Charge (a I usage)
Recove.ry IBond Charge -(a'II usa,9e)
Recove.ry IBond Credit (all usage)
Bundled Power Cha rge I ndifferem :e A dju s1ment (al usag e)~ .. (I)
(I)
(I)
(I)

OFF-PEAK
$0. 16430
$0. 16057
$0.22056
$0.18313
(S0.03733 ) (I}
S0.06402 (I)
S0.051 22 (I)
(S0.0 1509) (R )
S0.00032 (I}
S0.02tl 44 (R )
(SO.OC>D•13) (I}
(S0.000 172 ) (R )
so.000 0 1 (I)
S0.00595 (I)
S0.005,74 (R )
S0.0049 4
SO.OC>650
(SO.OC>650)
(S0.023 27) (R )
(I)
(I)
(IJ
(I)
.. Transmission, Transmission Rate Adjustments and Reliability Service charges are combined tor pFesentation on customer bills,
H Distribution andl Mew System Generation Oharges are combi ed for presentation on customer lbfllls .
• ,.. Direct Access, Commu ity Choice AggreQ!iltion and Transilional Bundled Service customers pay th.e .applicable Vintaged Power Chafge lnoifference Adjustment. Generation and BuncUed PCIA aFe combined for presentation on bundled customer bills. 59121-E
58759-E
(Continuecl)
Advice
Decision
7469-E Issued by
Shilpa Ramaiya
Vice President
Regulatory Proceedings and Rates
Submitted
Effective
Resolution
December 30. 2024
January 1. 2025
Attachment 1

Gas and
Electric ,Company·
Revised
Cancelling Revised
Caf. P.U.C. Sheet No.

Caf. P.U.C. Sheet No.
59109-E
58755-E
U 3.9 Oakland, Ga!ifomia
ELECTRIC SCHEDULE E-ELEC Sheet 2

RESIDENTIAL TIME-OF-USE (ELECTRIC HOME)

SERVICE FOR CUSTOMERS WITH QUALIFYING ELECTRIC TE CHNOLOGIES RATES :{Con.t'd .)
Direct Acce ss (DA) and Community Choice Agg regation {CCA ) charges s ha~ be calrula!ed in acco rdance with the paragraph in this rate schedul e 1i!i1ed Bi ling.

TOTAL BU NDLED RA TES
Base Serv ice s Charge ($ pe, me er per day) $0.4Q2S1
PE AK PP.RT-PEAK OFF-PEAK Tota l Em,.-QiY Rates ($ per kWh) Summ er U sage $0.607 28 (R) ll0.44540 (R ) $0.38872 (1R) Win er Usage $0.375n {R) $0.35368 (R ) $0.33982 {R )
Cs i omia C fima e Credit (per hou ,;e'hold, per
semi-annual paym ent occurring in the Ap ril an,d
Octob er bill cyc les)
($58.23) (R)
Total trundled serv ice ch arges shown on a. custome,'s bi Is are un bundlied accord ing to lhe co111pon en.t rate s sh own below.

UNBUINDLING OF TOTAL RA TES
En ergy Rates by Com pone:nl ( $ per· kW h) PEAK PP.RT-PEAK OFF-PEAK Gene.ration :

Summer Usag,e- $0.3 165-ll (I) $0-217 48 (I) $0.17238
Winter 'Usage $0.15446 (I) $0. 13449 (I) $0.12 114
Distribution••:

Summer Usagoe- $0.2352 8 (I) $0. 1725 1 (I) $0.16093
Winter IIJsa.ge $0.1651l0 (I) $0. 16378 (I) $0.16327
T ransm ission,• (all usa.g:e) $0.05 1122 (I) $0.05122 (I) $0.05 122 T ransm ission, Rate Adj u,stm ents• (s I usage) ($0.0 1501l) (R) ($0.01 509) (R ) ($0.0 1501l) Reli ab ility Serv ices• {all usagoe) $0.00032 (I) $0.00032 (I) $0.00032 Pub lic Pu rpose Pr ogram s ,(all usag e) $0.02644 (R) $0.02644 (R ) $0.02644 Nluc lear Decomm ission ing (all usag e} ($0.00013 ~ (I) ($0.000 13~ (I) ($0.00013~ Competitio n Transi tion Charges (all usagoe") {$0.00072 (R) ($0.00072 (R ) ($0.00072 IEner g;y Cost Recover;y A mou nt {all usage) $0.000 01 (I) $0.0000 1 (I) $0.0000 1 Wildfire Fund Charge (al usage) $0.005Q5 (I) $0.00595 (I) $0.005g5 Nlew Syst em Generation Cha r ge (a I usag e}" $0.00574 {R) $0.00574 (R ) $0.00574 Wildfire Ha:rder,ing C harge (all usage) $0.0049'4 $0.00494 $0.00494 IRecov er;y Bond Charge (all usage) $0.00650 S0.00650 $0.00650 IRecover;y Bond Cred it (all ,usag e) ($0.00650 l ($0.0065 0~ ($0.006 50~ Bundled Powe r C harge Indifferen ce {$0.023-27 {R) ($0.02327 (R ) ($0.02327 Adjustmen t (all usage}"'
Transmissiom. Transmission Rale Adjustments and Rel" ·1ity Se.rvice ch~ are combined for p,esen ation on cusAorner bills.

Dis ·bulioo and N,ew System Generation Ciharges e combined fur presentation on ru~torner bills.

Direcl Access. Community Cboice Aggregation amd Transition Bum.med Se<Vice Customers pay 1tte applicabl.e Vimiaged P.ower Charge Indifference Adjus1ment. Gemeration ar>d Bundled PC IA are combined for presentation oo bundl'.e,d custcmer bills.
(I)
(I)
{I)
(I)
(I)
(R }
{I)
(R }
(I)
(R }
(I)
{I)
(R }
(R }
{Continued)
AcMce
Decision
7469-E Issued by
Shi/pa Ramaiya
Vice President
Regulatory Proceedings and Rates
Submitted
Effective
Resoiutfon
December 30, 2024
January 1, 2025
Attachment 1

Gas and
Electric ,Compan(
Original ca,: P.UC. Sheet No. 54738-E
U 39 San FrancisC(); Cafitomia
ELECTRIC SCHEDULE E-ELEC Sheet 3 (N)

RESIDENTIAL TIME-OF-USE (ELECTRIC HOME) (N)
SERVICE FOR CUSTOMERS WITH QUA!LIFYING ELECTRIC TECiHNOLOOllES SP ECIA L 1. TIME PER IODS : Tim es ofli'le year and ( mes of !he day are defined as fol ows:

CON DITIION S:

Advice
Decision
All Year:

Pee : 4 :00 p.m. to Q:00 p .m. ~ery day in:cludin,g weekends and lu:J idays .

Part ial-Pea k: 3:0D p.m . to 4 :00 p.m. an d Q:00 p.m. to 12:00 a.m. e·very day includin11 weeke nds .end oo 1d!sys .

Olf-Pes _ : All olhe.r hours.

2. SEASONA L CH ANGES: T1he summ er season is Ju:ne 1i 1hrough Septe m ber 30 and t he ~,inter s,a-ason is October 1 lhroug'h May 3,1. When b·lrng include.s use ·n both lhe summer and winter periods , charges will be pra- ated based u:pon t he num be.r of days in e<acli pe.iod.

3. A DD ITIONAL METERS: If a re.siden ·s1 dwe lling unit is served by more t han -o.ne electric meter . t he cuslomer must desilJnat,a-whl ch mete r is lhe primary me er an.d which is (are ) he addition.al meter(s ).

4. Bl LLING : A custo:mer"s b.11 is csJculs.ted base d on lhe oplion app licab le to the custo:mer.

Bundled Serv i.Ce Cu.stomers receive generation and delivery seni ice.s solely from PG& E. The custo:mer"s b.11 is bas ed on the U nbun.dling o T otal Rates set orth .abo ve.

Tr-ansiliona Bund ed Service (TBS) Customers take TBS as p:resc ribed in Rules 22 .. 1 and 23,. 1. or tak•e PG&E bund led service prior to th e end oi li'te· six (6) m on1h advance notice period required to eleci PG&.E bundled serv ice as prescn."bed in Rules 22 .. 1 and 23,.1. TBS ,cust arners sha ll pay all ch arges soown in !he Unbundling ,of Tota l Raf es -excep or ·lne-Bund d Power Charge In.difference Adj ustme.nt andl !he gen era lion cha rge. TBS cuslomers shall also pay fo:r their a,pplica'ble Vi:n aged lf>,ower Charge Indiffere nce Adj,:,isbn-e,nt provided in the table bel ow. a:nd t he short.te rm comm odity prices as set forth in Schedule TBGC.
(N)
(Oontim.100)
6768-E
D.21-11"0116
Issued by
Meredith Allen
Vice President, Regufato,y Affairs
Submitted
Effective
Resolution
November 18, 2022
December 1i. 2022
Attachment 1

cific Gas and
Electtic Companf
Revised
Cam;e/11119 Revised
Cal. P_U'..C. Sheef MJ_
Cal. P_LJ'..C. Sheet MJ_
59329-E
50086-E
U 39 Oakland. CalifDmia
ELEC11RIC: SCHEDULE O.CAR!E Sheet 1
LI.NEJITEM DISCOUNT FOR CAU FORiNIA. Al TEIRiNA TE RA TES FOR EJNERGY (CAR;E)

CUSTOMBRS
AW,l lCABILITY: This sched is applicable to singl~ese and pol~se re-sidential .service in single-famiJy dK'Elinga and i111 flalll and apeltmEtilll separatEfy rnelefed by PG&E and domeslic i;;:ub1111eterad tenants r,es.iding-n mul 1ila rmyaccom1111odal i □ 11.S . mohileh□ 1111e perks and to q,u ifying recraa t i □n al vehide ?SllB and mSJ!Das ,BIil! 11D fBrm servi.ae on lhe premise5i opa-ated by me person Ml□ se re-sidence is i;;:uppied llrurc!qjh lh.e same 1111e er. Where ·Ille applicant qu: es for California Alternate Raisa or Enet'QIY (CA.RE) ul!lder lhe ,eligibiity and celtifica!io111,c::ritetria set forth in l:!lectllicRuie 19.L CARiE ser,,ice is avai le on SclriedUlea E-1. E-TOU-B.

E-TOLJ-C. E-TOLJ-0. EV2. E-ELEC. EIM\ IES. ESR. ET &11d IEM-TOU_ TERiRITORY: This rate schedute ,applies eVEl"'J!Nhetre PG&E j!rowles electric seMCB..

RAT1ES: Cusllllrnars takimg ear.ice oo 1lili5i rale schedule whose 01Jrleiwisa BJ1pliceille rate sched h.as no IDeivetry inmum Bill Amounl ( Scln.ecMe IE-ELEC) wil reoaiYe a CAIRE petraelllege dioootnt of 38.351% (IR) on lheir at.al bundled ,charges (exoepl for the Califolllllia Climate Cradi . id! ·will not be discoonted) .. Customers tIDamg SEHrvioe oo lhia rate 6-Chedule whose olherwise appica}!je rate .schedule has a Oeivet!)' Minimum Bill Amount (al other sched'ule!i) will receive ,e CAIRE percentage discount r p;: or "C" below) on llrles at.al bundled ,charges less charges from wtach they are e:,;e!11lt (Wildm,e IFumd Cherg/31, IRE!CO'o'BI'}' Sood Cl1arge.

ReGOYB[)' B«ld Credit, and he C/!IRJE i;;:urdlerge poltion of the p.ib lic purpose i-ogram charge used o fund Iha CAIRE diSCOO!it) oo ·lfle.ir odrlEtwise .eppliceille rate scli,edule (e,ooept ·for Iha C oonia Cli1111ete Cre,:f • l!lhim will nal be disoou111.ted) 811d also wil reoaive a ~ disoounl ("iB" or "O' below) oo he deli'le.ry 1111inimum ~ B11T1 □ u111.t. if applicable_ The CARE dis.couni wil be calcueted for direct acoesa and com1111unity choice e,ggregatio111 aJSlomers based on 1lne tot.al charges es if lhey were i;;:umjecl o, bundl seMOe rales. Oioootnlll will be applied as ,e reduction o, disiribuiioo ,merges . These oondi ions also ,eppl:;o to maslBr­ meier-ed oustorne1E and lo, quali 1ed Elm-metered IBnants wlrLetre he master-meter customer is jcintly seNe<I ul!lder PG&E'a Ra e Sdnedule D-CAIRE ,end either Scl!,edule EM, ES. ESR. ET. or EIM-TOU.

Adwoe 7"516-E
Oecision
For 1111estE!t'-me ered , oost□ 1111ers where one or more of the subme ered tenenlls qualifies ror CAIRE rste!l uJ!ldEJ he eligibiJJly and aertificati □ n critetlia .set forth in Rule 119.. 1. 19.2. or 19.3. lln.e CARiE disooulll is equal ·to a perae1111!ege (~c· below) m the otal bundled merges . 1111Ultiplied by he nurmer of CARiE units cf"IVide<I D')' lln.e to1BI 11UJJT1ber of unilll. In add i - □n , 1111ester-m.eterad customera eligible for O'-C.ARE wil reoaiYB a pernetlltag;e disoounl or below) on lhe deli,YBI)' millWllUIITl bill am001t , if .ep,pliceille.

II is lhe r~pa 11.Sibility of he master-me ered wstome r ID ,advise PG&E within 15 days ·follwmg any dtlange in lhe nu1111bet' of d'welq units and/or any decrease in me nu1111iletr of q,ualifyi1119 CARiE applicants ltiat resullll wf:ten sud! ewlicants move out of heir swmetef8d or ooo-subrnetered dwellq unit. or i;;:ub1111eterad permane1111-reaide11oe RV or per1111enent-msidence ooa.t lssuedby
Shi tpa Ramaiya
Vice F:re.sidertl:

Regulalo,:y ProoeadingB and Rales
S-ubmitted
l!:tfecm,a
ili!esal!Jtioo
(Con.ti111Ued}
Fe'brue!)' 26, 2025
Meroh 1, .2025
Attachment 1

Gas and
Electdc Campanv· Cancel/frig
Revise
Revise
Cal. P.IJ..C. S'heeJ MJ.

Cal. fi'.U.C. S'heeJ MJ.
50087-E
58198-E
U 39 OaMand, California
Ei1LEC11RIC SCHEDULE D.CARiE Sheet 2
LINE-I TEM DISCOUNT FOR CAU FO~IA Al T18RJNA TE RA TES FOR ENERGY (CAR!E)

CUSTO BRS
A. D-CARE Disooullll:

B. Deiveqr Miwnim Bill Disooulll :

C. taster-Meter 0-C.ARIE Discoont :

D. t.1.asl er-Meter Delivery MiJlli,mu,m
Bill Discount :
3!lu000
S0..000
as..,ooo
so.,ooo
% (Percent} (II
% ~P,erc:ent)
% ~P,erc:ent} (I )
% (Percent}
SPECIAL 1. OTI-IERWISE APiPLICA.fil E SCHEDULE: Th.e Speci Candi iall1.8 of ·the CO DJTIONS: Customer's. otherwis.e ewlicable rate schedule Ml apj!ly to this. sr:hedula Advioe 7'469-E
Oeci.s-ioo

2. BLIGIBILITY: To be efigible to receive D-CARE the applicant lillllS t qualify undE!lf 1he criteria s.et ·fol1lrl in PG&E's IBlecillic Rules 1 Q_ 1. 19-2. aJl1d 19.3 .ellld meet llne oertifica - n requirements hereof l.o 1he selisfactioo of PG&E ,Quatifying Daect Aooes5!., Community Chai.OB Aggreg,;Uioo Setl'llioe, BM TrsnsiliooSI Bundled Servioe custo,me1a are also ,eligiNe in, im:s s.ervica on Sdnedule D-CA.RE Af1plice11J 1, rnay qµaify fur D-CAIRE .el their primary residence ol!lly. Cu'Sl arnera or au , l'lllll1.a-ed anBlll1!i panicipating in lln.e Famiy Electric Rate A.ssistanoe (FERA,\ pragll'Bm ,cannot ooncurrsruly panicipale m he CARE J]fOgl'am. (B,, /Jedby
S-bilpa Rameiya
VH:e PTesidellt
Regulalt:Ny Proae eding,s and Rate s
Svbmitted Deoernbe.r 30, .2024
f':.fmctivs Janu811V 1 . . 2025
"1eoolution
Attachment 1

Summe r Daily Allocations (June throug h September) Winter Daily Allocations (October through May) All-
Daily kWh Electric
Baseline Region Number Allocation Allocation Baseline Region Number 5 6
8 9
10 13
14 15
16 17.2 17.9

11.4 8.8

12.6 9.8

16.5 12.4

18.9 15.8

22.0 24.6

18.7 18.3

46.4 24.1

14.4 13.5

SPECIAL CONDITIONS
5 6
8 9
10 13
14 15
16 Schedule TOU-D

TIME-O F-USE

DOMES TIC
(Continued)

1. Applicable rate time periods are defined as follows:

Option 4-9 PM. Option 4-9 PM-CPP. Option PRIME. Option PRIME -CPP :

Sheet 12
TOU Period Weekdays Weekends and Holidays
Summer Winter Summer Winter
On-Peak 4 p.m. - 9 p.m. NIA NIA NIA
Mid-Peak NIA 4 p.m. - 9 p.m. 4 p.m. - 9 p.m. 4 p.m. - 9 p.m.

Off-Peak All other hours 9 p.m. - 8 a.m. All other hours 9 p.m. - 8 a.m.

Super-Off-Peak NIA 8 a.m. - 4 p.m. NIA 8 a.m. - 4 p.m.

CPP Event 4 p.m. - 9 p.m. 4 p.m. - 9 p.m. NIA NIA Period All-
Daily kWh Electric
Allocation Allocation

18.7 29.1

11.3 13.0

10.6 12.7

12.3 14.3

12.5 17.0

12.6 24.3

12.0 21 .3

9.9 18.2

12.6 23.1
(T)
(T)

6.3.2 Southern California Edison
The following pages provide details on the SCE electricity tariffs applied in this study. Table describes the baseline territories that were assumed for each climate zone. A net surplus compensation rate of $ 0.01532/ kWh was applied to any net annual electricity generation based on a one-year average of the rates between February 2024 and January 2025.

Table 36. SCE Baseline Territory by Climate Zone
Climate
Zone
Baseline
Territory
CZ06 6
CZ08 8
CZ09 9
CZ10 10
CZ14 14
CZ15 15
Attachment 1

G.a:lifomia Edison
Rosemead, California (IJ .338-E)
Revised
Cancellling Revised
Scrn,e.dule,,IOJ,Y)

TIIME-OF-USE

DDMESHC
(Continued)
CaL PUC Sheet No.

Cal. PUC Sheet No.

Sheet 2
89278-E
88856-E
Cus,tomers receiving service under tihis Sdhed e wi I lbe ,cfliilrged lhe app icable rates under Option 4-'9 PM, Option 4!-9 IPMLCPP, Op ion 5-8 PM, Option 5-8, PM-CPP, Option PRIME, Opiion PIRIME-CPP Opti'o:n .A, Option A-CPP, Oplion B, or Option B-CPP, as listed belO\v. OPP Event Char,ges wlll appGy to all ener,gy usage durirng CPP Event Einergy Charg~ periods and CPiP Non-Even Ernerg(Y Credils will apply as a r,educlion on CPP Non-Even Energy Cred'it Periods, during Summer Seasorn days, 4!:00 p.mL to 9·,00 p.m., as described in Special Corndi ·ans 1 and 3, below:
iA,pQen ◄◄ PY I Qqf; JPIJ ◄ =:A PM::Cee
11:1..rQ-,, Ch•ra• - .SJkWh
lvl C'.A.lvl Char,g,a• - s.ik..._, h
1lvUn'"1um C.h.a-"liil• ... - S: ld ■ V
C •AlkN'n l• C ■ m.ac.a C: r ■,c:H s .,,.

C..•Man1I• A 11 .. ,,.. •• R .-... ri:ar
ti:Cla.tQ",' D l ■.c:o!I.IDt - '!JI.

Siumm• r :S..•.1111.0r1 - On.-P••k
.... ld.P,a;a k
ON-.P,a;a k
Wlru-. r S.•.11-..an - .... ld-{P•a k
ON-'P••k
SiilupM"-ON-.P•• k
Siln.:gl•-Famlly RAl..&ki.Anc.a
Mi.a-11 1- S:am lty R•..&ldllH'I C.-
!.llnlil l• Fam lly R..--..&ld,anc.a
MLaill l- Fam lty R•.&ld-•nc.a
Siil lnlil l• Famlly R.a-.a ld•nc.a
MLJilll- Fam lly R..all::l _•nc.a
S:- iun.. it,' k.1-.cuic. R:"-•• A• .. ••n.c• D1i&Co.u ~u - '%. ~ t ,. ~M!:Ctt
C PP 1r;;;._,..nt r;;;,n•rgy Chara• - s.J11.'\!i!iho
!.umm•r CPP IN,an-~ .. an., C.-.d lL
On-P•.ak Gn•rir.- C.-.cl ll - SJk Wrl
o.~!5154 41•
0 .!15.~4 tli•
O . !>U? ◄ tli•
O .!l:51~-'li tli•
O . !>U? ◄ tli•
0 .2.G5 1!l ·Ii·
(O . QD5 1 ◄ ~ ( IJ'
0 .91.!tG
0 .914G
0 .'1 7.Ji
0 .'1 7.Ji
O .~ ◄ H-'li 4R .
0 . 1 2.D-tlll 4R.

O.Qll,D7G 4R .
0 . 1 72".3? CR •
o .oi;,,0,0,2 CR •
0 .07T7lil CR •
0 .111000(1
40 . 1 5tHiJ
O .i>OOOQ
O.i>OOOO
O.i>OOOO
O .BOOOQ
0 .00000
0 .0000 0
' ~ 100% of the di=<:rll ~ m 5h:MTI i11 the ~p~ Special c:-.oo.itioo ct fio SclrmlJle.

Toe I nimlrn C/age is aJ:l:li<3ile, ,.,tr,,,, ihe DeWl!f}' SeM:z! llellergf ~e-. ~ the "FP~ 18'!"" Cllarge ,is '"'" !hon ihe- Pdnin:un ~ Toe~ ~inn T""15ifian Onarge CJC el ClQ.ll(l(lf8) I""' kWh is~ i11 the UG COltfDM"1I cf Gene-raibn. iR) Toe l3=li1o o..di l ~ i"" up lb t 00%d the Basel'ne A:ICIC!lion,. ,._.a.,., afTmed,I.Jlsa ( m, p,,ri::d. Ad<loonal 13ase1;,,.,.~ :owl!' fer iCusbners ..a~ ~"l' Waler~~ uni!l,r ihis Op&:,n. lt.. Baseline-1111:ic:a'!ii:m; ase sl!fl blh.., Ptelinnsiy ~ Pal1i H. " "Tho t.la:<a-num Availal:il,, a-..dil is h!· oal'f"'d <>:ml asn:,unl far OFIP ~ liJal !""'i""'"~ in cila-mnantl =1"'""' ~ 1 Tclllll ~ T<li.ol M""')" Seni::e ral= ...., . ~ble io Bu:,:lled Ser,;c,, , [X...,.;i I= (DA) and Comiruriily Chcico ~~(CCI, Sernce) ~ l9Cep! DI< ;s,:l CCASemco Cu.lmier.,'""' rd ""bjed ~,. lb, Cl!M<8C 1111'1<!· ""'1:f0"'11t cf lhis Sdte:lulo bllt irnolis,d :,11h<, IJl'ffi8G as µ,m;do,:l by Scl\ed'ule-DA,ORS a- Schet:l\rji, CCA,CRS. 2 Ge...-.. tioo = Tilo Gen"''"" are ,app ,:;ablo <JOiy lo Bunt'll!d Serooe C...II:mer.<. See Special Cooatioo bew ~ PCII\ ~ - 3 IJ!1'11u;c = ~1 ct Waler R=:uoes IDWR) isne,gy Oretl~ - i<ar m:xe ~ on lho ~ siergy Oeit ~ • ..,.. the Billh;J ,Cz,lcuJaoon Sp,,::;ill Caxl of Lhis Sd'ied'ule.
4 l<ppied on an, o,q.al bmis , I""' ITa.I,dd:l , ,en:i,-,ual l)'. See· 1h Sp,,m,11 Condiibns ol lhi• Scl\ed'ulo, ID: n:ui, illimr:ma, . & Tilo ll.lodfi eo.; A:l'cc:,tjoo ~ledw!i,m (MCl•M! charge-re<XM0:5 1h ""' oos'I ... soa:-=t w 51¢,em ref:ltilily pro:ul!fll51i oo:lered by ihe CP,UC Iha! SOE b... FflJCUl"d on ~ JI ol rus iomeor5 ...ms,, !1"f11"1'."loo ..,..,..,.,. are· J!flMde:I l>,<oertain Ell,ctri:: S.S..:., 1'1-tM:le,s ar Camnu-ily Oooicz, .ol,;,g~Lcn .
(Tio be insen.ed by u lity)
Advice _5449"-'-'-'-....C-E"-------
Decision
(Con ·mred),
Issued by
Midh...el Backslrom
Viice President
(To be inserted by c..t . PUC)
Date Submitted Dec 30, 2024
Effective a:n 1 , 2025
Resolutiorn -=Ec....c·-5c..c2cc1cc.7 ____ _
Attachment 1

ern California Edison
Rosemead, California (U 338-E}
Revised
Canoell"ng Revised
Cal. PUC Sheet N:o.

Cal. PUC Sheet N:o.
89282"E
88860-E
RA TES (Continued)
Opiloo PRIME' r OntlQn PBIME.C:PP
Energy °""''11" • ~'M.,L,, rJDay
Summe r ~
MCAM ~.,• , $,l<'!M-i
Blllsic Chaif9" • &iMet=I D")'
Scb,ecdule,,IDJJ;O
TIME-Of-USE
D.QMESI &C
(Con ·n,ued}
On,.P=k
M d ,Peoik
Off,Peoik
M d 'Peoik
Off,P=k
~ r.off,Peoik
Ff\/ t.ll!le r Credii {Seyar.:,t,,ly Me!ered EV Op1icn) • $1M<,L,,ri'Da.y Ff\/ Sul:,mel,,r Credil O SfMel,, r;Oay
c..'lifarria, Olirrn,;e Cred i!'
c..'lifaorm AJtem,;t,, _,, for
Esnergy Ci=Junl • %
F"~mily EJ~dri::; ~ l:e As!iistance DisCDUrn'I. • %
Medi<,;,! Line Item Disa,u rtt • %
Opllil111 PRIME:.C PP
CPP g,,.,m, E~y C h"'B" • $\k,Wh
s..nm..-CP.P Non-E vent C...,.fi1
Qn.Pealk Eenetrgy C...,.fil , $il<Vl!h
Delivt,ry S,, n,ja,
Taia l'
0•.28716 (1)
o,.2a?16 (1)
0•.20039 (1)
0,.29:246 (1)
o,.rs1215 (1)
0•.19-215 (I)
0,.0019!1 (1)
0,.00160 (1)

0.539 (R)
(0.(08)(1)
(0.139)(1)
j56.00} (IR)
100.00"
00 .00
100..000
Slleet 6,

11.28317 (R)

0.100n (R)

0.067.28 (R)

11.24759 (R)
ll.05686 (R)

0.05886 (R)

6.1!0000
(0..15 170)
(O.J54821) (R)

0.00000

0.00000

0.00000

0.00000

0.00000

0.00000
Reix=rn 1Cl!I% di th<, cisooullt ~3""" "11<,,,,m 01 1th<, ~" Spociol Candilo, d 11-i• Sd,ed_j..._ The ~119 ~lion Tran,iiioo Charge (CTC) of ($11•.00058) per k!/lh i,o. re<XM<ed in lie UG ~ of Gener•lion. lR) The Ma>:irru:nA""l.:tie c...:t i • the '-',l'pecl c:red~ ,illtD.A11. fa- Cl?P Cu,; iorn,r.; did palili<i~ 01 .,u,.,,-d'emand "'"i""'<"' -=· Total = Tdlal Dl,l~Ser,,era1e5,.,,,~.,1o -..:lSernoo, C.<!dkoe .. (OA) ~ Camrruil. y CJioioo~SeMCO (OCAs..rro. ) Ou~ e,;u:epl DA and CC\ Se,,,e OJst.cn,ers ""' na: subjed lb the ClM'RllC raile· ~ ct lhi• Schedle bui .,,.,., y lhe DWRBC ... ~~Sched.h,D,lt,.CRSarSchm,loOCA,CRS ..
2 ~a, ~ The Gen - ,..,, ~c.,bli, rrly ID E!uirllerl SernCll!• ~ See Spociol Can,Hii:m lbelow b PCIA ~ - 3 D'l\lREC • D,,partmenl cf Ylouor Remu"""' (l:M'Rl Energy Clredl: - F« ....-e infi:mlOlioo "" lhe Ol'/IR Ernu'f a-..a~ ..,. lhe Bilrg C.tculalioo Spociol Candilo, d 11-i• --~-
4 ~ed"" :m ""lual • is, pi, r ir>:>u5t!hdd, ~~- See tho Sp<riil Coodlioco, ct 11'15 SdlOO!Je b more iibmaiian . 6 The lMcdfi C...,Ata:.,ticnModiarni,m (MCMl l chargi, re<XM0:5 u,.,.,. 1 coo1 .. ~...; •l"'lemreli.ul ily pn:a.romsitorderedibyOH,0POC ihal SOE I=~ on t,,lialf of =iomo,, .-.h,.., ger;,,rJlioo some"" ....,. pro,i:lod 1,y.,,,11an Elt,,::ri:; Sen.i,e -"' ar Camnuiily Choic:z, ·~•= -
(Tio be inserted by u "lity)
Advice _5449"-·'-'· -'---"E'------­
Decision
(Con ·mied)
Issued by
Micha.el Bac:blrom
\Ace President
(To be ·nserted by Cal. PUC)
Date Submitted Dec 30,1 2024
Effective J!a:n 1 , 202.5
Resolution E-5217 --------
Attachment 1

0150
Southern Clillifornia, !Edison Revised Call PUC Sheet No. 892n-E Rosemead, Califorria (U 338-IE) Canoe! 1'1Q Revised Cal. PUC Sheet No. 88502-E • • '.ule 0-CAAE Sheet 1
CAUFORN TE RA.TES FOR ENERGY
Sil"IC SERVICE

APPLICABIUTY
Appli.cable to domestic •senooe to Califomia All:emate Ra. es fot" Energy CARE) households residing ,in a pennanent Sio9e-Fa ily Acoommoda00111 Of" Multifam Acoommodaoon where e ,011Js-tomer meets all the Special Cood lions of lhis Sd'ledule. customers enroled in the CARE program are not eligible for the Family Electric Rate Ass.istance FERA) program.

Pur..uant to Special Cond lion 2 luerein, customers rec:eMng service under this Schedule are eligible to receive the Cal forn"a a1mate Credit as shown in the Rates seotioo below_

TERRITORY
Wrthio the entire territory served.

The applicable diarges set fo " Schedu D shat ~pply 'lo Oustomera served under this Schedule.

CARE Discount
A 32.5 percelilt discou • t is, appl ed to ai CARE Customer's bi poor to the application of the Public U~ili~ies (11) Commission Re' bu sement Fee (PUCRF) and any .:qiplicable user fees, taxes, and late payment charges. CAR!E Customers are required lO pay lhe PUORF and any applicable user fees. tax.es, and late payment charges in ful. addition CARE Customers are exempt from paying, ~he CARE Surcharge of 0.01435, per 'Wh. lhe Widfire fund on-Bypass.able Charge of $0.0DSQ.5 per Wh , arnd (11) the Fixed Recovery Charge o 0.00 98, ~ :'Nh.. (II)
(To be inserted by uti ily)
Advice 5449-E Decision ---------
Coil " ued
~edby
ichael BackslrOm
Vice Aresideot
(To be inserted by car. PUG)
Date Subnutted Dec 30. 2024
Effedille Jan 1, 2025
Resolution E.5217 -------
Attachment 1

6.3.3 Southern California Gas
Following are the SoCalGas natural gas tariffs applied in this study. Table 37 describes the baseline territories that were assumed for each climate zone.

Table 37. SoCalGas Baseline Territory by Climate Zone
Climate
Zone
Baseline
Territory
CZ05 2
CZ06 1
CZ08 1
CZ09 1
CZ10 1
CZ14 2
CZ15 1
The SoCalGas monthly gas rate in $/therm applied in this analysis is shown in Table 38. The gas rates were developed based on the latest available gas rate for January 2025 and a curve to reflect how natural gas prices fluctuate with seasonal supply and demand. The seasonal curve was estimated from SoCalGas’s monthly residential tariffs between 2015 and 2024. 12-month curves were created from monthly gas rates for each of the ten years. The ten annual curves were then averaged to arrive at an average normalized annual curve.

Long-term historical natural gas rate data was only available for SoCalGas’ procurement charges.8 The baseline and excess transmission charges were found to be consistent over the course of a year and applied for the entire year based on January 2025 rates. The costs presented in Table 38 were then derived by establishing the baseline and excess rates from the latest January 2025 tariff as a reference point, and then using the normalized curve to estimate the cost for the remaining months relative to the January rates. CARE tariffs reflect the 20 percent discount per the GR tariff.
8 The SoCalGas procurement and transmission charges were obtained from the following site:
https://www.socalgas.com/for-your-business/energy-market-services/gas-prices RES2023.xlsx (live.com)
2025/06/09
Attachment 1

Table 38. SoCalGas Monthly Gas Rate ($/therm)
Month Procurement
Charge
Transportation Charge Total Charge
Baseline Excess Baseline Excess
January $0.45 $0.98 $1.40 $1.43 $1.85
February $0.31 $0.98 $1.40 $1.29 $1.71
March $0.26 $0.98 $1.40 $1.24 $1.66
April $0.21 $0.98 $1.40 $1.19 $1.62
May $0.22 $0.98 $1.40 $1.20 $1.62
June $0.25 $0.98 $1.40 $1.23 $1.65
July $0.26 $0.98 $1.40 $1.24 $1.66
August $0.29 $0.98 $1.40 $1.27 $1.70
September $0.27 $0.98 $1.40 $1.25 $1.67
October $0.26 $0.98 $1.40 $1.24 $1.66
November $0.29 $0.98 $1.40 $1.27 $1.69
December $0.33 $0.98 $1.40 $1.31 $1.73

6.3.4 San Diego Gas & Electric
Following are the SDG&E electricity and natural gas tariffs applied in this study. Table 39 describes the baseline territories that were assumed for each climate zone. A net surplus compensation rate of $ 0.01837/ kWh was applied to any net annual electricity generation based on a one-year average of the rates between February 2024 and January 2025.

Table 39. SDG&E Baseline Territory by Climate Zone
Climate
Zone
Baseline
Territory
CZ07 Coastal
CZ10 Inland
CZ14 Mountain
The SDG&E monthly gas rate in $/therm was applied on a monthly basis according to the rates shown in Table 40. The gas rates were developed based on the latest available gas rate for January 2025 and a curve to reflect how natural gas prices fluctuate with seasonal supply and demand. The seasonal curve was estimated from SDG&E’s monthly residential tariffs between 2015 and 2024. 12-month curves were created from monthly gas rates for each of the ten years. The ten annual curves were then averaged to arrive at an average normalized annual curve. The baseline and excess transmission charges were found to be consistent over the course of a year and applied for the entire year based on January 2025 rates. The costs presented in Table 40 were then derived by establishing the baseline and excess rates from the latest January 2025 tariff as a reference point, and then using the normalized curve to estimate the cost for the remaining months relative to the January rates.

CARE tariffs reflect the 20 percent discount per the G-CARE tariff. 2025/06/09
Attachment 1

Table 40. SDG&E Monthly Gas Rate ($/therm)
Month
Total Charge
Baseline Excess
January $2.07 $2.36
February $2.01 $2.30
March $1.93 $2.22
April $1.86 $2.16
May $1.88 $2.18
June $1.94 $2.24
July $1.95 $2.25
August $2.02 $2.32
September
October
$1.97 $2.27
$1.94 $2.24
November $1.97 $2.27
December $2.07 $2.37
2025/06/09
Attachment 1

S Diego Gas & Eleciric C=pany
s.. Di,gc,, c.mr""raa
RA1E S
Total Ra\e:s:
~;pt l:oo,- TOU DR.11
Summe- _
o.,.p.,..1;
OJI.P.,..k
Super Oll,P,,
Wnte: .

On.P .... 'k
OJl.p...,1;
Super Of!.P<!~
St.nim58=:i i,.,Adju51menl0t:<l il l.fl b
130% ol 8=:iine-
Wm 811...tir,e AdjU5lmJ!llt 0.-d ~ Lf' lo
130% ol 8=:iine-
~mum Bil f$1d'a•l
~;ptl:oo - TOU O:R.11- IIOCTota l
CARiE R.lilii,
S □Jllllllll!'I - CARiE Rates.:

On.P...,k 0.28222
Qll,P..., 1; 0.28222
Super 011,P,, 0.28222
WJoter - CARiE Rates:

On.P....'k 0.4 143!1
OJI.P...,k 0.4 1 3!I
Super 011,P,, 0.4 143!1
S=met 8;,,s,ili,.,
i,u.,tmen l Coodl up le (0.10543)
130% ol 8=:iiie-
Wm 811...tino AdjU5lmJ!llt
Ci'edlt up iD 13llll'l'. a:r (0.10543)
B ...... Jim,
, ... ,mum Bil ($1d'a•l 0. 196
Nma:

Revised Cat f:) .U.C. Sheel t>lo.

Ca111aelin!!I Revised Ce1. f:) .U.C. Sheel t>lo.

SCHEDULIE TOU-DR1
RE:SIDENTIAJL T [ME-OF-US E
DWR8C + IIIOC il'oial 1ta1,; Wl'-INBC EIECC:Ral'<i

0.28222 0.00661 0.41738
ll.28222 ll.~ 1 ll.1,&792
ll.28222 o.~1 0.0674 ,1

0.4 14'.l9 0.0066 1 0. 14115

0.4 14!.19 ll.0066 1 0.019.28
ll.414'.!9 0.00661 (1.06133
(0.11l543}
(0.11)543}

0..392
OWR BC •• r o1 · EECCfitafo WF' BC Rat;;,

0.00000 0..41136 0.119968

0.00000 0.1819.2 0..47014

0.00000 0.067 41 0.34!163

0.00000 0.14115 0Ji5564

0..00000 0..117928 0..49367

0.00000 0..116133 0..47572
(0.10543)
(0.10543)

0. 196
62500-E
62360-E
Sheet .2
TOI
R.l,ja,

0.7 051!1
o.A7fi7fi
o.:lSS;M
Oli 611lS

0.49!128

0.48 133
(0.1054-'.l)
(0.1054-'.l)

0.3!12
T.t11ial
IEffi!di,. .I!,
~ •Rat!!

0.413249 R

0.3llllffl2 R

0.22627 R
0Jl8 526 R

0.32350 R

0.31138 R
(ll.01111} I
(ll.01111} l

0.1911
(1) Tcml Ft.I= a:a,m, _,. LDC, SchodLt,, DWF!..SC {Depa-.... L cl Wai.-r Re50Ula,,; &o::t Oha-9" ~ Sct-etY. Wf'- BC (CA WJifi,.­ FLn:t d.sge ) and Smeoile EECC ts-i " E=w Ccrnm::11:lly Co,;ij 1es. EECC r.,I= ,., .. "flP""'tl" ta btm::lled a.mcJITlef5. C111ly.

See Special Condli:n 111 r..- Pctll (Per.el- a-El" lril&rence AdJ=enl} """""""Y- (2) Talal Rat.,,. p-.,.,,.,b,d ,are-for a.is'iomons llal ..,.,,,;,,, ""'""1Cld ~y st1pp't/ i3nd do!Msy...,,,.,. rrom itr- (3) □v.'R.BC "'1d Vi'r•NBC cha~ do ool app:Jr lo CARE ciesl'om..-.._ (4) A,; idettlifo.-d i11 t,,, ,raii,,, • wsl.an>er bi n l ,me .mduode ""' ii,,m sLE1111...-..,c1 MniN czed~s rr. u~" up lo 100% e r basm,e ta fCWD•.:1" 0... rah,, ,ping b..,.,r.is ad'qll:ed by ll=n:tJl .r Bill 1)[ and S.,nab,, Bill 119l>. (5) WI' BC .- is 0.005111 + DWR,BC Bait! er.mg,, ;,. ll.00000 . 2}jf(J
Ad'lice Ur. No. <1582-E

0.24-05-028
Cotrl!lnued
l!ISUl!d by
Dan Skope c
Senior Vice Pre911!1ent
Regulatory Affah
Submitted
Effective
Resolution o.

Jan 1. 2005
2025/06/09
Attachment 1

HB□UllE TOU-OR1
RES ID:ENTIAL TIME-O F-USE
Sheet 5
The minimum bill to recover rnstribulion aoo TRAC cos s is calculated as lhe minim m bill clia:r,g;e of io-4182 per day Ii s the number of days • the bi in,g cyc'le with a 50% discoont applie • or CARE o:r Family E!lectric Rate Assistance Program (FERA) cusfo rs res ·ng in a miir1imum bill ch.arge of io.201 per day.

Ra e Compooems
The U ify Dislnb ution COOi\pany Tof Rates (IJDC Total} shown above a:re comprise d o the follolNing compo nems (if ,ap ca'ble)c (1) Transm ission (Trans ) Oharg;es. ( 2) Disbibwon (Dis r) Charges , (3), Pub c P rpose Program (PPP ) Charges,. (4) Nuclear Decomm issio ning (MD) Charge . (5) Ong;aing Compe hlion Transiticm Oh arges (CTCI, (6) Loca ll Generation Charge (LGC) . (7) R 1ability SelVices (RS). and f8) the Total Rate Ad" s me:n Compo n.ent (TRAC ).

Ousfomers taking seIVice under t his .Sched may be• e.ligi • or a California A lternate Rafes for Energy (CARE) discount on lhe ir bi , if they· qu ify to receive service under-ln e• ams and cond i ions of Schedu le E.­ GAR E.. In add ition, qua li 1ed CARiE cusfomers e e:X!em:p from paying the CARE surch ge o io.o 123-D Pe:r kWih. Customers t a:re , g l e a:nd receive ba CARE and medi:cal baseline wil be given 'the add ition medic b8!5'ellne s atmeri t for Ydiich they qualify and wil r,eceive the total e· ective CARE , medics baser e discounts idenlilied in Sohed e• E-CAR E.

Franch ise Fee Differe.n
A. Rranc'hise Fee Diffeirenlial of 5.78/II, will be app lied to the manfHly bil gs 'Lllated under thi s Sdhed' e ar all ,cusfomers within ihe corporate imils o • lhe Oity of San o· go. Suc'h Franchise Ree Diftereriti stia l be so • d"ICS ed and added as a :separate item to bills rendered to such customers.

Al • e periods li'sted are ,applicable to loc ·me. The de 11r1ifioo ,of lime I be based upon the date service is reooe.red.

TOU Periods - Weekdays
On-Peak
Off-Peak
Super Off~Pea
Su er O:ff~Pea'k
Seasons: Summe.r
Winter
d
Summer
4::0D 'liYL - 9:00 .m.
6,:00 aJm. - 4.:00 111.m.;
QtOO pum. - midnighi
idnighl - 6,:00 aJm.

Summer
4::0D nn. - 9:00 .m.
2:00 p1Jm. - 4:CIO 111.rm.;
• • lill
Ju ne 1 - O :ober 3 1
:ove.m'beir 1 - May 31
W...ier
4·:00 .ra. - 9:.00 .m.
6:00 ill . . - 4:.00 p.m.

Ex 10:00 a.m. - 2:00 p. . i'I March and April; 9:00 • • Midlii~ - ,. ' acme
0:00 ai.,lill.. - 2:.00 .m. in Mareh anlil
W...ier
4:00 .ra. - 9:00 .m.
2: • I) pJm, •- 4:CIO p.m.;
9:00 ht
2025/06/09
Attachment 1

l)».lqi.11,..~ ]r, nt,,t~l,l(!Cr, _· _,.,,;.,,_. !h~~~EY-'rOV-S-iiihtQM ."""111'~ .. ,.ll~ illldW'F-N8C 11,o;UCJC • aJIT1PC)l"lll'bPf.-ad""' MM0111nis~EV- -lOU-5nP1 • fnh •lllrilfl>oox. ~)~ ~ t~..tw:i - ~...,olht<p~-."'~~[.OA)111~Clw;ict;ll,gg!tgaili;viCOCAJ ~~~1>;1!1'@¥$00,I, •~"-- fl'lt T 'r;,u,1 fno,v, 0-V- b- anllriKn:hd cullDmll • U0C. F ' .C, OV.'R -BC arid ~w Ch.>qt;o lrd WIC4I ~ (PCIAI s-. PCU!. , t.,, ~ , hludod babw - Sct!oddlH Dll.al:Sar OCi!r l;~!o,,-~~ PQIA•
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement 2025/06/09
Attachment 1

HEDULE EV-TOU-5 Sheet 4
COST-BASED DOMESTIC TIME~OF-USE FOR HOUSEHOLDS WITH ELECTRIC VEHIClES Notes: l"ransrnlssfon !Energy charges in.dude lhe TmnsmiSSion Revenue Balan.olng Account Ad1ustment (TRBAA) of $(0 00289} per lcWh and the 1iransmlssfon Access Charge Balan.dng Account Adjus1men1 (TACBAA) of $(0.01656} per kWh. PPP Energy charges includes Low Income PPP mle (LI-PPP) $0.015151kWn, Non-low Income PPP rate (Non-LJ­ PPP) So.00031/licWh (pursuant to PU Code Seotion 399.8, the t\lon.U-PPP rate may nol exceed January 1, 2000 leve.ls), and Cal[fomla Solar Initiative rate (CSI) of $(0.00075)/l(Wh and Self-Genera~on Incentive Program rate (SGIP) $0.00149Jkl/Yh. 1illle basic service fee of 16 per montlll is applied to a customer's bill and a 50% discount is applied fot CARE, Medical Baseline, or Family Electric Rate Assislance Program (IFERA) custorriers resulting, in lheir basic sef\lice fees to be 8 per month.

Rate Components
The Utility Distribution Company Total Rates (UDC Total) shown above are comprised of the following components (if applicable): (1) Transmission (Trans) Charges, (2} Distribution (Distr) Charges, (3) Public Purpose Program (PPP) Charges, (4) Nuclear Decommissioning (ND) Charge, (5) Ongoing Competition Transition Charges (CTC), (6) Local Generation Charge (LGC). (7) Reliability Services (IRS},. and (8) the Total Rate Adjustment Component (TRAC).

Gertain Direct Access customers are exempt from the TRAC, as defined in Rule 1 - Definitions.

Franchise Fee Differential
A Franchise F,ee Differential of 5. 78% will be applied to the monthly billings calculated under this schedule for all customers within the corporate limits of the City of San Diego. Such Franchise Fee Differential shall be so indicated and added as a separate item to bills rendered to such customers.

Time Periods:

All time periods listed are applicable to actual "clock" time) TOU Period - Weekdays Summer Winter
On•Peak 4:00 p.m. - 9:00 p.m. 4:00 p.m. - 9:00 p.m.
6:00 a.m. - 4:00 p.m.; 6:00 a.m. - 4:00 p.m.

Off.Peak Excluding 10:00 a.m.- 2:00 p.m.in March and April; 9:00 p.m. - midnight 9:00 p.m. - midnight Super ~Off-Peak Midnight - 6:00 a.m. Midnight - 6:00 a.m. 10:00 a.m.. - 2:.00 p.m. in March and April
TOU Period - Weekend.s Summer Winier and Holidays
On•Peak 4:00 p.m. - 9:00 p.m. 4:00 p.m. - 9:00 p.m.

Off-Peak 2:00 p.m. - 4:00 p.m .. ; 2:00 p.m. - 4:00 p.m. 9:00 p.m. - midnight 9:00 p.m. - midnight
Super .Off.Peak Midnight - 2:00 p.m. Midnight - 2:00 p.m.

Seasons:

Summer June 1 - October 31
Winter November 1- May 31
2025/06/09
Attachment 1

·• ....,JE
San Diego Gas & Electric Co,npany
San Diego, Califom ie
R1wlsed Cal. F'·.U.C. ShHI No.

Cancel 9 RevJsed Cal. F'·.u .c. ShHI No.

SCHEDULE E CARE
CAL IFORNIAALiERNA.TE RATES FOR ENERGY

APPLICABILITY
62755-E
35718~E
Sheet 1
lhis schedule provides a California Alternate Rates for Energy (CARE) disrount to each of the following types of customers listed below that meet the· requirements for CARE eligibility as defined in Huie 1, Definitions, and herein, and is taken in conjunction with the customer's otherwise applicable· service schedule.
1) Customers resi.ding in a permanent single~family accommodation, separately metered by the Utility.
2) Multi-famcly dwelling units and mobile home parks supplied throug.h one meter on a single premises where the individual unit is submetered.
3) Non-profit group living facilities.
4) Agri oultura I employee housing facilities.
l ERIRITORY
Within the entire territory served t>y the UHlity.

DISCOUNT
1) Residential! CARE :

Pursuant to D.24-05-028, the applicable GARE discount rate is to be· between 30% and 35%, with the intended CARE discount rate to be 35% for SDG&E, specifically, applied as a fixed CARE line~item discount.
1H6
In add'ition to the CARE line-item discount, the total effective GARE discount consists of: (a) exemptions from paying the CARE Surcharge, Department of Water Resources Bond Charge (DWiR-BC), California W ildfire Fund Charge (WF-NBC), Vehic e-Grid Integration (VGI) costs, and California Solar Initiative• (CSI) and (t>) a 50% minimum bill relative to N.on­ CARE.

Oontlrrued
Issued by Submitted Jan 24. 2025
Advice Ur. No. 4572-E-A Dan1Skopec Effective Jan 1, 2025 Senlo.r Vice F'resldeni
Decision No. D.24-05-028 Regulatory Affairs R.esolutllon No.

T
N
N
2025/06/09
Attachment 1

6.3.5 City of Palo Alto Utilities
Following are the CPAU electricity and natural gas tariffs applied in this study. The CPAU monthly gas rate in $/therm was applied on a monthly basis according to the rates shown in Table 41. The gas rates were developed based on the latest available gas rate for January 2025 and a curve to reflect how natural gas prices fluctuate with seasonal supply and demand. The seasonal curve was estimated from CPAU’s monthly residential tariffs between 2018 and 2024. 12-month curves were created from monthly gas rates for each of the seven years. The seven annual curves were then averaged to arrive at an average normalized annual curve. The baseline and excess transmission charges were found to be consistent over the course of a year and applied for the entire year based on January 2025 rates. The costs presented in Table 41 were then derived by establishing the baseline and excess rates from the latest January 2025 tariff as a reference point and then using the normalized curve to estimate the cost for the remaining months relative to the January rates. The monthly service charge applied was $16.93 per month per the January 2025 G-1 tariff.

Table 41. CPAU Monthly Gas Rate ($/therm)
Month G1 Volumetric
Total Baseline
G1 Volumetric
Total Excess
January $1.74 $3.02
February $1.33 $2.53
March $1.24 $2.43
April $1.21 $2.39
May $1.21 $2.39
June $1.23 $2.42
July $1.31 $2.64
August $1.37 $2.71
September $1.36 $2.71
October $1.38 $2.72
November $1.45 $2.80
December $1.57 $2.96
2025/06/09
Attachment 1

:Sm.E U L IEIJEC fRH: ' KR I C E
U1"[UTY RATE SCHEIDULE E-1
A. .Pl"U( ' . BEUTY:

This Rate Sch dule app!.i to sep rarely m t.ered in ,Je- mil · resi!fen11ial d/ llin - receiving Electric Se • ice Imm dlle iiy of Palo Alto Utilities.

B. T ER:Rn'OR :

C.

Thi rate chedule appli.e everywhe.re the Ci f Palo Alto pro ide.s E.!earic Se • ce.

DLKD· RAT ES:

Tier I u:sag.e
Tier2u:sage
All}' II age O .er Ti.er I
Customer Chari.,<.e
( monili)
Commodi

0.10-270

0.13240
Di tr1bu1ion

0.0$642,

0.08079
Public Be-ilefits
(UICl549
(UICl549
Tolal
.19461

0.21868

4.64 D·. ~l'IOCI . L OT ··:
l . C afe11I tio olf Co t Co ponen .

The crual bill. amount i calculated. based on. th.e applicable • te i.n Section C above and adju ted for any pplkable oliscounl , sureharge and/or ta. e . On a Cu tomer' bill talem.enl the bill amount may be broken clown into appropriate componenl as ,eaklllated under Secti.on C.

Cafe11I tio olf oe-Tie
Tier 1 - 1.ecttidty usage haM be calrulated and biUed. based. upon. a 1eve4. o,f 15 kWh per day proratecl b Meter reooing days of S ice. As an example for a 30-<l'ay bill, ihe Tier I level \¥OUM be 450 Wh. for furd1er discus ion of bill c.alculation and proration, refe-r to Rule ancl Regul tion 11.

Is ued by the Cil)• Council
Supe.l':!i~ Sl'l8el'Nt, E-1-1
tJatecJ 7-1-WZJ
Tm U TIES
O

C IT YOF
PALO AL.:,T'O

UTILI T-IES
{Entl}
Sheet No E-1-l
Effocti e 7-1-20-24
2025/06/09
Attachment 1

idential Time-of -Day Service
Rate Schedule R-TOD
II. Firm Serv ice Rates
A. Timc'-<lf-D•y (5-S p.m.) Rak
Of't"tliW" id ot ftr« 1i~ 1e1 ut £Kttti ,rti ut lim-cliw all or fl'l'ed i\1:' M ut Ji ■ ury l .2tlH J anlbn l.2tH l\bt.\' 1. 2124 JiUluar~•J. 2025 ll,bt' l . 2(1?5 N,., 11n11aer Se~oo (Oc1ober- Ma}'J
S~i lt!1n lntr.ti lnltt ur e fiiM'd Ulillle p~r ,_,,. tli pu JffC'.tu $23.50 Pl.IS S24.80 S2S.50 Detlriti ty lJsW11tr U ii.rji.1!
f"e.11lt.$11:IH1 lb.ISO S0.IS90 lb.HOO S0..161f!
OO-Pir.11lt.S/llf-1r S0.1120 SO.II.SI S0.1183 $0.12.U
S uJ1111N!r Sr.uo n (Jur,i:, • Sepll-mbcr)
B.

S:i,-s 1e1a lnfntilnl .ctu r e fiud <:lJtrtt! prr l'ND'.n tb pu l'ff.tu $23.50 $24.IS $24.80 S2S.50 Ott1ric.i1 y l illl:rCbrji.e
f>c,kS/1 11~ lb.3219 lb.l:wl $0.3462 $0..lSS?
M.t-l-..k $/llf~ lb.lllfi-l S0.1914 $0.1967 $0.2021
Ofl'f>c,Ull II~ lb.mo SO. llll7 $0.142.S $0.1'164
Optional Critica l Peak Pricing Ra tc

1. ThC' CPP Rate base prices per time-of-day pcriod a.re the same as thC" prices per time-of-day period for TOD (S-8 p.m.).

2. The CPP Rate provides :::i discount per kWh on the Mid-Peak nnd Off-Peak prices during summer months.

3. During CPP Events, cu.stomCl"S wi11 be charged for energy used i:it the npplici:ible time--of-di:iy period rate plus I.he CPP Rate E"·cnt Pric.epcr kWh as shown on www_smud_org...
$26.20
S0..17'-A
S0..1248
$26.20
$0.36$5
$0.1077
$0.1505

4. During CPP E'\-·enls, cne.-gy exported lo the grid will be compensated at the CPP Rate Event Price per kWh as shown on www_smud.org..

5. The CPP Rate E"·cnt Price and djsco,mt will be updated annually a.I SMUD's discretion and posted on www.smud .org.

C. Plug-In Elect ric Vehicle C n.-dil (n l.e cal.L-go.-ics RT02 and RTC l ) This credit is for rcsidentia.l customers who ha~·c a licensed passenger battery electric plug-in or plug- in hybrid electric "·chicle.

Credit applies to alJ clcctricl1y usage charges from midnjg.ht to 6:00 a .m. daily .

Electric Vchjcle Crcdj t . _____ ... --- ·--·. ___ ____ __ _ .... .... .... -$0.0 ISO/kWh Ill. Electrlclty Usage Surcharges
Refer to the following rn.le. schcdu]cs fo.-drta ils on these surcharges.

A. H)"dm Genc.-ation Adju!tl.mtni (HCA }. RcfCf" to Rate Scha:luJe HGA.

IV. Rate OpUon Menu
A. Energy A.s!dsla nc.e Prog.n11m R :ll'k, Refer to Rate Schedule EAPR.

0. J\ t r::dicsl Equip mtnl Di!icOunt P.-ognm . Refer lo Rate Sc.hcdu]e MED.

C. J oin t P:ut icipation in Medical Equipmen t Diseo un i and E'..nr r gy Allis tancr Pragn.rn Rate. R.cfcrlo Rate Schedule MED.

SACRAM ENTO MUNICIPAL UTILITY DISTRI CT
Resolution No. 23-09-09 adopted September 21 , 2023
Sheet No. R-T00 -2
Effective: September 22, 2023
Cost-effectiveness Analysis: Single Family AC to Heat Pump Replacement

6.3.6 Sacramento Municipal Utilities District (Electric Only) Following are the SMUD electricity tariffs applied in this study. The rates effective January 2025 were used.
2025/06/09
Attachment 1

. Conditions ,of Service
Peak Wcckclays bclwccn 5:00 p.m. ancl. 8:00 p .m.
... umm u ·
idl-P~-ak \Vcckcleys bclwccn noon lllld midnight =□cp l clurin • ·lhc (.!Ju n 1 - . i;pt 30) ~,al,: hour.;_
0 I -Peak All othe r hours. includ in£ wce'kc.ml!s lllld holidays 1.

1.1 ~ umm r r Peak Wcckclays bclwccn 5.:00 p.m. ancl. 8,00 p .m. (Oct 1 - 1.ay 3O 0 I-Pea · All other hours, includin£ wce'kcnd!s lllld holidays l. . -1 Sec Scclmn V. Conc'btLons of Se:rv,oc
2025/06/09
Attachment 1

6.3.7 Fuel Escalation Assumptions
The average annual escalation rates in Table 42 and Table 43 were used in this study. Table 42 rates are based on assumptions from the CPUC 2021 En Banc hearings on utility costs through 2030 (California Public Utilities Commission, 2021a). Escalation rates through the remainder of the 30-year evaluation period are based on the escalation rate assumptions within the 2022 TDV factors. No data was available to estimate electricity escalation rates for CPAU and SMUD, therefore electricity escalation rates for PG&E and statewide natural gas escalation rates were applied. Table 43 rates are based on the escalation rate assumptions within the 2025 LSC factors from 2026 through 2055.
9 These rates were developed for
electricity use statewide (not utility-specific) and assume steep increases in gas rates in the latter half of the analysis period. Data was not available for the year 2026 and so the CPUC En Banc assumptions were applied for those years using the average rate across the three IOUs for statewide electricity escalation.
9https://www.energy.ca.gov/files/2025-energy-code-hourly-factors. (California Energy Commission, 2023). Actual escalation factors were provided by consultants E3.
2025/06/09
Attachment 1

Table 42. Real Utility Rate Escalation Rate Assumptions, CPUC En Banc and 2022 TDV Basis Statewide Natural
Gas Residential
Average Rate
(%/year, real)
Electric Residential Average Rate
(%/year, real)

PG&E SCE SDG&E
2026 4.6% 1.8% 1.6% 2.8%
2027 4.6% 1.8% 1.6% 2.8%
2028 4.6% 1.8% 1.6% 2.8%
2029 4.6% 1.8% 1.6% 2.8%
2030 4.6% 1.8% 1.6% 2.8%
2031 2.0% 0.6% 0.6% 0.6%
2032 2.4% 0.6% 0.6% 0.6%
2033 2.1% 0.6% 0.6% 0.6%
2034 1.9% 0.6% 0.6% 0.6%
2035 1.9% 0.6% 0.6% 0.6%
2036 1.8% 0.6% 0.6% 0.6%
2037 1.7% 0.6% 0.6% 0.6%
2038 1.6% 0.6% 0.6% 0.6%
2039 2.1% 0.6% 0.6% 0.6%
2040 1.6% 0.6% 0.6% 0.6%
2041 2.2% 0.6% 0.6% 0.6%
2042 2.2% 0.6% 0.6% 0.6%
2043 2.3% 0.6% 0.6% 0.6%
2044 2.4% 0.6% 0.6% 0.6%
2045 2.5% 0.6% 0.6% 0.6%
2046 1.5% 0.6% 0.6% 0.6%
2047 1.3% 0.6% 0.6% 0.6%
2048 1.6% 0.6% 0.6% 0.6%
2049 1.3% 0.6% 0.6% 0.6%
2050 1.5% 0.6% 0.6% 0.6%
2051 1.8% 0.6% 0.6% 0.6%
2052 1.8% 0.6% 0.6% 0.6%
2053 1.8% 0.6% 0.6% 0.6%
2054 1.8% 0.6% 0.6% 0.6%
2055 1.8% 0.6% 0.6% 0.6%
2025/06/09
Attachment 1

Table 43. Real Utility Rate Escalation Rate Assumptions, 2025 LSC Basis Year
Statewide Natural
Gas Residential
Average Rate
(%/year, real)
Statewide
Electricity
Residential
Average Rate
(%/year, real)
2026 4.6% 2.1%
2027 4.2% 0.6%
2028 3.2% 1.9%
2029 3.6% 1.6%
2030 6.6% 1.3%
2031 6.7% 1.0%
2032 7.7% 1.2%
2033 8.2% 1.1%
2034 8.2% 1.1%
2035 8.2% 0.9%
2036 8.2% 1.1%
2037 8.2% 1.1%
2038 8.2% 1.0%
2039 8.2% 1.1%
2040 8.2% 1.1%
2041 8.2% 1.1%
2042 8.2% 1.1%
2043 8.2% 1.1%
2044 8.2% 1.1%
2045 8.2% 1.1%
2046 8.2% 1.1%
2047 3.1% 1.1%
2048 -0.5% 1.1%
2049 -0.6% 1.1%
2050 -0.5% 1.1%
2051 -0.6% 1.1%
2052 -0.6% 1.1%
2053 -0.6% 1.1%
2054 -0.6% 1.1%
2055 -0.6% 1.1%
2025/06/09
Attachment 1

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Revision: 1.0
Last modified: 2025/06/09
2025/06/09
Attachment 1

Cost Effectiveness Results Using Standard Tariffs
1992-2010 Dual-Fuel Heat Pump Existing Furnace
Climate
Zone
Electric/
Gas
Utility
First
Incremental
Cost
First-
year
Utility
Savings
Lifecycle Net Present Value (NPV)
Savings
2025 Long-
term
Systemwide
Cost
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ04 PGE $1,670 ($68) $7,322 $1,880 $10,049
1992-2010 S
tandard Efficiency Heat Pump Space Heater
Climate
Zone
Electric/
Gas
Utility
First
Incremental
Cost
First-
year
Utility
Savings
Lifecycle Net Present Value (NPV)
Savings
2025 Long-
term
Systemwide
Cost
On-Bill NPV
Modest Gas
Escalation
On-Bill NPV
High Gas
Escalation
CZ04 PGE $652 ($205) $8,244 ($572) $11,665
Dual F
uel Heat Pump (DFHP Existing Furnace): Replace the existing ducted furnace with an electric heat pump and install controls to operate the heat pump as the primary space conditioning source and to use the existing gas furnace for backup heat when heating demands cannot be met by the heat pump. In the study (Attachment 1), per the California Energy Code, the existing furnace is required to be disabled when the outdoor temperature reaches 35°F.

Standard Efficiency Heat Pump Space Heater: Replace existing ducted natural gas furnace with an electric heat pump and air handler.

First Incremental Cost: Higher efficiency equipment reduces utility costs in all cases and improves cost-effectiveness in many climate zones (Sunnyvale’s climate zone is 4) in the oldest vintage relative to standard efficiency equipment. However, in more efficient newer homes, where cost-effectiveness is generally lower, the savings are insufficient to offset the roughly $3000 increase in incremental cost.

Exhibit A-2
Attachment 1

The authors of the cost-effectiveness study assessed the incremental costs and savings of the packages over the lifecycle of 30 years. Incremental costs represent the equipment, installation, replacement, and maintenance costs of the proposed measure relative to the Energy Code minimum requirements or standard industry practices.

Gas Escalation: The study assumes utility rates escalate over time. Because it is very difficult to predict how the rates will change, the analysis presents two escalation scenarios (modest and high gas escalation) to represent a range of outcomes.

Long-term Systemwide Costs: Long-term systemwide costs are the California Energy Commission’s metric for determining cost-effectiveness measures. This metric is intended to capture the long-term projected cost of energy, including costs for providing energy during peak periods of demand, carbon emissions, grid transmission, and distribution impacts.

Note: The Bay Area Air Quality Management District passed Regulation 9 (Inorganic Gaseous Pollutants), Rule 4 (Nitrous Oxide from natural gas-fired furnace) prohibits selling, installing, or offering to sell natural gas-fired furnaces within the district after January 1, 2029. (Amended March 15, 2023)
Attachment 1