Have you ever taken a close look at your PG&E bill and wondered about the charges listed as "Public Purpose Programs" or PPP? Exactly what public purpose is the utility charging us for and how are these funds being spent?

Under the direction of the California Public Utilities Commission (CPUC), PG&E (and all other investor-owned utilities in California) must use these funds for programs that benefit all ratepayers by reducing California's overall consumption of energy. The most cost-effective way to make this happen is through energy efficiency. The cheapest and cleanest units of energy are those never used when fuel-guzzling equipment is replaced with more efficient models, causing power plants to operate less often. PPP activities are designed to make that happen on an increasingly broader scale, with the budget for the current three-year program cycle--2006 through 2008--approaching $2 billion statewide.

An example of PPP spending that you might recognize is the rebate program offered through PG&E for the purchase of high efficiency appliances such as washing machines, air conditioners, furnaces, etc. Another example is the sudden abundance of inexpensive compact fluorescent light bulbs (CFLs) on sale in stores throughout California. Here PPP funds were used to subsidize the cost of manufacturing and distributing CFLs, thereby enabling them to compete with inefficient incandescent bulbs in the marketplace. PPP dollars also support incentive programs designed for the energy-intensive commercial and industrial sectors, where rebates encourage investment in large projects that can have a measurable impact on reducing the electricity (and emissions) produced by power plants.

In recent years, the CPUC has directed the utilities to allocate a portion of the PPP contributions to "local government partnerships." Interested local governments can help direct PPP funds back into their communities by developing and implementing programs specifically suited for the type of utility customers prevalent in their jurisdictions.

San Francisco Energy Watch

San Francisco's Department of the Environment represents the city in a local government partnership with PG&E called "San Francisco Energy Watch." Through this program small businesses and owners of multifamily buildings in San Francisco can obtain special financial and technical assistance from PPP funds to make energy-efficient improvements to their properties. In the past, PPP funds seldom served to benefit small businesses and multifamily housing, as these sectors were harder to reach than large commercial enterprises, chain stores, and single-family track housing in California's interior. SF Energy Watch aims to change this scenario with incentives and services tailored for these San Francisco-based ratepayers.

Alena Gilchrist Performs and Energy Audit Here's how the program works. Specialists from the Department's Energy Division (or consultants working with the department) conduct free, on-site energy assessments of facilities (see photos) and then provide a detailed report with recommendations for equipment and building upgrades. The report contains an analysis on the return on investment for the owner, showing the projected cost of the installation, the deep discounts offered by the program, and the monthly savings on utility bills after completing the upgrades. If the owner decides to go ahead with the project, staff will then either arrange for a pre-approved qualified contractor to do the installation or work with the owner's preferred installer to ensure the project meets all program specifications.

SF Energy Watch incentives help cover the cost of new, efficient lighting, heating and cooling systems, computer power management tools, and refrigeration equipment. But the expert technical assistance and turnkey installation services are equally valuable to small business owners who have little time to examine all the options available on the market today. This personalized attention from a department that is committed to reducing energy use in the city helps to underscore the importance the city places on taking action. When San Francisco's ratepayers respond to SF Energy Watch they accomplish a number of positive outcomes: they help the CPUC achieve its statewide energy and carbon reduction goals, they make San Francisco a more sustainable city; and by using dollars they have contributed to the PPP fund they get to enjoy lower monthy utility bills as a direct benefit of the fund..

For more information on SF Energy Watch and to schedule an energy assessment, contact the following staff for:

--Business: Kathleen Hannon: 415-355-3717; kathleen.hannon@sfgov.org

--Multifamily: Seth Epstein: 415-355-3738; seth.Epstein@sfgov.org