PSMA Update

The CEC is a highly proactive agency and follows the wishes of people of California, a progressive state. In this way, the CEC wields significant regulatory power because California is a large and significant market, and its energy-related regulations are forward looking. However, even though the US DOE has not always followed CEC's recommendations and in some instances some serious legal challenges have been made to CEC's regulatory positions by various entities. But its power and influence cannot be underestimated.

The California Energy Commission (CEC) was created in 1974 as an agency within the Natural Resources Agency. Initially the charter was to certify construction or modification of any electric plant by looking into its need and the suitability. Later as energy infrastructure development diversified to include nuclear, renewable (solar) and other forms of power generating technologies, CEC charter changed accordingly. Besides focusing on the power generating side of the business, CEC has also ventured into regulating efficiency standards for various home appliances and buildings. The CEC recently passed a new regulation related to energy efficiency guidelines for mobile chargers: on January 12th, 2012, CEC voted 3-0 to have stringent regulations related to battery chargers that power mobile phones, tablet computers, power tools and many other portable equipment. It is estimated that the market in California uses about 170 million battery chargers which waste as much as 60% of energy in either standby mode when the equipment is not being charged or when it is fully charged..."

The CEC's sphere of influence is expanding and its rise in prestige and action can be attributed to one man, its former commissioner, Dr. Arthur Rosenfeld. He is one of the most revered individuals in the field of energy efficiency and widely acknowledged as "The Father of Energy Efficiency". Dr. Rosenfeld served as the commissioner of the CEC from 2000 to 2010, an entire decade. During this time, CEC tackled issues related to power generation, transportation and efficient use of energy. Efficient use of energy became as important as producing it, without using polluting and carbon-creating fossil fuel-based power generation. Dr. Arthur Rosenfeld was instrumental in promoting energy efficiency as one of the important issues in the energy infrastructure. "Rosenfeld" is now used as a unit to measure energy savings, created in the honor of Arthur Rosenfeld. Currently, Dr. Arthur H Rosenfeld is a member of the U.S. Department of Energy Secretary Steven Chu's Energy Advisory Board.

CEC wields significant clout in setting various energy goals for California. For example, it was the CEC that established its Renewable Portfolio Standard (RPS) program with a goal to increase power generated from the renewable sources to 20% by 2017.
The CEC defines its mission as "to assess, advocate and act through public/private partnerships to improve energy systems that promote a strong economy and a healthy environment". It is a very powerful, proactive and action oriented agency that has shaped California’s energy usage for decades. At per capita level, California is the least energy consuming state in the union--(6,721 kWh vs. US average of 12,146 kWh), thanks mostly to CEC for its proactive stance in increasing energy efficiency. (This is also partly due to California's mild weather).
The California Energy Commission is supported by many environmental and trade groups and utilities that include: Natural Resources Defense Council (NRDC) and Environment California, Power Sources Manufacturers Association (PSMA), Pacific Gas & Electric (PG&E), Southern California Edison and San Diego Gas & Electric.

It is advisable for any power supply company, located anywhere in the world, to monitor and follow the regulatory stance of the CEC related to energy efficiency, because the regulation has a tendency to migrate towards the entire US and then into the global energy infrastructure.

The views expressed in this article are solely of Mohan Mankikar. They do not represent the views of PSMA. Mohan Mankikar has been a part of the power supply industry for over twenty five years. An active member of the PSMA since its founding, he had been a board member of the PSMA and currently serves on the Advisory Council.