Rebate Missteps Could Lead to Huge Fines

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15 Million lamps could not be tracked by rebate program evaluators

 

The Utility Reform Network (TURN) has filed an 88-page complaint with the California Public Utilities Commission (CPUC) relating to lighting rebate program mismanagement with two utilities in Southern California:

Two utilities, Southern California Edison (SCE) and San Diego Gas & Electric (SDG&E), are accused of mismanaging lighting rebate programs.

The complaint alleges the following:

  1. The market could not have supported the volume of sales that the program data reported as shipped.
  2. SCE’s and SDG&E’s reported shipments of lamps combined were about three times the number of statewide sales of lamps in 2017.
  3. In all, approximately 15 million lamps, including CFLs and LEDs, could not be tracked by the program evaluators.

Los Angeles & Orange County Metro Area:

The commission is demanding that Southern California Edison pay:

  • A $124.6 Million refund of program expenditures
  • A $140 Million fine for misleading the commission by reporting energy savings from the Program in amounts that SCE knew, or should have known, were unreliable because of overstocking of rebate program bulbs at hard-to-reach retail channels.

San Diego Metro Area:

Last month, SDG&E agreed to pay a $5.5 million fine for lighting rebate program mismanagement. 

According to the San Diego Union Tribune, SDG&E admitted to mismanaging its Upstream Lighting Program from 2017 to 2019 and concedes an investigation revealed that concerns voiced by some employees about the program went unheeded.

 

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January 27, 2021

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