PacifiCorp to suspend California energy efficiency programs under proposed settlement

If you get power from Pacific Power in Northern California, your utility's rebate and incentive programs for energy efficiency upgrades are going away. PacifiCorp, which serves about 46,000 customers in the state, has agreed to a settlement with California regulators to shut down all of its ratepayer-funded efficiency programs by January 1. The state's Public Advocates Office pushed for this, arguing the programs cost more than they save customers and have been getting worse: savings from the Wattsmart Business program dropped about 75% between 2022 and 2024, and total program savings fell 40% in 2024 alone. Pacific Power says its California territory is too rural and sparse, with few large business projects to help spread out costs.

The upside for all Pacific Power customers is a small rate cut, about 0.7%, since the charge that funds these programs will shrink. If you already have an incentive approved or pending through Wattsmart Homes or Wattsmart Business, PacifiCorp says it will still honor that commitment. Going forward, though, the utility won't be offering these rebates itself.

Instead, over the next year Pacific Power is required to point customers toward other efficiency, weatherization, and electrification programs and services funded by the state or federal government, not run by the utility. The settlement leaves the door open for PacifiCorp to bring its programs back later if they become cost-effective, but for now, homeowners in its California service area will need to look to state and federal programs for help with insulation, heat pumps, and other upgrades.