California utilities may soon unveil new conservation campaigns thanks to an innovative plan unveiled last week by regulators. Under the plan, the Public Utilities Commission will set three-year efficiency targets. Utilities that meet at least 85% of the targets stand to collect rewards of up to $323 million. Utilities that fail to meet 65% of the targets could face penalties worth $500 million.
The PUC forecasts that the program would result in $2.4 billion in energy savings before 2008 and would cut about 3.4 million tons of carbon dioxide from California’s air.