California's Energy Efficiency Standards Have Saved $74 Billion

The Energy Commission's energy efficiency standards have saved Californians more than $74 billion in reduced electricity bills since 1977.

These standards conserve electricity and natural gas and prevent the state from having to build more power plants. The Commission accounts for the savings by using forecasting models for residential and commercial energy consumption. The savings are calculated by determining the energy savings associated with a more efficient building standard or appliance. Savings accumulate over time as older equipment and appliances are replaced with newer, more efficient models and older buildings are retired and replaced with new construction. Savings are calculated by multiplying cumulative savings in each year by the average residential or commercial electricity rates in that year.

The success of standards and other energy efficiency efforts is a significant factor in California's per capita electricity use remaining flat over the last 40 years while the rest of the country's use continues to rise.

For addditional information, see the California Energy Commission 2012 Accomplishments.

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