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5 consequences of enhanced state regulations

The California Public Utilities Commission (CPUC) recently approved the energy sector's most wide-ranging and integrated approach to managing climate change risks on the state’s energy investor-owned utilities (IOUs). Here are 5 key outcomes and questions utilities are asking themselves.

Outcome 1

Funding transparency

Who is going to pay for updating systems?

Enhancing the resilience of IOU infrastructure, operations, and services through transparent funding systems.
Outcome 2


Who is going to help shape the decisions that affect disadvantaged and climate vulnerable communities?

Community engagement plans (CEP) will be required to ensure those most vulnerable to climate change are involved in finding appropriate solutions for their communities.
Outcome 3


How are you going to know which parts of the system are vulnerable to climate change impacts and how to prioritize investments?

Vulnerability assessments will be mandated every four years to outline key climate risks and adaptation options.
Outcome 4

Stronger governance

How will climate resilience be integrated across all key aspects of a utility’s planning investments, management, and operations?

Each utility is required to have a climate change team, which will need to make annual reports to statewide regulators on progress toward advancing climate resilience.
Outcome 5

External integration

How will utilities ensure that the power they’re purchasing from third parties becomes climate resilient over time?

Greater expectation that climate change considerations will be integrated into power purchase contract negotiations with third parties.
What can utilities nationwide learn from this new approach?

Read our paper to
learn more.