How Long-Term Energy Planning is Benefitting California in Summer

With another hot summer upon us, we’re taking a dive into efforts from the California Public Utilities Commission (CPUC) to help create a more reliable energy system while supporting more predictable electricity bills for customers. 

Thanks to record levels of clean energy and battery storage required by the CPUC, California has more tools than ever to meet high electricity demand during heat waves while minimizing reliance on more polluting power sources. On top of that, the CPUC has adopted new billing and rate-design changes, which are providing bill stability for customers who require high air conditioning during the summer months.  

“Years of proactive planning and measured investment is now delivering a system that can meet today’s reality of climate-driven extreme weather. At the same time, recently adopted CPUC measures will help stabilize rates for households even as temperatures rise,” said Leuwam Tesfai, the CPUC’s Executive Director. 

Record Clean Energy and Battery Deployment  

Since 2020, when California experienced an extreme heat wave, the state has seen an unprecedented level of clean energy capacity come online to improve grid reliability. During this period, retail electricity sellers procured more than 37,000 megawatts of new energy supply like solar to serve California’s needs.   

The expansion of California’s battery portfolio, along with rapid clean energy deployment, helps the grid maintain power during prolonged heat waves when the need for cooling drives up power demand. Batteries charge during the day when there is excess solar energy and provide more affordable clean energy to the grid during evening hours after the sun goes down, lessening the need to tap into more expensive and polluting generation resources.  

CPUC decisions play a central role in securing more clean energy to support the California grid. In recent years, California’s grid withstood summer heat waves, avoiding the need for grid operators to issue Flex Alerts for the past three summers. 

CPUC Executive Director Tesfai and Energy Division's Christine Root at a ribbon-cutting for Victory Pass and Arica solar and energy storage complex, a utility scale solar project in Southern California.

New Approaches to Help Manage Summer Bills  

Adding more clean energy and battery storage helps deliver least-cost reliability solutions for the grid. In tandem, new billing and rate design solutions can ease the burden customers may feel from higher bills during peak summer periods, especially for those living in parts of the state with the highest temperatures that require air-conditioning. Earlier this year, the CPUC took an important step to improve affordability during the summer months by adopting a decision to issue the California Climate Credit during the hottest months, when energy usage is highest and ratepayers need relief the most. Beginning in the summer of 2026, residential customers of California’s three largest utilities will receive the credit in August and September, a change that will reduce bill spikes during the summer and improve household financial stability.   

The California Climate Credit is not the only thing that may help stabilize customers’ bills this summer. Investor-owned utilities, in compliance with a CPUC decision, also implemented a Base Services Charge. It is not a new fee; rather, it covers CPUC-approved infrastructure and maintenance costs required to serve all customers, regardless of how much electricity they use. These costs were previously included in customer electricity usage costs. Income-qualified customers enrolled in the CPUC’s CARE or FERA programs or those who live in deed-restricted affordable housing will receive a discounted Base Services Charge in addition to a reduced electricity rate.    

The CPUC has also continued work on statewide extreme weather disconnection protections. On July 16, 2026, the CPUC updated existing temperature thresholds (from 100 degrees to 90) so that customers don’t have their electricity cut for non-payment in a heat wave. The adjustment is in place for this summer while the CPUC considers broader actions related to disconnections. 
 
As California faces another hot summer, continued investments in clean energy, battery storage, and customer-focused affordability programs are helping ensure that the state can deliver reliable power while supporting more stable energy bills.

By Liza Martin, Public Information Officer