After nearly three years of development and an Application proceeding process, the California Public Utilities Commission (Commission) is poised to decide on CalMTA’s request for approval and funding for the first market transformation initiatives (MTIs) for the state’s forming portfolio. CalMTA submitted MTI plans in this first tranche featuring two technologies that would help further California’s efficiency and decarbonization goals. The technologies include induction cooking products, with attention to 24” 120V models that fit in smaller kitchens, and 120-volt window heat pumps tailored for California’s climate and buildings. Both represent missing pieces that are vital to electrification of Californian’s single- and multi-family homes.  

A crucial vote on the future of MT 

Before the Commission are two proposed decisions to be considered and likely voted on during its next meeting on Oct. 30. The proposed decision (PD) would fund both initiatives and acknowledges that the Application meets the intent of the original decision (D. 19-12-021), which formed CalMTA (the market transformation administrator) and laid out the parameters for how market transformation would be developed. CalMTA is a program of the Commission and is administered by Resource Innovations.  

The alternate proposed decision (APD) would fund only the room heat pump initiative, cancelling the induction cooking effort, and imposes a new metric for development of market transformation in California: a total resource cost “(TRC) break-even period.” As explained in CalMTA’s comments on the APD, approval of this decision would greatly restrain the CalMTA program’s progress and overall success.  

Such a break-even metric is antithetical to market transformation strategy as market transformation requires higher investment in the early years to bring about structural market changes that pay out in the later years with high rates of market adoption. The APD reasons that the new requirements are necessitated because of affordability concerns and customer value especially for the environmental and social justice community.  

But representatives of those communities disagree as expressed in the position of the California Equity Justice Association’s (CEJA) filing as a party supporting both initiatives and calling for their approval. Funding for both MTIs is further supported by energy efficiency and health advocates in a letter to Commissioners because of their potential to:  “. . . advance both equity and affordability by helping make decarbonization accessible to low-income and renter households and by reducing the need for grid upgrades to enable the high levels of electrification necessary to achieve the state’s climate and air quality objectives.”   Other parties supporting the CalMTA Application include CEDMC, TURN, NEEA, and BayREN and 3C REN.  

What’s at stake 

Market transformation delivers lasting energy efficiency at scale, but unlike the more transactional approaches of traditional efficiency programs, market transformation takes time. CalMTA’s approach is based on the Northwest Energy Efficiency Alliance’s (NEEA) work over the last two decades—a proven track record of working higher in the supply chain with manufacturers, distributors, and retailers to change the way markets work thus creating lasting change that provides high-value benefits.  

The Proposed Decision gets this right by emphasizing that these MTIs are even “more important at a time when customers are facing rising energy costs, because these initiatives have a long-term focus on reducing upfront costs and developing mature markets for the delivery of energy efficiency options to customers.” 

Taken together, these two initiatives are: 

• cost-effective over their lifetimes passing the TRC, PAC, and SCT thresholds for cost effectiveness as proposed and analyzed 

• projected to deliver over $1B in total system benefit (TSB) to the state’s ratepayers 

• unique in their ability to accelerate market adoption and being leveraged with other programs through close collaboration to ensure alignment and mitigate duplication of effort

• bringing affordable and viable products to ESJ communities and are supported by CEJA and other equity advocates 

We are proud of the work of CalMTA and collaborations we have built over the last three years. We remain hopeful that the Commission will approve and adequately fund market transformation. For more information, you can visit the Commission docket webpage with all the filings over this 10-month process. Key links are below.

Summary of the Induction Cooking Initiative

View public comments provided during the California Public Utilities Commission voting meeting on Oct. 9, 2025.