CalMTA completed its third and final startup year in 2025, advancing the creation of a market transformation (MT) portfolio designed to deliver impactful solutions that contribute to California’s clean energy future and support the state’s climate goals.
This year marked a pivotal milestone for CalMTA, as the California Public Utilities Commission (CPUC) approved the state’s first market transformation initiatives (MTIs) for implementation. CPUC Decision 25- 11-023 authorized immediate implementation of the Room Heat Pumps (RHP) MTI in November 2025, and granted conditional approval of the Induction Cooking MTI. (The Induction Cooking MTI is being revised and will be submitted in 2026 for approval via a Tier 2 Advice Letter). Together, these initiatives are predicted to deliver nearly $1 billion in Total System Benefit (TSB) to the state over their lifetimes.
This achievement reflects more than two years of rigorous MTI development —built on the strong foundation established during CalMTA’s start-up period, strengthened through collaboration with numerous partners, and with an equity approach integrated into both approved MTI Plans.
With the approval of these MTIs, CalMTA is poised to begin making tangible contributions to California’s energy goals. The Room Heat Pumps and Induction Cooking MTIs align with the Commission’s priorities, reflected in Decision 25-11-023, for larger and lasting energy efficiency savings, equitable decarbonization, and customer affordability. Their deployment will support California’s clean energy transition —one that is more affordable and more equitable for all Californians.
These initial MTIs represent only the beginning of the MT portfolio envisioned by the CPUC when it adopted the state’s market transformation framework in 2019. Five additional initiatives that continued development in 2025 are slated to come to fruition in 2026 and 2027. We are also exploring new ideas that may enter the development pipeline in the year ahead.
As we mark the third year of MT portfolio development, we are excited to share our accomplishments in this 2025 Annual Report and continue propelling the market change needed for California’s clean energy future.
