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ARTICLE · 04 DECEMBER 2012

CPUC Orders On-Bill Repayment For Energy Efficiency And Other Demand-Side Projects

The California Public Utilities Commission (CPUC) recently ordered California investor-owned utilities (IOU) to implement on-bill repayment (OBR) programs by the end of the first quarter of 2013 to support "all types of demand-side investments."

United StatesEnergy and Natural Resources

The California Public Utilities Commission (CPUC) recently ordered California investor-owned utilities (IOU) to implement on-bill repayment (OBR) programs by the end of the first quarter of 2013 to support "all types of demand-side investments."  OBR enables building owners or occupants to repay eligible project obligations through their monthly utility bills. 

Unlike on-bill financing (OBF) loans, which are made by the IOUs under pilot program tariffs, OBR programs can be underwritten and funded by far wider array of third-party capital sources, including commercial lenders, investor funds and vendors.  Because default rates on utility bills tend to be low, OBR lenders/investors should be able to offer low finance rates, longer maturities and better terms as compared to conventional energy efficiency loans.  Repayment will be made through the IOUs' billing and collections, meaning that the original owner/tenant will not be responsible for making payments after

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