California today has more gas-fired industrial boilers than any other state, causing significant climate and air pollution. The California Public Utilities Commission can cut this pollution by updating electric rates for industrial facilities to incentivize use of electric equipment, according to this report from Industrious Labs, Sierra Club, and the American Council for an Energy-Efficient Economy, in collaboration with Synapse Energy. The report identifies rate improvements that would encourage facilities to transition from gas boilers and focus power use of new electric equipment to nonpeak hours. Because many of California’s industrial facilities only require temperatures up to 200°C, they are good candidates to adopt heat pumps—a cleaner electric alternative to boilers—if the right rates are put in place. Shifting power use to nonpeak hours would spread out electricity demand, reducing the need for expensive grid upgrades and lowering long-term energy costs for all California residents.
