The Fourth Appellate District affirmed decisions of the Public Utilities Commission. The court held that public utilities are not statutorily required to subsidize the thermal-energy storage industry by means of programs designed to induce the utilities’ customers to use less electricity.

The California Public Utilities Commission (PUC) approved the use by Southern California Edison Company, Pacific Gas & Electric Company, and San Diego Gas & Electric Company (collectively, utilities) of a specified amount in their budgets to pursue certain approved demand-response programs in three fiscal years (demand-response decision). These programs were designed to provide incentive or otherwise convince utility customers to use less electricity, particularly during high-demand periods.