Cal. Pub. Util. Code § 2774.6

The commission, in consultation with the Energy Commission, shall develop a program for residential and commercial customer air-conditioning load control, as an element of each electrical corporation’s tariffed service offerings paid for with electrical service rates. The goal of the program shall be to contribute to the adequacy of electricity supply and to help customers reduce their electrical service bills in a cost-effective manner. The program may include peak load reduction programs for residential and commercial air-conditioning systems, if the commission determines that the inclusion would be cost effective.