The purpose of the California Consumer Power and Conservation Financing Authority (CPA) is to assure a reliable supply of power to Californians at just and reasonable rates, including planning for prudent energy reserves. The CPA was also created to encourage energy efficiency, conservation, and the use of renewable resources. The CPA is authorized to issue up to $5 billion in revenue bonds to finance these activities.

After two and a half years, it was apparent that the CPA was providing minimal value in assisting the state in meeting its energy objectives. Consequently, the administrative operations of the agency ceased in October 2004 and the remnants of the programs that have phase-out activities have been transferred to other state organizations. The Demand Reserve Program, which was established July 1, 2002 to compensate businesses for agreeing to reduce their electricity usage during peak demand times, is the last remaining CPA program and is scheduled to expire June 30, 2007.