Pool/spa service and construction companies working in certain parts of California are shuffling to devise a plan for 2019, after finding out that a major electrical utility has excluded them from offering rebates on energy-efficient pumps.

Southern California Edison changed its rebate program this year, now saying that a pool/spa company must have at least one retail location to offer rebates.

SCE, which says it's one of the largest electric utilities in the U.S., covers a 50,000-square-mile area within central, coastal and Southern California and claims to serve more than 15 million people. Some of the larger counties served include Orange, San Bernardino, Inyo and parts of Los Angeles.

Up to this point, the utility had formatted its rebate system as a so-called downstream program, meaning that consumers would purchase the pump then submit a mail-in or online application to receive the rebate. Last year, industry firms were informed that they could sign up to participate in a midstream program, whereby the dealer offers an instant rebate and submits to the utility for reimbursement, according to Ben Honadel, owner of the service firm Pools by Ben in Valencia, Calif.

Recently, through distributors and other channels, service companies that have marketed and assisted customers with rebates were informed that their customers could no longer receive them. SCE switched exclusively to the midstream rebate program, stipulating that the participants must have at least one physical retail location.

In a statement to PSN, the utility said this would improve the customer experience and increase purchases of energy-efficient pumps, but it did not explain how or why.

But John Norwood, director of government relations for the California Pool & Spa Association, believes the change will have the opposite effect when it comes to the number of energy-efficient pumps purchased, because the number of qualified vendors is much smaller. “In the end, it will result in the state not getting the kind of energy savings they want,” he said.

Some industry professionals who have reached out to SCE were informed that the utility is seeking to cut its administrative costs for offering the rebate. “These utilities are under tremendous pressure with the wild fire costs,” Norwood observed.

As of now, only Leslie’s Poolmart is registered to offer point-of-sale rebates. Considering the firm’s status as the nation’s largest retailer, some in the industry are crying foul.

“It seems, this constitutes an unfair business practice and creates a highly tilted playing field in favor of only Leslie’s Pool Supply retail locations,” said CPSA Chairman Jerry Wallace in a communication to its members.

Honadel even characterized the change as anti-trust.

SCE said it is signing contracts with other retailers besides Leslie's.

But to the affected service-only companies, this may not matter. Honadel, for instance, has actively encouraged the sale of variable-speed pumps for several years. He plans his annual marketing well in advance to include the rebates as an enticement.

“Every month that goes by, not only do we lose sales, but our marketing and advertising are planned ahead and pre-paid, so that means the $10,000 per month that I spent in Edison territory is basically wasted,” he said.

Calls from upset pool professionals have flooded CPSA and the Independent Pool and Spa Service Association (IPSSA), Norwood said.

In addition to companies being excluded if they don’t have a retail location, the associations believe the change will cause other problems. The utility has a so-called Marketplace page that connects consumers with pool-pump dealers. Included on this page are web-only retailers, which CPSA said discourages consumers from using qualified contractors to install the pumps.

CPSA and IPSSA have reached out to SCE and expect a meeting with the utility next week. Ultimately, the groups hope that SCE will open the program to builders and service companies, whether or not they have a retail location.

In the meantime, service techs must decide how to proceed. For the foreseeable future, Honadel expects to foot the cost of the rebate in the hopes that the current restriction will be removed.

Besides the aforementioned statement, SCE did not comment or answer PSN’s questions.