A San Diego-based company will take over a state program aimed at increasing energy efficiency in Hawai'i under a Public Utilities Commission contract worth at least $38 million.

Science Applications International Corp. said it has received the prime contract for the program helping Hawai'i residents and businesses help lower energy usage.

The PUC announced two years ago that it was creating a program to promote ways to boost energy efficiency and take over such programs from Hawaiian Electric companies. In doing so the PUC would remove a perceived conflict between the utilities' need to generate revenue and promotion of energy-saving measures, such as switching to compact fluorescent light bulbs. The program is funded by a PUC-approved monthly charge on electricity bills.

Science Applications International said it will oversee design and implementation of the Hawaii Energy Efficiency program, customer incentives and rebates, new initiatives, and working with another state project, the Hawaii Clean Energy Initiative.

It said the program will concentrate on cost-effective efficiency measures where customer bill savings exceed program costs in the long run. The program is in keeping with the Lingle administration's drive to lower reliance on imported oil and foster use of renewable energy sources.

"Improving and aggressively implementing energy efficiency programs are a top priority of the commission, the state and of the entire country," said Carl Caliboso, PUC chairman, in a press statement.

"The selection of SAIC is a historic milestone in our energy efficiency efforts."

The company was awarded a multiyear contract that runs through 2013. It has a value for the first two years of $38 million.

"This new framework for energy efficiency will bring about higher overall energy savings and improve the cost-effectiveness of administering energy-efficiency programs," said J.T. Grumski, company senior vice president.

"It will also spur the introduction of innovative efficiency programs and increase customer choice and participation in energy-efficiency programs, helping residents of Hawai'i save on their electricity bills."

Science Applications is a Fortune 500 company that already operates several offices in Hawai'i. The company employs about 45,000 workers and its clients included the U.S Department of Defense, the intelligence community, the U.S. Department of Homeland Security and other government agencies.