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STATE OF CALIFORNIA EDMUND G. BROWN JR., Governor
PUBLIC UTILITIES COMMISSION
505 VAN NESS AVENUE
SAN FRANCISCO, CA 94102-3298
May 18, 2012
TO: ALL PARTIES OF RECORD IN RULEMAKING 09-11-014.
Decision 12-05-015 is being mailed without the Concurrence of President Michael R. Peeve and Concurrence of Commissioner Timothy Alan Simon. The Concurrences will be mailed separately.
Very truly yours,
/s/ KAREN V. CLOPTON
Karen V. Clopton, Chief
Administrative Law Judge
ALJ/EDF/lil Date of Issuance 5/18/2012
Decision 12-05-015 May 10, 2012
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking to Examine the Commission's Post-2008 Energy Efficiency Policies, Programs, Evaluation, Measurement, and Verification, and Related Issues.
(Filed November 20, 2009)
ATTACHMENT A: Summary of Changes to Database for Energy Efficiency Resources 2011
ATTACHMENT B: HVAC Emergency Retrofit Protocol
ATTACHMENT C: 2013-2014 WE&T Course Listings/Programs
ATTACHMENT D: Integrated Pilot Programs (2013-2014)
In this decision, the Commission directs Pacific Gas and Electric Company, Southern California Edison Company, San Diego Gas & Electric Company, and Southern California Gas Company (collectively, the investor-owned utilities) to file applications no later than July 2, 2012 to establish energy efficiency programs and budgets for 2013 and 2014.
The past several energy efficiency portfolios have been approved on a three-year cycle, which has sometimes been followed by a one-year "bridge" year extending the existing programs to allow plans to be made for the next portfolio cycle. In this decision, rather than have a simple one-year "bridge" year extension following the 2010-2012 portfolio, we establish a two-year "transition" period. This decision takes the best elements of the existing portfolio, gives guidance on some modifications, and signals the way toward broader changes to the energy efficiency portfolio starting in 2015. Rather than make fundamental changes to the California energy efficiency market in this decision, we identify what is working well and build upon it, remove what is not working well, and modify programs that have merit but are not realizing full ratepayer benefit. We primarily give guidance in this decision to support modifications to existing elements of the 2010-2012 programs. Our intent is to have this two-year transition period enable some additional research and provide time to make more fundamental changes to the energy efficiency programs.
This decision gives guidance to the utilities on the 2013-2014 energy efficiency programs, with the overall direction that they should begin a transition away from short-lived energy savings and towards deeper retrofits. The decision also gives guidance on expanding energy efficiency financing, by directing development of a portfolio of options at a total of $200 million over the two-year period. We also take steps to reduce the number and complexity of energy efficiency programs. In addition to the guidance for 2013-2014, this decision clarifies certain aspects of the 2012 Marketing, Education, and Outreach program, and other changes detailed in this decision, which will impact the 2013-2014 transition period.1
Collectively, this decision establishes the parameters by which the Investor-Owned Utilities (IOUs) will design their portfolios and propose program budgets for 2013-2014. Their applications will include an optimization to take the guidance from this decision to simultaneously (a) meet or exceed energy savings goals utilizing adopted ex ante parameters, (b) demonstrate portfolio cost-effectiveness utilizing updated avoided cost and ex ante parameters, (c) implement program modifications or new programs directed herein, (d) sustain other existing programs, (e) align their programs with the Strategic Plan, and (f) comply with all relevant decisions and statutes.
This decision is organized to, first, step through the sequence of quantitative issues, from avoided cost and ex ante parameters, to the potential study, and finally energy savings goals. Once we establish the numerical requirements, we turn to the qualitative aspects of our guidance to the IOUs' portfolio applications, in various sections providing program direction in specific markets and cross-cutting areas. We also make certain improvements to the energy efficiency regulatory process.
1 Consistent with the scoping memo for Phase IV of this proceeding, the years 2013 and 2014 will be a transition period for the utilities' energy efficiency programs.