ALJ/JF2/jt2 Date of Issuance 5/31/2012
Decision 12-05-037 May 24, 2012
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking on the Commission's own motion to determine the impact on public benefits associated with the expiration of ratepayer charges pursuant to Public Utilities Code Section 399.8. |
Rulemaking 11-10-003 (Filed October 6, 2011) |
PHASE 2 DECISION ESTABLISHING PURPOSES AND GOVERNANCE FOR ELECTRIC PROGRAM INVESTMENT CHARGE AND ESTABLISHING FUNDING COLLECTIONS FOR 2013-2020
Table of Contents
Title Page
PHASE 2 DECISION ESTABLISHING PURPOSES AND GOVERNANCE FOR ELECTRIC PROGRAM INVESTMENT CHARGE AND ESTABLISHING FUNDING COLLECTIONS FOR 2013-2020 1
1. Summary 2
2. Background 4
3. Summary of February 10, 2012 Staff Proposal 5
4. Summary of Parties' General Comments on Staff Proposal 9
5. Guiding Principles 12
6. Program Governance and Process 22
7. Areas for Investment 31
7.1. Applied Research and Development 32
7.2. Technology Demonstration and Deployment 37
7.3. Market support 47
7.3.1. General Definitions 47
7.3.2. Emerging Renewables Program 49
7.3.3. Existing Renewables Facilities Program 52
7.3.4. New Solar Homes Partnership 54
7.4. Market Facilitation 58
8. Funding and Budget Issues 63
8.1. Funding Curation 63
8.2. Administrative Costs 64
8.3. Fund Shifting 67
8.4. Funding Flow 68
8.5. Allocation of Costs by Utility 70
8.6. Summary of Budget and Collections Beginning in 2013 73
9. Other Issues 74
10. Other Process and Procedural Issues 79
11. Comments on Proposed Decision 81
12. Assignment of Proceeding 89
Findings of Fact 89
Conclusions of Law 94
ORDER 99
PHASE 2 DECISION ESTABLISHING PURPOSES AND GOVERNANCE FOR ELECTRIC PROGRAM INVESTMENT CHARGE AND ESTABLISHING FUNDING COLLECTIONS FOR 2013-2020
1. Summary
This decision sets up a framework for Commission oversight of the Electric Program Investment Charge (EPIC) established by Decision (D.) 11-12-035 in Phase 1 of this proceeding. The purpose of the funding is to provide public interest investments in applied research and development, technology demonstration and deployment, market support, and market facilitation, of clean energy technologies and approaches for the benefit of electricity ratepayers of Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E), and Southern California Edison (SCE), the three large investor-owned utilities (IOUs).
EPIC funding is initially authorized in the areas of applied research and development, technology demonstration and deployment, and market facilitation, as further defined in this decision.
This decision establishes electricity ratepayer benefits as a mandatory guiding principle and adopts several other related and complementary principles designed to guide investment decisions.
The EPIC funds will be administered 80% by the California Energy Commission (CEC) and 20% by the three IOUs, with the IOU role limited to the area of technology demonstration and deployment. All funds will be administered under the oversight and control of the Commission, which will conduct a public proceeding every three years to consider investment plans presented by the administrators for coordinated public interest investment in clean energy technologies and approaches, including both the supply side and the demand side of electricity use.
All administrators of EPIC funds will be subject to the same requirements, including an administrative expenditure cap of 10%, annual reporting requirements, and at least one independent review conducted by a consultant hired by Commission staff in 2016.
This decision authorizes continued funding collections at the level of $162.0 million per year beginning January 1, 2013 and ending December 31, 2020, to be divided as follows among the three IOUs: PG&E 50.1%; SDG&E 8.8%; and SCE 41.1%. Collections amounts shall rise on January 1, 2015 and again on January 1, 2018, at the rate of the consumer price index change over the previous three-year period. When considering the investment plans, the Commission may choose to alter these collection amounts for a specific three-year period based on the contents of those plans.
Funding already authorized in D.11-12-035 for the year 2012 shall be included in the budget for the first triennial investment plans for the administrators in the same proportion as the budget authorized in this decision.
This decision also sets limits on fund shifting and requires the utilities to remit funding to the CEC for its portion of the administrative budget on a quarterly basis beginning July 1, 2012 and at the time funding is encumbered for programmatic funding.
