STATE OF CALIFORNIA ARNOLD SCHWARZENEGGER, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

Energy Division Staff Workshop to Discuss

California Solar Initiative

Phase 1 Staff Proposal Recommendations

May 4, 2006 9:30 a.m. - 5:00 p.m (or earlier)

Hiram W. Johnson State Office Building

455 Golden Gate Avenue, San Francisco, California (2 blocks east of CPUC)

San Diego Rooms A/B/C

At the workshop, Energy Division staff will make brief presentations on the staff recommendations and rationale for the major elements of the staff proposal. The elements and order of presentation are shown below. For each element, staff will:

· first answer questions from participants about the staff recommendations, then

· highlight specific questions or unresolved issues that we most welcome parties to include in their written comments

Order of Presentation

1. Opening Remarks - what the CPUC aims to do. What our goals are for the Phase 1 proposal.

2. Plan for the Workshop · Where the staff proposal and comments fit in the Phase 1 cycle · Ground rules for today · Overall objectives & principles guiding the staff proposal

3. Incentives I · Effect of tax credits on our recommendations · Expected Performance Based Buydown (EPBB)

4. Incentives II - Performance Based Incentive ( PBI_

5. 10-year Incentive Level Adjustment Mechanism ("Trigger")

6. Eligible Technologies and Size Cap

7. Energy Efficiency Requirement

8. Metering and Payment Administration

9. Small Solar System Administration

10. Other Questions

Concluding remarks - We welcome specific proposals for modifications to the Staff Proposal, with accompanying rationale supported by factual data where possible. Written comments due May 15. Reply comments May 26. Target for Proposed Decision July 25, 2006.