Discussion

This rulemaking has served as the forum for six major categories of energy efficiency issues: (1) Shareholder Risk/Reward Incentive Mechanism, (2) Evaluation, Measurement and Verification (EM&V), (3) Refinements to Policy Rules and Reporting Requirements, (4) Updates to Energy Efficiency Potentials Studies and Savings Goals, (5) Implementation of 2006-2008 Portfolio Plans and Planning Process for 2009-2011 Program Cycle, and (6) Transition Issues and Filings Related to Pre-2006 Programs. We have issued 17 decisions in this rulemaking on these various topics, including intervenor compensation decisions.

In Decision (D.) 07-09-043 in this docket, we adopted a risk/reward incentive mechanism for the investor-owned utilities' energy efficiency activities. This decision was modified by D.08-01-042. In D.08-12-059, we granted in part and denied in part a Petition for Modification of D.07-09-043 and D.08-01-042. D.08-12-059 provides for Commission review of verification reports of utility energy efficiency savings. Due to the continuing need for review of activities related to the risk/reward incentive mechanism and verification of energy savings, we were unable to resolve this issue before the December 31, 2008 deadline established in the scoping memo.

On January 29, 2009, we opened a new rulemaking, Rulemaking
(R.) 09-01-019, to consider risk/reward incentive mechanisms. We recently opened a second new rulemaking R.09-11-014 to deal with other energy efficiency issues going forward. With the issuance of R.09-11-014, there is only a limited need for a forum for the energy efficiency issues within the scope of this proceeding. Pacific Gas and Electric Company (PG&E) filed a Motion in this docket on July 29, 2009, seeking Commission approval to "present worth" future years of the University of California, Davis' Energy Efficiency Incentive Eligibility upgrades planned for years 2009-2011. Also, PG&E on July 30, 2009, filed a Petition for Modification in this docket to include stand-alone
non-generation renewable powered equipment within the policy rules' definition of an energy efficiency measure. This rulemaking remains open solely to consider these two matters. Accordingly, a 60-day extension of the December 26, 2009 deadline is needed.