7. Comments on Proposed Decision

The proposed decision of President Michael R. Peevey in this matter was mailed to the parties in accordance with Section 311 of the Public Utilities Code and comments were allowed under Rule 14.3 of the Commission's Rules of Practice and Procedure. Comments were filed by CCSE, DRA, TURN, PG&E, SCE, and jointly by SDG&E/SoCalGas. Reply comments were filed by CCSE, DRA, PG&E and SCE. Minor adjustments and clarifications have been incorporated in response to comments. A few comments merit discussion.

PG&E requests Ordering Paragraph 3.b be modified to allow the utilities to collect carryover funding through the utilities' existing annual advice letters rather than a new and separate SGIP advice letter. We agree with this request and the decision has been modified to not require an additional and separate SGIP advice letter submittal. The utilities may request approval to collect carryover funding by advice letter in the appropriate ratemaking proceeding, as long as notice is given to the service list for this rulemaking, or its successor proceeding.

In addition, PG&E seeks clarification that the advice letter in Ordering Paragraph 3.b only applies to collection of uncollected carryover and is not intended for collection of the 2010 and 2011 authorized budget. PG&E is correct that the advice letter described in that ordering paragraph only applies to collection of carryover funding on an as needed basis.

SCE requests an extension for the audit in Section 5. We decline to change the dates at this time, but note the ALJ has discretion to modify dates as needed. We do provide an additional month to issue the RFP for the audit, as requested by PG&E.

DRA requests the decision be modified to direct an additional audit in 2016 when the program ends. We decline to direct such an audit at this time, but can revisit that request at a later date. DRA also urges that each year's budget collections for SGIP not exceed the prior year's spending and program reservations. We decline to adopt DRA's suggestion because, as stated in the decision, we find it important to collect the full $83 million allowed by SB 412 for 2010 and 2011 in order to meet program demand in those years and in 2012 through 2015.

TURN reargues its position that the utilities cannot collect any more than $83 million in 2010 and 2011, and that collection of carryover funding is not allowed by SB 412. We reject TURN's arguments. The statute speaks to how much the Commission can authorize for collection in 2010 and 2011, but it does not speak to previously authorized amounts. Uncollected carryover funding was previously authorized by the Commission and the utilities do not need authorization to collect these funds, although the decision provides Commission guidance on the use of these funds and requires an advice letter for Commission review to put the uncollected carryover funds into rates if and when the funds are actually needed.