III. CONCLUSION
For the reasons stated above, D.09-08-027 is modified to reflect the clarifications specified below. The application for rehearing of D.09-08-027, as modified, is denied because no legal error has been shown.
Therefore IT IS ORDERED that:
1. D.09-08-027 is modified as follows:
a. On page 178, at the start of second full paragraph, the following shall be added:
"Transphase's own testimony admits that its proposed incentive
levels are "extraordinary. (See RT Vol. 5, at pp. 674-675, 679.)"
b. On page 180, at the end of first full paragraph, the following shall be added:
"As the record in this proceeding demonstrates, there were several flaws in Transphase's analysis. The analysis did not conform to the requirements of the State's Standard Practice Manual and the Consensus Framework. ( SCE Exh. 12, at p. 24; PG&E Exh. 202, at pp. 4-14, 4-15; TURN Exh. 421, at pp. 4-7.)"
c. On page 230, the following findings of fact shall be added:
46. There is conflicting evidence regarding the cost-effectiveness
of Transphase's proposed thermal energy storage project.
47. The State Standard Practice Manual and Consensus Framework
set forth the tests for cost-effectiveness of demand response programs.
48. Public Utilities Code section 454.5 applies to utility proposed procurement plans.
49. It is unclear from the record that Transphase's thermal energy
storage proposal is cost-effective or in the public interest.
d. On page 234, the following conclusion of law shall be added:
23. Public Utilities Code section 454.5 does not apply to require approval of Transphase's proposal.
2. Rehearing of D.09-08-027, as modified, is hereby denied.
3. This proceeding, Applications (A.) 08-06-001, A.08-06-002, and
A.08-06-003, is closed.
This order is effective today.
Dated March 11, 2010, at San Francisco, California.
MICHAEL R. PEEVEY
President
DIAN M. GRUENEICH
JOHN A. BOHN
TIMOTHY ALAN SIMON
NANCY E. RYAN
Commissioners
