4. Protests

The key areas of parties' disagreement with PG&E's Application¹¹ are:

1. PG&E should not be allowed to extend the ClimateSmart Demonstration Program because it has failed to show the value of extending the program beyond 2009.

2. ClimateSmart has failed to produce more than a small fraction of the enrollments predicted by PG&E in its original Application and is not a cost-effective way to procure GHG reductions.

3. Extension of ClimateSmart is unlikely to produce meaningful results for ratepayers or subscribers in part because PG&E failed to propose new strategies that are likely to yield enrollments.

4. PG&E and its shareholders, rather than ratepayers, would be the primary beneficiaries of an extension of ClimateSmart; it would reduce the amount of GHG reductions to be satisfied by shareholder contributions and allow PG&E to use ratepayer funds to rebrand PG&E as an environmental leader.

5. If the Commission approves an extension of ClimateSmart, the extension should be conditioned upon the return of any unspent A&M funds to ratepayers. The source of funding should come from the party that benefits from the extension, here the shareholders.

6. The Commission should clarify that the shareholder obligation will be calculated based on the deficit between the minimum guarantee set forth in D.06-12-032 and total GHG reductions supported through customer contributions collected through December 31, 2011.

¹¹ PG&E originally asked the Commission to clarify that the term "ton" used in the original decision refers to a "short ton" and not "metric ton." DRA and TURN ask the Commission to require that PG&E procure no less than 1.5 million metric tons rather than the 1.36 million metric tons PG&E believes would satisfy the requirements of D.06-12-032. DRA and TURN contend that while D.06-12-032 did not specify that PG&E's obligation would be measured in "short tons" that PG&E is now trying to change the measure and thereby reduce its obligation. On January 21, 2010, the Commission issued Resolution G-3425 which clarified that the type of units to be used for measuring the minimum number of tons of GHG emission reductions PG&E must procure under the ClimateSmart Demonstration Program to be short tons. Therefore this issue no longer requires clarification.