7. Program Evaluation
All parties agree that the performance of the ClimateSmart Demonstration Program to date has been disappointing. D.06-12-032 requires PG&E to submit annual reports on the 15th of March detailing program performance for the proceeding year. PG&E has submitted a report for each of program years 2007-2009 detailing program performance, offering possible explanations for performance and outlining possible next steps to continue development of the program. While these reports provide insight and we will continue to require that PG&E submit an annual report for 2010, part of the value of a demonstration program is the ability to take a comprehensive look at performance for the duration of the program.
The ClimateSmart Demonstration Program is a first of its kind and, as such, we cannot rely on examining other programs such as green tariff options to explain the poor program enrollment. There are several possible explanations for such poor enrollment including the economic downturn, lack of customer familiarity with the connection between individual electricity use and climate change or misinformed marketing techniques. Without a comprehensive evaluation of the program, we cannot draw any conclusions about program performance nor glean any valuable lessons learned that might be useful in developing similar programs in California in the future. In approving ClimateSmart as a demonstration program, the Commission saw the ClimateSmart Demonstration Program as an opportunity to implement a unique program with many co-benefits beyond GHG reductions. We now seek to understand all aspects of program performance to ascertain what worked, what did not work and what could be done differently.
Therefore, in lieu of an annual report for 2011, which would have been due March 15, 2012, we require PG&E to hire an external consultant to comprehensively evaluate its program by June 30, 2012. We direct PG&E to work with Energy Division staff to develop the selection protocol for choosing an appropriate consultant. Energy Division staff will participate in the Request For Proposal process and will assist PG&E in choosing a consultant, and the consultant will be paid for out of the ClimateSmart program administration funds.28 PG&E is responsible for hiring the consultant and management of the consultant who will produce a comprehensive program evaluation report. The consultant should be knowledgeable and experienced in evaluation of voluntary carbon offset programs and utility green tariff programs. Minimum requirements for the report are set forth in Attachment A to this decision. However, PG&E and Energy Division staff shall work together to set further areas for inclusion in the evaluation of the ClimateSmart Demonstration Program.
28 We note, however, that because a 2011 annual report will not be required, PG&E will have use of funds initially set aside for the development of the 2011 report to use towards the comprehensive report. PG&E should budget administration funds accordingly. The program evaluation is in lieu of an annual report for 2011.
