COM/MP1/jt2 Date of Issuance 1/19/2011

Decision 11-01-010 January 13, 2011

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking on the Commission's Own Motion into combined heat and power Pursuant to Assembly Bill 1613.

Rulemaking 08-06-024 (Filed June 26, 2008)

DECISION REGARDING PAY AS YOU SAVE PILOT

1. Summary

This decision assesses whether the Commission should establish a "Pay as You Save" (PAYS)¹ Pilot Program as part of its efforts to promote Combined Heat and Power plants in California. The Commission determines that due to lack of interest and other complexities with implementing such a financing program, it will not establish a PAYS pilot at this time, in this proceeding. Furthermore, other actions the Commission has taken to provide financing assistance to combined heat and power facilities reduce the need for a PAYS pilot. Should interest increase for a PAYS pilot or new facts arise regarding implementation of such a program, parties may file a petition to modify this decision and request the Commission reexamine the issue.

¹ It has come to our attention that Pay As You Save and the acronym PAYS are trademarked by the U.S. Patent and Trademark Office.