D1107031 California Solar Initiative Phase One Modifications

COM/MP1/jt2 Date of Issuance 7/20/2011

Decision 11-07-031 July 14, 2011

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking Regarding Policies, Procedures and Rules for the California Solar Initiative, the Self-Generation Incentive Program and Other Distributed Generation Issues.

Rulemaking 10-05-004
(Filed May 6, 2010)

CALIFORNIA SOLAR INITIATIVE PHASE ONE MODIFICATIONS

Table of Contents

Title Page

CALIFORNIA SOLAR INITIATIVE PHASE ONE MODIFICATIONS 1 1

1. Summary 2 2

2. Background 3 3

3. Procedural Issues 4 4

4. Issues surrounding Net Energy Metering, VNM, and Bill Credit Transfer Tariffs 5 5

4.1. Service Delivery Point as VNM Boundary in the MASH Program 6 6

4.2. Expansion of VNM to All Customers 13 13

4.3. Expansion of VNM to All Affordable Housing Customers 18 18

4.4. Bill Credit Transfer Option 19 19

5. General Market Program Modifications 22 22

5.1. Application Processing Timelines 22 22

5.2. Project Completion Time Requirements 25 25

5.3. Project Inspections 26 26

5.3.1. Rate of Inspection 27 27

5.3.2. Inspection Costs 29 29

5.3.3. Suspension from CSI 30 30

5.4. Performance Monitoring and Reporting Services Cost Cap Exemption and Measurement and Evaluation Metering Expenses 32 32

5.5. EPBB Calculator Integration with Powerclerk 35 35

5.6. Payment Intervals for PBI 37 37

6. Budget Issues 38 38

6.1. General Market Administrative Budget 38 38

6.2. M&O Budget 42 42

6.3. M&E Budget 43 43

6.4. CSI Revenue Requirement 45 45

7. Low-Income Program Modifications 48 48

7.1. SASH Design Factor 48 48

7.2. SASH Inspections 49 49

7.3. Increasing MASH Track 1 Incentives 51 51

7.4. Two Year Occupancy for MASH Program 54 54

8. Marketing and Outreach Modifications 55 55

9. Comments on Proposed Decision 58 58

10. Assignment of Proceeding 59 59

Findings of Fact 59 59

Conclusions of Law 61 61

ORDER 65 65

CALIFORNIA SOLAR INITIATIVE PHASE ONE MODIFICATIONS

1. Summary

This decision modifies several prior decisions that established and implemented the California Solar Initiative (CSI).

This decision expands the types of customers eligible for Virtual Net Metering (VNM), which was first established as part of the Multifamily Affordable Solar Housing (MASH) Program in Decision (D.) 08-10-036. When first established, VNM allowed customers to allocate electricity generated from a single solar energy system as kilowatt hour credits to other accounts on the affordable housing property. This decision directs Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas and Electric Company to file tariffs to allow any multi-tenant or multi-meter property to utilize VNM, not just affordable housing properties. A second VNM change in this decision applies to VNM offered through the MASH Program and allows VNM credits to be shared throughout an entire affordable housing property, as long as the property is on contiguous parcels and under common ownership.

Next, the decision makes a number of minor modifications to the CSI program including guidelines for application processing, project completion reports, inspection requirements, suspension procedures, performance monitoring and reporting service rules, and CSI budget components. As a result, the following CSI decisions are modified: D.06-08-028, D.06-12-033, and D.10-09-046.

With regard to the Single Family Affordable Solar Housing Program, the decision modifies the minimum design factor set in D.07-11-045 and inspection requirements set in D.08-11-005. For the MASH Program, the decision modifies incentive rates, the program budget, and occupancy requirements previously adopted in D.08-10-036.