Conclusions of Law

1. The CSI Program budget set forth in Table 6 of D.10-09-046 should be modified to add $200 million to CSI General Market Program Incentives.

2. The additional $200 million added to the CSI Budget should be allocated to PG&E, SCE, and SDG&E according to the proposal of Solar Alliance, as supported by publicly available CSI budget projections.

3. Table 7 of D.10-09-046 should be modified to incorporate an additional $200 million for nonresidential incentives.

4. The additional $200 million in incentive funds authorized by SB 585 should not be used to fund "Completed" or "PBI In-Payment" non-residential projects that retroactively seek system capacity increases after the initial reservation or confirmation stage.

5. The CSI revenue requirement adopted in Table 5 of D.11-07-031 should be modified as shown in Table 4 of this decision.

6. The CSI PAs should continue to report in their semi-annual CSI Expense Reports the amount of accumulated interest and forfeited funds from the CSI Program.

7. The Commission should adopt PBI monthly payments which include a 4% discount rate, as shown in Table 6 of this decision, effective immediately.

8. The Commission should adopt the tables in the appendix of this decision containing modifications to the CSI Program budget, revenue requirement and PBI payment monthly payment rates.

9. Energy Division should continue to monitor national and state installed cost data and adjust CSI project cost caps as needed through the CSI Handbook revision process.

ORDER

IT IS ORDERED that:

1. The California Solar Initiative budget adopted in Decision 10-09-046 is modified as set forth in the appendix to this decision.

2. The California Solar Initiative revenue requirement adopted in
Decision 11-07-031 is modified as set forth in the appendix to this decision.

3. California Solar Initiative Performance-Based Incentive monthly payment levels for Steps 8, 9, and 10 adopted in Decision 06-08-028 are modified as shown in the appendix to this decision.

4. The Energy Division shall closely monitor the California Solar Initiative budget and notify the assigned Commissioner and the Administrative Law Judge to consider future budget adjustments as needed.

5. The Energy Division shall monitor interest and forfeited funds in California Solar Initiative Balancing Accounts and may annually propose changes to the California Solar Initiative revenue requirement adopted in this order for the Commission to consider by resolution.

6. The additional $200 million in incentive funds authorized by Senate Bill 585 should not be used to fund non-residential projects that retroactively seek system capacity increases after the initial reservation or confirmation stage.

7. The Performance-Based Incentive (PBI) payment levels shown in the appendix of this decision shall be effective immediately for California Solar Initiative applications submitted to Pacific Gas and Electric Company (PG&E), the California Center for Sustainable Energy (CCSE), and Southern California Edison Company and shall apply to applications submitted beginning on the day after the effective date of this decision. For PG&E and CCSE, the new PBI rates shall also apply to all projects eligible for PBI payments that are currently on the waiting list.

8. The Energy Division shall continue to monitor national and state installed cost data and adjust the project cost caps as needed through the modification of the California Solar Initiative Program Handbook.

9. Rulemaking 10-05-004 remains open for consideration of additional issues as set forth in the Scoping Memo Ruling of November 9, 2010.

This order is effective today.

Dated December 1, 2011, at San Francisco, California.

MICHAEL R. PEEVEY

President

TIMOTHY ALAN SIMON

MICHEL PETER FLORIO

CATHERINE J.K. SANDOVAL

MARK J. FERRON

Commissioners

APPENDIX

The appendix shows adopted modifications to Decision (D.) 10-09-046, D.11-07-031, and D.06-08-028. Revisions to original tables are shown in gray shading.

Table 1:

Modification of Table 6 of D.10-09-046

Revised CSI Budget and Allocation by Utility

			Allocation by Utility
	Program Component	Revised Budget	PG&E	SCE	SDG&E
	D.06-08-028 allocation10		43.70%	46.00%	10.30%
	General Market Program
1	General Market Program Incentives	$1,747,810,000	$763,792,970	$803,992,600	$180,024,430
1A	SB 585 Budget Increase	$200,000,000	$114,000,000	$64,000,000	$22,000,000
2	Program Administration	$94,860,000	$41,453,820	$43,635,600	$9,770,580
3	Total Measurement & Evaluation (M&E)	26,700,000	$11,667,900	$12,282,000	$2,750,100
4	M&E, except CSI-Thermal Electric M&E	$25,450,000	$11,121,650	$11,707,000	$2,621,350
5	M&E, CSI-Thermal Electric only	$1,250,000	$546,250	$575,000	$128,750
6	Total Marketing and Outreach (M&O)	21,250,000	$7,731,250	$7,875,000	$5,643,750
7	M&O, general market CSI11	$15,000,000	$5,000,000	$5,000,000	$5,000,000
8	M&O, CSI-Thermal Electric Only	$6,250,000	$2,731,250	$2,875,000	$643,750
9	Unallocated	$6,900,000	$3,015,300	$3,174,000	$710,700
10	Subtotal General Market Program	$2,097,520,000	$941,661,240	$934,959,200	$220,899,560
11	RD&D Program	$50,000,000	$21,850,000	$23,000,000	$5,150,000
12	Low Income Single-family (SASH) Program	$108,340,000	$47,344,580	$49,836,400	$11,159,020
13	Low Income Multifamily (MASH) Program	$108,340,000	$47,344,580	$49,836,400	$11,159,020
14	SWH Pilot Program (SWHPP) in San Diego	$2,600,000	$0	$0	$2,600,000
15	Total CSI Electric Budget	$2,366,800,000	$1,058,200,400	$1,057,632,000	$250,967,600

Table 2:

Modification of Table 7 of D.10-09-046

CSI Incentives Budget by Utility Territory and Customer Sector

		Non-Residential	Residential	Total
PG&E		$666,164,970	$211,628,000	$877,792,970
SCE		$645,225,600	$222,767,000	$867,992,600
SDG&E		$152,144,430	$49,880,000	$202,024,430
Total		$1,463,535,000	$484,275,000	1,947,810,000

Table 3:

Modification of Table 5 of D.11-07-031

Revised Annual CSI Revenue Requirements

(In Millions of Dollars)

Table 4:
Revisions to Table 5 of D.06-08-028
(as modified by D.06-12-033, Appendix B, Table 5)
Levelized PBI Monthly Payment Amounts per kWh
(at 4% Discount Rate)

Step	MW in Step	Existing Residential/ Commercial Rate	Revised Residential/ Commercial with 4% Discount Rate	Existing Government/ Non-Profit Rate	Revised Government/ Non-Profit Rate with 4% Discount Rate
8	250	$.05	$0.044	$0.15	$0.139
9	285	$.03	$0.032	$0.12	$0.114
10	350	$.03	$0.025	$0.10	$0.088

(END OF APPENDIX)

¹⁰ The allocation percents are not applicable to SB 585 budget increase in Row 1A.

¹¹ The CSI General Market M&O budget was adopted in D.11-07-031.

¹² The numbers in the total row of this table are rounded, but actual collections by the three utilities would not exceed the actual numbers in row 15 of Table 1 of this ruling.