2. Background
The Public Goods Charge (PGC) was established in the wake of the 2000-2001 California Energy Crisis. Section 399.8(a) of the California Public Utilities Code,1 which remains in effect, emphasizes the importance of energy efficiency (EE) to the state's energy customers:2
In order to ensure that the citizens of this state continue to receive safe, reliable, affordable, and environmentally sustainable electric service, it is the policy of this state and the intent of the Legislature that prudent investments in energy efficiency... shall continue to be made. (Emphasis added.)
Section 399.8(c)(1), which provides for the collection of PGC revenues, provides:3
The commission shall require each electrical corporation to identify a separate rate component to collect revenues to fund energy efficiency ... authorized pursuant to this section beginning January 1, 2002, and ending January 1, 2012. The rate component shall be a nonbypassable element of the local distribution service and collected on the basis of usage.
As noted above, in overseeing the procurement of energy resources sufficient to meet customer demand this Commission is required to prioritize cost-effective EE resources. In this regard, section 454.5(b)(9)(C) provides:
The electrical corporation will first meet its unmet resource needs through all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible.
In Decision (D.) 02-10-062 we identified EE as a priority resource for California and ordered the Investor- Owned Utilities (IOUs) to include all cost effective EE in their energy procurement portfolios "regardless of the limitations of the ... PGC mechanism." Thereafter, in D.03-12-062, we established the Procurement Energy Efficiency Balancing Account PEEBA.4 We then authorized procurement EE budget levels for Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE) and San Diego Gas & Electric Company (SDG&E). Unlike the PGC, which is collected "on the basis of usage,"5 the PEEBA is collected in accordance with the rate design established in each IOU's General Rate Case (GRC).6
1 Unless otherwise noted, all statutory references are to the Public Utilities Code.
2 While Pub. Util. Code § 399.8's authorization to collect the surcharge ends on January 1, 2012, the statute does not sunset, and all if its provisions remain on the books.
3 Though the legislature did not extend the January 1, 2012 deadline set forth in Pub. Util. Code § 399.8(c)(1), the statute, which has no sunset provisions, remains on the books.
4 Decision 03-12-062 at 61, quoting D.02-10-062.
5 Pub. Util. Code § 399.8(c)(1).
6 GRCs occur every three years, on a staggered basis among the regulated utilities.
