ALJ/EDF/gd2 Date of Issuance 12/19/2011

Decision 11-12-038 December 15, 2011

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Examine the Commission's Post-2008 Energy Efficiency Policies, Programs, Evaluation, Measurement, and Verification, and Related Issues.

Rulemaking 09-11-014 (Filed November 20, 2009)

DECISION REGARDING CONTINUATION OF FUNDING

FOR ENERGY EFFICIENCY PROGRAMS

1. Summary

Funding for Commission approved electricity Energy Efficiency (EE) programs comes from two sources. The Public Goods Charge (PGC) and the Procurement Energy Efficiency Balancing Account (PEEBA). The statute authorizing collection of the PGC in utility rates will expire on January 1, 2012. Today's decision ensures that utility EE programs will continue to have adequate funding to fulfill our statutory and policy mandates. Specifically, this decision makes additional PEEBA funds available to backfill the PGC funding so that electric EE programs are funded in 2012 at the currently authorized level, but does not decide whether or which EE programs will require the current level of funding after 2012.

For the reasons set forth below, we adopt the proposal set forth in the September 28, 2011, Assigned Commissioner's Ruling to use a portion of the PEEBA to replace the lost PGC funding and direct the Pacific Gas and Electric Company, San Diego Gas & Electric Company, and Southern California Edison Company to file Tier 1 advice letters as set forth herein.