1. Effective January 1, 2012, Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company shall no longer impose the system benefit charge authorized by Public Utilities Code Section 399.8.

2. Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company shall each institute a surcharge, effective January 1, 2012, to collect funds for: i) renewables programs, and ii) research, development, and demonstration programs.  The surcharges shall be imposed on an interim basis, subject to refund, until the Commission issues its final decision at the conclusion of Phase 2 of this rulemaking, or until January 1, 2013 (whichever comes first).  The surcharges shall be called the Electricity Program Investment Charge or EPIC.

3. Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company shall each impose the Electricity Program Investment Charge established by Ordering Paragraph 2 in this decision, on all distribution customers in the same manner as the expiring system benefits charge associated with Public Utilities Code Section 399.8, for the purposes specified in Ordering Paragraph 2 in this decision. This surcharge shall be set at the same levels per kilowatt/hour as the rates for the system benefits charge, after subtracting the portion of the system benefits charge collected for the energy efficiency programs associated with Public Utilities Code Section 399.8. This surcharge shall reflect the same allocation among classes as the rates for the system benefits charge, and shall be collected in the Public Purpose Program component of rates as with the current system benefits charge.

4. Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company shall each establish a balancing account for the Electricity Program Investment Charge established in Ordering Paragraph 2 of this decision.  Each balancing account, to be known as the "EPIC Balancing Account," shall record funds collected from customers through the EPIC charge, at the level commensurate with funds previously remitted to the Energy Commission for renewables programs and research, development and demonstration programs authorized under Section 399.8 for 2011. The funds collected and placed in these balancing accounts, and the interest earned thereon, shall not be disbursed until authorized by the Commission's final decision at the conclusion of Phase 2 of this proceeding. The new tariffs for these balancing accounts shall be transmitted with the advice letter required by Ordering Paragraph 5 of this decision.

5. No later than December 22, 2011, Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company shall each file a Tier 1 Advice Letter consistent with Ordering Paragraphs 2 through 4 in this decision, withdrawing (or substituting) the tariff sheets governing the collection of the Public Goods Charge and submitting proposed new (or revised) tariff sheets authorizing them to collect the EPIC on an interim basis, subject to refund, pending the Commission's final decision in Phase 2 of this proceeding.  Subject to review for compliance with the Ordering Paragraphs of this Interim Decision, the new (or revised) tariff sheets shall become effective, and collection of the EPIC shall commence, on January 1, 2012.

6. The Motions for Party Status of Proteus, Inc. and La Cooperativa de Campensina, The National Asian American Coalition, the Latino Business Chamber of Greater Los Angeles and the Black Economic Council; Kern County Taxpayers Association; San Francisco Bay Area Rapid Transit District; and Ecology Action of Santa Cruz, Inc. are granted.

7. Rulemaking 11-10-003 remains open.

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