II. Background
In D.06-01-024, the Commission (or CPUC) established the CSI, with a total budget of $2.5 billion from 2007 through 2016 for the Commission portion of the program, to be funded through ratepayer support.1 In D.06-08-028, the Commission established further implementation details for CSI, notably the adoption of performance-based incentives, and refinements to the schedule for incentive reductions.
On August 21, 2006, the Governor signed SB 1, which directs the Commission and the CEC to implement the CSI given specific requirements and budget limits set forth in the legislation.2 For example, SB 1 directs the CEC to establish eligibility criteria for solar energy systems receiving ratepayer funded incentives and it requires the CPUC to adopt a performance-based incentive program by January 1, 2008. SB 1 mandates that the CPUC portion of CSI shall not exceed a total program cost of $2.16 billion.
In light of SB 1, certain program and budgetary details set forth in D.06-01-024 and D.06-08-028 require modification. On September 15, 2006, the assigned Administrative Law Judge (ALJ) issued a ruling highlighting specific language in SB 1 and proposing a possible course of action for the Commission's CSI program in light of that language. In addition to specific modifications of prior Commission orders, the ruling noted that the Commission's total MW goal and budget were now reduced by SB 1 because statewide program dollars and MW goals include the participation of municipal utilities. Thus, the ruling contained revised tables to adjust utility budgets and MW goals to match the new budget limits in SB 1.
On September 25 and October 2, 2006, parties filed comments and reply comments on the proposals contained in the ALJ's ruling.3 In the sections below, the topics raised in SB 1 that require modification of a prior Commission order are discussed.
1 The California Energy Commission (CEC) collaborated with the Commission on the creation of CSI in D.06-01-024. In D.06-01-024, the CEC portion of CSI entailed $350 million in funding through the Public Goods Charge on investor-owned utility ratepayers.
2 SB 1 goes into effect on January 1, 2007.
3 Comments and/or reply comments were filed by Americans for Solar Power (ASPv), Californians for Renewable Energy, Inc. (CARE), City and County of San Francisco (CCSF), Consumer Federation of California (CFC), the Joint Solar Parties (a consortium of PV Now, the California Solar Energy Industries Association, and the Vote Solar Initiative), Pacific Gas and Electric Company (PG&E), jointly by San Diego Gas & Electric Company and Southern California Gas Company (SDG&E/SoCalGas), San Diego Regional Energy Office (SDREO), Southern California Edison Company (SCE), and the Southern California Generation Coalition (Coalition).
