5. Assignment of Proceeding
Commissioner Michael R. Peevey is the assigned Commissioner and Dorothy J. Duda is the assigned Administrative Law Judge in this portion of the proceeding.
1. In D.06-08-028, the Commission directed the CSI Program Administrators to reduce incentives to solar project applicants when conditional reservations for incentives reach certain MW targets, as set forth in Table 11 of the order, and later modified in D.06-12-033.
2. There is a discrepancy between the incentive adjustment mechanism defined in Table 11 of D.06-08-028 and the language describing implementation of the mechanism in the CSI Program Handbook.
3. If the Program Administrators follow the CSI Program Handbook and reallocate the MWs from applications that drop out to lower incentive steps, the actual incentive steps will no longer match the MW targets and allocations established in Table 11 of D.06-08-028, although the cumulative total of MWs in the steps would be the same.
4. Measuring system sizes using a design factor ensures CSI budget dollars and MW totals match for each incentive mechanism step.
1. If MWs from Step 1 are reallocated and paid at the lower Step 2 level, the Commission has the opportunity to achieve its overall CSI MW goals while spending less ratepayer money.
2. D.06-08-028 should be modified to allow the Program Administrators to reallocate MWs associated with applications that have dropped out or reduced their system size, as long as they do not exceed the cumulative total of MWs in prior and current steps.
3. Any reallocation of MWs for applications that drop out or reduce their size should be to the current step for the same market segment in which the project was initially reserved, with the exception of Step 1 reallocations.
4. The Program Administrators should provide data on MWs of confirmed reservations, including reallocations, as close as possible to real time and no less than weekly.
5. The Program Administrators should use the design factor when tracking system size.
IT IS ORDERED that:
1. Decision (D.) 06-08-028, as modified by D.06-12-033, is further modified as set forth in Appendix A of this order.
2. The Commission's Energy Division shall:
a. Ensure the Program Administrators modify Section 3.1 of the California Solar Initiative (CSI) Program Handbook to describe the reallocation process as described in this order.
b. Monitor the rate at which CSI applications drop out.
3. The CSI Program Administrators shall use the design factor when tracking system size.
4. Within 30 days of this order, the CSI Program Administrators shall jointly file an Advice Letter with program handbook changes designed to reduce the rate of drop out applications.
This order is effective today.
Dated May 3, 2007, at San Francisco, California.
MICHAEL R. PEEVEY
President
DIAN M. GRUENEICH
JOHN A. BOHN
RACHELLE B. CHONG
TIMOTHY ALAN SIMON
Commissioners
APPENDIX A
Modifications to D.06-08-028
Decision 06-08-028 is modified as follows (additions are underlined):
Conclusions of Law
51. We should establish MW triggers for each utility, and for the residential and non-residential sectors within each utility, based on the MW levels of program participation adopted in the trigger mechanism in D.06-01-024. If there are any MWs that remain unused and unaccounted for in any previous steps, due to events such as applicants dropping out of the process or reducing the size of their systems, the CSI Program Administrators may reallocate those MWs to the current step under which they are issuing reservations and incentives. Reallocations should be consistent with how the MWs were initially reserved, with the exception of Step 1 reallocations.
Ordering Paragraphs
19. Upon commencement of Step 2, the incentive adjustment mechanism adopted in D.06-01-024 (Appendix A, Table 5) is modified to base incentive adjustments purely on the volume of megawatts (MWs) of solar installations, as set forth in Table 11 of this order. Incentives may vary by utility service territory and customer sector, according to the MWs of achieved solar demand specified in Table 11. Each program administrator shall automatically reduce its incentive level when conditional reservations for solar incentives in its utility service territory reach the MW targets in Table 11, although Program Administrators may reallocate MWs from drop outs or system size reductions from prior steps to the current step. When the Program Administrators automatically reduce incentive levels, they shall provide written notification of this incentive reduction by letter to the ALJ and the service list of this proceeding, or any successor proceeding.
Table 11, previously modified in D.06-12-033, is modified further to add a footnote as follows:
Table 11
CSI MW Targets by Utility and Customer Class
|
|
PG&E (MW) |
SCE (MW) |
SDG&E (MW) | |||
Step |
MW in Step* |
Res |
Non-Res |
Res |
Non-Res |
Res |
Non-Res |
1 |
50 |
-- |
-- |
-- |
-- |
-- |
-- |
2 |
70 |
10.1 |
20.5 |
10.6 |
21.6 |
2.4 |
4.8 |
3 |
100 |
14.4 |
29.3 |
15.2 |
30.8 |
3.4 |
6.9 |
4 |
130 |
18.7 |
38.1 |
19.7 |
40.1 |
4.4 |
9.0 |
5 |
160 |
23.1 |
46.8 |
24.3 |
49.3 |
5.4 |
11.0 |
6 |
190 |
27.4 |
55.6 |
28.8 |
58.6 |
6.5 |
13.1 |
7 |
215 |
31.0 |
62.9 |
32.6 |
66.3 |
7.3 |
14.8 |
8 |
250 |
36.1 |
73.2 |
38.0 |
77.1 |
8.5 |
17.3 |
9 |
285 |
41.1 |
83.4 |
43.3 |
87.8 |
9.7 |
19.7 |
10 |
350 |
50.5 |
102.5 |
53.1 |
107.9 |
11.9 |
24.2 |
Totals |
764.8 |
805.0 |
180.3 | ||||
Percent |
43.7% |
46.0% |
10.3% | ||||
* If there are MWs that remain unused and unaccounted for in any previous steps, due to events such as applicants dropping out or reducing their system sizes, those MWs will be added to the current step under which Program Administrators are issuing reservations and incentives. Any reallocation of MWs from a higher step to a lower step due to drop outs or system size reductions can take place as long as the reallocation is consistent with how the MWs were initially reserved for either residential or non-residential projects. Reallocations from Step 1 shall be at the Program Administrators' discretion.
(END OF APPENDIX A)
