17. REACH Funding (PG&E)
PG&E has requested that the Commission provide additional funding for its REACH PLUS program through the LIEE or CARE budgets. REACH is an assistance program managed by PG&E in partnership with the Salvation Army.118 The REACH PLUS program offers one-time cash grants to qualifying low income customers who experience unplanned or uncontrollable changes in their ability to sustain their energy service.119 PG&E proposes an expansion of the program's funding to $10 million per year, noting the program's distinguished track record of helping 40,000 low income customers avoid shut off of their utility services in the past 18 months.120
Other IOUs have similar programs. These programs include SCE's Energy Assistance Fund (which is administered by the United Way of Greater Los Angeles, and assists about 7,600 customers per year),121 SDG&E's Neighbor-to-Neighbor program,122 and SoCalGas' Gas Assistance Program.123 During 2006, the Commission approved a request to allow SCE and SDG&E to use funds from the Energy Resource Recovery Account (ERRA) as a one-time supplement for the two companies' programs. The funds provided additional assistance and expanded the scope of the programs to help vulnerable customers in wake of the July 2006 heat storm.124 Historically, all three IOUs listed above have funded their programs without public good charge monies. Both SDG&E and SCE plan to return their programs to donation-based funding after the ERRA funding is exhausted.125
The REACH program is without question an inspiring example of corporate generosity and social responsibility, as are the corresponding programs run by the other IOUs. Indeed, the program is likely to become even more important given the special difficulties that low income households are experiencing in the current economic climate. The rising cost of gasoline, food, and other necessities is likely to increase the number of families who are unable to afford basic utilities. Nevertheless, we are bound by statute to restrict the activities funded through LIEE to those intended by the Legislature. The statutes governing LIEE and CARE do not allow their budgets to be used for REACH PLUS.
When the Legislature created LIEE, it authorized funds for the program to be used only for the narrow field of performing "home weatherization services for low income customers."126 REACH PLUS does not fit within the definition of home weatherization provided by the statute.127
Nor can we find statutory justification for supporting the REACH PLUS program using CARE funds. The Legislature created the CARE program in order to "ensure CARE program participants are afforded the lowest possible electric and gas rates and, to the extent possible, are exempt from additional surcharges attributable to the energy crisis of 2000-01."128 To that end, the Legislature approved use of CARE funds to provide low income customers with a "level of discount [that] correctly reflects the level of need."129 While REACH PLUS does assist low income customers pay their utility bills, one-time assistance grants like the ones provided by REACH PLUS do not constitute discounts.
Indeed, the stated intent of the code section confirms that the Legislature envisioned only long-term reductions in low income customers' utility bills. For instance, the statute's goals of providing "the lowest possible electric and gas rates" and exempting participants "from additional surcharges attributable to the energy crisis of 2000-01" are both forms of long-term assistance, designed to reduce rates for a large group of vulnerable ratepayers.
Thus, under the existing law, we cannot use CARE or LIEE as a source of REACH PLUS funding.130 While REACH PLUS, CARE, and LIEE are all intended to help low income customers with their utility costs, the means through which LIEE and CARE are to operate have been carefully circumscribed by the Legislature.
118 D.06-12-032 at n.21.
119 A.08-05-022, p. 15.
120 Id.
121 Response of Southern California Edison Company (U 338-E) to the Administrative Law Judge's Second Ruling Seeking Further Information on Large Investor-Owned Utilities' 2009-11 Low Income Energy Efficiency/CARE Applications, filed July 7, 2008, p. 9.
122 Response of San Diego Gas & Electric Company to the Administrative Law Judge's Second Ruling Seeking Further Information on Large Investor-Owned Utilities' 2009-11 Low Income Energy Efficiency/CARE Applications, filed July 7, 2008, p. 19.
123 Response of Southern California Gas Company to the Administrative Law Judge's Second Ruling Seeking Further Information on Large Investor-Owned Utilities' 2009-11 Low income Energy Efficiency/CARE Applications, p. 21.
124 SDG&E's Response, p. 19.
125 SCE's Response, p. 10.
126 Pub. Util. Code § 2790(a).
127 Pub. Util. Code § 2790(b):
(1) For purposes of this section, "weatherization"" may include, where feasible, any of the following measures for any dwelling unit:
(A) Attic insulation.
(B) Caulking.
(C) Weatherstripping.
(D) Low flow showerhead.
(E) Water heater blanket.
(F) Door and building envelope repairs that reduce air infiltration.
128 Pub. Util. Code § 739.1(f).
129 Pub. Util. Code § 739.1(a).
130 PG&E may, of course, consider pursuing REACH PLUS funding in general rates, as the other large IOUs have done.
