ALJ/SRT/sid Date of Issuance 11/10/2008
Decision 08-11-031 November 6, 2008
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of Pacific Gas and Electric Company for Approval of the 2009-11 Low Income Energy Efficiency and California Alternate Rates for Energy Programs and Budget (U39M). |
Application 08-05-022 (Filed May 15, 2008) |
And Related Matters. |
Application 08-05-024 Application 08-05-025 Application 08-05-026 |
DECISION ON LARGE INVESTOR-OWNED UTILITIES'
2009-11 LOW INCOME ENERGY EFFICIENCY (LIEE) AND CALIFORNIA ALTERNATE RATES FOR ENERGY (CARE) APPLICATIONS
TABLE OF CONTENTS
Title Page
DECISION ON LARGE INVESTOR-OWNED UTILITIES' 2
2009-11 LOW INCOME ENERGY EFFICIENCY (LIEE) AND CALIFORNIA ALTERNATE RATES FOR ENERGY (CARE) APPLICATIONS 2
1. Summary 2
2. Background 7
3. Tiering/Segmentation of LIEE Population to Maximize Energy
and Bill Savings 11
3.1. Introduction 11
3.2. Background 13
3.3. IOUs' Proposals 15
3.3.1. Identification and Outreach 15
3.3.2. Enrollment, Assessment/Energy Audit and Measure Installation 17
3.4. Parties' Positions 18
3.5. Discussion 20
4. Energy Savings and Cost Effectiveness 38
4.1. Introduction 38
4.1.1. Parties' Positions 40
4.1.1.1. PG&E 40
4.1.1.2. SDG&E 40
4.1.1.3. SCE 41
4.1.1.4. SoCalGas 42
4.1.1.5. DRA 43
4.1.1.6. A W.I.S.H. 43
4.1.1.7. Greenlining 44
4.1.2. Discussion 44
4.1.2.1. Energy Savings 44
4.2. Cost Effectiveness of Proposed Measures 48
5. Energy Efficiency Education Should Result in Measure Installation 54
6. Single Statewide Marketing, Education and Outreach
(ME&O) Program 59
7. The Utilities Should Enhance Outreach and Program Delivery to the Disabled Community 68
8. Workforce Education and Training (WE&T) 75
9. Lighting Programs 79
10. 10-Year Go-Back Rule 91
11. 3 Measure Minimum Rule 95
12. Eligible Population for LIEE 99
13. Integration of LIEE with Other Utility Demand-Side Programs 115
14. Leveraging of LIEE with Other Programs Offered in California 123
15. Eligibility of Public Housing Tenants for CARE/LIEE 133
16. Natural Gas Appliance Testing (NGAT) - Funding Source 135
17. REACH Funding (PG&E) 138
18. Pilots and Studies 141
18.1. Introduction 141
18.2. Comments Regarding Pilots and Studies 143
18.3. Discussion - Pilots 144
18.3.1. PG&E's Pilots 144
18.3.1.1. Meals on Wheels - LIEE Microwave Program 144
18.3.1.2. Online (Off-Site) PG&E LIEE/Energy Partners Training Pilot 145
18.3.1.3. City of San Joaquin 145
18.3.1.4. High Efficiency Clothes Washers 146
18.3.1.5. Smart AC 147
18.3.1.6. Habitat for Humanity 147
18.3.1.7. City of San Jose Partnership 147
18.3.1.8. Community- Based Energy Education Workshops 148
18.3.1.9. SmartMeter Program 149
18.3.2. SCE's Pilots 149
18.3.3. SoCalGas' Pilots 149
18.3.3.1. Natural Gas High-Efficiency Forced Air
Unit Furnace Pilot 150
18.3.4. SDG&E's Pilots 150
18.3.5. Pilot Implementation, Reporting, and Assessment 151
18.4. Discussion - Studies 154
18.4.1. PG&E's Studies 155
18.4.1.1. 2010 CARE Recertification and Post-Enrollment Verification Non-Response Study 155
18.4.2. SCE's Studies 155
18.4.2.1. High Usage Needs Assessment 155
18.4.3. PG&E/SCE Joint Study 155
18.4.3.1. Household Segmentation Study 155
18.4.4. PG&E/SCE/SDG&E Joint Study 156
18.4.4.1. Refrigerator Degradation Study 156
18.4.5. Joint Utilities' Programmatic Measurement and
Evaluation (M&E) Studies (PG&E / SCE / SoCalGas / SDG&E) 157
18.4.6. Joint Utilities (PG&E/SCE/SoCalGas/SDG&E) 159
18.4.6.1. Low Income Non Energy Benefits Study 159
18.4.7. LIEE Group Energy Education - 2007-08 Program Evaluation 159
18.4.8. Study Implementation, Reporting, and Assessment 159
19. Customer Rewards 162
20. Fund Shifting 164
21. CARE Administrative Costs 174
22. CARE Penetration Level 181
23. CARE Recertification 188
24. Post Decision Action 190
25. One-E-App Pilot 191
26. AB 2857 (Lieber): California Alternative Rates for Energy 197
27. Conclusion 197
28. Comments on Proposed Decision 198
29. Assignment of Proceeding 204
Findings of Fact 204
Conclusions of Law 214
ORDER 219
Attachment |
Table Description |
||
A |
Budget Summary |
||
B |
PG&E LIEE Budget |
||
C |
SDG&E LIEE Budget |
||
D |
SoCalGas LIEE Budget |
||
E |
SCE LIEE Budget |
||
F |
Cost Effectiveness Measures | ||
G |
3 Measure Minimum |
||
H |
Projected Homes to be Treated | ||
I |
Pilot Budgets |
||
J |
Studies Budget |
||
K |
WE&T Pilot |
||
L |
Lighting |
||
M |
One E App |
||
N |
Budget Impacts Calculation |
||
O |
CARE Authorized Budgets |
||
DECISION ON LARGE INVESTOR-OWNED UTILITIES'
2009-11 LOW INCOME ENERGY EFFICIENCY (LIEE) AND CALIFORNIA ALTERNATE RATES FOR ENERGY (CARE) APPLICATIONS
1. Summary
Today, we approve the energy-related low income programs totaling approximately $3.6 billion for our four major investor-owned utilities (IOUs) for 2009-11. The Low Income Energy Efficiency (LIEE) program budgets we approve today are almost $1 billion for that period, and the California Alternate Rates for Energy (CARE) subsidy budgets, based on recent experience, will be $2.6 billion.
With ratepayer funding at these levels, the low income programs can no longer operate with a business-as-usual approach. As we state in our recently adopted California Long-Term Energy Efficiency Strategic Plan (Plan),1 the LIEE program must evolve into a resource program that garners significant energy savings in our state while providing an improved quality of life for California's low income population.
The utilities affected by this decision have proposed significant LIEE budget increases, as we asked them to do in Decision (D.) 07-12-051. That decision set forth a new, strategic direction for the Commission's LIEE program. First and foremost, we emphasized the program's capacity for energy savings. Any program with energy efficiency in the title must, in fact, deliver such savings. We also acknowledged the LIEE program's contribution to the quality of life of low income communities. With this decision, we begin to create a framework within which to carry out this vision.
This decision acts on the 2009-11 LIEE and CARE applications of Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), San Diego Gas & Electric Company (SDG&E), and Southern California Gas Company (SoCalGas). We adopt the following LIEE and CARE budgets for these IOUs:
The key changes this decision makes to the IOUs' budget applications are in the following areas:
· IOUs Shall Focus on Customers with High Energy Use, Burden and Insecurity. We direct IOUs to target increased outreach to LIEE customers who are high energy users, have high energy burden (the ratio of their energy bills to income) and have high energy insecurity (late payments, threatened service shut-off).
· IOUs Shall Adopt a "Whole Neighborhood Approach" to Marketing and Installation of LIEE Measures. IOUs shall minimize costs and greenhouse gas emissions in delivering LIEE measures to low income households. By focusing efforts on whole "neighborhoods" - a term we define expansively - they will be able to treat more households.
· IOUs Must Serve all Eligible Low Income Customers. In emphasizing the customers with high energy use, burden or insecurity, the IOUs shall not neglect low income customers with lower energy use.
· LIEE Measures That Do Not Meet A Cost Effectiveness Threshold Will Be Allowed in the Program For Purposes of Customer Health, Comfort and Safety. For measures that fall below a 0.25 cost effectiveness level, such as certain heating and cooling measures, we require additional IOU reporting to show the cost, energy savings impacts, and related metrics. It remains our goal that the LIEE program deliver significant cost-effective energy savings, consistent with the Plan.
· Energy Efficiency Education Shall Occur Near the Time of Measure Installation. We require that the IOUs' energy efficiency education - in which the IOUs inform and teach low income customers about the benefits of energy efficiency - occur close in time to installation of measures, rather than in a vacuum. We allow IOUs to fund facilitated education, including workshops, provided such workshops target low income persons eligible or likely to be eligible for LIEE and take steps to enroll customers in LIEE.
· Single Statewide Marketing, Education and Outreach (ME&O) Program. We grant the IOUs' requested ME&O budgets for 2009-11, but only allow them to spend approximately 1/3 of that budget on their current marketing program in 2009. The Plan and our decision adopting it have set the stage for an integrated, statewide ME&O program for energy efficiency, including LIEE, starting late in 2009 or early in 2010. We expect the single statewide ME&O program will have a comprehensive focus on motivating consumers to adopt energy efficiency as a way of life. The remaining 2/3 of the IOUs' budget shall be targeted toward and coordinated with the statewide ME&O program.
· The IOUs Shall Enhance Outreach to Persons with Disabilities, Who Represent Approximately 20% of LIEE-Eligible Customers. Enhanced outreach and service to the disabled community, and efforts to make LIEE programs accessible to this community, will go a long way toward increasing LIEE market penetration, because a large segment of the LIEE-eligible community is disabled.
· LIEE Budgets Shall Promote Relevant Workforce Education and Training. The LIEE budget should form part of the spectrum of resources available to educate and train the next generation of workers providing LIEE services to low income households.
· Lighting Programs Shall Support New Laws and the Rapidly Changing Marketplace. Significant new state and federal laws are rapidly transforming the lighting market. We approve continued lighting programs, coupled with educating LIEE customers about new energy efficiency lighting laws. Lighting program budgets, including LIEE programs, will diminish as market transformation occurs.
· Customers Who Have Not Received LIEE Measures Since 2002 Shall be Eligible for New Measures. We revise the "10 Year Go Back Rule" to require IOUs to provide LIEE measures to customers not treated since 2002, when many new measures were added to the LIEE program.
· Low Income Customers Shall Receive Measures with High Energy Savings, Even if They Need Fewer Than 3 Measures. We change the "3 Measure Minimum Rule" in favor of a rule that allows IOUs to install one or two measures in the home as long as those measures produce significant energy savings, according to a table we furnish with this decision.
· The LIEE-Eligible Population is Larger than the IOUs' Estimates. We modify the IOUs' estimates of the eligible LIEE population because more customers are willing and eligible to participate in the program than the IOUs estimate. We provide the IOUs additional funding to support this increase based on the IOUs' average cost to treat a home.
· We Will Assess IOUs' Success in Integrating Their Own Demand Side Programs Based on Objective Criteria. We have long required IOUs to integrate their demand-side programs, but now will require the IOUs to demonstrate success based on measureable criteria.
· We Will Judge the IOUs' Efforts to Leverage LIEE Marketing and Measure Budgets With Other Government and Private Programs Based on Objective Criteria. We will measure the IOUs' success in leveraging the LIEE program with external resources using objective criteria, including marketing dollars saved, energy savings gained, and increases in customer enrollment.
· We Grant the IOUs' Requests to Conduct Some, But Not All, Pilots and Studies. The IOUs must also do a better job of communicating the results of their pilots and studies to the Commission, other IOUs and other stakeholders.
· We Give the IOUs Limited Authority to Shift LIEE and CARE Program Funds During the 2009-11 Period. Generally, we allow certain shifting up to 15% of budgets, except where it affects administrative budget categories.
· We Set A 90% CARE Penetration Goal for All IOUs. While we do not abandon a 100% CARE penetration target, we recognize the difficulty of reaching this goal. Instead, we set a goal of 90% CARE penetration. We provide the IOUs two low-cost new tools to enhance penetration so that reaching the 90% goal should be feasible.
1 See www.californiaenergyefficiency.com.
