2. Background
In Decision (D.) 06-01-024, the Commission established the CSI, a program providing incentives for customer installations of solar distributed generation. The electric customers of the three large investor-owned utilities (IOUs) in California-Pacific Gas and Electric Company (PG&E), SCE, and SDG&E- contribute to the CSI program through their electric distribution rates. The Commission first adopted an annual revenue requirement for CSI in D.06-01-024. (D.06-01-024, pp. 6-7.) Table 1 in that order lays out a schedule of annual collections for each utility from 2006 through 2016, totaling $2.5 billion. The order states:
"If the difference between program expenditures and the amounts the utilities collect in rates is substantial, we will consider adjusting the collection of the revenue requirement." (Id., p. 7.)
Following the enactment of Senate Bill (SB) 11 setting forth CSI eligibility criteria and limiting program's funding source to electric ratepayers, among other things, the Commission modified its table of annual revenue requirements to conform to the new CSI budget of $2.16 billion.2 (See D.06-12-033, Appendix A, Table 1.) This revenue requirement, shown below, is still in effect today.
Table 1: CSI Annual Revenue Requirements as adopted in D.06-12-033
(In millions of dollars)
Year |
PG&E |
SCE |
SDG&E |
Total |
2007 |
$140 |
$147 |
$33 |
$320 |
2008 |
$140 |
$147 |
$33 |
$320 |
2009 |
$140 |
$147 |
$33 |
$320 |
2010 |
$105 |
$110 |
$25 |
$240 |
2011 |
$105 |
$110 |
$25 |
$240 |
2012 |
$105 |
$110 |
$25 |
$240 |
2013 |
$70 |
$74 |
$16 |
$160 |
2014 |
$70 |
$74 |
$16 |
$160 |
2015 |
$70 |
$74 |
$16 |
$160 |
2016 |
$2 |
$2 |
$1 |
$5 |
Total |
$946 |
$996 |
$223 |
$2,165 |
In addition, the Commission directed that unspent solar funds from the Commission's other distributed generation program, the Self Generation Incentive Program (SGIP), should be transferred to CSI on December 31, 2006. (See D.06-08-028, p. 106 and D.06-12-033, pp. 33-34 and Ordering Paragraphs 11 and 12.)3
1 Chapter 132, Statutes of 2006.
2 Initially, customers of Southern California Gas Company contributed to CSI, but this was modified in D.06-12-033 following passage of SB 1.
3 In a ruling of September 25, 2008, the Administrative Law Judge (ALJ) requested the IOUs report the dollar amount of funds transferred on December 31, 2006 to the CSI balancing account from the SGIP budget, as directed by D.06-12-033.
