ALJ/SRT/jt2 Date of Issuance 12/8/2008

Decision 08-12-019 December 4, 2008

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of Southwest Gas Corporation (U905G) for Approval of Low-Income Programs and Budgets for Program Years 2009-2011.	Application 08-06-031 (Filed June 30, 2008)
And Related Matters.	Application 08-07-005 Application 08-07-007 Application 08-07-015 Application 08-07-019 Application 08-07-027

DECISION ON SMALL AND MULTIJURISDICTIONAL UTILITIES' (SMJU) 2009-2011 LOW-INCOME ENERGY EFFICIENCY (LIEE) AND CALIFORNIA ALTERNATE RATES FOR ENERGY (CARE) APPLICATIONS

TABLE OF CONTENTS

Title Page

DECISION ON SMALL AND MULTIJURISDICTIONAL UTILITIES' (SMJU) 2009-2011 LOW-INCOME ENERGY EFFICIENCY (LIEE) AND CALIFORNIA ALTERNATE RATES FOR ENERGY (CARE) APPLICATIONS 11

1. Summary 22

2. Procedural History 33

3. California Long-Term Energy Efficiency Strategic Plan 88

4. Energy Savings - LIEE 99

5. Lighting as an LIEE Measure 1414

6. LIEE Penetration Levels (Number of Customers Served) 1515

7. LIEE Customer Segmentation 1818

8. LIEE/CARE Income Eligibility Level - Bear Valley 2020

9. Marketing, Education, and Outreach (ME&O) 2222

10. Workforce Education and Training (WE&T) 2424

11. CARE Penetration Levels 2525

12. CARE Outreach and Recertification 2727

13. CARE Administrative Budgets 3131

14. Surcharge Issues 3434

14.1. Overcollections 3434

14.2. Specific Surcharge Proposals 3535

15. AB 2857 (Lieber): California Alternative Rates for Energy 3636

16. Conclusion 3737

17. Comments on Proposed Decision 3838

18. Assignment of Proceeding 3838

Findings of Fact 3838

Conclusions of Law 4242

ORDER 4545

Appendix A - SMJU Application Summaries

DECISION ON SMALL AND MULTIJURISDICTIONAL UTILITIES' 2009-2011 LOW-INCOME ENERGY EFFICIENCY (LIEE) AND CALIFORNIA ALTERNATE RATES FOR ENERGY (CARE) APPLICATIONS

1. Summary

The Commission is currently engaged in strategic planning to increase the amount of energy efficiency measures in all California homes, including those of low-income customers. The Small and Multijurisdictional Utilities (SMJUs) - Southwest Gas Corporation (Southwest), Sierra Pacific Power Company (Sierra), Golden State Water Company/Bear Valley Electric (Bear Valley), West Coast Gas Company (West Coast), PacifiCorp, and Alpine Natural Gas Operating Company (Alpine) - form a part of that strategy, although in a limited way.

This decision acts on the SMJUs' 2009-2011 budget requests for Low-Income Energy Efficiency (LIEE) and California Alternate Rates for Energy (CARE). We approve the SMJUs' requests, for the most part, while focusing on small ways in which the SMJUs can increase their contribution to the energy efficiency of the state's electric and gas customers. In summary, we:

· Ask the SMJUs, consistent with the California Long Term Energy Efficiency Strategic Plan (Plan),¹ to:

o expand the numbers of customers their LIEE programs serve,

o increase the energy savings delivered by their LIEE programs, and

o concentrate LIEE outreach on customers with the greatest energy usage;

· Allow the SMJUs' LIEE programs to continue to focus on lighting (compact florescent light bulbs - CFLs), among other measures, given the significant energy savings CFLs continue to deliver to low-income households, but also ask the SMJUs to begin preparing for new legislation that will phase out low-efficiency and toxic light bulbs;

· Set the SMJUs' CARE penetration goal at 90% of eligible customers, consistent with what we are doing for the large investor owned utilities for 2009-2011; and

· Act on other issues specific to individual SMJUs' applications.

¹ The Commission adopted the Plan in Decision (D.) 08-09-040.