8. Assignment of Proceeding

Timothy Alan Simon is the assigned Commissioner and the author of this alternate proposed decision.

1. WEC devices have been tested in Europe and Hawaii but have not been demonstrated for commercial viability in California.

2. California has potentially large ocean energy resources.

3. There is a need to test the viability of competing ocean energy technologies.

4. The results of the WaveConnect Stage 1 will not be known for three to five years.

5. Legislation encouraging renewable power and reductions in GHG strongly support all reasonable cost effective means to achieve these ends, including consideration of wave energy.

6. WaveConnect is a lengthy study necessary to prove or disprove the potential for wave energy from various WEC devices.

7. Accounting for WaveConnect costs through the ERRA will provide transparency in tracking actual expenditures against budgeted amounts.

8. It is premature to adopt an accounting procedure for WaveConnect work products, facilities or equipment.

9. ERRP is too narrowly designed.

1. SB 1078 established the RPS program with a stated intent of attaining 20% renewable energy by 2017. SB 107 codified the acceleration of the 20% renewable energy target to 2010.

2. IOUs are responsible for RPS procurement.

ORDER

IT IS ORDERED that:

1. Pacific Gas and Electric Company (PG&E) is not authorized to establish an Emerging Renewable Resource Program (ERRP) as discussed herein and spend up to $30 million over a period of two years on ERRP projects approved through Tier 3 Advice Letter (AL) filings with the Commission's Energy Division (ED).

2. San Diego Gas and Electric Company is not authorized to establish an ERRP as discussed herein and spend up to $15 million over a period of two years on ERRP projects approved through Tier 3 AL filings with ED.

3. PG&E is not authorized to undertake the University of California Merced Solar Center (Solar Center) ERRP project, and spend up to $2 million on the Solar Center ERRP project.

4. SDG&E is not authorized to undertake the Wastewater Biomethane Demonstration (WBD) ERRP project, and spend up to $3.2 million for the WBD ERRP project.

5. PG&E is authorized to undertake its wave energy (WaveConnect) project, and spend up to $4.8 million on the WaveConnect project to complete activities for Stage 1.

6. PG&E may request further funding for WaveConnect beyond Stage 1 activities through Application.

7. Application 07-07-015 is closed.

This order is effective today.

Dated January 29, 2009, at San Francisco, California.

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