Assignment of Proceeding

President Michael R. Peevey is the assigned Commissioner and Dorothy J. Duda is the assigned ALJ for this portion of the proceeding.

Findings of Fact

1. In D.08-04-049, the Commission authorized SGIP incentives up to 3 MW.

2. SCE has an SGIP overcollection of approximately $110 million.

3. DG investment decisions can take a long time.

4. There are incomplete SGIP projects from prior years for which budget funds are reserved.

5. The Commission designated CCSE as SGIP administrator in the SDG&E territory, through 2008.

6. The SGIP Program Administrator Comparative Assessment Report indicates CCSE's administration compares favorably to its utility counterparts.

Conclusions of Law

1. The SGIP administrators should continue to implement SGIP in accordance with all previous Commission direction, including but not limited to budget allocations, administrative budget, and allocation of funds between renewable and non-renewable projects.

2. A SGIP budget for 2009 of $83 million, allocated across the four utilities in the same percentages as in 2008, is reasonable.

3. The program administrators should continue to carryover unspent non-PV authorized budgets from prior program years to their 2009 budgets. Unspent funds related to PV applications that drop out should transfer to CSI as directed in D.06-12-033.

4. The Commission requires further information on program participation and unspent funds before it can set the SGIP budget for 2010 and 2011 or decide whether to return unspent funds.

5. SCE may use its overcollection to fund its 2009 SGIP Budget.

6. All pending SGIP applications filed in 2006 or earlier must be completed and paid, or else rejected, by December 31, 2009.

7. It is reasonable to allow CCSE to continue to administer SGIP in the SDG&E territory.

ORDER

IT IS ORDERED that:

1. The Self Generation Incentive Program (SGIP) budget for 2009 is $83 million, as set forth in this order.

2. Southern California Edison Company (SCE) may use the overcollection in its SGIP memorandum account to fund its 2009 SGIP Budget, rather than collect additional funds from its ratepayers.

3. Pacific Gas and Electric Company, SCE, Southern California Gas Company and San Diego Gas & Electric Company (SDG&E), in cooperation with the California Center for Sustainable Energy (CCSE), shall file in this proceeding, no later than June 1, 2009, the following information (current as of May 1, 2009) for each calendar year they have operated the SGIP, beginning in 2001:

· Authorized Budget

· Dollar amount of incentive applications (i.e., the amount of the budget "reserved")

· Dollar amount of SGIP budget collected from ratepayers

· Dollar amount paid to completed projects

· Unspent Budget (carryover)

· Status of pending applications (i.e., date filed, dollar amount, reason for extension)

· Dollar amount of SGIP carryover funds transferred to the California Solar Initiative on December 31, 2006 or thereafter.

4. SDG&E shall extend its contract with CCSE for SGIP administration through December 31, 2011.

5. For good cause, the assigned Commissioner or Administrative Law Judge may modify the due dates set forth in this decision.

6. Rulemaking 08-03-008 remains open

This order is effective today.

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

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