Corrections to Reporter's Transcript
Finally, I note a correction needed in the reporter's transcript for the July 24, 2003 PHC on page 24. The three statement attributed to Ms. George on that page were made by me. Accordingly, where "Ms. George" appears on that page should be changed to read "Commissioner Kennedy."
IT IS RULED that:
1. Office of Ratepayer Advocates (ORA's) July 10, 2003 Motion to Accept Late-Filed Protest (AEAP) to the 2003 Application of SCE is granted.
2. As discussed in this ruling, the utilities, ORA and CALMAC should work together to ensure that the website posting of measurement studies and ORA review memos or reports are complete without delay.
3. As discussed in this ruling, ORA and the shall jointly compile an initial electronic version of the policy rules that apply to energy efficiency programs over the 1998-2002 period, and provide them to Energy Division staff and their consultants for both audits no later than August 8, 2003.
4. By September 15, 2003, ORA and the utilities (and other interested parties who wish to participate) shall jointly file a report that contains a final compilation of the post-1997 policy rules and addresses the areas of agreement and disagreement concerning their applicability to specific program years, or how to interpret them ("Policy Report"). By subsequent ruling, the procedural forum for addressing the report (e.g., the Energy Efficiency Rulemaking or the AEAP) will be identified, and a comment will be established.
5. As discussed in this ruling, the Policy Report shall include a table with information on SPC commitment true-ups for PY1998, and provide an explanation of how the utilities used 1998 program funds associated with commitments that did not materialize.
6. The August 8, 2003 policy rules submittal to Energy Division staff and their consultants, as well as the Policy Report, shall also include the specific milestones to which the commitment true-up issue may be applicable.
7. The Policy Report shall be filed at the Commission's Docket Office in this 2003 AEAP proceeding, the Consolidated AEAP (A.00-05-002 et al.) and the Energy Efficiency Rulemaking (R.01-08-028). A notice of availability shall be served electronically to the appearances and state service list in these three proceedings. The notice shall indicate where an interested party can obtain a hard copy of the report and include a website address where the Policy Report is posted electronically. Service of the notice by U.S mail is optional, except that both an electronic copy and one hard copy of the report should be sent to ALJ Gottstein and ALJ Malcolm.29 In addition, electronic copies of the report should be sent to Energy Division staff the consultants working on both audits, as listed in Attachment 2.
8. As discussed in this ruling, interested parties should comment on Attachment 3 within 10 days from the effective date of this ruling. Reply comments are due five days thereafter.
9. ORA's report on SPC on-site visits shall be filed in this 2003 AEAP proceeding and the Consolidated AEAP proceeding, A.00-05-002 et al. by September 15, 2003. Comments on the report are due by September 30, 2003 and replies are due 10 days thereafter. ORA's report shall include a description of how the sites visited were selected, and the results of those visits.
10. ORA shall electronically serve a notice of availability of its SPC on-site visits report to the appearances and state service list in this AEAP and the Consolidated AEAP proceeding, A.00-05-002 et al. The notice shall indicate where an interested party can obtain a hard copy of the report and include a website address where ORA's report is posted electronically. Comments on ORA's report shall also be served on the appearances and state service list in these two proceedings. Service of these documents by U.S mail is optional, except that both an electronic copy and one hard copy of the report shall be sent to ALJ Gottstein. In addition, electronic copies of the report and the comments shall be sent to Energy Division staff and consultants working on both audits, as listed in Attachment 2.
11. By September 15, 2003, ORA shall submit its verification work to date on customer affidavits and market share for the SPC program to Energy Division staff and consultants working on the Management and Financial Audit, as listed in Attachment 2.
12. As discussed in this ruling, the procedural forum and schedule for addressing the Policy Report, the utilities' PY2002 energy efficiency program accomplishments and related issues will be decided by subsequent ruling(s).
13. The utilities and interested parties shall file comments on the ratemaking issues raised in this ruling no later than October 1, 2003. Reply comments are due 15 days thereafter. These comments shall be filed and served in this proceeding and the Consolidated AEAP, A.00-05-002 et al. Service of the notice by U.S mail is optional, except that both an electronic copy and one hard copy of the report shall be sent to Judge Gottstein.
14. The following service requirements also apply to all filings required by this ruling: If there is no electronic mail address available, the electronic mail is returned to the sender, or the recipient informs the sender of an inability to open the document, the sender shall immediately arrange for alternate service (regular U.S mail shall be the default, unless another means is mutually agreed upon). The service lists for this proceeding, A.00-05-002 et al. and R.01-08-028 are available on the Commission's web page, www.cpuc.ca.gov.
15. This proceeding is categorized as ratesetting under Rule 6(a)(3), and it may be appealed under Rule 6.4. Ex parte communications are permitted only if consistent with the restrictions described in the Commission's Rules of Practice and Procedure, Rule 7(c), and are subject to the reporting requirements set forth in Rule 7.1.
16. For the reasons discussed in this ruling, the need for hearings will be determined at a later date.
17. For the reasons discussed in this ruling, a schedule for resolution of all issues will be determined at a later date.
18. Page 24 of the July 24, 2003 PHC transcript is corrected as follows: "Ms. George" is changed in the three places it appears on that page to read "Commissioner Kennedy."
19. Today's ruling shall be served on the service lists in this proceeding, A.00-05-002 et al. and R.01-08-028.
Dated August 7, 2003, at San Francisco, California.
/s/ Susan P. Kennedy
Susan P. Kennedy
Assigned Commissioner
ATTACHMENT 1
ATTACHMENT 2
Management and Financial Audit
John P. Conley
c/o blueCONSULTING
Managing Director
P.O. Box 1397
Palm Desert, CA 92261
email: conley@blueconsultinginc.com
Telephone: (760) 349-3619
Fax: (760) 349-9701
Angela L. Anderson
c/o blueCONSULTING
Managing Director
4415 New Hampshire
San Diego, CA 92116
email: anderson@blueconsultinginc.com
Telephone: (619) 293-3070
Fax: (619) 839-3828
Ariana Merlino
CPUC, Energy Division 4-A
505 Van Ness
San Francisco, CA 94102
email: ru4@cpuc.ca.gov
Telephone: 8-625-4220
Fred Tamse
CPUC, Energy Division 4-A
505 Van Ness
San Francisco, CA 94102
email: fet@cpuc.ca.gov
Telephone: 415-703-5595
John P. Conley
c/o blueCONSULTING
Managing Director
P.O. Box 1397
Palm Desert, CA 92261
email: conley@blueconsultinginc.com
Telephone: (760) 349-3619
Fax: (760) 349-9701
Jay Luboff
CPUC, Energy Division 4-A
505 Van Ness
San Francisco, CA 94102
email: jcl@cpuc.ca.gov
Telephone: (415) 355-5531
Measurement Audit
Eli Kollman
CPUC, Energy Division, 4-A
505 Van Ness Ave
San Francisco CA 94102
415-703-5649
Lisa Skumatz
Skumatz Research Associates
762 Eldorado Drive
Superior CO 80027
303-494-1178
(END OF ATTACHMENT 2)
ATTACHMENT 3
August 1, 2003 Supplemental Statement by PG&E on Derivation of PG&E's
3rd Earnings Claim for 1998 Results from the 1994 New Construction Program
The shareholder incentive mechanism for Program Year (PY) 1994 Demand-Side Management (DSM) programs was established as part of PG&E's 1993 test year general rate case. In that proceeding, PG&E reached a joint agreement with the Division of Ratepayer Advocates, the California Manufacturer's Association, the California Large Energy Consumers Association, and the California State Department of General Services on funding levels, funding flexibility and shareholder incentive mechanisms for the three-year period commencing in 1993. The joint recommendation became Exhibit 214 in the proceeding. For residential and nonresidential New Construction programs, the parties recommended the following incentive treatment:
· For expenditures for building projects which exceed standards by at least 10% but less than 15%, earnings equal to 8% of utility expenditures;
· For expenditures for building projects which exceed standards by at least 15% or more, but less than 20%, earnings equal to 12% of utility expenditures;
· For expenditures for projects which exceed standards by 20% or more, earnings equal to 20% of utility expenditures. - Ex. 214, pp. 16-17.
The joint recommendation was approved and adopted by the Commission. Decision 92-12-057, 47 CPUC 2d 143, at 263. When the Commission modified the shareholder incentive mechanism in Decision 94-10-059, it specifically found that: "New construction contract commitments entered into as of the effective date of this order [October 26, 1994] should be subject to the shared-savings treatment adopted in today's decision. Installations of new construction measures resulting from agreements entered into prior to this decision should be subject to the earnings mechanism in place at the time those agreements were made." - Decision 94-10-059, Conclusion of Law 34, 57 CPUC 2d 1, at 84.
Measurement and Evaluation protocols were first adopted in
Decision 93-05-063, 49 CPUC 2d 327, and have been periodically updated since then. In compliance with the Protocols, PG&E completed a load impact study for the 1994 Nonresidential New Construction Program (Study #323) in March 1997. It determined first year gross and net energy and demand impacts, including program free-ridership and spillover. It focused on whole building impacts and impacts from key end-uses such as lighting, HVAC, motors and glazing. 1998 AEAP, A. 98-05-001 et al., Ex. 5, p. VI-5. PG&E also completed a measure retention study of the 1994 New Construction Program (Study 323R1, completed March 1999) in support of the third earnings claims for that program year. 1999 AEAP, A. 99-05-002 et al., Ex. 36, pp. II-8 and II-11. ORA reviewed and accepted the findings of the measure retention studies (Ex. 54, p. 9), as did the Commission when it adopted the third earnings claim for PY 1994 programs in Decision 00-09-038, at mimeo page 32.PG&E's 1st earnings claim for 1998 accomplishments for the 1994 Nonresidential New Construction program was addressed in the 1999 AEAP. It included a $222,000 lifecycle incentive for the Nonresidential New Construction Performance Adder program, which applied only to the pre-October 24, 1994 New Construction program. Ex. 35, p. 2-13. There was a dispute over the shared-savings portion of PG&E's 1st earnings claim for 1998 accomplishments its pre-1998 programs, but not over the New Construction performance adder claim. PG&E and ORA negotiated a settlement of the claims, as follows:
"Current Status:
There are no longer any disputes outstanding in regard to PG&E's PY98 First Earnings Claim for pre-1998 program commitments. PG&E will collect
$8.4 million (plus interest) for its shared savings programs in two installments for collection in 2000 and 2001, and will collect $0.22 million in lifecycle earnings for its Performance Adder programs, to be collected in four installments..." Decision 00-09-038, Attachment B (Joint Amendment to Case Management Statement, p. 5.)The negotiated settlement was accepted by the Commission,
Decision 00-09-038, at mimeo p. 34, and the finality of the amount and collection of both the shared-savings and performance adder parts of the claim were stated in Ordering Paragraph 8.c:"$8.4 million in life-cycle shared savings earnings, plus $0.055 million in performance adder earnings for pre-1998 program commitments paid in 1998, with $4.25 million to be collected in 2000 for the first claim and $4.25 million to be collected in 2001 for the second claim. The third and fourth claims will be $0.055 million for only the Performance Adder." (emphasis added) -
Decision 00-09-038, at mimeo p. 42.The finding is particularly appropriate given that both the load impact study and the measure retention study had already been completed for the 1994 Nonresidential New Construction Program. Both studies can and should be used for later installations made under the same program. Studies are based on a sampling of projects for the program and extrapolated to apply to the entire program in any event. Plus an independent study (either load impact or measure retention) of the few projects constituting the $55,000 claim would certainly cost more than the value of the claim.
CERTIFICATE OF SERVICE
I certify that I have by mail this day served a true copy of the original attached Assigned Commissioner's Ruling Establishing Category and Providing Scoping Memo on all parties of record in this proceeding or their attorneys of record.
Dated August 7, 2003, at San Francisco, California.
/s/ Antonina V. Swansen
Antonina V. Swansen
NOTICE
Parties should notify the Process Office, Public Utilities Commission, 505 Van Ness Avenue, Room 2000, San Francisco, CA 94102, of any change of address to insure that they continue to receive documents. You must indicate the proceeding number on the service list on which your name appears.
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The Commission's policy is to schedule hearings (meetings, workshops, etc.) in locations that are accessible to people with disabilities. To verify that a particular location is accessible, call: Calendar Clerk (415) 703-1203.
If specialized accommodations for the disabled are needed, e.g., sign language interpreters, those making the arrangements must call the Public Advisor at (415) 703-2074,
TTY 1-866-836-7825 or (415) 703-5282 at least three working days in advance of the event.
29 ALJ Malcolm is assigned to the Energy Efficiency Rulemaking.
