2. Background
2.1. Energy Efficiency Programs
In Decision (D.) 05-09-043, we approved the Utilities' energy efficiency portfolios for the 2006-2008 program cycle. The Utilities were authorized to spend approximately $2.1 billion in ratepayer funds on a wide variety of energy efficiency programs.
In Rulemaking (R.) 06-04-010 -- our proceeding to examine the Commission's post-2005 energy efficiency policies, programs, evaluation, measurement and verification and related issues D.07-10-032 -- we directed the Utilities to prepare a comprehensive long-term energy efficiency strategic plan. D.07-10-032 also provided specific policy guidance to the Utilities on the development and composition of their 2009-2011 energy efficiency portfolios.1 In addition, D.07-10-032 declined to revise previously adopted energy savings goals for 2009-2011; D.08-07-047 later clarified that these goals were to be calculated on a gross basis.
2.2. Procedural Background
On July 21, 2008, the Utilities filed the above-captioned applications. In these applications, the Utilities seek approximately $3.7 billion in total for energy efficiency programs and related activities for 2009 through 2011. Because the four applications are related, Administrative Law Judge (ALJ) Gamson consolidated the applications in a Ruling on August 1, 2008. A prehearing conference (PHC) was held on August 11, 2008.
In their July 21, 2008 filings, the Utilities each made proposals for bridge funding in order to continue certain energy efficiency programs into 2009 in the event that the Commission does not finalize a decision on 2009-2011 program applications before the end of 2008. At the PHC, among other things, the ALJ indicated that the Commission's final 2009-2011 decision would not be made before the end of 2008 due to a late start to the process,2 the need to supplement the applications to conform to California Long-Term Energy Efficiency Strategic Plan (Plan)3 and to ensure that the applications comply with previous Commission direction in D.07-10-032 and subsequent Assigned Commissioner and ALJ rulings in R.06-04-010. At the PHC, the ALJ also stated that more information was needed from the Utilities before the Commission could consider a bridge funding request. The ALJ directed the Utilities to submit a supplemented request by August 18, 2008, that included the following information:
· A statement of interest to seek bridge funding.
· Any exceptions to the energy efficiency policy manual or needed modifications to D.07-10-032 or any other decision that would be required to effectuate a bridge funding decision.
· Information on monthly spending levels for 2006-2008 energy efficiency programs as requested by Energy Division in an August 7 data request.
· A proposal to continue identified current programs and only those programs into 2009 at current monthly spending levels and with current rates, with current monthly spending level clearly defined.
· A statement recognizing that program funds spent in 2009 would count for 2009 goals.
· Any proposals on use of pre-2009 unspent or unallocated funds to be used in 2009.
· A mechanism to ensure that approved programs continue on for three months at approved spending levels after a final 2009 - 2011 decision is reached.
· Any other information needed to implement the decision.
On August 18, 2008, the Utilities filed a "Joint Utility Request for Funding and Authorization to Continue to Operate 2006-2008 Energy Efficiency Programs in 2009 Pending a Final Decision on Applications for Approval of 2009-2011 Energy Efficiency Programs" (Bridge Funding Request). Parties were given until August 22, 2008 to respond. On August 27, 2008, ALJ Gamson granted the Utilities the opportunity to reply to the responses on August 29, 2008.
1 While we use the designation of 2009-2011 portfolio period, D.07-10-032 permits the utilities to propose programs lasting beyond 2011.
2 D.07-10-032 called for the Utilities to file their 2009-2011 energy efficiency program applications on May 15, 2008. This due date was extended to July 21, 2008 by assigned Commissioner/ALJ Rulings on May 5, 2008 and June 2, 2008 to account for new information, including updates to the Database for Energy Efficient Resources (DEER), new avoided costs, and a second scenario for a carbon adder.
3 The Commission is scheduled to consider this matter on September 18, 2008.
