5. Assignment of Proceeding

Michael R. Peevey is the assigned Commissioner and Maryam Ebke is the assigned Administrative Law Judge in this proceeding.

1. The SGIP is limited to wind and fuel cell technologies.

2. There are no protests to the Energy Division's recommendation regarding PMRs Numbers 1 through 5 and PMR number 7.

3. As a stand-alone technology, AES is not eligible for SGIP incentives.

4. When coupled with wind or fuel cell technology, AES system supports the goals of SGIP for peak demand reduction.

5. $2/W is an appropriate incentive for AES coupled with a currently eligible SGIP technology (wind or fuel cell technology).

6. It is logical and consistent with Commission past practice for projects containing an AES system to not exceed the capacity limitations of SGIP.

7. It is reasonable to apply the tiered incentive structure that was adopted in D.08-04-049 to SGIP projects with an AES system.

8. Because AES supports wind and fuel cell technologies, it is reasonable to require that it be funded out of the SGIP budget.

9. Except for the 20-year minimum warranty requirement, the technical parameters proposed by VRB are broad enough to allow all qualified AES to participate in SGIP.

10. A five-year warranty for AES is consistent with the SGIP warranty requirements for wind and fuel cell technologies and is reasonable.

11. It is reasonable for PMRs to be submitted at least 10 business days before the SGIP Working Group meeting

12. The existing process for the submittal of the Working Group's recommendation for PMRs is reasonable.

1. Due to program ineligibility, PMRs Numbers through 5 should be denied.

2. PMR Number 6 should be adopted.

3. When coupled with a currently eligible SGIP technology, namely wind or wind fuel cell technology, AES systems should receive incentives.

4. AES systems, if coupled with wind or fuel cell technology, should receive incentives on a per KW basis.

5. A $2/W incentive should be adopted for AES systems that are coupled with wind or fuel cell technology.

6. The size of the AES should not exceed the capacity of the accompanying generation.

7. During 2008 and 2009, and on a pilot basis, the tiered structure adopted in D.08-04-049 should apply to SGIP projects with AES systems.

8. Any SGIP project that is currently an eligible technology (wind or fuel cell) should be eligible to receive AES incentives if coupled with an eligible AES system.

9. AES incentives should be funded from SGIP budgets.

10. With the exception of the 20-year warranty term, the technical parameters to define AES in the context of SGIP proposed by VRB should be adopted.

11. A five-year warranty for AES should be adopted.

12. PAs should monitor AES applications and report to the Commission if they find the adopted parameters adversely impact the ability of some qualified AES to participate.

13. The proposed changes to the PMR evaluation process with modifications as described in Appendix A should be adopted.

14. This decision should be effective immediately so that the PAs can implement it expeditiously.

ORDER

IT IS ORDERED that:

1. Advanced energy storage systems that are coupled with one of the eligible self generation technologies, namely wind or fuel cell technology, and meet the technical and operational criteria established in this decision shall receive a $2/watt incentive.

2. Appendix A is adopted.

3. Within 60 days from the date of this decision, the Self-Generation Incentive Program (SGIP) Administrators shall file an advice letter implementing the revisions to the SGIP in accordance with the requirements of this decision and Appendix A. Prior to filing the advice letter, PAs should discuss the specific revisions to the handbook with the SGIP Working Group.

4. Rulemaking 08-03-008 remains open.

This order is effective today.

Dated November 21, 2008, at San Francisco, California.

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