II. Summary
This decision approves statewide and local energy efficiency programs for a two-year period beginning in 2004. In this decision, funding for energy efficiency programs is increased by $245 million or 43% above statutorily-authorized levels due to the integration of the Commission's energy efficiency and procurement programs.
Specifically, this decision disburses $557 million to several companies, government agencies and organizations to undertake a variety of programs for residential, commercial and industrial customers. It also authorizes $17.85 million for measurement and verification studies for the utilities' 2004-05 programs and other projects. These programs will be funded by "public goods charge" (PGC) funds collected in 2004-05 and carried over from previous years.
This decision also authorizes the utilities to spend an additional $245 million on utility energy efficiency programs that are included as elements of their procurement portfolios, based on a companion decision in the Commission's Procurement Rulemaking 01-10-024 authorizing program funding identified in this decision. The utilities will implement these energy-savings programs in lieu of purchasing electricity. This order authorizes spending on these energy efficiency program activities, including measurement and verification studies for the utilities' procurement portfolio, pursuant to the decision in R.01-10-024 authorizing funding levels, the manner in which the utilities may recover associated costs and the criteria we use to evaluate program proposals.
This decision supports the goals established in D.03-08-067 in which this Commission emphasized program continuity and stability of energy efficiency funding while the Commission considers establishing long-term statewide goals, new measurement and evaluation mechanisms, and potential program structure, as called for in the Energy Action Plan.1
The programs we fund today build on past successes and seek to incorporate new ideas and technologies where possible as part of a larger effort to reduce the per capita use of electricity in California, reduce costs, and improve the electric system's reliability for California customers. Therefore, we authorize continuation of certain utility programs that we approved in 2003. We also select certain non-utility programs from 2002 and 2003 because of their demonstrated success and contribution to statewide goals. We continue funding for existing statewide marketing and outreach efforts that provide coordination with private sector energy efficiency programs and energy efficiency messages to consumers through mass-market advertising campaigns, capitalizing on the success of the state's Flex Your Power campaign.
Furthermore, this decision supports the emphasis on integrated resource planning called for in SB 1389, AB 58, and CPUC D.02-10-062 by facilitating integration of procurement-funded energy efficiency programs with other resource acquisition and demand reduction decisions. At the same time, this decision also supports the goals of promoting innovation in energy efficiency programs by providing maximum flexibility in administration of new energy efficiency resources available through utility procurement programs.
The funding allocated to the 2004 programs, studies and projects is as follows:
Allocation of 2004-2005 PGC Funds
|
PG&E |
SCE |
SDG&E |
SCG |
TOTAL |
% |
2004 and 2005 Electric PGC [1] |
$215,180,000 |
$180,000,000 |
$64,800,000 |
- |
459,980,000 |
80.24% |
2004 and 2005 Gas Public Purpose Program (PPP) Funds |
$25,776,000 |
- |
$11,000,000 |
$53,990,000 |
90,766,000 |
15.83% |
Unspent/Uncommitted Energy Efficiency Budget (1998-2002) [2] |
$15,444,362 |
$1,516,272 |
$389,739 |
$2,183,000 |
19,533,373 |
3.41% |
Estimated Interest for Electric PGC Funds/Gas PPP Funds |
$1,531,938 |
$1,176,000 |
$556,281 |
($297,072) |
2,967,147 |
0.52% |
TOTAL PGC FUNDS AVAILABLE |
$257,932,300 |
$182,692,272 |
$76,746,020 |
$55,875,928 |
$573,246,520 |
100.00% |
Investor-Owned Utilities Statewide Programs |
$135,830,117 |
$106,180,494 |
$42,227,091 |
$32,550,108 |
$316,787,810 |
55.11% |
Utility Local Programs [3] |
$13,815,644 |
$11,801,439 |
$4,278,000 |
$4,755,206 |
$34,650,289 |
6.03% |
Utility Partnership Programs |
$23,478,022 |
$15,035,162 |
$6,807,796 |
$4,975,202 |
$50,296,182 |
8.75% |
Total Utility Programs |
$173,123,783 |
$133,017,095 |
$53,312,887 |
$42,280,516 |
$401,734,281 |
69.89% |
Non-utility Programs |
$56,723,115 |
$28,630,671 |
$16,191,596 |
$7,279,726 |
$108,825,108 |
18.93% |
Reserved fee for Utility Contract Administration for Non-Utility programs (5%) |
$2,836,156 |
$1,431,534 |
$809,580 |
$363,986 |
$5,441,255 |
0.95% |
Total Non-Utility Programs |
$59,559,271 |
$30,062,205 |
$17,001,176 |
$7643,712 |
$114,266,363 |
19.88% |
Total Statewide Marketing and Outreach |
$17,965,588 |
$13,419,506 |
$5,588,820 |
$4,026,086 |
$41,000,000 |
7.13% |
EM&V for Statewide Programs |
$4,046,345 |
$3,676,929 |
$1,265,088 |
$954,746 |
$9,943,107 |
1.73% |
Energy Division Special Projects |
$677,347 |
$318,698 |
$133,880 |
$97,473 |
$1,227,398 |
0.21% |
Energy Division Operating Costs |
$262,887 |
$196,383 |
$81,826 |
$58,904 |
$600,000 |
0.10% |
Other Studies |
$2,297,079 |
$2,001,457 |
$965,991 |
$814,491 |
$6,079,018 |
1.06% |
Total EM&V and Other Projects |
$7,283,657 |
$6,193,467 |
$2,446,784 |
$1,925,614 |
$17,849,523 |
3.11% |
GRAND TOTAL |
$257,932,299 |
$182,692,272 |
$78,349,668 |
$55,875,928 |
$574,850,167 |
100.00% |
|
Notes: [1] San Diego Gas and Electric Company (SDG&E): Pursuant to Advice Letter (AL) 1483-E effective April 1, 2003, approved by the Commission on April 15, 2003. [2] Pacific Gas & Electric Company (PG&E): Net of Carry-over Funds from Program Year (PY) 1998 - PY 2002 and PG&E's two Motions to shift funds to PY 2003 programs and additional Energy Division staff costs, totaling to $3,975,838. Includes Gas Consumption Surcharge Funds remitted to the State Board of Equalization per Resolution G-3303. [3] Budget shown for SDG&E service territory includes funding of $1,527,283 for the San Diego Regional Energy Partnership's Cool Communities Shade Tree Program that will be allocated from unspent 2002-2003 PGC funds at a later date. |
