COM/SK1/jva DRAFT Agenda ID #2556

Quasi-Legislative
8/21/03 Item 93

Decision DRAFT DECISION OF COMMISSIONER KENNEDY
(Mailed 8/1/03)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking to Examine the Commission's Future Energy Efficiency Policies, Administration, and Programs.

Rulemaking 01-08-028 (Filed August 23, 2001)

INTERIM OPINION

SOLICITING 2004-2005 ENERGY EFFICIENCY PROGRAM

PROPOSALS AND ADDRESSING SCOPE OF PROCEEDING

Table of Contents

Title Pages

INTERIM OPINION 22

SOLICITING 2004-2005 ENERGY EFFICIENCY PROGRAM 22

PROPOSALS AND ADDRESSING SCOPE OF PROCEEDING 22

I. Summary 22

II. Background 33

III. 2004-2005 Programs 55

A. Program Funding Cycle 66

B. 2004-2005 PGC Funding Allocation 77

C. Types of Programs 1313

D. Extending Utility Programs 1515

E. Criteria and Policy Rules for 2004-2005 Program Selection 1616

E. Marketing and Outreach Programs 2323

F. Market Assessment and Evaluation 2424

G. Contracts and Program Administration 2525

H. Extending Non-utility Programs 2626

I. Program Review Process and Schedule 2828

IV. Comments on Draft Decision 2929

V. Procedural Matters 2929

Findings of Fact 2929

Conclusions of Law 3030

INTERIM ORDER 3030

Attachment 1

INTERIM OPINION

SOLICITING 2004-2005 ENERGY EFFICIENCY PROGRAM

PROPOSALS AND ADDRESSING SCOPE OF PROCEEDING

I. Summary

This order solicits Energy Efficiency (EE) program proposals from utilities and non-utility parties for 2004 and 2005. For that solicitation, this order adopts program evaluation criteria, sets the funding cycle for a two-year period, and addresses how funds may be allocated among different types of entities and between program types. In addition, the order describes the process by which the Commission will review and select EE program proposals for funding.

In summary, this order changes existing policy and practice or articulates the continuation of existing policy and practice, as follows:

· Any party may apply to administer cost-effective EE and conservation programs that meet the qualifications described in the most recent version of the Policy Manual, funded by public goods charge (PGC) revenues for a two year cycle, 2004-05. Program funding must be approved by a subsequent Commission order;¹

· The Commission will award funding to entities and programs that are most likely to fulfill public policy goals and program evaluation criteria;

· Utilities may submit proposals that would extend their current program offerings for two years. These programs will be required to satisfy public policy objectives set by the Commission for evaluating EE programs. As the utility programs will be evaluated alongside non-utility proposals, the utilities will be required to submit the same types of documents and follow the same instructions required of other proposing entities. Extensions to existing utility programs as well as new programs must be approved by Commission order;

· Non-utilities implementing existing programs may request an extension through June 2004 in order to complete their programs with existing funding, which requests the Executive Director may approve or deny;

· Program selection criteria for 2004-05 include cost-effectiveness, equity, ability to overcome market barriers, ability to reduce peak demand, innovation, coordination with other programs, and demonstrated success implementing EE programs.

This order finds that Assembly Bill (AB) 117 requires the Commission to consider EE program funding proposals from any party and to base funding decisions on a proposal's likelihood of fulfilling public policy criteria.