ALJ/SAW/sid DRAFT Agenda ID #4494

Ratesetting

Decision DRAFT DECISION OF ALJ WEISSMAN (Mailed 4/8/2005)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Southern California Edison Company (U 338-E) for Approval of Incremental Energy Efficiency Program Activities for Summer 2005.

Application 05-02-029 (Filed February 25, 2005)

OPINION ON THE UTILITY'S REQUEST FOR APPROVAL OF INCREMENTAL ENERGY EFFICIENCY ACTIVITIES FOR SUMMER 2005

TABLE OF CONTENTS

Title Page

OPINION ON THE UTILITY'S REQUEST FOR APPROVAL OF INCREMENTAL ENERGY EFFICIENCY ACTIVITIES
FOR SUMMER 2005 22

I. Summary 22

II. Background 22

III. Discussion 55

A. Concerns Related to the Summer of 2005 66

B. The Use of Existing Funds 77

C. Allocation of Benefits Among Ratepayer Classes 88

D. The Specific Program Proposals 1111

1. Residential Programs 1313

2. Nonresidential Programs 2222

a) Nonresidential Small Business Hard-to-Reach Program 2222

b) Nonresidential Standard Performance Contract Program 2929

3. Proposed Ratemaking Treatment 3434

4. Eligibility of Direct Access Customers 3636

5. The Comments of Women's Energy Matters 3737

IV. Categorization and Need for Hearings 3737

V. Comments on Draft Decision 3737

VI. Assignment of Proceeding 3737

VII. Conclusion 3838

Findings of Fact 3838

Conclusions of Law 4040

ORDER 4242

OPINION ON THE UTILITY'S REQUEST FOR APPROVAL OF INCREMENTAL ENERGY EFFICIENCY ACTIVITIES FOR SUMMER 2005

I. Summary

There have been growing concerns about the sufficiency of electricity supplies in Southern California this summer. In response to a proposal first made by Southern California Edison Company (SCE) on February 25, 2005, and revised on March 28, 2005, in this decision, we approve incremental energy efficiency programs for the summer 2005 designed to reduce peak demand. SCE originally sought approval for new programs totaling $57 million in new expenditures. While we approve revised programs of this magnitude, we order SCE to redirect $18.7 million in uncommitted energy efficiency funds from prior years for the purposes approved in this decision, and fund only the remaining amounts with new revenues. We are encouraged by SCE's proposal to meet a potentially tight supply situation with energy efficiency measures.