II. Background

In D.01-11-066, we changed the rules for energy efficiency programs to allow non-utilities to compete with utilities for energy efficiency funding. Of the $170.5 million available for programs with statewide reach, we designated $10.057 million for competitive solicitation by utilities and non-utilities alike. For 2002, we determined that the IOUs are eligible for the majority of the statewide program funds, but prescribed a new process for the IOUs to use in soliciting Commission approval. That process is the same for both utilities and non-utilities.

We adopted a phased-in approach to competitive solicitation for funding because we want to ensure that energy efficiency programs do not suffer as a result of a complete overhaul. We may increase the percentage of both statewide and local program funding available to non-utilities in 2003.