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ALJ/SRT/hkr Mailed 4/3/2002

Decision 02-03-056 March 21, 2002

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 SELECTING 2002

STATEWIDE ENERGY EFFICIENCY PROGRAMS

TABLE OF CONTENTS

Title Page

INTERIM OPINION SELECTING 2002 STATEWIDE ENERGY
EFFICIENCY PROGRAMS 22

I. Summary 22

II. Background 44

III. Selection Criteria 55

IV. Programs Selected 1010

V. Statewide Market Assessment and Evaluation Activities 4747

VI. Other Issues 4747

VII. Comments on Draft Decision 5353

Findings of Fact 5959

Conclusions of Law 6262

INTERIM ORDER 6464

Attachment 1: Program Budgets and Energy Savings Targets

Attachment 2: Data Request to Department of Consumer Affairs (DCA)

Attachment 3: DCA Response to Data Request

Attachment 4: Data Request to Univision Television Group (Univision)/Staples

Attachment 5: Univision/Staples Response to Data Request

Attachment 6: Budget Format for Implementation Plan

Attachment 7: Electronic Service Protocols

Attachment 8: IOU Local Program Bridge Funding for April and May 2002

Attachment 9: Data Requests to Edison re SPC/Express Efficiency Programs

Attachment 10: Edison's Responses to Data Requests re SPC/Express
Efficiency Programs

INTERIM OPINION SELECTING 2002
STATEWIDE ENERGY EFFICIENCY PROGRAMS

I. Summary

In this interim decision, we select the statewide energy efficiency programs for 2002. We award $160 million in statewide energy efficiency funds. All of these programs will be funded by Public Goods Charge (PGC) funds collected in 2002.

In Decision (D.) 01-11-066, we established the rules that Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E), Southern California Edison Company (Edison or SCE), and Southern California Gas Company (SoCalGas of SCG) must follow in seeking statewide funding. We also made non-utilities eligible to compete with the investor-owned utilities (IOUs) for $10.057 million available to fund general statewide energy efficiency marketing and outreach.

We have evaluated the proposals submitted by the IOUs and the non-utilities according to the criteria and point system established in D.01-11-066:


(1) Long-term annual energy savings 25 points


(2) Cost effectiveness 20 points


(3) Addressing market failures or barriers 17 points


(4) Equity considerations 15 points


(5) Electric peak demand savings 10 points


(6) Innovation 8 points


(7) Synergies and coordination with 5 points programs run by other entities

In this decision, we approve funding for 16 statewide programs. Fourteen will be implemented by the IOUs and two will be implemented by third parties. The following table delineates the funding allocated to each utility program and to the Department of Consumer Affairs and Univision Television Group, which will implement statewide marketing and outreach programs.1

Statewide Programs

PG&E

SCE

SDG&E

SoCalGas

Total

           

Statewide IOU Programs*

          

Appliance Recycling

$1,680,000

$4,000,000

$1,000,000

  

$6,680,000

Single Family Energy Efficiency Rebates

$12,816,000

$5,850,000

$3,197,000

$2,598,000

$24,461,000

Muti Family Energy Efficiency Rebates

$3,304,000

$2,000,000

$1,500,000

$1,500,000

$8,304,000

Home Energy Efficiency Surveys

$900,000

$900,000

$200,000

$150,000

$2,150,000

CA Energy Star New Homes Program

$6,520,000

$4,000,000

$2,058,000

$1,484,000

$14,062,000

Standard Performance Contract

$7,800,000

$9,650,000

$2,700,000

  

$20,150,000

Express Efficiency

$11,607,000

$6,000,000

$3,104,000

$2,433,000

$23,144,000

Nonresidential Energy Audit

$2,650,000

$1,400,000

$700,000

$2,400,000

$7,150,000

Building Operator Certification and Training

$258,000

$500,000

$150,000

$150,000

$1,058,000

Emerging Technologies

$300,000

$650,000

$80,000

$600,000

$1,630,000

Savings by Design - New Construction

$9,707,000

$7,674,000

$3,143,000

$1,973,000

$22,497,000

Education and Training

$1,069,000

$3,813,000

$1,100,000

$1,374,000

$7,356,000

Codes & Standards Advocacy

$818,000

$887,500

$100,000

$150,000

$1,955,500

Upstream Residential Lighting

$5,803,000

$1,999,500

$1,543,000

  

$9,345,500

Statewide IOU Programs Sub-Total

$65,232,000

$49,324,000

$20,575,000

$14,812,000

$149,943,000

           

Statewide Marketing and Outreach

          

Department of Consumer Affairs

$3,483,329

$2,683,797

$1,099,155

$790,719

$8,057,000

Univision Television Group

$864,671

$666,203

$272,845

$196,281

$2,000,000

Statewide Marketing Campaigns Sub-Total

$4,348,000

$3,350,000

$1,372,000

$987,000

$10,057,000

           

STATEWIDE PROGRAMS TOTAL

$69,580,000

$52,674,000

$21,947,000

$15,799,000

$160,000,000

*Amounts shown for IOU programs exclude $10.5 million budget for evaluation, measurement
and verification (EM&V).2 The EM&V budgets are shown in Table 2, Attachment 1 of this decision.

We have modified the IOUs' proposals where needed to make them consistent and to establish more robust energy savings targets, or more economical spending targets. With these changes, we estimate that the portfolio of statewide programs selected in this decision is cost effective, with a Total Resource Cost (TRC) ratio greater than 1.5. Where appropriate, we have made explicit the benchmarks by which we will judge whether the IOUs are serving hard-to-reach customers, as required by D.01-11-066. We have clarified how IOUs and third party providers will be able to establish eligibility for final payments, both for information-only programs and for programs with energy savings targets. We discuss changes in the incentive programs on which the IOUs have depended in the past for additional profits from energy efficiency programs. Finally, we specify a process for utilities and non-utilities to submit Program Implementation Plans 60 days following the effective date of this decision that will assist the providers and the Commission in ensuring that our energy efficiency goals are met in this program year. These parties should not delay program commencement or preparation pending submission of these Plans.

1 Additional tables setting forth our funding decision and the associated energy savings targets appear in Attachment 1 to this decision. 2 EM&V activities are meant to determine the effects of a program, including program induced changes in energy efficiency markets, energy savings, and program cost effectiveness.

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