5. Overview of Utility Incentive Earnings Claims

5.1. Claim Presented by PG&E

PG&E claims eligibility for energy efficiency incentives for 2009 in the amount of $32,446,184, representing $27.2 million for its electric department revenue requirement and $5.2 million for its incremental gas transportation revenue requirement.

For 2009, PG&E claims realized energy savings of 2,031 gigawatthours (GWhs), 327 megawatts (MWs) and 17 Million Therms (MMTs) through PG&E's energy efficiency resource programs. When compared to the Commission's 2009 savings goals, PG&E calculates that its 2009 energy efficiency programs achieved 200%, 142% and 115% of the Commission's 2009 energy goals for GWh, MW and MMTs respectively. The savings resulted in $942 million in net resource benefits. PG&E claims that its cumulative energy savings achieved from its 2006-2009 energy efficiency programs exceeded the MPS as required by D.07-09-043 and D.10-12-049.⁷

In response to the areas of potential uncertainty noted in the Energy Division Report, PG&E provided Attachment 2 to its comments-a memorandum prepared by Heschong Mahone Group that further describes the methodology used and addresses various points noted in the Energy Division Report.

For program years 2006-2009 PG&E calculates that it exceeded the 80% MPS threshold for each individual savings metric, as well as the 85% threshold across the three savings metrics combined.

5.2. Claim Presented by SCE

SCE claims eligibility for 2009 energy efficiency incentives in the amount of $27,572,109.

In order to qualify for incentive earnings, the RRIM requires savings greater than 85% of the Commission's energy efficiency 2006-2009 goals. For 2009, SCE claims achievement of 113% of the Commission's 2006-2009 energy efficiency goals. Because this result exceeds the MPS of 85%, SCE claims eligibility to receive 2009 RRIM earnings of $27,572,109.

SCE claims savings from all CFLs installed in 2009, including those originally incented during the 2006-2008 program cycle. For example, in the Energy Division's evaluation of the 2006-2008 program cycle, they estimated a percentage of CFLs were purchased but not installed during that program cycle. However, the Energy Division estimated the percentage of those CFLs from 2006-2008 that were installed in 2009.

SCE calculates achieved savings that exceed the MPS under the Commission's adopted mechanism for 2009, making SCE eligible to receive 7% of the total net benefits calculated for calendar year 2009. SCE claims that its methodology to calculate 2009 savings and benefits is appropriate and complies with Commission policy. SCE submitted the ERT software tool, database, and corresponding methodologies in Exhibit SCE-3.

5.3. Claim Presented by SDG&E

SDG&E claims eligibility for approval of incentive earnings of $15,108,031 for calendar year 2009 RRIM achievements based on claimed energy savings of 55.7 GWhs, 118 MWs, and 3.3 MMTs. The claimed savings included the results of point-of-sale rebates for energy efficient appliances marketed through "big box" retail outlets, the "Advanced Home Program" for residential new construction, and the "On-Bill Financing Program" for non-residential customers. SDG&E claimed achievement of up to 160% of Commission MW savings goals and 88% of goals for therm savings.

SDG&E proposes to record $14,654,790 of its 2009 RRIM award in its electric "Rewards and Penalties Balancing Account" (RPBA) and the remaining $453,241 in its gas RPBA, to be recovered as a 12-month amortization in electric and gas rates in connection with SDG&E's annual regulatory account balance update filings effective January 1, 2012.

5.4. Claim Presented by Southern California Gas Company

SoCalGas requests $2,037,721 in earnings claims for calendar year 2009, based on claimed achievement of natural gas efficiency savings of 20.7 MMTs, representing 109% of the Commission's goals for therm savings. As the basis for achieving these claimed savings, SoCalGas points to its residential programs, including point-of-sale rebates at "big box" retail outlets, its "Advanced Home Program" for residential new construction, and its "Local Business Energy Efficiency Program" which targets all non-residential customers. SoCalGas points to its "On-Bill Financing Program" designed to facilitate the purchase and installation of qualified efficiency measures by customers who might otherwise not be able to afford such measures. SoCalGas reports savings of 171,000 therms per year resulting from this program.

⁷ See PG&E Prepared Testimony Sec. C.1.a. and App. A thereto.