VI. Comments on Draft Decision

The draft decision of the ALJ was mailed to the parties in accordance with Pub. Util. Code §311(g) and the Commission's Rules of Practice and Procedure. On April 28, 2003, fourteen parties76 filed opening comments, and on May 5, 2003, six parties77 filed replies. We have considered the parties' views in light of the requirement that comments must focus on factual, legal, or technical errors in the draft decision, and that comments merely rearguing parties' positions will be accorded no weight (Rule 77.3 ). Consistent with Rule 77.3, and based on the current state of the rulemaking record, we have made various changes to the draft decision designed to strengthen its technical accuracy. These revisions range from the correction of minor typographical errors to more detailed changes that alter outcomes, as listed below and reflected throughout the decision.

We make certain technical revisions to Attachment C to clarify the CPP. First, the number of CPP operating days is 12 per year, except for summer of 2003 where there will be a proration due to implementation timing concerns. We also make technical revisions to both Attachment C and Attachment E (governing the IOU DBP program) to ensure consistency in the baseline calculation. Finally, we revise Attachment E (§1.22, §1.27, and §1.5) to ensure that it contains certain critical features of the DBP.

Given respondents' concerns about the complexities of integrating the CPA DRP into the IOUs' procurement and scheduling processes, we allow more time and a phased implementation approach (Ordering Paragraphs 8 and 9).

In response to comments, we allow the parties additional flexibility in their efforts to develop an RTP tariff in this proceeding (Finding 21; Ordering Paragraph 10).

In response to comments noting that the record is not well-developed on the issue of agricultural customer participation, we limit the extension of the agricultural customer participation to a set of existing tariff schedules for PG&E and SDG&E. We require Edison to file a compliance filing detailing the tariff schedules they propose to include for agricultural participation. In doing so, we reject Edison's proposal that it transfer participating agricultural customers to discrete commercial accounts.

We adopt a set of conditions governing multiple meters at one customer site, as suggested by PG&E and others. We clarify the definition of customer site for purposes of multiple meter situations.

Finally, we make clarifying changes in connection with the bill protection incentive for CPP, extending the protection period from 12 to 14 months in order to provide customers protection during events that will be called through the fall of 2004. Conforming changes are made to Attachment C.

We have required the utilities to submit proposals to implement the ORA revenue shortfall proposal. In response to a suggestion made by ORA in its comments, we provide for a workshop moderated by Energy Division staff, to be held prior to the filing of the utility implementation proposals.

Attachment B has been revised to clarify that capital costs related to additional meters apply to all program offerings authorized in this decision. We also add additional columns to clarify costs already included in DWR's revenue requirement, as well as anticipated revenue reductions to the IOUs from customer participation in the programs or tariffs.

We also correct an oversight in the draft decision, and include the $460,000 estimated cost of supplemental work suggested by WG2 in connection with an in-depth assessment that includes collecting quantitative information on how specific technologies performed in achieving demand reductions.

To facilitate the comprehensive monitoring and evaluation plan, we add a requirement that the IOUs provide all data and background information needed by those involved in the evaluation process, under appropriate confidentiality protection.

76 Opening Comments were filed by: ACWA, BOMA, Joint Commenters (comprised of CCEA, the Silicon Valley Manufacturers' Group, and the Alliance to Save Energy), CLECA, CMTA,CUE, the Demand Reserves Providers, DGS, Echelon, ORA, PG&E, SDG&E, SCE, and TURN. The Joint Commenters' Motion for Acceptance of Late Filed Comments is hereby granted, as the comments were distributed to parties on the service list electronically on the actual due date. Echelon's Petition to Intervene for the purpose of having its comments considered on the technology incentive issue is hereby granted. 77 Reply comments were filed by CCEA, CLECA, ORA, PG&E, SDG&E, and SCE.

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