VII. Conclusion
We approve SCE's revised request to supplement its energy efficiency activities during the summer of 2005 with the following modifications:
1. As part of the approved $57 million in new expenditures, SCE shall first use $18.7 M in unspent, uncommitted funds from past years.
2. SCE should aggressively seek customers to purchase house fans, pool pumps and air conditioners through its expanded point-of-sale (instant rebate) program.
3. SCE is permitted to remove the age limitation for refrigerators and freezers qualifying for the recycling rebate program.
4. SCE may increase the rebate incentive for freezer-only recycling. SCE may also redistribute the additional $4 million requested for the recycling program for use in the point-of-sale program, as needed.
5. In its initial comments on the draft decision, SCE offered proposals to incorporate the recommendations of ORA, discussed above, as they relate to the Small & Hard-to-Reach business proposal. SCE's proposals were incorporated herein.
6. SCE is permitted to provide larger-than-current incentive payments for participants in the summer 2005 Standard Performance Contract lighting retrofit.
1. SCE has identified $18.7 million in unspent, uncommitted funds from past years.
2. It is not reasonable to approve new revenues when there are existing uncommitted funds available.
3. SCE's adjustments in response to concerns voiced by TURN bring proposed spending closer to the balance achieved by existing programs.
4. Equity is one of the criteria we use in selecting funding allocations.
5. The least effective use of a rebate dollar, on a per-unit basis, would be to encourage the purchase of an ENERGY STARâ refrigerator.
6. SCE's revised rebate programs provide a chance to accelerate load reduction in advance of this summer's potential high demand, and will not pose significant new ratepayer costs unless measure are actually installed within the timeframe of the program.
7. It will be beneficial to all involved if more incremental incentive dollars go to the installation of whole house fans, pool pumps and air conditioners, and fewer go to ENERGY STARâ refrigerators.
8. SCE has shown that the age restriction imposed in D.03-12-060 creates significant barriers to effective program implementation for its refrigerator/freezer recycling penetration goals.
9. The record supports an increased incentive for freezer recycling.
10. Even if the small and hard-to-reach summer program would succeed in producing short-run savings with the installation of relatively short-lived compact fluorescent bulbs in place of incandescent bulbs, it may reduce SCE's ability to achieve greater long-run savings by focusing exclusively on lighting measures.
11. By offering higher incentive payments to business customers undertaking only lighting changes this summer, SCE may achieve greater savings from those customers
12. In order to avoid penalizing customers that have applied for participation in this program while this application is pending, SCE proposes to offer the increased rebates to any customer that submitted an application on or after the date that SCE filed this application. This appears to be a reasonable approach provided that SCE only pay the higher-than-current incentives to customers that bring the measures into effect prior to August 31, 2005.
13. The incremental funds for this program would be derived from procurement funds, which are supported by direct access customers.
14. WEM filed its protest on behalf of its one client, an individual who resides in PG&E's service territory.
15. WEM has made no showing that it represents customers other than its one identified ratepayer client who is a PG&E ratepayer.
1. SCE should redirect $18.7 million in uncommitted funds for the purposes approved in this decision, and fund only the remaining amounts with new revenues.
2. No hearings are necessary.
3. The Commission should not require further adjustments to the residential/nonresidential budget balance solely in the name of equity.
4. SCE should be particularly aggressive in pursuing the accelerated implementation of whole house fans, pool pumps and air conditioning.
5. We should approve SCE's proposed increased incentives for freezer recycling.
6. If SCE wants to pursue lighting improvements through small and hard-to-reach customers this summer, it must find a way to draw these customers into a broader energy efficiency effort.
7. We approve SCE's proposal for summer 2005 standard performance contracts. We note that these exemptions requested by SCE are for this upcoming summer only and in no way prejudge the outcome of future program proposals.
8. SCE's proposal for ratemaking treatment is consistent with existing practice and therefore should be approved.
9. We are persuaded that direct access customers should be allowed to participate in the Summer Standard Performance Contract.
10. The Commission should approve the revised proposal subject to the conditions set forth in this decision.
11. Consistent with D.03-12-060 et al, SCE should have 100% flexibility to shift the procurement funds approved in this decision between programs designed to reach the company's peak shaving goals for summer 2005.
IT IS ORDERED that:
1. Southern California Edison Company's (SCE) revised request to supplement its energy efficiency activities during the summer of 2005 is approved with the following modifications:
a. As part of the approved $57 million in new expenditures, SCE shall first use $18.7 million in unspent, uncommitted funds from past years.
b. SCE should aggressively seek customers to purchase house fans, pool pumps and air conditioners through its expanded point-of-sale (instant rebate) program.
c. SCE shall remove the age limitation for refrigerators and freezers qualifying for the recycling rebate program.
d. SCE shall increase the rebate incentive for freezer-only recycling.
e. In its initial comments on the draft decision, SCE shall offer proposals to incorporate the recommendations of Office of Ratepayer Advocates, discussed above, as they relate to the Small & Hard-to-Reach business proposal. These comments shall include a proposal for requiring participating customers to adopt a more comprehensive set of measures beyond the summer light bulb replacement.
2. SCE shall have 100% flexibility to shift the procurement funds approved in this decision between energy efficiency programs designed to reach the company's peak shaving goals for the summer 2005.
3. Application 05-02-029 is closed.
This order is effective today.
Dated May 5, 2005, at San Francisco, California.
Commissioner John A. Bohn recused
himself from this agenda item and was
not part of the quorum in its consideration.
