ORDER

IT IS ORDERED that:

1. Southern California Edison Company (SCE) is authorizedbudgets for 2007 and 2008 for its low income energy efficiency (LIEE) programs and a budget for administering its California Alternate Rate for Energy (CARE) program as set forth in Table 1 and Table 2. SCE shall implement its LIEE, Cool Center and CARE programs consistent with the findings and conclusions of this order.

2. Pacific Gas and Electric Company (PG&E) is authorized budgets for 2007 and 2008 for its LIEE programs and a budget for administering its CARE program as set forth in Table 3 and Table 4. PG&E shall implement its LIEE and CARE programs consistent with the findings and conclusions of this order.

3. San Diego Gas & Electric Company (SDG&E) is authorized budgets for 2007 and 2008 for its LIEE programs and a budget for administering its CARE program as set forth in Table 5 and Table 6. SDG&E shall implement its LIEE and CARE programs consistent with the findings and conclusions of this order.

4. Southern California Gas Company (SoCalGas) is authorized a budget for its LIEE programs and a budget for administering its CARE program as set forth in Table 7 and Table 8. SoCalGas shall implement its LIEE and CARE programs consistent with the findings and conclusions of this order.

5. PG&E, SDG&E, SCE and SoCalGas shall interpret their tariffs and Commission policy to provide the CARE discount to common areas of nonprofit group living facilities without regard to metering arrangements as long as the facility meets the criteria set forth by the Commission and Pub. Util. Code § 739.1. If a utility's tariffs require modification to affect this policy, the utility shall file tariff modifications in compliance with this order within ten days of the effective date of this order.

6. SCE, PG&E, SoCalGas and SDG&E shall receive written approval from the Commission's Energy Division Director or his designee prior to issuing any request for proposal, awarding any contract to any consultant or issuing any report for LIEE or CARE programs.

7. The utilities shall convene meetings to facilitate program improvements as set forth herein. The meetings shall occur no less often than every 90 days and shall be noticed to all parties to these consolidated proceedings and shall be open to the public. Notes from those meetings shall be taken and provided electronically or on paper to members of the Low Income Oversight Board, attendees to the meetings, Energy Division staff and any other party requesting the notes.

8. SCE is authorized to amend its CARE ratemaking treatment as set forth herein.

9. SCE, SoCalGas, SDG&E and PG&E shall collaborate with Energy Division on reporting requirements and shall comply with the reporting requirements set forth by the Commission's Energy Division unless a Commission order provides otherwise.

10. Utility submissions of information on CARE eligibility shall be made no later than October 15 of each year.

11. The Executive Director shall direct Commission staff to conduct or oversee financial audits of the utilities' LIEE and CARE programs. These audits shall be completed no later than February 1, 2008 so that the utilities may review them prior to filing LIEE and CARE budget proposals for 2009-2011. The assigned Commissioner or Administrative Law Judge has the authority to modify this date as needed.

12. SCE shall no later than February 15, 2007, submit to Energy Division a marketing plan that emphasizes increased participation in LIEE programs rather than increased measures in fewer residences, as set forth herein.

13. PG&E shall no later than February 15, 2007, submit an advice letter to Energy Division with a plan and proposed budget for working with local governments to establish cool centers and shall open some cool centers by summer 2007.

14. PG&E shall present a plan to Energy Division no later than March 15, 2007 for conducting a competitive bidding process for its LIEE administrator for hiring the LIEE administrator for 2008.

15. The utilities may carry over funds from previous periods to the 2007-2008 budget periods but may not allocate carry-over funds to administrative overhead costs, regulatory costs or the costs of studies as set forth herein.

16. The utilities may shift funds between CARE categories so as to promote the efficient and effective implementation of the CARE program.

17. The utilities may shift funds between LIEE programs so as to promote the efficient and effective implementation of the CARE program but may not shift additional funds to administrative overhead costs, regulatory costs or the costs of studies as set forth herein.

18. SDG&E shall present a plan to Energy Division no later than March 30, 2007 for conducting a competitive bidding process for its LIEE administrator and, unless Richard Heath and Associates wins a contract through a competitive process, shall not extend the existing contract with Richard Heath and Associates past December 1, 2007.

19. SDG&E and SoCalGas shall not enter the costs of natural gas appliance testing in LIEE balancing accounts.

20. If SDG&E implements on-line enrollment for CARE customers, it shall provide a report on the costs and benefits of the system as part of its next budget application.

21. SDG&E, SCE, PG&E and SoCalGas shall implement automatic enrollment and categorical eligibility as set forth herein and to the extent they are able to procure necessary customer information.

22. SDG&E, SCE, PG&E and SoCalGas shall increase to $15 their "capitation fees," or payments to third parties for enrolling customers into low income programs.

23. SCE, SDG&E, PG&E and SoCalGas shall file applications for 2009-2011 LIEE and CARE budget authority and program modifications no later than April 30, 2008. Those applications shall propose specific program participation goals in specific population sectors or segments and shall develop budgets designed to meet those goals.

24. Application (A.) 06-06-032, A.06-06-033, A.06-06-034, and A.06-07-001 are closed.

25. This order is effective today.

Dated December 14, 2006, at San Francisco, California.

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