Petition for Modification

On April 3, 2008, CCSE and CALSEIA ("Petitioners") jointly filed a petition to modify D.06-01-024 to allow expansion of the pilot program to include ratepayers of PG&E and SCE, and an extension of the pilot's duration for six additional months. Petitioners maintain the extension is needed to avoid gaps in the program during the Commission's development of a statewide program under AB 1470. Petitioners also request other minor program changes including an increased incentive level and program budget for residential systems, additional funds for administration of the pilot, and allocation of funding responsibility for the pilot between PG&E, SCE, and SDG&E ratepayers through a co-funding agreement.

Petitioners support their request by noting the pilot was designed to help the Commission better understand the market dynamics, technical performance, and cost-effectiveness of solar water heating technologies with a view to including solar water heating within CSI. They contend the adoption of AB 1470 has placed a renewed emphasis on the pilot because the Commission must assess the pilot's results before designing and implementing a statewide solar water heating program.

Petitioners claim the current design of the pilot, which limits participation to SDG&E ratepayers, leaves unanswered questions such as whether San Diego is representative of the state, and whether there will be stronger markets, more experienced contractors, or greater participation in the program from customers in other parts of the state. Further, they note solar water heating contractors have expressed concern that lack of a statewide program inhibits the solar water heating marketplace. Petitioners allege that expanding the geographic coverage of the pilot will provide valuable information on regional differences, contractor sophistication, and consumer trends across the state. This information will be relevant for Commission consideration of the statewide solar water heating program contemplated under AB 1470.

The petition also contains a progress report on the pilot to date. The pilot began in July 2007 and as of March 30, 2008, has run for nine of its scheduled eighteen months. Petitioners report that the pilot has received 75 applications during that time period, with 25 projects completed or pending payment, far below the 750 residential systems set as a program goal and allowed by the program budget.

According to Rule 16.4(d) of the Commission's Rules of Practice and Procedure, petitions for modification must be filed within one year of a Commission decision. Petitioners request leave to file this petition more than two years after the issuance of D.06-01-024 on January 12, 2006 because the pilot program did not officially commence until July 2, 2007 and the petition could not have been presented within one year of the originating order. Additionally, the issues in the petition have presented themselves during the first nine months of the pilot program's operation. We find that Petitioners have adequately justified the late filing of their petition because of the start date of the pilot program.

Petitioners request an expedited comment period of 10 days on their petition, based on the scheduled duration of the pilot program and their desire to see any modifications implemented as soon as possible. In response to an e-mail inquiry by the ALJ, the utilities, namely SCE, PG&E, and SDG&E, objected to the shortened comment period. The ALJ set a comment period of 20 days to expedite the petition for modification but allow the utilities adequate time for discovery on the petition.