Assignment of Proceeding

President Michael R. Peevey is the assigned Commissioner and Dorothy J. Duda is the assigned Administrative Law Judge for this portion of the proceeding.

Findings of Fact

1. In D.06-01-024, the Commission allowed CCSE to administer an 18-month pilot program for solar water heating incentives to customers in SDG&E's territory.

2. The Commission stated in D.06-01-024 that it would consider extending the pilot program before its conclusion if a preliminary evaluation suggested positive results.

3. Section 2863 states the Commission shall establish a statewide program for solar water heating incentives, funded by a surcharge on gas customers, if it evaluates data from the CCSE solar water heating pilot and determines, after a public hearing, that a solar water heating program is cost effective for ratepayers and in the public interest.

4. Section 2867.2 does not allow use of CSI funds for solar water heating to displace gas usage, except for the pilot program in San Diego.

5. The current CCSE pilot program offers rebates to customers of SDG&E who install solar water heating to offset energy by an existing natural gas or electric water heater or boiler.

6. From July 2007 through March 2008, the pilot has received 75 applications, with 25 projects completed or pending payment, which is far below the goal allowed by the pilot program's incentive budget.

7. D.06-12-033 authorized a maximum budget of $3 million for the pilot program, and a pilot program budget of $2.59 million was approved in a February 2007 ruling.

Conclusions of Law

1. An extension of the duration of the CCSE solar water heating pilot will allow additional data with which to evaluate the program.

2. We should modify D.06-01-024 and allow CCSE to administer its solar water heating pilot program until December 31, 2009, or until the approved pilot program budget is exhausted, whichever occurs first.

3. Based on Section 2867.2, the CCSE solar water heating pilot cannot be extended at this time to customers of SCE and PG&E.

4. The Commission cannot design a statewide incentive program for solar water heating until it makes certain findings after an evaluation of the CCSE pilot program.

5. Energy Division should closely monitor the workplan for interim and final evaluation of the solar water heating pilot, and, if needed, allow CCSE to augment the evaluation budget, not to exceed the $3 million total pilot budget allowed by D.06-12-033, to ensure the evaluation provides the necessary information for the Commission determinations required by Section 2863.

6. The petition by CCSE and CALSEIA should be denied except for the extension of the pilot's duration.

7. It is reasonable to allow the pilot program to offer incentives for solar water heating to new construction, as long as CCSE separately monitors and accounts for this portion of the program, and modifies its evaluation plan to track performance data for these systems, including system cost and energy savings, separately from systems that replace existing water heaters.

8. Petitioners have adequately justified the late filing of their petition because the pilot program did not commence until more than one year following D.06-01-024.

ORDER

IT IS ORDERED that:

1. The petition to modify Decision 06-01-024 filed by the California Center for Sustainable Energy (CCSE) and the California Solar Energy Industries Association (CALSEIA) is granted in part to allow CCSE to extend its solar water heating pilot program offered to customers of San Diego Gas & Electric Company (SDG&E), until December 31, 2009, or until CCSE exhausts the approved pilot program budget, not to exceed $3 million, whichever occurs first.

2. The petition by CCSE and CALSEIA is denied in all other respects.

3. The Commission's Energy Division shall closely monitor the workplan for the interim pilot evaluation to ensure the evaluation provides the necessary information for the Commission determinations required by Section 2863.

4. Energy Division may authorize changes to the program evaluation budget for the CCSE solar water heating pilot program, following written request by CCSE, as long as the total pilot program budget does not exceed the $3 million authorized by D.06-12-033.

5. Energy Division shall hold a workshop on the pilot program evaluation plan, within 60 days of this order, to allow interested parties an opportunity to discuss existing evaluation plans and provide feedback and suggestions for this evaluation.

6. The motion filed by CCSE to offer incentives through the pilot to all new construction is granted. CCSE must separately monitor and account for incentives to new construction, and modify its evaluation plan to track performance data for these systems separately from systems that replace existing water heaters.

7. This decision shall be served on parties to Rulemaking (R.) 04-03-017 and R.06-03-004 in addition to the parties to the current proceeding.

This order is effective today.

Dated June 26, 2008, at San Francisco, California.

Previous PageTop Of PageGo To First Page