2. Background

In Decision (D).09-09-047, the Commission adopted energy efficiency portfolios for 2010 through 2012 for Southern California Edison Company (SCE), Southern California Gas Company (SoCalGas), San Diego Gas & Electric Company (SDG&E), and Pacific Gas and Electric Company (PG&E) (collectively, Joint Utilities or Joint Investor-Owned Utilities (IOUs)). A subsequent Ruling on November 18, 2010 clarified a number of issues regarding evaluation, measurement and verification (EM&V) for the 2010-2012 portfolios. For example, the Ruling involved Energy Division review of ex ante value workpapers for energy efficiency measures after utility submission of these workpapers to Energy Division. D.10-04-029 required the IOUs to cooperate and collaborate with Energy Division in the development of these workpapers, consistent with the November 18, 2009 Ruling.

On September 17, 2010, Joint Utilities filed a Petition for Modification of D.09-09-047, seeking 28 separate changes to the Decision, in eight subject areas. Specific proposed modification language was included in the Petition. Joint Utilities requests are summarized as follows:

· Amend the Decision to remove ambiguity around ex ante assumptions and ensure its directives to freeze data are implemented.

· Modify IOU benchmarking requirements to exclusively promote the Energy Star Portfolio Manager (ESPM) tool for all IOU benchmarking activities; target larger facilities first; and remove the requirement to benchmark all facilities now specified in the Decision.

· Modify co-branding requirements for the new statewide brand to allow the Joint IOUs appropriate flexibility in using the brand.

· Modify requirements of the Prescriptive Whole House Retrofit Program (PWHRP )and Whole House Performance Program (WHPP) to ensure an appropriate aspirational energy savings and market penetration target.

· Adopt a reporting process for limited statewide program variations among IOUs to allow flexibility for appropriate regional and IOU differences.

· Clarify that sponsorships for energy efficiency events or activities that directly promote programs or partnerships (as opposed to solely providing company specific recognition) are considered allowable costs.

· Clarify that the $1,000 performance bonus mandated by the Decision for the California Advanced Homes Program (CAHP) applies only to single family units or that a more proportional incentive be offered for multifamily units.

· Clarify the specific collaboration that the Commission intends the Joint IOUs to undertake for energy efficiency activities so that the Joint IOUs will have the benefit of the State Action Doctrine as a defense against anti-competitive challenges.

Comments were jointly filed on October 18, 2010 by the Division of Ratepayer Advocates (DRA) and The Utility Reform Network (TURN), and comments were separately filed by EnerNOC, Inc. A Prehearing Conference (PHC) was held on October 22, 2010. A major theme of both the Petition and the PHC involved Energy Division implementation of provisions of D.09-09-047, as that decision gave Energy Division the responsibility to work with the utilities to implement the decision.

At the PHC, it became clear that the utilities and Energy Division had been unable to reach agreement on determination of ex ante values and other matters during the past year. Because D.09-09-047 provided that Energy Division would have a number of significant tasks in implementing the decision, the assigned Administrative Law Judge (ALJ) determined that certain information concerning Energy Division's efforts should be placed on the record in order to provide perspective on the Petition. Energy Division staff provided insights into their process and implementation recommendations at the PHC, and parties were able to question Energy Division staff on the record. In a Ruling dated October 29, 2010, parties were given the opportunity to comment upon specific written Energy Division implementation recommendations concerning ex ante values discussed at the PHC (discussed below). Comments were filed by EnerNOC and DRA/TURN on November 5, 2010.