ALJ/DMG/jt2 Date of Issuance 12/27/2010

Decision 10-12-027 December 16, 2010

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Southern California Edison Company (U338E) for Approval of its Palm Desert Demonstration Partnership Through the 2010-2012 Energy Efficiency Program Cycle.

Application 10-07-004
(Filed July 2, 2010)

And Related Matter.

Application 10-07-006

DECISION APPROVING SOUTHERN CALIFORNIA EDISON COMPANY'S APPLICATION, AND DENYING SOUTHERN CALIFORNIA GAS COMPANY'S APPLICATION, TO CONTINUE PALM DESERT DEMONSTRATION PARTNERSHIP PROGRAM

Table of Contents

Page Title

DECISION APPROVING SOUTHERN CALIFORNIA EDISON
COMPANY'S APPLICATION, AND DENYING SOUTHERN
CALIFORNIA GAS COMPANY'S APPLICATION, TO CONTINUE
PALM DESERT DEMONSTRATION PARTNERSHIP PROGRAM 2 2

1. Summary 2 2

2. Background 2 2

3. Positions of Parties 5 5

4. The Impact Evaluation and Process Evaluation 11 11

5. Discussion 16 16

6. Comments on Proposed Decision 19 19

7. Categorization and Assignment of Proceeding 19 19

Findings of Fact 19 19

Conclusions of Law 21 21

ORDER 22 22

Appendix A - Advice Letter information

DECISION APPROVING SOUTHERN CALIFORNIA EDISON COMPANY'S APPLICATION, AND DENYING SOUTHERN CALIFORNIA GAS COMPANY'S APPLICATION, TO CONTINUE PALM DESERT DEMONSTRATION PARTNERSHIP PROGRAM

1. Summary

This decision approves the application of Southern California Edison Company (SCE) to continue the Palm Desert Demonstration Partnership (Partnership) program to the end of 2012. The Partnership, which involves SCE, Southern California Gas Company (SoCalGas), City of Palm Desert (Palm Desert) and the Energy Coalition, is intended to provide a variety of innovative energy efficiency and related services in Palm Desert in order to achieve significant reductions in energy usage and peak demand. Funding for the Partnership, provided by shifting funds from currently authorized energy efficiency programs, is approved at a level of $6.936 million, consistent with the current interim funding level. We will require SCE's Program Implementation Plan to be modified through an Advice Letter to clarify program goals and improve oversight, consistent with the recommendations of the Energy Division's Impact and Process Evaluations of the Partnership, and to conform to certain Commission directives.

The application of SoCalGas is denied, due to minimal benefits to date, high administrative costs and a low likelihood of improvement.