14. R.09-01-019 is Closed for Purposes of § 1701.5

Previous decisions issued in R.09-01-019 have resolved all issues in prior scoping memos except to the extent issues are carried forward herein. (See Section 3 above.) As a result, R.09-01-019 is resolved for the purpose of compliance with § 1701.5. However, R.09-01-019 remains open, but only to the extent necessary to address pending petitions for modification and applications for rehearing.

1. It is reasonable to continue implementation and administration of the RRIM Program through a new rulemaking that is a successor to R.09-01-019.

2. It is reasonable to incorporate the record on prospective RRIM issues from R.09-01-019 into this proceeding.

3. Consistent with Rule 6.2, we expect this proceeding to be concluded within 18 months of the date of the assigned Commissioner's Scoping Memo and Ruling.

1. A new rulemaking should be opened to continue the resolution of RRIM reform issues.

2. The record in R.09-01-019 relating to prospective RRIM issues should be incorporated into this proceeding.

3. This proceeding should extend, as necessary, for up to 18 months from the date of the assigned Commissioner's Scoping Memo.

4. R.09-01-019 should be closed for purposes of § 1701.5.

5. This order should be effective immediately to promote a smooth continuation and transition of matters from R.09-01-019 to this proceeding.

IT IS ORDERED that:

1. This rulemaking is instituted on the Commission's own motion under the authority of Rule 6.1 of the Commission's Rules of Practice and Procedure to examine the energy efficiency risk/reward incentive mechanism and to consider reforms in the incentive design or alternatives to this mechanism.

2. The issues in this proceeding are as stated in the body of this order, specifically in Section 3, "Preliminary Scoping Memo."

3. The record in Rulemaking 09-01-019, as outlined in the body of this order, is incorporated into the record of this proceeding.

4. Pacific Gas and Electric Company, Southern California Edison Company, San Diego Gas & Electric Company, and the Southern California Gas Company are Respondents to this proceeding.

5. The Executive Director shall cause this Order Instituting Rulemaking to be served on Respondents, and on the service list in Rulemaking 09-01-019. Those organizations and individuals listed under the state service list and information-only categories will be served electronically only.

6. The service list in Rulemaking (R.) 09-01-019 shall serve as the initial service list in this proceeding. Persons already on the service list in R.09-01-019 need not take any action, but will automatically be added to the service list for this new rulemaking. Persons who are not already a party in R.09-01-019, and who wish to become a party to this proceeding may do so by filing comments to this Order Instituting Rulemaking. The comments should specifically state in a clearly identified separate section of the document that the person or entity wishes to become a party. Persons may also request party status by filing a motion for party status, or appear at the first prehearing conference and fill out the "Notice of Party/Non-Party Status" form (appearance form) at that time.

7. The category for this rulemaking, as defined herein, is preliminarily determined to be "ratesetting" as defined in Rule 1.3(e).

8. Any person who objects to the preliminary categorization of this rulemaking shall raise such objection by motion no later than 10 calendar days after the Commission issues this Order Instituting Rulemaking.

9. Issues previously designated for resolution in R.09-01-019 are superseded by this rulemaking.

10. The due date for filing initial comments on this Order Instituting Rulemaking (OIR), as outlined in Section 10 above, which shall also incorporate responsive comments on the December 16, 2011 Assigned Commissioner Ruling, previously issued in Rulemaking 09-01-019, shall be 10 business days after the issuance of this OIR. Reply comments shall be due 10 business days after opening comments are due.

11. All comments and other filings in this rulemaking shall be served pursuant to the Electronic Service Protocols consistent with Rules 3.2 and 3.2.1.

This order is effective today.

Dated January 12, 2012, at San Francisco, California.

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