2. Background

By Decision (D.) 01-05-033, we adopted a rapid deployment strategy for utility low-income energy efficiency and rate discount programs, referred to as LIEE and CARE programs, respectively. In that decision, we augmented the utility budgets for LIEE and CARE utilizing the funding appropriated by the Legislature via SBX1 5.¹ Among other things, SBX1 5 provides a one-time appropriation of $100 million to supplement the funding collected in rates for CARE discounts and outreach efforts. In addition, SBX1 5 provides a one-time increase to the LIEE program budget of $20 million and another $50 million for appliance replacement and other energy efficiency measures. By D.01-05-033, we allocated $25 million of the SBX1 5 appliance replacement funds to further supplement LIEE budgets during the energy crisis.

By D.01-05-033 and D.01-08-065, we allocated SBX1 5 CARE and LIEE appropriations to augment the existing low-income assistance programs of Pacific Gas and Electric Company, San Diego Gas & Electric Company, Southern California Edison Company, Southern California Gas Company, and the small and multi-jurisdictional utilities, referred to as "the SMJUs." These are: Alpine Natural Gas, Avista Utilities, Bear Valley Electric Company, Mountain Utilities, Sierra Pacific Power Company, PacifiCorp, Southwest Gas Company, and West Coast Gas. However, in doing so, we noted the following:

"...Mountain Utilities does not offer either LIEE or CARE to its 150 year-round customers. Alpine has a CARE program, but none of its approximately 460 residential customers have applied for and qualified for the program. Alpine does not offer LIEE. West Coast Gas serves approximately 560 residential customers, 14 of which are on the CARE rate. The company's service territory is the former Mather Air Force Base, and all of the housing is new construction. Therefore, with the exception of funding to cover additional CARE subsidy costs in West Coast Gas' service territory, we do not allocate any of the SBX1 5 funding to these utilities at this time."²

We directed Energy Division to continue to work with Alpine Natural Gas, Mountain Utilities, and West Coast Gas to develop rapid deployment low-income assistance programs for their service territories, "as appropriate," and set aside SBX1 5 funds for this purpose.³

Energy Division worked with these utilities during the fall of 2001, and issued a report entitled, "Energy Division Recommendations on Developing Low-Income Assistance Programs For Alpine Natural Gas, Mountain Utilities, and West Coast Gas" on October 19, 2001. The Office of Ratepayer Advocates (ORA) and Mountain Utilities submitted comments on Energy Division's report on November 26 and November 30, 2001, respectively. Energy Division continued to work with Alpine Natural Gas, Mountain Utilities, and West Coast Gas in response to comments and direction from the assigned Administrative Law Judge (ALJ), and issued an update to its report on May 20, 2002, including revised recommendations. A copy of Energy Division's updated report, which supersedes the October 19, 2001 version, is attached. (See Attachment 1.)