Comments on Draft Decision

The draft decision of ALJ Meg Gottstein in this matter was mailed to the parties in accordance with Pub. Util. Code § 311(g)(1) and Rule 77.7 of the Rules of Practice and Procedure. Comments were filed by Alpine Natural Gas. In response to these comments, we make certain modifications and clarifications to Energy Division's recommendations. In our judgment these changes more efficiently formulate program efforts in terms of using less of the limited resources of these very small utilities, while not sacrificing customer results.

Findings of Fact

1. Energy Division's recommendations to augment Alpine Natural Gas' and West Coast Gas' current CARE outreach activities, as modified by this decision, will increase enrollment in this program to the benefit of the impacted vulnerable, low-income households.

2. Energy Division's recommendation to develop LIEE programs within Alpine Natural Gas' and West Coast Gas' service territories that are appropriate to the needs of their low-income customers is consistent with the intent of the Legislature and the Commission's goals for low-income assistance programs. Nothing in these recommendations rule out the possibility that a referral service may be the most appropriate approach to complying with statutory requirements, given the size and resources of Alpine Natural Gas and West Coast Gas.

3. Energy Division's recommendations to provide SBX1 5 funds to furnish CARE discounts to any customers who qualify for CARE will also benefit the vulnerable, low-income households in Alpine Natural Gas' service area.

4. Using SBX1 5 funds for these purposes will supplement, and not replace, surcharge-generated revenues utilized to fund the CARE program.

5. Energy Division's recommendations, as modified herein, ensure that Alpine Natural Gas and West Coast Gas comply with the outreach requirements established under ABX1 3 and the penetration rate goal requirements of SBX2 2.

6. The record in this proceeding indicates that Mountain Utilities most likely does not have any customers that would qualify for a CARE or LIEE program either now or in the near future.

7. Monitoring SMJUs' economic and ethnic demographics will provide useful information to these utilities and the Commission for future improvements to the CARE and LIEE low-income assistance programs.

Conclusions of Law

1. Energy Division's recommendations, as presented in Attachment 1 are reasonable and should be adopted with the modifications discussed in this decision.

2. In order to initiate the program and funding changes we adopt today as expeditiously as possible, this order should be effective today.

INTERIM ORDER

IT IS ORDERED that:

1. Energy Division's recommendations, as presented in Attachment 1 to this decision, are adopted with the modifications discussed in this decision and reflected in the following ordering paragraphs.

2. West Coast Gas Company (West Coast Gas) is allocated $2,240 of the Senate Bill (SB) X1 5 California Alternate Rates For Energy (CARE) monies for the outreach activities and costs associated with initiating a CARE program. These activities and costs are described in Attachment 1. They include developing and printing customer CARE application forms, mailing program information and installing a telephone voice-message system to give CARE information when customers are on hold. West Coast Gas shall implement these outreach activities without delay.

3. Alpine Natural Gas Company (Alpine Natural Gas) is allocated $2,895 of the SBX1 5 CARE monies for the outreach costs associated with mailing program information, printing CARE notices on bills and printing a CARE outreach flyer, developing and printing customer CARE application forms, and notifying customers as they call in for service of the CARE program as described in this decision. In addition, Alpine Natural Gas is allocated $3,000 of the SBX1 5 CARE monies to provide for the subsidy of any of its customers that qualify for and receive the CARE discount. Alpine Natural Gas shall implement these outreach activities without delay.

4. The CARE budget authorizations discussed in Ordering Paragraphs 2 and 3 above shall be funded from the $5,000 in SBX1 5 CARE program funding set aside for this purpose in Decision 01-08-065. The remaining $3,135 shall be funded from the SBX1 5 appropriations set aside for Commission administrative expenses.

5. As discussed in this decision, Mountain Utilities is not required to develop a CARE or Low Income Energy Efficiency (LIEE) program, at this time.

6. Energy Division shall ensure that Phase 2 of the Commission's Needs Assessment Study includes the following:


a. An examination of the economic demographics of Mountain Utilities' service area, based on reported census information.


b. An examination of the ethnic demographics in each of the small and multi-jurisdictional utilities' (SMJU's) service territories, based on recorded census information. 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.

The cost of this additional monitoring should be born by the current study participants, and not allocated to the SMJUs.

7. Upon completion of Phase 2 of the Needs Assessment Study, Energy Division shall evaluate the results to determine if Mountain Utilities should be required to offer a CARE program in the future or if such demographic information should be researched periodically in the future. Energy Division shall also evaluate the results to determine if the SMJUs should develop multi-lingual formats for their CARE outreach materials. Energy Division shall submit its findings and recommendations to the Commission by filing a report in this proceeding, or successor proceeding.

8. Within 30 days from the effective date of this decision, West Coast Gas and Alpine Natural Gas shall file advice letters seeking approval for their CARE program tariffs and customer CARE application forms, or supplement pending advice letters consistent with this decision, as appropriate.

9. As discussed in this decision, West Coast Gas and Alpine Natural Gas shall submit quarterly CARE reports to Energy Division due on the 15th of the month following each quarter. The first report shall be due on November 15, 2002 for the August-October quarter. The format and content of these reports shall be determined by Energy Division. Energy Division may modify the frequency and due dates of this reporting requirement, as appropriate.

10. As discussed in Attachment 1, West Coast Gas and Alpine Natural Gas shall provide quarterly notices about the CARE program on a forward facing page of their customers' bills or the front side of postcard bills, as appropriate. Energy Division shall work with West Coast Gas and Alpine Natural Gas to develop the text of these notices.

11. On or before November 1, 2002, West Coast Gas and Alpine Natural Gas shall file applications for approval of their post-2002 low-income program plans and budgets. These applications shall include:


a. CARE participation goals.


b. A LIEE program proposal and budget appropriate to the needs of their low-income customers.


c. A balancing account ratemaking proposal for CARE and LIEE expenditures.

West Coast Gas and Alpine Natural Gas shall work with Energy Division in preparing the November 1, 2002 applications, particularly in developing an appropriate LIEE program.

12. The Assigned Commissioner or assigned Administrative Law Judge may, for good cause, modify the due dates set forth in this decision.

13. All filings and reports directed by this decision shall be filed at the Commission's Docket Office and served electronically on all appearances and the state service list in this proceeding. Service by U.S. mail is optional, except that one hard copy shall be mailed to Judge Meg Gottstein at P.O. Box 210, Volcano, CA 95689. In addition, if there is no electronic mail address available, the electronic mail is returned to the sender, or the recipient informs the sender of an inability to open the document, the sender shall immediately arrange for alternate service (regular U.S. mail shall be the default, unless another means-such as overnight delivery-is mutually agreed upon). Parties that prefer a hard copy or electronic file in original format in order to prepare analysis and filings in this proceeding may request service in that form as well. The current service list for this proceeding is available on the Commission's web page, www.cpuc.ca.gov.

This order is effective today.

Dated August 22, 2002, at San Francisco, California.

(ATTACHMENT 1)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking on the Commission's Proposed Policies and Programs Governing Low-Income Assistance Programs.

Rulemaking 01-08-027

(Filed August 23, 2001)

UPDATE TO ENERGY DIVISION'S OCTOBER 19, 2001 REPORT ENTITLED "ENERGY DIVISION RECOMMENDATIONS ON DEVELOPING LOW-INCOME ASSISTANCE PROGRAMS FOR ALPINE, MOUNTAIN UTILITIES AND WEST COAST GAS"

May 21, 2002

_____/s/ IVY WALKER______

Ivy Walker

Energy Division

STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

May 20, 2002

UPDATE TO ENERGY DIVISION'S OCTOBER 19, 2001 REPORT ENTITLED "ENERGY DIVISION RECOMMENDATIONS ON DEVELOPING LOW-INCOME ASSISTANCE PROGRAMS FOR ALPINE, MOUNTAIN UTILITIES AND WEST COAST GAS"

To: Service List in Rulemaking 01-08-027

Energy Division is submitting this update to its October 19, 2001, report entitled "Energy Division Recommendations on Developing Low-Income Assistance Programs for Alpine, Mountain Utilities and West Coast Gas." Subsequent to the release of the report, parties filed comments on the report and Energy Division continued to work with the three small and multi-jurisdictional utilities (SMJU). Based on information obtained by the Energy Division after its October 19th report, Energy Division is providing supplemental information on the three utilities and is providing new recommendations regarding these SMJU's low-income assistance programs. These new recommendations supersede, rather than supplement, those in Energy Division's October 19, 2001 report.

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