Conclusion

An allocation of SBx1 5 CARE outreach funds to West Coast Gas and Alpine would have the potential to increase enrollment in their CARE programs. Increasing enrollment in each utility's CARE program would provide a valuable benefit to California's vulnerable low-income population in their respective service areas.

An allocation of SBx1 5 CARE funds to Alpine would provide subsidy relief to any new CARE customers until Alpine is able to develop a mechanism for recovering CARE costs from its ratepayers.

Both of the above uses appear to be commensurate with the requirements of SBx1 5 for the use of SBx1 5 CARE funds.

It appears that Mountain Utilities does not have any customers that would qualify for a CARE program either now or in the near future. Since the SBx1 5 CARE funds are to be used to increase and supplement CARE discounts and to increase enrollment in the CARE program, it does not appear appropriate to use any of the SBx1 5 funds to implement a program that wouldn't have any participants.

Monitoring SMJU's demographics would provide useful information to these utilities and the Commission for future improvements to the CARE and LIEE low-income assistance programs.

Sincerely,

/s/ DONNA WAGONER

Donna Wagoner

Energy Division

Attachments

West Coast Gas Company
Budget June 1, 2001 to May 31, 2002
Care Outreach Program
Recorded Direct Costs:			WCG Direct Labor		Postage & Outside Materials or Services		Total
July 5, 2001	Prepare and Print a CARE program description and application form to be included in each new application for service.		$90.00		$5.00		$95.00
October 16, 2001	1. Prepare and attach a WCG Sticker on each Flex Your Power" brochures. The sticker identifies WCG and give the business phone number to call for CARE information.		$45.00		$27.50		$72.50
	2. Separately mail brochure to each of 478 existing existing residential customers.		$52.50		$186.42		$238.92
November 27, 2001	1. Print WCG CARE Brochure. 1000 copies.				$325.00		$325.00
December 25, 2001	2. Separately mail brochure to each of 493 existing residential customers.		$52.50		$192.27		$244.77
Total Recorded Direct Care Outreach Costs as of 12/31/2001							$976.19
Budgeted Item Through May 31, 2002
March 15, 2002	1. Separately mail brochure to each of 525 existing existing residential customers.		$52.50		$192.27		$244.77
May 1, 2002	1. Print additional WCG Care Brochure for 2nd, 3rd and 4th quarter mailings. 1,800 copies.				$360.00		$360.00
May 15, 2002	1. Have installed voice message equipment on phone system to give CARE Information when customer "on-hold".				$650.00		$650.00
Total Estimated Direct CARE Outreach Costs 1/1/02 to 5/31/02							$1,254.77
Total CARE Outreach Budget 6/1/01 to 5/31/02							$2,230.96

Energy Law Group LLP

1999 HARRISON STREET, SUITE 2700

OAKLAND, CALIFORNIA 94612-3572

(510) 874-4301

FAX (510) 874-4302

Regina M. DeAngelis

Direct Dial: (510) 874-4354

Email: rdeangelis@energy-law-group.com

January 16, 2002

Via Regular Mail and Electronic Mail

Ivy Walker

Energy Division

California Public Utilities Commission

State Building

505 Van Ness Avenue

San Francisco, CA 94102

Re: Alpine Natural Gas Operating Company's Estimate Budget for CARE Outreach Pursuant to SBX1-5

Dear Ms. Walker:

On behalf of Alpine Natural Gas Operating Company ("Alpine"), below please find the estimated budget to conduct outreach for the CARE program pursuant to SBX1-5 and in response to your request.¹² It is our understanding that the Commission has funds available pursuant to SBX1-5 that the Commission will allocate to small and multi-jurisdictional utilities, such as Alpine, to reimburse the utilities for the costs of outreach programs. Accordingly, Alpine submits the following estimated costs:

January 16, 2002

Page 2

Postage Costs:

(1) Mailing the "Flex Your Power" brochures: $225

(2) Mailing flyers providing notice of CARE program: $225

Printing Costs:

Printing of CARE notices on Bills and CARE outreach flyer: $1,300

Labor Costs:

(1) Assembling "Flex Your Power" mailing: $200

(2) Assembling CARE outreach mailing: $200

Total Costs: $2,150

* * * * * * * * * *

Please let us know if you need any additional information. Thank you for your assistance with this matter.

Very truly yours,

/s/ REGINA M. DeANGELIS

Regina M. DeAngelis

cc: Mike Lamomd

STATE OF CALIFORNIA Gray Davis, Governor

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

May 8, 2002

Mike Lamond

Alpine Natural Gas Operating Company

15 St. Andrews Road, Suite 7

P.O. Box 550

Valley Springs, CA 95252

Regina DeAngelis

Energy Law Group LLP

1999 Harrison Street, Suite 2700

Oakland, CA 94612-3572

Andrew Skaff

Energy Law Group LLP

1999 Harrison Street, Suite 2700

Oakland, CA 94612-3572

In my letter of April 30, 2002, I indicated that the Energy Division had received your company's proposed CARE application form. I had also received email from Mike Lamond that same date requesting a determination on when Alpine could begin using the application form. In response to the email, I indicated that while the application form is under review, Alpine may send it to all qualified existing customers to allow them to enroll in the program. I suggested that Alpine refrain from making excessive copies until the application form is formally approved, in case any changes are necessary.

In order to have the CARE application form approved by the Commission, it will be necessary for Alpine to submit the application form in an Advice Letter filing. The revised income limits that become effective June 1, 2002 also require Alpine to file an Advice Letter. We recommend that you combine the CARE application form filing with the revised CARE income guidelines in an effort to help control costs. The income guidelines that will be effective June 1, 2002 are attached to my April 30, 2002 letter to you.

If you have any questions, please call me at 415/703-2181, or via email at imw@cpuc.ca.gov.

Sincerely,

/s/ IVY WALKER

Ivy Walker

CERTIFICATE OF SERVICE

I certify that I have by mail this day served a true copy of the original attached "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" on all parties of record in this proceeding or their attorneys of record, either by electronic mail or, for any party for which an electronic mail address has not been provided, by first class mail.

Dated May 21, 2002, at San Francisco, California.

/s/ IVY WALKER

Ivy Walker

NOTICE

Parties should notify the Process Office, Public Utilities Commission, 505 Van Ness Avenue, Room 2000, San Francisco, CA 94102, of any change of address to insure that they continue to receive documents. You must indicate the proceeding number on the service list on which your name appears.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

The Commission's policy is to schedule hearings (meetings, workshops, etc.) in locations that are accessible to people with disabilities. To verify that a particular location is accessible, call: Calendar Clerk (415) 703-1203.

If specialized accommodations for the disabled are needed, e.g., sign language interpreters, those making the arrangements must call the Public Advisor at (415) 703-2074 or TTY 1-866/836-7825 or (415) 703-2032 five working days in advance of the event.

(END OF ATTACHMENT 1)