ALJ/KLM/sid Mailed 7/14/2003
Decision 03-07-034 July 10, 2003
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking to Examine the Commission's Future Energy Efficiency Policies, Administration and Programs. |
Rulemaking 01-08-028 (Filed August 23, 2001) |
INTERIM OPINION IMPLEMENTING PROVISIONS OF ASSEMBLY BILL 117 RELATING TO ENERGY EFFICIENCY PROGRAM FUND DISBURSEMENTS
This order adopts certain procedures that would implement portions of Assembly Bill (AB) 117 affecting the allocation of energy efficiency program funds. AB 117 (Chapter 838, Chaptered September 24, 2002) authorizes any city, county, or combination of cities and counties to aggregate the electrical loads of local customers. It designates such entities as "Community Choice Aggregators" (CCA). It also adds Public Utilities Code Sections 331.1, 366.1, 366.2 and 381.1 directing the Commission to establish policies and procedures by which any party, including a CCA, may apply to administer cost-effective energy efficiency and conservation programs.
I. Summary of AB 117
In response to the state's energy crisis, the Legislature passed AB 117, permitting cities and counties to become CCAs and thereby purchase energy supplies on behalf of utility customers in their respective jurisdictions. The bill also permits CCAs to apply to the Commission for energy efficiency program funding so that they may implement energy efficiency programs in their areas.
Specifically, AB 117 enacted new Section 381.1, which outlines how the Commission will determine funding for certain energy efficiency programs and directs the Commission to establish certain related policies and procedures:
No later than July 15, 2003, the commission shall establish policies and procedures by which any party, including, but not limited to, a local entity that establishes a community choice aggregation program, may apply to become administrators for cost-effective energy efficiency and conservation programs established pursuant to Section 381. In determining whether to approve an application to become administrators, the commission shall consider the value of program continuity and planning certainty and the value of allowing competitive opportunities for potentially new administrators. The commission shall weigh the benefits of the party's proposed program to ensure that the program meets the following objectives:
(1) Is consistent with the goals of the existing programs established pursuant to Section 381.
(2) Advances the public interest in maximizing cost-effective electricity savings and related benefits.
(3) Accommodates the need for broader statewide or regional programs.
Section 381.1 also provides that in cases where a CCA does not administer energy efficiency programs in its territory, the administrator must direct a "proportional share" of its energy efficiency program activities to the CCA's territory unless the Commission adjusts the share of energy efficiency program activities directed to a CCA's territory to promote equity and cost-effectiveness. Section 381.1 directs the Commission to maintain energy efficiency programs targeted to specific locations where needed to avoid or defer transmission or distribution system upgrades irrespective of whether the loads in that location are served by the CCA or an electrical corporation. The Commission may require program administrators to share information on program impacts with the CCA and to accommodate any unique community program needs by shifting emphasis of approved programs, provided that the shift in emphasis does not reduce the effectiveness of overall statewide or regional programs. AB 117 is appended as "Attachment A."
