Conclusions of Law

1. As discussed in this decision, the Commission has exercised its authority under Pub. Util. Code § 1708 to rescind, alter or amend its orders or decisions with great care and only when justified by extraordinary circumstances.

2. The Commission has articulated specific parameters for considering the modification or rescission of a prior decision, namely, if (1) new facts are brought to the Commission's attention, (2) conditions have undergone a material change, or (3) the Commission proceeded on a basic misconception of law or fact.

3. The Commission did not proceed to adopt the shared-savings mechanism in D.94-10-059 based on mistaken law or fact.

4. Commission would not have made a different decision in D.94-10-059 due to subsequent changes in the electric industry, either by adopting a materially different shared-savings mechanism for the 1994-1997 period, rescinding or modifying that mechanism earlier, or authorizing no incentive mechanism at all.

5. Nothing in today's decision precludes the Commission from disapproving or modifying the claims for utility profits submitted by the utilities in the pending and future AEAPs related to pre-1998 shared savings programs, based on ex post verification. All such claims are subject to verification, consistent with the Commission's adopted measurement and evaluation protocols.

INTERIM ORDER

IT IS ORDERED that Rulemaking 91-08-003/Investigation 91-08-002 shall not be reopened for the purpose of reconsidering the shared-savings incentive mechanism adopted in Decision 94-10-059.

This order is effective today.

Dated October 16, 2003, at San Francisco, California.

ATTACHMENT 1 ACRONYMS OR ABBREVIATIONS

Acronym or Abbreviation

Name

AB

Assembly Bill

AEAP

Annual Earnings Assessment Proceeding

ALJ

Administrative Law Judge

CEC

California Energy Commission

CEEI

Commercial Energy Efficiency Incentives

D.

Decision

DSM

Demand-Side Management

I.

Investigation

ISO

Independent System Operator

LIEE

Low-Income Energy Efficiency

M&E

Measurement and Evaluation

MPS

Minimum Performance Standard

NRDC

Natural Resources Defense Council

ORA

Office of Ratepayer Advocates,

PEB

performance earnings basis

PG&E

Pacific Gas and Electric Company

PHC

Prehearing Conference

Pub. Util.

Public Utilities

PY

Program Year

R.

Rulemaking

SCE

Southern California Edison Company

SDG&E

San Diego Gas & Electric Company

SoCal

Southern California Gas Company

TURN

The Utility Reform Network

WEM

Women's Energy Matters

ATTACHMENT 2

155811

ATTACHMENT 2

APPENDIX 1

155812

ATTACHMENT 2

APPENDICES 2 & 3

155760

ATTACHMENT 3

152242

ATTACHMENT 3

APPENDIX 1

152260

ATTACHMENT 3

APPENDIX 2

152258

ATTACHMENT 3

APPENDIX 3

152257

ATTACHMENT 3

APPENDIX 4

152254

ATTACHMENT 3

APPENDIX 5

152803

ATTACHMENT 4

TABLE 1

153411

ATTACHMENT 4

TABLE 2

157785

ATTACHMENT 4

TABLE 3

157605

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