2. Procedural Background

3 See also D.04-01-050 in R.01-10-024, mimeo. pp. 104-105, where the Commission reiterated the need to address issues related to energy efficiency goals in this proceeding. 4 Mike Rufo and Fred Coito, Xenergy Inc., 2002. California's Secret Energy Surplus: The Potential for Energy Efficiency, prepared by Xenergy Inc. for the Energy Foundation and Hewlett Foundations, October, 2002. This study was also made possible by the efforts of PG&E, which sponsored the anchor study on the commercial sector in 2001, and support from the CEC in early 2002 for the initial residential work. This report and Xenergy's natural gas savings potential reports can be downloaded off of the web at: www.cpuc.ca.gov/static/industry/electric/energy+efficiency/rulemaking.htm. 5 See Assigned Commissioner's Ruling Establishing Schedule for Addressing High Priority Issues During 2004, and Notice of Workshop on Administrative Structure, dated February 6, 2004, pp. 5-6.

6 These documents can be viewed at: http://www.cpuc.ca.gov/static/industry/electric/energy+efficiency/rulemaking/index.htm

7 We note that WEM's April 14, 2004 pre-workshop comments do not address the energy efficiency targets presented in the Joint Staff report. Rather, they reiterate WEM's position on energy efficiency administrative structure, arguing for the California Standard Offer Program that WEM has submitted for Commission consideration in a different phase of this proceeding. WEM's April 14, 2004 filing is not relevant to the issues we address today, and is therefore not considered in the discussion that follows.

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