Other Issues

Edison's Funding Proposal

SB 1194/AB 995 mandates a $90 million funding level for Edison in 2002 and beyond. The ACR Implementing AB 970 directed Edison to submit PY 2001 program plans and budgets totaling $90 million instead of the $50 million PGC minimum funding level set forth in §381(c)(1).

In its application, Edison submits a $90 million budget for PY 2001. The $90 million budget designates funding of $50 million in PGC funds and another $40 million from interest in the energy efficiency balancing account and carry-over funds available after satisfying its PY 2000 Summer Initiative obligations. Edison also proposes to use PY 2002 funds for certain projects if the proposed funding sources fall short. REECH objects to Edison's proposal.

Edison argues that requiring it to submit a 2001 budget that includes more than $50 million in PGC funds would contravene the "clear legislative intent" of §381(a) which requires the CPUC to authorize the utilities to "identify a separate rate component to collect the revenues used to fund these programs" because under current market conditions, Edison has no assurance of cost recovery for any amount above the legislatively established minimum.

While we do not adopt Edison's interpretation of §381, we agree that, under current market conditions and Edison's rate freeze, it would be burdensome to order it to adjust its ratemaking to absorb an additional $40 million in PGC funding over which it has no assurance of cost recovery. We therefore approve Edison's PY 2001 program funding proposal as proposed, with one exception. We do not authorize Edison to use PY 2002 funds to satisfy commitments entered into in 2001 but that do not come due for payment until after 2001. Edison's argument that use of 2002 funds amounts to a simple accounting procedure is strained. As Edison admits, such a finding requires the Commission to "recognize that it presently intends to authorize the 2002 funding necessary to cover such commitments." (Edison Comments, p. 8.)

Public Education Outreach Campaign

California is currently experiencing an energy crisis that threatens to adversely impact the economic and environmental well being of the state. We believe that it is imperative that the public becomes fully educated about the magnitude of the energy problem and that individuals and businesses are aware of the measures they can take to reduce their electricity consumption. To achieve these goals, we direct the utilities to immediately spend $10 million on a public education outreach campaign that will be conducted by the Consumer Affairs Agency on matters relating to energy efficiency. We direct the utilities to expend funds for that campaign as follows: SDG&E--$ 1.34 million; Edison--$ 2.77 million; PG&E--$ 4.87 million; and SoCalGas--$ 1.03 million. We derived the allocation of the $10 million among the four utilities based on their proportionate share of the total program budget. Edison will be responsible for paying to the Consumer Affairs Agency the amount of $10 million, and the other utilities will reimburse Edison for their proportionate share of that expense.