VII. Comments on Draft Decision

The draft decision of the ALJ in this matter was mailed to the parties in accordance with Section 311(g)(1) of the Public Utilities Code and Rule 77.7 of the Rules of Practice and Procedure. Comments were filed on July 31, 2006. In response to the comments, this decision modifies the order to clarify the level of regulatory compliance and administrative costs PG&E proposed for the 2006 LIEE budget, and approves its allocation to the tankless water heater program.

Findings of Fact

1. SDG&E and SoCalGas report that their self-certification efforts in their LIEE programs have cut costs and increased program participation.

2. SCE's telephonic CARE registration and recertification, and its program to automatically qualify CARE customers for refrigerator and lighting replacement as part of the LIEE program have cut program costs and streamlined procedures.

3. SCE's proposal to automatically qualify CARE customers for all LIEE program elements is premature.

4. The additional funding requested by PG&E for its LIEE program may be reasonable given the commitments it has made toward additional LIEE installations.

5. PG&E's proposed total LIEE administrative and regulatory compliance budgets for 2006 is $7.921 million.

6. PG&E's proposed tankless water heater pilot program should help all participants understand the feasibility of adding this measure to the Low-Income Energy Efficiency program.

Conclusions of Law

1. The Commission should authorize SoCalGas and SDG&E to continue to implement their automatic enrollment procedures for LIEE programs.

2. The Commission should authorize SCE to continue to automatically qualify CARE customers for LIEE refrigerator and light bulb replacement.

3. The Commission should authorize SCE to continue to enroll and recertify CARE customers over the telephone.

4. The Commission should consider SCE's proposal to automatically qualify CARE customers for all LIEE program elements in SCE's next program application.

5. PG&E's LIEE budget for 2005-2006 should be increased by $33.3 million, including $12 million in carryover costs already approved by the Commission.

6. PG&E should be authorized to allocate up to $7.921 million on administrative or regulatory compliance costs in 2006. PG&E should be prepared to justify the costs of its additional program installations and to make efficient use of all LIEE funds.

7. PG&E should be authorized to spend up to $62,000 on a tankless water heater pilot program that results in the installation of at least five tankless water heaters.

ORDER

IT IS ORDERED that:

1. Southern California Gas Company and San Diego Gas & Electric Company are hereby authorized to continue to implement their automatic enrollment procedures for low income energy efficiency (LIEE) programs.

2. Southern California Edison Company (SCE) is hereby authorized to continue to automatically qualify California Alternatives Rates for Energy (CARE) customers for LIEE refrigerator and light bulb replacement.

3. SCE is hereby authorized to continue to enroll and recertify CARE customers over the telephone.

4. Pacific Gas and Electric Company's (PG&E) LIEE budget for 2006-2007 is hereby increased by $31.8 million, including $12 million of unspent LIEE funds carried over from past budget periods. PG&E may spend up to $7.921 million on administrative and regulatory compliance costs in 2006. PG&E shall be prepared to justify the costs of its additional program installations and shall make efficient use of all LIEE funds.

5. PG&E is authorized to spend up to $62,000 on a tankless water heater pilot program that results in the installation of at least five tankless water heaters.

6. Application 06-04-014 and Rulemaking 04-01-006 are closed.

This order is effective today.

Dated August 24, 2006, at San Francisco, California.

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