ALJ/KLM/sid Mailed 8/25/2006

Decision 06-08-025 August 24, 2006

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking on the Commission's Proposed Policies and Programs Governing post-2003 Low-Income Assistance Programs.	Rulemaking 04-01-006 (Filed January 8, 2004)
Application of Pacific Gas and Electric Company Seeking Approval of an Augmentation to Its Authorized 2006 Low Income Energy Efficiency Program Budget.	Application 06-04-014 (Filed April 14, 2006)

OPINION APPROVING AUGMENTATION TO THE 2006 LOW-INCOME ENERGY EFFICIENCY PROGRAM BUDGET OF PACIFIC GAS AND ELECTRIC COMPANY AND ADDRESSING THE COMPLIANCE FILINGS OF SAN DIEGO GAS & ELECTRIC COMPANY, SOUTHERN CALIFORNIA GAS COMPANY AND SOUTHERN CALIFORNIA EDISON COMPANY REGARDING LOW-INCOME ENERGY EFFICIENCY PROGRAM BUDGETS

I. Summary and Procedural Background

This decision approves an augmentation to low-income energy efficiency (LIEE) program funding for 2006 and 2007 for the Pacific Gas and Electric Company (PG&E). Specifically, we authorize PG&E to augment its 2006-2007 LIEE budget by $31.8 million, all of which is to be spent on the installation of LIEE measures. We disallow any additional funding for administrative and regulatory compliance costs because PG&E already has adequate funds for this type of work.

This decision also finds that the LIEE budgets of Southern California Edison Company (SCE), Southern California Gas Company (SoCalGas) and San Diego Gas & Electric Company (SDG&E) do not require augmentation at this time, and authorizes minor modifications to their LIEE programs, as they request.

This decision follows two other recent actions, which were issued with the objective of providing greater protection to low-income customers from the effects of high natural gas prices this past winter. In October 2005, the Commission issued Decision (D.) 05-10-044, which, among other things, expanded income eligibility for the California Alternatives Rates for Energy (CARE) and LIEE programs from 175% of the Federal poverty guidelines to 200% and approved efforts to speed up the installation of the most cost-effective energy efficiency measures. In a subsequent decision, D.05-12-026, the Commission approved new measures to be included in the LIEE and the increase of participation in LIEE programs by 5-10% in 2006. To effect this increased effort, D.05-12-026 also directed the utilities to file augmented 2006 budget applications no later than April 14, 2006. PG&E's application and the compliance filings of SCE and SDG&E are filed in compliance with that directive.