Assignment of Proceeding

Rachelle B. Chong is the assigned Commissioner and Hallie Yacknin is the assigned Administrative Law Judge in this consolidated proceeding.

Findings of Fact

1. The Commission approved the BEC program for the purpose of reaching customers who had not previously participated in demand response programs.

2. The Commission, in Resolution E-4079, found that hard-to-reach customers are not limited to the office, hospitality, and high-tech sectors, and therefore eliminated the requirement that the BEC program be limited to customers in those sectors.

3. In approving the elimination of the requirement that the BEC program be limited to customers in the office, hospitality, and high-tech sectors, Resolution E-4079 neglected to provide a clear definition of what constitutes "hard-to-reach" customers.

4. Expanding the BEC program purpose beyond enrolling hard-to-reach customers would require the consideration of issues that are beyond the scope of this petition and application, e.g., the relative cost and effectiveness of the BEC program and the impact of a broader BEC program scope on the aggregator demand response contracts.

5. Modification of Resolution E-4079 as set forth herein will provide clarification as to what constitutes "hard-to-reach" customers for the purposes of customer eligibility in the Business Energy Coalition demand response program.

Conclusions of Law

1. Modification of Resolution E-4079 as set forth herein will advance the state of California's aggressive demand response goals.

2. Modification of Resolution E-4079 as set forth herein will provide clarification as to what constitutes "hard-to-reach" customers for the purposes of customer eligibility in the Business Energy Coalition demand response program.

3. Modification of D.06-11-049 as set forth herein will clarify that any request by PG&E for a seven-year extension of the BEC program must be filed by formal application, without precluding the possibility that it may be filed as part of PG&E's application for approval of its 2009-2011 demand response programs.

4. This order should be effective immediately.

5. This proceeding should be closed.

ORDER

IT IS ORDERED that:

1. The first bulleted paragraph at page 1 of Resolution E-4079 is deleted and replaced by the following:

PG&E's proposed revision to allow expansion of the BEC program beyond the originally targeted hard-to-reach customers in the office, hospitality, and high-tech sectors is approved. Hard-to-reach customers across all business sectors may also enroll in the program, and shall be defined as customers that (a) have never participated in a PG&E demand response program event and (b) have rejected enrollment in at least one PG&E demand response program other than the BEC program.

2. The second paragraph under the heading "Energy Division finds that all proposed revisions to the BEC program are reasonable" at page 6 of Resolution E-4079 is deleted and replaced by the following:

In the interest of acquiring more demand response for this summer and for 2008, Energy Division concludes it is necessary and prudent to expand the scope of the BEC program to include hard-to-reach customers across all sectors. PG&E's proposed revision to eliminate the tariff language limiting eligibility to customers in the office, hospitality, and high-tech sectors is approved. In order to continue the BEC program's approved focus on hard-to-reach customers, the eligibility provision of Electric Schedule E-BEC shall be revised to add language limiting eligibility to hard-to-reach customers, defined as customers that (a) have never participated in a PG&E demand response program event and (b) have rejected enrollment in at least one PG&E demand response program other than the BEC program.

3. Finding 11 at page 8 of Resolution E-4079 is deleted and replaced by the following:

11. "Hard-to-reach customers," for purposes of eligibility for the BEC program, should be defined as customers that (a) have never participated in a PG&E demand response program event and (b) have rejected enrollment in at least one PG&E demand response program other than the BEC program.

4. Ordering paragraph 1 at page 8 of Resolution E-4079 is deleted and replaced by the following:

1. PG&E shall modify Electric Schedule E-BEC - Business Energy Coalition to eliminate the tariff language limiting eligibility to customers in the office, hospitality, and high-tech sectors, and to add language limiting eligibility to hard-to-reach customers, defined as customers that (a) have never participated in a PG&E demand response program event and (b) have rejected enrollment in at least one PG&E demand response program other than the BEC program.

5. The following Ordering Paragraph 3 is added to Resolution E-4079:

3. PG&E shall maintain auditable records of its solicitation of customers who enroll in the BEC program for purposes of demonstrating that they meet the definition of "hard-to-reach customer."

6. The following Ordering Paragraph 4 is added to Resolution E-4079:

4. BEC program customers who do not meet the definition of "hard-to-reach customer" have the option to terminate their contract with the BEC and enroll in any other PG&E demand response program.

7. The last sentence, at page 57, under the heading "3. Business Energy Coalition (BEC)" of Decision (D.) 06-11-049 is deleted and replaced by the following:

Therefore, we decline to authorize the extension at this time. PG&E may renew its request by formal application once a new agreement has been signed.

8. Conclusion of Law 29 at page 72 of D.06-11-049 is deleted.

9. Ordering Paragraph 9 at page 75 of D.06-11-049 is deleted.

10. The motion of the Energy Coalition to become a party is granted.

11. The motion of PG&E to withdraw its previously-filed motion to file under seal is granted.

12. Application (A.) 05-06-006, A.05-06-008, A.05-06-017 and A.07-07-022 are closed.

This order is effective today.

Dated December 20, 2007, at San Francisco, California.

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