9. Applications for 2009-2011 LIEE Budgets and Programs

This decision sets the groundwork for the LIEE program portfolios and budgets for 2009-2011, which will be the subjects of utility applications. Consistent with this decision, the applications filed by SCE, PG&E and SDG&E/SoCalGas should:

· Propose a portfolio that identifies the benefit-cost ratio for each program and a justification for each program that is not cost-effective, as required in D.02- 08-034 and according to the most recently-adopted cost-effectiveness methodology;

· Be designed to achieve over the three-year budget period approximately 25% of the programmatic initiative adopted here;

· Demonstrate that all program elements included toward the achievement of the initiative articulated here is cost-effective using the total resource cost test adopted in D.02-08-034;

· Propose program elements that may not be cost-effective but that serve other important policy objectives and provide justifications for each consistent with by D.02-08-034;

· Present specific strategies and programs for the budget years 2009-2011 toward accomplishing the LIEE programmatic initiative adopted here that emphasizes long term and enduring energy savings, ways to leverage the resources of other entities, and ways to integrate LIEE programs with other demand-side programs, especially energy efficiency programs, as discussed herein;

· Propose ME&O programs to promote LIEE programs and the LIEE programmatic initiative, including a program element that targets renters;

· Eliminate or modify the ten year "go back" rule to permit installations of new measures and technologies in all households while avoiding duplicative installations;

· Propose a process for automatically qualifying all tenants of public housing and improving information to public housing authorities;

· Propose ways to promote program continuity and long term LIEE investments with more flexible budgeting and funding rules, consistent with the practices and rules adopted in D.07-10-032 and the discussion herein;

· Propose specific program participation goals in specific population sectors or segments and budgets designed to meet those goals, consistent with D.06-12-038,⁶⁵

· Analysis of how AB 1109 may affect their programs and the deployment of CFLs in California.

· Propose methods of tracking costs for each program element and participation in each that will permit cost-benefit analysis for each program element and that are consistent for all utilities.

We also state here our intent to audit LIEE programs and budgets to assure effective implementation, appropriate accounting and expenditures, and the application of sound management practices. The assigned Commissioner and ALJ are authorized to provide additional guidance on the information and format of utility applications. Consistent with D.06-12-038, SCE, SDG&E, PG&E and SoCalGas shall file applications for 2009-2011 LIEE and CARE budget authority and program modifications no later than May 15, 2008. All other jurisdictional electric utilities shall file such applications no later than July 1, 2008.

This order does not require the applications of the smaller utilities to include all of the specific elements required of the larger utilities, although we encourage them to modify their programs and portfolios in ways that would accomplish the policy objectives and programmatic initiative we adopt here. The applications should describe how each program serves adopted policy objectives and present an estimate of the cost-effectiveness of each program element. D.06-12-036, which adopted the LIEE and CARE budgets for the small multijurisdictional utilities, did not provide a date for filing 2009-2011 LIEE portfolio budget applications. We direct the small utilities to file those applications no later than May 15, 2008.

⁶⁵ D.06-12-038, Ordering Paragraph 23.