5. Other SBX1 5 CARE Allocation Issues

The remaining $83,416,632 in SBX1 5 CARE funds will be allocated among PG&E, SDG&E, SCE and SoCal via the Advice Letter process we established in D.01-05-033. While we find considerable appeal in applying the allocation formula presented by Energy Division to these utilities as well, we recognize that the July 2, 2001 Advice Letters present updated information on CARE subsidy costs and projected collections that could not be evaluated during the workshop process or in the final report. This includes information on the impact of Assembly Bill (AB) X1 3, which directs the gas utilities to calculate a one-time gas bill credit for existing customers who enroll in CARE after the effective date of the bill until October 1, 2001.¹⁰ Accordingly, we wish to consider Energy Division's allocation formula for these utilities, and possible refinements thereto, in the context of this information. In no event, however, will we revisit the issue of disbursing SBX1 5 funds under an incentive plan, as proposed by some workshop participants.

As the Legislature directed, SBX1 5 CARE funding must be used to supplement, and not replace, surcharge collected revenues. Accordingly, the utilities are required to fully utilize CARE program funding authorized through current rates (including any carryover funding) each month, before drawing on the SBX1 5 funds we allocate today. In addition, consistent with our determinations in D.01-05-033 and D.01-06-082, the funds we allocate today to offset increased subsidy costs ($1,178,368 for the SMJU and $83,416,632 to PG&E, SDG&E, SCE and SoCal) shall not be used to supplement rate collections for CARE outreach and associated administrative costs. We have already allocated a fixed amount from SBX1 5 for that purpose, i.e., $15 for PG&E, SDG&E, SCE and SoCal in D.01-05-033, and $400,000 for the SMJU in today's decision.

As discussed in D.01-05-033, the utilities are required to report their rapid deployment activities and expenditure levels for both the CARE and LIEE programs on a monthly basis, which will enable us to carefully monitor utility compliance with this requirement. We note that SBX1 5 does not require the utilities to encumber these funds within a specific timeframe, as it does for LIEE appropriations. Therefore, these funds will be available to offset the subsidy costs to non-participants beyond March 31, 2002.

All CARE and LIEE funding authorized today is the property of the Commission and not of the utilities. With respect to such funds, utilities shall serve as collection and remittance agents only and have no beneficial interest whatsoever in the monies. The utilities shall segregate all CARE and LIEE funding authorized today from all other utility funds and not use that funding for any purposes other than as provided for in this decision. While the funds authorized in this decision are in the utilities' possession, the utilities shall hold those funds in trust solely for the benefit of the Commission.