4. UTILITY OBLIGATIONS
4.1 Summary of IOU Administrative Duties
IOU is executing this Agreement as the designated administrator for the CPUC for the limited purpose of administering this agreement. IOU shall oversee the administration of Implementer's Authorized Work as set forth in D.02-03-056, D.02-05-046 and other applicable CPUC decisions and rulings.
IOU's primary administrative responsibilities are to oversee Implementer's work, receive and complete a timely review of all required documents and other pertinent program information, serve as a liaison between the CPUC and Implementer, and timely transfer PGC payments to Implementer for Authorized Work in accordance with the applicable CPUC-approved payment schedule(s) as set forth herein.
4.2. IOU Review of Required Reports
The IOU shall review all reports required under this Agreement to determine whether they (a) contain the information required by this Agreement, including, but not limited to Attachment A and Attachment B, and that the information is in the format specified herein; (b) comply with the Authorized Work as set forth in Attachment A; (c) comply with CPUC requirements (e.g., CPUC's Policy Manual, Chapter 6, Reporting Requirements), and (d) include all information reasonably necessary to allow the IOU and the CPUC to monitor the progress of the Authorized Work. IOU shall complete its review of the reports and any accompanying invoices within 30 days of submission.
4.2.1 Required Reports Deemed Incomplete
If the information contained in a required report and/or invoice is incomplete or not in the proper format, the IOU shall return report to the Implementer who may make corrections and resubmit the report and/or invoice. IOU shall have 10 days to review the resubmitted report and/or invoice.
If Implementer has not completed tasks or achieved goals set forth in Attachment A, IOU will identify deficiencies in Implementer's progress to the CPUC Agreement Representative with recommendation on how to proceed. After IOU consults with the CPUC Agreement Representative, IOU will notify Implementer of the deficiency in writing. IOU will not authorize payment to Implementer until the IOU has received permission from the CPUC Agreement Representative to make a payment. The IOU shall make payment within 21 days of payment authorization. If payment is withheld any amount withheld shall be available for future payment in the event that the Implementer cures the identified deficiencies.
If the IOU identifies deficiencies in Implementer's progress, the IOU will work with the CPUC Agreement Representative and Implementer Agreement Representatives to determine what further actions Implementer must take to receive the next quarterly payment.
4.2.2 Required Reports Deemed Complete
If, Implementer has completed tasks or achieved the goals as set forth in AttachmentsA and B, IOU will authorize payment and will notify the Implementer Agreement representative that payment is authorized. The IOU shall make payment within 21 days of payment authorization.
4.3 Review of Implementer's Final Report
Once the IOU determines that the final report is correct and complete, it shall notify the CPUC Agreement Representative. The assigned ALJ for OIR 01-08-028, in consultation with the CPUC's Energy Division, will review program performance and approve final program payments to Implementer. IOU will not authorize payment to Implementer until the IOU has received written permission from the ALJ to make the final payment.
Release of the final payment is contingent on program performance as determined by the ALJ. The ALJ may make proportionate reductions in the final payment amounts for programs that do not meet program goals. The proportionate reduction to the final payment will be determined by the ALJ.
4.4 Payment Reductions
Implementer agrees that the CPUC reserves the right to make reductions in Implementer's final payment in the event of (a) defective performance; (b) program failure; and/or (c) Implementer's actual costs for performing the Authorized Work are less than the Total Authorized Amount stated in Section 6 excluding profit, and Implementer performs no additional measures as discussed in Section 3.11.1. The difference between the Total Authorized Amount excluding profit and actual costs must be material in order for the CPUC to withhold payment or require additional measures.
4.5 Payment Schedule
IOU shall transmit payments to Implementer as follows:
Payment Amounts2
#
Program Type
% Payment
Information-only programs
1
CPUC acceptance of final program implementation plan
35% of total budget (less final payment, which varies)
2
65% (less final payment which varies) divided by number of quarterly reports
3
6 equal payments, (assuming program activities occur in 6 quarters) less the amount of Direct Implementation Costs paid on a monthly basis and any reductions pursuant to Section 3.11
Q3-2002 report submitted on or before November 1, 2002
Q4-2002 report submitted on or before February 1, 2003
Q1-2003 report submitted on or before May 1, 2003
Q2-2003 report submitted on or before August 1, 2003
Q3-2003 report submitted on or before November 1, 2003
Q4-2003 report submitted on or before February 1, 2004
Final Report (EM&V) due on or before May 1, 2004.
Final Payment (profit included)
Amount of profit
Final Payment (no profit included)
20% of administrative expenses
Non-information programs
1
CPUC acceptance of final Program Implementation Plan
25% of total budget (less final payment, which varies)
2
CPUC acceptance of evaluation, measurement, and verification plan
10%
3
6 equal payments (assuming that program activities occur in 6 quarters) less the amount of Direct Implementation Costs paid on a monthly basis and any reductions pursuant to Section 3.11
Q2 - report submitted on or before November 1, 2002
65% (less final payment, which varies) divided by number of quarterly reports
Q3- report submitted on or before February 1, 2003
Q4- report submitted on or before May 1, 2003
Q5- report submitted on or before August 1, 2003
Q6- report submitted on or before November 1, 2003
Q7 - report submitted on or before February 1, 2004
Final Report (EM&V) due on or before May 1, 2004.
4
Final Payment - (profit included)
amount of profit
Final Payment - (if no profit included)
20% of administrative expenses
The Utility shall transmit the initial payment to Implementer within seven days after the contract is signed. For all other payments, Utility shall transmit payment to Implementer as specified above in Section 4.3 within thirty (30) days of payment authorization, but is not obligated to pay sooner than dates listed in table above, even if Implementer has completed tasks or achieved the goals as set forth in Attachment A.
4.5.1 Monthly Payment Payment Schedule for Direct Implementation Costs: Implementer may invoice monthly for Direct Implementation expenditures. Each monthly invoice must include backup documentation for the claimed costs, and will be submitted along with the Monthly Report. The Implementer may opt to invoice the Direct Implementation Costs on a quarterly basis consistent with the Quarterly Payment Schedule shown herein.
4.5.2 Quarterly Payment
Quarterly Payments will be consistent with the Payment Schedule shown herein less any payment reductions (pursuant to Section 3.11) and any monthly payments made to Implementer during that quarter.
4.6 Withholding Payment for Deficient Performance
As set forth above in Section 2.2 and Section 2.3, the IOU with the concurrence of the assigned ALJ may, upon written notice to Implementer, withhold from Implementer, all or part of a payment if a report submitted by the Implementer demonstrates that a program failure has occurred and that such failure significantly compromises the purpose and goals of the program. If the IOU has withheld payment for program failure, the IOU shall authorize payment within five (5) business days of the implementation of measures by Implementer to cure the program failure and as specified by the IOU.
4.7 Refund of Overpayment of PGC Funds
With respect to any amount subject to refund to the CPUC pursuant to D.02-03-056, or any subsequent CPUC decision or ruling, should the CPUC determine that a refund is due and seeks to recover such refund, Implementer shall return the amount due to IOU within thirty (30) calendar days of the date Implementer receives written notice that the payment is owed.
2 The payment schedule must be tailored to individual contracts and will depend on following: total contract amount, whether contract is information-only or savings, and whether Implementer claims profit or not. Per Policy Manual Table 5.3 Payment Schedules, Information-only programs get 35% of payments upon CPUC (ALJ) acceptance of final program implementation plans; savings programs get 25% on CPUC acceptance of final PIP. Per D.02-05-046, mimeo page 28, final program payment amounts will be set for each program individually, based on the amount of profit embedded in each program budget. For programs where no profit is built into the budget, the final payment amount will be set at 20% of the program's administrative budget.
