BACKGROUND

Pursuant to D.03-12-016, the SMJU were ordered to file applications by July 1, 2004, for approval of their PY 2005 CARE and LIEE program plans, budgets and associated increases in ratepayer collections needed to fund their proposals. Pursuant to the same decision, the SMJU, in their applications, were to document their achievements and expenditures to date for each program, including updated CARE penetration rates, estimate the remaining need for LIEE services in their area, and develop CARE and LIEE program plans and associated budgets that will address that need.

Also, pursuant to D.03-12-016, Energy Division was to hold public workshops on the applications and submit its recommendations on the applications in a report no later than September 5, 2004. Comments were to be due 20 days thereafter. Energy Division found that workshops were unnecessary and was able to facilitate the data gathering to enable Energy Division to conduct its analysis without holding workshops. This report is the outcome of Energy Division's analysis. Due to staff attrition and other constraints, Energy Division is only now able to complete its analysis.

Finally, pursuant to D.03-12-016, Energy Division is required to conduct a financial and management audit of the SMJU PY 2003 and 2004 CARE and LIEE program deployment. Energy Division is to examine whether the program expenditures were reasonably incurred and booked to the appropriate accounts, examine whether they are truly incremental costs, and present recommendations on how the utilities should report and recover CARE and LIEE administrative expenditures on a more consistent basis in the future. Energy Division's report, on the results of its examination of PY 2003 and 2004, were due by August 1, 2004 and August 1,2005, respectively.

Due to staffing constraints, Energy Division has been unable to conduct the financial and managerial audit of the SMJU's 2003 and 2004 CARE and LIEE programs. Energy Division is unable to recommend a new due date as resources are still constrained.

Energy Division is currently conducting a Needs Assessment Study, pursuant to D.03-01-020 and the Assigned Commissioner's Ruling, dated May 5, 2004 in R.04-01-006. Part of the scope of that project is for the consultant to review the demographics of the SMJU and develop an updated estimate of CARE and LIEE eligible for each utility.