BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Order Instituting Rulemaking on the Commission's Proposed Policies and Programs Governing post-2003 Low-Income Assistance Programs.
Rulemaking 04-01-006
(Filed January 8, 2004)
In the Matter of the Application of PACIFICORP for Approval of 2005 Low-Income Assistance Program Budgets.
Application 04-06-038
(File June 30, 2004)
In the Matter of the Application of Southwest Gas Corporation (U 905 G) for Approval of Program Year 2005 Low-Income Assistance Program Budgets.
Application 04-07-002
(Filed July 1, 2004)
Application of Southern California Gas Company (U 904 G) for Approval of Program Year 2005 Low-Income Assistance Programs and Funding.
Application 04-07-010
(Filed July 1, 2004)
Application of San Diego Gas & Electric Company (U 902 M) for Approval of Program Year 2005 Low-Income Assistance Programs and Funding.
Application 04-07-011
(Filed July 1, 2004)
Southern California Edison Company's (U 338-E) Application Regarding Low-Income Assistance Programs for Program Year 2005.
Application 04-07-012
(Filed July 1, 2004)
Application of Pacific Gas and Electric Company (U 39 M) for Approval Of The 2005 California Alternate Rates for Energy and Low Income Energy Efficiency Programs and Budget.
Application 04-07-013
(Filed July 1, 2004)
IN THE MATTER of the Application SIERRA PACIFIC POWER COMPANY (U 903), for an Order Approving its 2005 California Alternate Rates for Energy (CARE) and Low Income Efficiency (LIEE) Plans and Budgets.
Application 04-07-014
(Filed July 1, 2004)
In the Matter of the Application of AVISTA Corporation for Approval of Program Year 2005 Low-Income Assistance Program Budgets.
Application 04-07-015
(Filed July 1, 2004)
In the Matter of the Application of the SOUTHERN CALIFORNIA WATER COMPANY (U 133 W) Regarding Low Income Assistance Programs for its Bear Valley Electric Service Customers for Program Year 2005.
Application 04-07-020
(Filed July 8, 2004)
Application of ALPINE Natural Gas Operating Company No. 1 LLC in Compliance with Decision 03-12-016 (PY 2004 Low Income Energy Efficiency ("LIEE") and California Alternate Rates For Energy ("CARE") program Plans).
Application 04-07-027
(Filed July 2, 2004)
In the Matter of the Application of WEST COAST GAS COMPANY (U-910-G) For Approval of Program Year 2005 Low-Income Assistance Program Budgets.
Application 04-07-050
(Filed July 29, 2004)
ENERGY DIVISION REPORT ON PROGRAM YEAR 2005 CALIFORNIA ALTERNATE RATES FOR ENERGY (CARE) AND LOW INCOME ENERGY EFFICIENCY (LIEE) PROGRAMS OF THE SMALL AND MULTI-JURISDICTIONAL UTILITIES
April 29, 2005
TABLE OF CONTENTS
SUMMARY OF ENERGY DIVISION'S RECOMMENDATIONS 2
CARE Recommendations 2
LIEE Recommendations 4
Overall Recommendations 5
INTRODUCTION 5
BACKGROUND 6
REVERSION OF STATE FUNDS 7
PURCHASE OF AVISTA 7
CARE PROGRAM 8
Income Guidelines and Discount 8
CARE Participation Achievements and Targets 9
Alpine Participation Rates 12
Avista Participation Rates 13
PacifiCorp Participation Rates 14
Sierra Participation Rates 16
Bear Valley Participation Rates 17
Southwest Gas Participation Rates 18
West Coast Gas Participation Rates 19
Comparison of CARE Participation Proposals and Recommendations 20
CARE Outreach 21
Analysis of Outreach Budgets 22
Alpine Outreach 23
Avista Outreach 24
PacifiCorp Outreach 27
Sierra Pacific Outreach 28
Bear Valley Outreach 30
Southwest Gas Outreach 31
West Coast Outreach 32
Average Outreach Costs 33
Summary of Outreach Budget Recommendations 34
Processing, Certification, Verification Processing, Certification, Verification 35
Alpine's Processing, Certification and Verification Processes 35
Avista's Processing, Certification and Verification Processes 36
PacifiCorp's Processing, Certification and Verification Processes 37
Sierra's Processing, Certification and Verification Processes 37
Bear Valley's Processing, Certification and Verification Processes 38
Southwest Gas' Processing, Certification and Verification Processes 39
West Coast Gas' Processing, Certification and Verification Processes 39
Self Certification 40
Average Processing, Certification and Verification Costs 41
CARE General Expenditures 43
Avista General Expenses 45
PacifiCorp General Expenses 45
Southwest Gas General Expenses 45
West Coast Gas General Expenses 45
Comparison of CARE General Expense Proposals and Recommendations 46
Care Subsidy 46
Summary of CARE Program Budget Proposals and Recommendations 47
LIEE PROGRAM 47
Alpine 48
Avista 50
PacifiCorp 50
Sierra 51
Sierra Pacific's Heat Pump Program 51
Bear Valley 52
SW Gas 52
West Coast 52
LIEE Goals 53
LIEE Budgets and Expenditures 54
PY 2005 LIEE Budget Proposals and Recommendations 62
REASONABLENESS REVIEW AND AUDIT 63
ACCOUNTING AND REPORTING REQUIREMENTS 64
ATTACHMENT A 67
LIST OF ACRONYMNS AND DEFINITIONS 67
SUMMARY OF ENERGY DIVISION'S RECOMMENDATIONS
The following is a summary of Energy Division's recommendations for the Program Year (PY) 2005 California Alternate Rates for Energy (CARE) and Low-Income Energy Efficiency (LIEE) Programs for seven small and multi-jurisdictional utilities (SMJU), which offer these programs. Mountain Utilities is required to monitor its service area for a need for these programs, but isn't currently offering either CARE or LIEE.
CARE Recommendations
· All the SMJU penetration targets should be reassessed after the completion of the Needs Assessment Study that is currently underway.
· Alpine Natural Gas Operating Company (Alpine) should be required to investigate establishing a website for consumers who wish to contact the utility for new or existing service, which should include CARE information as well as their tariffs on line.
· Avista Utilities (Avista) should be required to establish a more detailed website for low-income customers who wish to contact the utility for CARE information via the web.
· Energy Division recommends that the Commission require Avista to add self-certification and self recertification to its processes, in an attempt to bring costs down, and more importantly, to reach those customers who do not process through DCSD.
· Avista should be required to continue to track and report the Department of Community Services Development's outreach expenditures in order to evaluate whether an in-house program would be more cost effective.
· Energy Division recommends that Bear Valley step-up its outreach program and requests their website be updated to include detailed new customer service information procedures along with a link to the CARE guidelines and forms.
· PacifiCorp should be required to increase their CARE outreach efforts and to increase their participation rate.
· Energy Division recommends the Commission require PacifiCorp to increase their efforts to reach the over 15,000 eligible CARE customers.
· PacifiCorp should be required to expand CARE Program information on its website.
· Energy Division recommends that PacifiCorp's proposed outreach budget be approved, even though it is double that of 2004's estimated expenditures, to accomplish additional outreach efforts and activities.
· Energy Division recommends that Sierra, in addition to its arrangement with DCSD, begin to mail out a self-certification application with its twice-yearly bill insert and modify its outreach materials to indicate customers can now self-certify, if the customers elect to do so.
· Energy Division recommends that Sierra's customers who are deemed a `no-response' should be addressed with a follow-up call (s) as well as a secondary direct-mail notice from the utility.
· Energy Division recommends that the Commission require Sierra to add self-certification and self recertification to its processes, in an attempt to bring costs down, and most importantly, to reach those customers who do not process through DCSD.
· Southwest Gas Corporation (Southwest Gas) should be required to post information in Spanish on their website.
· Energy Division recommends that Southwest Gas be required to implement repeated mailings and an automated calling system for those who fail to send in their recertification forms.
· Energy Division recommends that West Coast Gas continue to promptly enroll all low-income households in their service area.
· Energy Division recommends that all SMJU be required to recertify/re-verify a CARE customer only after that customer has been on CARE for two years.
· Energy Division recommends that these utilities: Avista, Pacific Corp., and Sierra begin to allow self-certifying CARE applications, make them available to their residential customers, and process in-house those customers who choose to enroll through a direct application with the utility.
Table 1
Energy Division Participation Recommendations
2005 Penetration Target
Projected Enrolled At 12/31/05
2005 Projected Enrollment Increase
100%
30
4
80%
1,180
103
70%
10,902
6,482
75%
1,725
359
80%
1,624
167
85%
26,617
3,177
100%
50
5
42,128
10,301
Summary of Energy Division Budget Recommendations
Utility
Outreach
Processing
General
Subsidy
Total
Alpine
$150
$100
$0
$4,290
$4,540
Avista
$18,800
$12,300
$15,500
$185,101
$231,701
PacifiCorp
$42,000
$13,000
$8,000
$715,046
$778,046
Sierra
$14,000
$10,485
$0
$225,935
$250,420
BVES
$3,000
$0
$0
$154,000
$157,000
SWG
$77,600
$29,600
$17,600
$3,756,690
$3,881,490
WCG
$500
$500
$1,000
$6,000
$8,000
Total
$156,050
$65,985
$42,100
$5,047,062
$5,311,197
LIEE Recommendations
· Energy Division recommends that, unlike the large utilities, the SMJU's proposed goals for LIEE be adopted as proposed.
· Energy Division recommends that the SMJU extensive carryover balances be amortized over the ensuing years.
· While noting that some of the SMJU have limited resources, Energy Division recommends that the Commission admonish these utilities for not filing emergency applications to adjust budgets and other aspects of their LIEE program after Senate Bill 5 funds were rescinded.
· Energy Division recommends that with the finding of the reasonableness of the utilities' targets, that the utilities' PY 2005 proposed budgets be adopted. Depending on the amortization of the carryovers, the authorized levels may need some adjusting.
· The large utilities require that all LIEE participants are enrolled into CARE, if they aren't not already on the CARE rate. Any SMJU that have not implemented this policy should be required to do so.
· In R.0401-006, a measure assessment is underway and is being conducted by the four large energy utilities. Any measures added to the large utilities' programs should also be added to the SMJU programs. By the same token, any measures that are discontinued for the large energy utilities should also be discontinued for the SMJU.
· Energy Division recommends that Sierra be required to submit a report to the Commission on the results of its pilot.
Overall Recommendations
· Energy Division recommends that the CARE and LIEE budgets recommended herein be subject to reasonableness review and audit.
· Energy Division recommends that the utilities who submitted incomplete reports or didn't submit a CARE and LIEE Annual Report in 2004 be required to refile with the missing components so the Commission will have a complete record on PY 2003. In addition, Energy Division recommends that the Commission not tolerate any inconsistencies or incomplete reports this year.
