4. Post-1997 Energy Efficiency Earnings Claims (Milestone Mechanisms)
As pointed out by Judge Walwyn during previous PHCs, the record in this proceeding is not yet complete enough to enable the Commission to review milestone accomplishments associated with post-1997 energy efficiency earnings claims. I reiterated her request to obtain a better idea of what milestone achievements have been reviewed to date, by which party (e.g., ORA, CEC), what additional milestone verification efforts will be conducted, and how the intervenors plan to coordinate their efforts so that the Commission can have a complete record with which to evaluate the post-1997 earnings claims.10 On March 14, 2003, I received a brief statement that lays out in general terms the types of additional verification efforts that the CEC may be undertaking.
However, the response is not completely responsive to my (or Judge Walwyn's) request. I need to know--by milestone and program year claim-which milestone-related earnings claims for the 2000 and 2001 AEAPs have been independently reviewed in testimony to date, which have not, and how the "gaps" in review are going to be filled by which intervenors (ORA, CEC or TURN). Similarly, I need to have this information for the 2002 AEAP earnings claims for post-1997 programs. This information should be submitted jointly by ORA, CEC and TURN (if applicable) within 10 days from the date of this ruling.
As discussed at the PHC, ORA laid out a work plan in early 2002 for verification efforts associated with post-1997 energy efficiency earnings claims, as follows:11
(1) Verification (paper review) of cost-effectiveness calculations for all Program Administrators' portfolios, including conformance with cost-effectiveness policy rules for Program Years 1999, 2000 and 2001.
(2) Verification (paper review) of shareholder earnings claim calculations associated with Milestones for Program Years 1999, 2000 and 2001.
(3) Verification of workpapers and other documentation provided by program administrators to assess the reasonableness of earnings amounts associated with each Milestone for each program administrator for Program Years 1999, 2000 and 2001.
(4) Onsite visits for a sample of participants in PY2001 nonresidential programs in at least two of the four Program Administrators service territories.
(5) Complete report on results of onsite visits for the SCE program for PY2000 and SoCal program for PY2001.
(6) Verification of conformance with key policy rules, including cost-effectiveness, ESCO/EESP market share, after accounting for any ORA recommended adjustments to reports costs or benefits for each Program Year (1999, 2000 and 2001) for each Program Administrator.
At the PHC, I asked ORA to present a schedule for this work plan to address just the 2000 and 2001 AEAP post-1997 program earnings claims.12 My intent is to bifurcate the 2000/2001 AEAP claims from the 2002 AEAP (where no work on post-1997 earnings claims has been conducted to date), so that the 2000/2001 AEAP claims can be addressed as expeditiously as possible. ORA has not responded to this request, and should do so within 10 days from the date of this ruling.
As indicated in Attachment 1, I have tentatively scheduled evidentiary hearings for the 2000/2001 AEAP earnings claims related to post-1997 programs, should hearings be required, for the week of July 21, 2003. For the 2002 AEAP, I have scheduled the week of October 7, 2003. ORA's response to my request for a bifurcated work plan should accommodate these hearing dates.
10 See PHC-3, November 20, 2001, RT at 67-69; PHC-4, February 27, 2003 RT at 186-187; 199-203, 215.
11 See Judge Walwyn's ruling dated April 26, 2002 and Response of the ORA to ALJ Walwyn's Ruling regarding Additional Verification Work Plan For Post-1997 Energy Efficiency Program Years, dated April 3, 2002.
12 RT at 219-220.
