Introduction

This document presents the results of a preliminary review of California's statewide and IOU energy efficiency portfolios submitted to the CPUC on June 1, 2005. The TecMarket Works Team is under contract to the CPUC to review and provide advice to the California Public Utilities Commission - Division of Energy (CPUC-ED) regarding the ability of the portfolios to meet the energy savings targets provided to the IOUs in decision D0409060/R0108028. The review also consists of the identification and discussion of a number of issues of importance to the CPUC-ED staff.

Through the review of the portfolio and program materials by the TecMarket Team (Team) and by other groups examining the portfolios (Program Advisory Groups and Peer Review Groups), the CPUC is able to conduct a more informed or expanded assessment of the IOU portfolio and portfolio construction process.

This process provided the Team a limited amount of time to conduct the review. As a result, this review is not an exhaustive review, but does present and discuss many of the issues and concerns identified by the CPUC-ED staff during project planning meetings. The primary issues and concerns identified by the CPUC-ED staff include:

_ The portfolio's ability to reach energy goals

_ The reasonableness of the savings projections

_ The coverage of the programs in the portfolios

_ The range and magnitude of administrative costs

_ Lost opportunities that can be identified during the review

_ The various risks associated with the programs and the portfolios

_ The relative balance between the budgets and the programs offered

_ Other issues that can be identified by the Team during the review process

These review objectives focused the Team's efforts and allowed the Team to assess the portfolio and the mix of programs offered in time to meet the CPUC's review timelines.