COM/JLN/MEG/eap DRAFT Item 2

9/7/2000

Decision DRAFT DECISION OF COMMISSIONER NEEPER AND
ALJ GOTTSTEIN (Mailed 8/4/2000)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking on the Commission's Proposed Policies Governing Energy Efficiency, Low Income Assistance Renewable Energy and Research, Development and Demonstration.

Rulemaking 98-07-037 (Filed July 23, 1998)

INTERIM OPINION: LOW-INCOME ASSISTANCE

PROGRAM POLICIES FOR PROGRAM YEAR 2001 AND

STANDARDIZATION PROJECT (PHASE 1)

(See Attachment 1 for Appearances)

TABLE OF CONTENTS

Title Page

INTERIM OPINION: LOW-INCOME ASSISTANCE
PROGRAM POLICIES FOR PROGRAM YEAR 2001 AND
STANDARDIZATION PROJECT (PHASE 1) 1

1. Summary 2

2. Background and Procedural History 4

3. LIAB's Compliance with Commission Directives 8

4. LIAB's Recommendations For PY 2001 Programs 12

CARE and LIEE Mission Statements 12

Outreach 14

Leveraging and Coordination with other Organizations and Programs 16

Standardizing Weatherization Programs 16

Specific Program Recommendation 1 17

Specific Program Recommendation 2 18

Specific Program Recommendation 3 21

Specific Program Recommendation 4 21

Specific Program Recommendation 5 22

Specific Program Recommendation 6 23

Specific Program Recommendation 7 24

Specific Program Recommendations 8, 9, 10 and 11 25

Specific Program Recommendations 12, 13, 14 and 15 29

Specific Program Recommendation 16 29

Specific Program Recommendation 17 30

Specific Program Recommendation 18 30

Program Specific Recommendation 19 31

Specific Program Recommendation 20 33

Specific Program Recommendation 21 33

Specific Program Recommendation 22 35

Specific Program Recommendation 23 36

Specific Program Recommendation 24 37

Specific Program Recommendation 25 38

Specific Program Recommendation 26 39

Specific Program Recommendation 27 39

Specific Program Recommendation 28 40

5. LIEE Standardization Project Report (Phase 1) 42

6. Further Direction For LIAB 44

7. Comments on Draft Decision 49

INTERIM ORDER 55

ATTACHMENT 1

ATTACHMENT 2

1. Summary¹

By today's decision we approve the utilities' joint Phase 1 recommendations for standardizing installation standards, measure selection criteria and other procedures for the Low-Income Energy Efficiency (LIEE) program.² These recommendations are contained in the Phase 1 Report on the LIEE Standardization Project submitted on May 8, 2000 and augmented on July 5, 2000.

Within 15 days of the effective date of this decision, the utilities should jointly file the new weatherization installation standards manual which incorporates both the Phase 1 report recommendations and the follow-up recommendations submitted on July 5, 2000. The utilities should serve a notice of its availability to all appearances and the state service list in this proceeding. This new manual should be used by the utilities in designing their Program Year (PY) 2001 programs, and will become the standard used for all installations in the utility programs beginning January 1, 2001.

Within thirty days from the effective date of this decision, the utilities are directed to file applications to request approval of PY 2001 low-income assistance program plans and associated budgets, in compliance with today's decision.

As discussed in this decision, the utilities should jointly develop and present a standardized methodology for calculating penetration rates in their PY 2001 applications. We intend to utilize a standardized approach to calculating penetration rates in the evaluation of the California Alternate Rates for Energy (CARE) program overall, as well as the CARE Outreach Pilot.

In addition, we direct the utilities to describe in their PY 2001 applications their current procedures (audits, process evaluations, polls, etc.) for monitoring program quality, cost efficiency and customer satisfaction for low-income assistance programs. The utilities should present recommendations for improving these procedures or instituting alternative ones, along with the associated costs and manpower requirements. The utilities should also consider the results of the Attic Ventilation Pilots in presenting their recommendations for PY 2001, and describe the methods they are using to track the results of the Outreach Pilot.

We also direct the utilities to develop a standardized customer "bill of rights," including a description of the consumer complaint process, in coordination with some of the issues being addressed in Phase 2 of the Standardization Project. The utilities should jointly develop this document with public input, and present it for our approval no later than the filing of their PY2002 program applications.

The utilities should also work toward the development of a form that requests the same types and categories of data from all customers enrolling in CARE. The utilities should jointly develop such forms with public input and present them in an Advice Letter filing by March 1, 2000. This will enable us to authorize new forms in time for the June 1 implementation of the new income levels that are developed each year.

We direct the Standardization Project team to explore the Low-Income Advisory Board's (LIAB) Specific Program Recommendations 20, 21 and 28 during the Phase 2 development of standardized policies and program procedures. We reiterate our expectation that Phase 2 recommendations be completed in time for our consideration during the PY 2002 program planning cycle, or sooner if possible.

Finally, we provide further direction to LIAB regarding its role and assignments. In particular, we clarify what activities are (and are not) assigned to LIAB or its advisory committee in the near term, for which Energy Division will continue to provide assistance. If LIAB desires to meet more frequently or perform additional activities with the assistance of Commission resources, we direct LIAB to seek and receive approval from the Energy Division.