Background

In this decision, we consider the following issues:

1. The first earnings claim for pre-1998 PY commitments completed in 1998, consisting of shared savings programs and performance adder programs.

a. Shared savings programs provide for energy savings through installation of energy efficient equipment along with the same or improved conditions for residential customers, and the same or improved output levels for commercial, industrial and agricultural customers. Shareholder incentives are based on a percentage of net benefits.

b. Performance adder programs are energy efficiency programs that may not be cost-effective or the savings may be difficult to measure. They apply to both residential and non-residential customers and consist of equity and services programs and new construction programs. Shareholder incentives are based on a percentage of program expenditures, collected in four installments over a 10-year period, in accordance with existing protocols.

2. For SoCal only, the first earnings claim for PY 1997 DSM programs. All of SoCal's PY 1997 DSM programs were terminated before the end of 1997 except for the Energy Edge and Residential Pilot Bidding programs, which extended into 1998, and are the subject of this shareholder incentive claim.

3. The second earnings claim for PY 1997 programs. The first earnings claim was filed in the 1998 AEAP, and the second earnings claim is based on 50% of the revised total claim (25% of the earlier total claim was paid in the first claim).

4. The third earnings claim for PY 1994 programs is based on 75% of the revised total claim (50% of the earlier total claim amounts was paid, 25% in the first claim and 25% in the second claim).

5. PY 2000 low-income program shareholder incentives.

6. Verification of program costs and benefits for PY 1998 energy efficiency program claims.

7. PY 1998 low-income program shareholder incentive design and performance incentive caps for PY 2000 programs.