ALJ/BRS/epg DRAFT Item 4
9/7/2000
Decision PROPOSED DECISION OF ALJ STALDER (Mailed 8/8/2000)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
In the Matter of the Application of San Diego Gas & Electric Company for Authority to Increase its Gas and Electric Revenue Requirements to Reflect its Accomplishments for Demand-Side Management Program Years 1994 and 1997, Energy Efficiency Program Year 1998, Low Income Program Year 1998, and to Address Policy and Procedural Issues for future Program Years 1999 through 2001 in the 1999 Annual Earning Assessment Proceeding ("AEAP"). |
Application 99-05-002 (Filed May 3, 1999) |
|
And Related Matters. |
Application 99-05-005 (Filed May 3, 1999) Application 99-05-007 (Filed May 3, 1999) Application 99-05-008 (Filed May 3, 1999) |
(See Attachment H for List of Appearances.)
Table of Contents
Title Page
OPINION 2
Summary 2
Background 3
Hearings 4
Issues 5
Positions of Parties on Remaining Issues 7
Discussion 17
Earnings Claims 32
PY 1994- 3rd Earnings Claim for Rates in 2000 32
PY 1997- 2nd Earnings Claim for Rates in 2000 33
PY 1997- 1st Earnings Claim for Rates in 2000 34
PY 1998- 1st Earnings Claim for pre-98 Program Commitments Paid in 98 34
PY 1998 LIEE 1st Earnings Claim for Rates in 2000 34
Ratemaking 35
Findings of Fact 35
Conclusions of Law 38
ORDER 38
Attachment A Case Management Statement
Attachment B Joint Amendment to Case Management Statement
Attachment C Joint Recommendation PY 2000 LIEE
Attachment D "E" - Tables SDG&E
Attachment E "E" - Tables SoCal
Attachment F "E" - Tables PG&E
Attachment G "E" - Tables Edison
Attachment H List of Appearances
Summary
This Phase 2 decision addresses shareholder incentive claims for pre-1998 Demand-Side Management (DSM) activities and 1998 and later energy efficiency programs. At issue are verification of the program costs, benefits, and shareholder incentives, consistent with Commission DSM protocols and prior Annual Energy Assessment Proceeding (AEAP) decisions.
This Phase 2 decision adopts the Case Management Statement (CMS) sponsored by the Office of Ratepayer Advocates (ORA), San Diego Gas & Electric Company (SDG&E), Southern California Gas Company (SoCal), Pacific Gas and Electric Company (PG&E), Southern California Edison Company (Edison), and the Residential Energy Efficiency Clearing House, Inc. (REECH). The CMS resolves the shareholder incentive claims for DSM program years (PY) pre-1998 commitments completed in 1998, the first earnings claim of SoCal for PY 1997 DSM programs, the second earnings claim for PY 1997 DSM programs, and the third earnings claim for PY 1994 DSM programs.
The Joint Recommendation on the PY 2000 Low Income Energy Efficiency (LIEE) Shareholder Incentive Mechanism (Joint Recommendation) resolves the PY 2000 low-income shareholder incentive issues and is adopted.
The PY 2000 LIEE shareholder incentives are split, with 25% available for mandatory programs and 75% available for non-mandatory programs. These shareholder incentives will be collected in two installments. The first half will be collected after evaluation in an AEAP proceeding following the PY 2000 program and the second half will be collected after evaluation in an AEAP proceeding following completion of the programs. The utilities are allowed to determine their own non-mandatory measures eligible under the 75% portion. The evaluation after program completion will not affect the incentives, but rather will be used to guide future program development.
The timing and amounts of PY 1998 non LIEE shareholder incentives are the remaining contested issues. The PY 1998 shareholder incentives requested by the utilities are approved with the following exceptions:
_ PG&E's shareholder incentive for the 26-MS2 lighting controls program is reduced by half to $16,500.
_ PG&E's shareholder incentive for Energy Management Services (EMS) No. 2 for residential single family is reduced by half to $82,500.
The collection period for PY 1998 shareholder incentives is one year, subject to future true-up since certain of the programs in this record are commitments that may not materialize. Therefore, the true-up will compare program commitments to recorded programs, and the results will be addressed in a future AEAP.
