III. Background

Decision (D.) 03-01-038 stated our intention to allocate $202.826 million to utilities for statewide and local programs administered in 2002 and up to $20 million for statewide marketing and outreach programs, and $10.5 million for evaluation, measurement and verification (EM&V) of utility programs and other studies. We further stated we would address the funding and the nature of the studies with our final approval of the utilities' 2003 programs.

D.03-01-038 continued funding for energy efficiency programs in the same categories as those set forth in D.01-11-066 for 2002: residential retrofit, residential new construction, nonresidential retrofit, nonresidential new construction, and "cross-cutting" programs (that is, those whose elements cut across other programs). The order defined statewide programs as those that would have identical terms and requirements, such as procedures and financial incentives, for all utilities. The order stated an intent to continue 2002 local programs into 2003 if those programs were demonstrably successful and in demand.

For 2003, each utility provided an estimate of PGC funds available for energy efficiency programs, that is, a forecast of future revenues plus funds left over from previous years including interest. Each utility proposed ways to allocate funds to various program categories. D.03-01-038 permitted competitive bidding for statewide marketing and outreach programs and suggested increased funding up to $20 million, depending on the quality of proposals.

D.03-01-038 also authorized the utilities to continue funding 2002 programs through March 31, 2003.