VIII. Accounting and Administration
A. Cost Accountability and Budget Authority
1. Separate Electric Accounts
Within 30 days of the date of this decision, SDG&E, SCE and PG&E shall each establish a separate interest-bearing bank account for funds collected from the rates for their electric energy efficiency public purpose programs. Within 45 days of the date of this decision, they shall deposit those funds monthly, including those already collected, into the accounts and report associated account activity to Commission staff as part of their current energy efficiency public purpose charge accounting. These energy efficiency accounts shall be insured by the FDIC and held in trust for the Commission on behalf of the ratepayers in the event that a utility becomes unable to fulfill its energy efficiency associated financial responsibilities.
The establishment of these accounts will protect utility customers from bankruptcy and fraud protection, and enhance financial accountability. Separate accounts will also bring the utilities further into compliance with the recently approved Energy Resolution, E-3792, which addresses how public purpose charge funding should be collected, expended and adjusted for inflation.
2. Tracking Expenditures
This decision changes the current practice permitting the utilities to recover estimated expenditures associated with administration of energy efficiency programs. Instead, the utilities will qualify only for actual and verifiable expenses associated with specific programs. The Commission may make exceptions; for example, to avoid incentives or impose penalties. The utilities shall retain chronological paper and electronic records for both gas and electric energy efficiency programs.
B. Information and Training Programs-Accountability
D.01-11-066 committed us to scrutinize program results of marketing and outreach programs, and local programs that emphasize information and training. The order did not provide for a 15% holdback during the contract term. If the final quarterly reports do not demonstrate project success, the final quarterly payment may be subject to refund if the lack of success is due to the provider's failure to take reasonable steps to meet its program goals. This provision promotes additional accountability for programs that are less likely than other programs to be cost-effective.
C. Shifting of Funds
Utilities may shift program funds across program categories only as set forth in this section. Within the following categories, the utilities may shift no more than 10% of one program's funds into another program in the same category. A utility may only make the shift if and when it appears that, after substantial efforts, it would otherwise be unable to use the program funding for the intended purpose.
Categories:
1. Statewide Residential Retrofit
2. Statewide Residential New Construction
3. Statewide Nonresidential Retrofit
4. Statewide Nonresidential New Construction
5. Statewide Cross-Cutting (except Codes and Standards Advocacy)
The utilities shall prominently disclose any such program fund shifting in their quarterly reports. If the utilities discover that they cannot adhere to this limitation, they may make a motion to the assigned ALJ, to whom we delegate authority to alter the 10% limitation where proven necessary for program success or to avoid program failure.
D. Commission Cost Reimbursement
Consistent with the State Budget Act, the utilities shall reimburse the Commission $292,000 for its energy efficiency operating costs as follows: PG&E - 30%, SCE - 30%, SDG&E - 15%, and SCG - 25%.
