X. Assignment of Proceeding

Loretta M. Lynch is the Assigned Commissioner and Kim Malcolm is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. The purpose of this proceeding is to allocate funds for the continuation of energy efficiency programs and evaluation of them for 2003.

2. The utilities and some parties proposed minor modifications to existing programs for 2003.

3. The proposal of PG&E and the City of San Francisco to allocate $16.3 million to San Francisco may ultimately address the city's specific energy requirements and circumstances but, as presented herein, the total amount is not justified on the basis of costs or benefits, and does not provide adequate program or budget detail. A more reasonable amount for initial funding is $8 million.

4. Twenty-one of the 28 marketing and outreach proposals submitted in this proceeding do not meet the Commission's criteria for funding. Of the seven remaining proposals, three present exceptional proposals, present complementary proposals, and demonstrate requisite experience and skills.

5. The proposal of EP and utilities for the Commission to fund a new nonprofit corporation that would facilitate and coordinate statewide programs is not responsive to our solicitation for marketing and outreach programs, and may have significant implications for program administration. The proposal does not provide enough information about activities, budgets, or work products to justify requested funding.

6. EP and utilities propose a marketing and outreach effort that builds on past success with "Flex Your Power" and targets English and Asian-speaking populations.

7. Univision proposes a marketing and outreach effort that builds on past success in Spanish-speaking communities.

8. RS&E and remaining program proponents propose marketing and outreach efforts that would duplicate the work of program proponents with more experience and existing marketing products.

9. RS&E proposes a low-income and rural outreach program that complements the adopted marketing proposals of EP and Univision.

10. The evaluation and audit of energy efficiency programs and spending will assure funds are properly spent and programs are effective.

11. The development of software to monitor energy efficiency data will promote the efficient and effective management of energy efficiency programs and funding.

12. Separate accounts for energy efficiency program funds will promote financial accountability and protect consumers and programs from the effects of bankruptcy and fraud.

13. Limiting the ability of utilities to shift funds between programs is consistent with the Commission's duty to oversee program funding and promote cost-effective and fair programs.

14. Assigning one utility to administer certain program elements promotes consistency and efficiency in program management. Edison has assumed this role for the programs that are the subject of this proceeding.

Conclusions of Law

1. Energy efficiency programs should be modified to the extent those modifications would promote more cost-effective programs, increased participation, or fairness.

2. The Commission should adopt the program funding and modifications set forth in Attachment 1.

3. The Commission should allocate $8 million to the City of San Francisco for energy efficiency programs tailored to its circumstances. PG&E should file a needs assessment and program proposal as part of its quarterly evaluation, as set forth herein, copied to the assigned ALJ and energy efficiency staff.

4. The Commission should allocate funding to those marketing and outreach proposals that are most likely to be successful, that target the broadest audience and complement each other.

5. The Commission should consider proposals for changes in program administration and EP's proposal for a new nonprofit corporation in that context.

6. The Commission should allocate funding for marketing and outreach programs to EP, Univision and RS&E as set forth in this decision.

7. Public Utilities Code Section 381 directs the Commission to supervise the spending of public goods charge and thereby authorizes the Commission to contract with experts to evaluate program implementation and verify spending.

8. The Commission should evaluate and audit energy efficiency programs and spending for the period l998-2002 as set forth herein.

9. The Commission should evaluate and audit energy efficiency programs and spending in 2003 as set forth herein.

10. The Commission should update avoided costs and assess externalities to reflect the societal costs of energy.

11. The utilities should account for energy efficiency funds and provide related data to the Commission as set forth herein.

12. The utilities' authority to shift funds between programs should be limited as set forth herein.

13. Edison should continue to administer certain program elements for all utilities, as set forth herein.

INTERIM ORDER

IT IS ORDERED that:

1. We approve the statewide energy efficiency programs for 2003 as set forth in Attachment 1 to this decision. Those programs apply to Pacific Gas and Electric Company (PG&E), Southern California Edison Company (Edison), San Diego Gas & Electric Company (SDG&E), and Southern California Gas Company (SoCalGas). Those investor-owned utilities (IOU) and third parties chosen to receive funding shall be eligible for no more than the amounts awarded. Program payments shall be contingent on reasonable program performance.

2. All statewide marketing and outreach programs receiving funding shall file and serve, within 60 days from the date the Commission approves this decision, Program Implementation Plans (Plans) for each funded program. Each party shall also post their Plans on their websites in a prominent and easy-to-find location. At a minimum, the Plans shall contain the following information:

a. Title of individual program

b. Plans to implement this decision's changes to original proposals

c. Revised energy and peak demand savings targets, as well as per-unit energy savings and unit-count projections, as applicable

d. Revised cost-effectiveness calculations, as applicable

e. For information-only proposals with no energy savings targets, other objective measures for evaluating program progress

f. Hard-to-reach targets and goals. Where this decision does not specify such targets and goals, the program implementer should define them in its Plan. Where this decision specifies such targets and goals, they should be included in the Plan.

g. Budget (in the format and following the guidelines set forth in the body of this decision).

3. No party shall delay program commencement or preparation pending submission of or Commission action on these plans.

4. Where third parties receive funding, Edison shall administer third-party contracts. Funded parties shall file and serve required Program Implementation Plans and shall not be eligible to receive funding prior to such submission.

5. Companies awarded funding for marketing and outreach efforts shall consult with utility energy efficiency program managers and each other to coordinate the timing of statewide and utility messages and programs.

6. The utilities shall work together to market their statewide programs. To the extent the utilities offer the same programs, they shall advertise them together. Program Implementation Plans and quarterly reports shall describe utility efforts to coordinate programs. Utilities shall focus all PGC-funded marketing for programs in this decision on energy efficiency messages.

7. Providers of information and training programs shall not be entitled to retain their final quarterly payments unless the Commission or the assigned Commissioner accepts their final quarterly reports. "Acceptance" requires that the Commission, assigned Commissioner or ALJ indicate satisfaction that the provider has acted reasonably in attempting to meet program goals. This requirement is in addition to any other requirement of this decision. With their final quarterly reports, program providers shall submit sufficient documentation for the Commission to determine whether the program has met its goals. Program providers, including third parties, shall prominently post all quarterly reports on their respective websites.

10. Utilities shall not shift program funds across program categories except as set forth herein. Within the following categories, the utilities may shift up to 10% of one program's funds into another program in the same category. The utility may only shift funding in cases where the IOU will be unable to use the program funding for the intended purpose.

Categories:

a. Statewide Residential Retrofit

b. Statewide Residential New Construction

c. Statewide Nonresidential Retrofit

d. Statewide Nonresidential New Construction

e. Statewide Cross-Cutting (except Codes and Standards Advocacy)

11. The utilities shall prominently disclose any such program fund shifting in their quarterly reports. Utilities shall file a motion to modify the 10% limitation if necessary for program success or to avoid program failure. We herein delegate authority to the assigned ALJ to resolve such motions.

12. Each utility shall establish separate accounts for energy efficiency program funds as set forth herein.

13. The utilities shall reimburse the Commission for consulting costs associated with program evaluation and measurement and shall cooperate with Commission staff and consultants on all such audits and studies, as described herein.

14. PG&E shall file an advice letter within 20 days of the effective date of this order which includes a program proposal and needs assessment for energy efficiency programs in the City of San Francisco, as set forth in this decision. The plan shall include a budget for spending $8 million. The advice letter shall include a draft resolution for the Commission's consideration and shall be served on all parties to this proceeding for comment.

15. Customer Incentive Adjustments - The IOUs shall not increase the dollar amounts of individual customer incentives above those approved in this decision and as filed in their approved Program Implementation Plans without securing prior Commission approval. They may, however, lower customer incentives at

their discretion and within five business days of doing so shall file notice with designed Commission staff and the R.01-08-028 service list indicating which incentives were decreased along with a list of the affected programs. Any requests for increases to customer incentive amounts shall be filed by Advice Letter to the attention of the Energy Efficiency Section and served on the R.01-08-028 service list. Any such Advice Letters should be filed in a timely manner, so as not to require a shortening of the comment period.

This order is effective today.

Dated , at San Francisco, California.

ATTACHMENT 1

PROGRAM BUDGETS AND ENERGY SAVINGS TARGETS

Table 1. Authorized Program Budgets

SDG&E

SoCalGas

SCE

PG&E

Total

Statewide Programs

Residential Retrofit Programs

Appliance Recycling

$1,000,000

$0

$6,000,000

$2,090,000

$9,090,000

Single Family Energy Efficiency Rebates

$3,979,000

$2,880,965

$6,000,000

$14,500,000

$27,359,965

Multi Family Energy Efficiency Rebates

$1,867,000

$1,657,310

$2,000,000

$3,200,000

$8,724,310

Home Energy Efficiency Surveys

$250,000

$145,803

$1,295,654

$1,508,000

$3,199,457

Residential Retrofit Sub-Total

$7,096,000

$4,684,078

$15,295,654

$21,298,000

$48,373,732

Residential New Construction Programs

CA Energy Star New Homes Program - SF, MF

$2,562,000

$1,615,311

$5,000,000

$10,259,000

$19,436,311

Nonresidential Retrofit Programs

Standard Performance Contract

$5,760,000

$0

$13,700,000

$22,957,000

$42,417,000

Express Efficiency

$3,364,000

$3,182,410

$7,000,000

$12,345,000

$25,891,410

Nonresidential Energy Audit

$871,000

$2,665,150

$2,200,000

$4,550,000

$10,286,150

Building Operator Certification and Training

$150,000

$142,099

$500,000

$301,000

$1,093,099

Nonresidential Retrofit Sub-Total

$10,145,000

$5,989,659

$23,400,000

$40,153,000

$79,687,659

Nonresidential New Construction Programs

Savings by Design

$3,912,000

$2,156,966

$8,900,000

$14,296,000

$29,264,966

Statewide Crosscutting Programs

Education and Training

$1,369,000

$1,884,310

$4,700,000

$1,402,966

$9,356,276

Codes & Standards Advocacy

$100,000

$137,061

$1,150,000

$1,386,000

$2,773,061

Upstream Residential Lighting

$1,920,000

$0

$2,000,000

$9,983,000

$13,903,000

Emerging Technologies

$125,500

$769,124

$850,000

$457,500

$2,202,124

Statewide Crosscutting Sub-Total

$3,514,500

$2,790,495

$8,700,000

$13,229,466

$28,234,461

IOU Statewide Programs Subtotal

$27,229,500

$17,236,509

$61,295,654

$99,235,466

$204,997,129

Statewide Marketing and Outreach

Efficiency Partnership/IOUs

$1,637,072

$1,177,690

$3,928,018

$5,189,232

$11,932,012

Runyon Saltzman & Einhorn

$344,023

$247,486

$825,456

$1,090,494

$2,507,459

Univision Television Group

$274,400

$197,400

$658,400

$869,800

$2,000,000

Statewide Marketing Campaigns Subtotal

$2,255,495

$1,622,576

$5,411,874

$7,149,526

$16,439,471

STATEWIDE PROGRAMS TOTAL

$29,484,995

$18,859,085

$66,707,528

$106,384,992

$221,436,600

Local IOU Programs

Residential

In Home Audits/Surveys

$187,000

$750,000

$937,000

Hard to Reach Lighting Turn In

$539,000

$539,000

Nonresidential

Nonresidential Financial Incentives

$1,053,740

$1,053,740

Small Business Energy Assessments

$519,000

$519,000

Nonresidential EZ Turnkey

$1,120,000

$1,120,000

Small Nonresidential Hard to Reach

$1,400,000

$1,400,000

Pump Test And Hydraulic Services

$1,350,000

$1,350,000

Crosscutting

Diverse Markets Outreach

$1,148,680

$1,148,680

Demonstration & Information Transfer

$500,000

$500,000

Local Government Initiative

$950,000

$950,000

Local - Codes and Standards

$160,000

$66,700

$226,700

Energenius

$514,000

$514,000

Schools Resource Program

$1,028,000

$1,028,000

PEC

$3,120,000

$3,120,000

LOCAL IOU PROGRAMS TOTAL

$2,525,000

$2,202,420

$5,016,700

$4,662,000

$14,406,120

GRAND TOTAL

$32,009,995

$21,061,505

$71,724,228

$111,046,992

$235,842,720

Table 2a. Energy Savings Targets and Budgets for PG&E Programs

Program

2003

2003

Authorized

Program Targets

Program Budget

kWh

kW

Therms

Statewide Programs

Residential Retrofit Programs

Residential Appliance Recycling

$2,090,000

12,880,360

2,010

n/a

Single Family Energy Efficiency Rebates

$14,500,000

16,248,597

22,217

3,250,342

Multi Family Energy Efficiency Rebates

$3,200,000

3,092,358

845

281,696

Home Energy Efficiency Surveys

$1,508,000

n/a

n/a

n/a

Residential New Construction Programs

CA Energy Star New Homes Program

$10,259,000

1,811,520

1,958

1,339,200

Nonresidential Retrofit Programs

Standard Performance Contract

$22,957,000

64,160,286

7,694

2,685,333

Express Efficiency

$12,345,000

137,000,000

25,000

1,600,000

Nonresidential Energy Audit

$4,550,000

n/a

n/a

n/a

Building Operator Certification and Training

$301,000

n/a

n/a

n/a

Nonresidential New Construction Programs

Savings by Design

$14,296,000

48,000,000

17,278

380,000

Statewide Crosscutting Programs

Education and Training

$1,402,966

n/a

n/a

n/a

Codes & Standards Advocacy

$1,386,000

n/a

n/a

n/a

Upstream Residential Lighting

$9,983,000

210,306,440

26,078

n/a

Emerging Technologies

$457,500

n/a

n/a

n/a

PG&E Statewide Programs Total

$99,235,466

493,499,561

103,080

9,536,571

Local Programs

Crosscutting

Energenius

$514,000

n/a

n/a

n/a

Schools Resource Program

$1,028,000

n/a

n/a

n/a

PEC

$3,120,000

n/a

n/a

n/a

PG&E Local Programs Total

$4,662,000

n/a

n/a

n/a

PG&E Programs Total

$ 103,897,466

493,499,561

103,080

9,536,571

Table 2b. Energy Savings Targets and Budgets for SCE Programs

Program

2003

2003

Authorized

Program Targets

Program Budget

kWh

kW

Statewide Programs

Residential Retrofit Programs

Appliance Recycling

$6,000,000

38,618,794

5,987

Single Family Energy Efficiency Rebates

$6,000,000

17,025,886

11,803

Muti Family Energy Efficiency Rebates

$2,000,000

3,989,157

314

Home Energy Efficiency Surveys

$1,295,654

n/a

n/a

Residential New Construction Programs

CA Energy Star New Homes

$5,000,000

4,139,200

4,382

Nonresidential Retrofit Programs

Standard Performance Contract

$13,700,000

71,656,875

14,724

Express Efficiency

$7,000,000

71,869,000

15,000

Nonresidential Energy Audit

$2,200,000

n/a

n/a

Building Operator Certification and Training

$500,000

n/a

n/a

Nonresidential New Construction Programs

Savings by Design

$8,900,000

42,812,895

7,818

Statewide Crosscutting Programs

Education and Training

$4,700,000

n/a

n/a

Codes & Standards Advocacy

$1,150,000

n/a

n/a

Upstream Residential Lighting

$2,000,000

34,959,185

4,913

Emerging Technologies

$850,000

n/a

n/a

SCE Statewide Programs Total

$61,295,654

285,070,991

64,942

Local Programs

Residential

Residential In-Home Survey

$750,000

n/a

n/a

Nonresidential

Small Nonresidential Hard to Reach

$1,400,000

5,216,208

1,134

Pump Test And Hydraulic Services

$1,350,000

n/a

n/a

Crosscutting

Demonstration & Information Transfer

$500,000

n/a

n/a

Local Government Initiative

$950,000

n/a

n/a

Codes & Standards

$66,700

n/a

n/a

SCE Local Programs Total

$5,016,700

5,216,208

1,134

SCE Programs Total

$ 66,312,354

290,287,199

66,076

Table 2c. Energy Savings Targets and Budgets for SDG&E Programs

Program

2003

2003

Authorized

Program Targets

Program Budget

kWh

kW

Therms

Statewide Programs

Residential Retrofit Programs

Appliance Recycling

$1,000,000

6,044,371

920

-

Single Family Energy Efficiency Rebates

$3,979,000

8,332,654

4,038

476,998

Muti Family Energy Efficiency Rebates

$1,867,000

2,687,523

353

368,153

Home Energy Efficiency Surveys

$250,000

Residential New Construction Programs

CA Energy Star New Homes Program

$2,562,000

1,709,204

1,835

98,320

Nonresidential Retrofit Programs

Standard Performance Contract

$5,760,000

15,831,723

1,972

257,876

Express Efficiency

$3,364,000

51,363,655

9,722

608,596

Nonresidential Energy Audit

$871,000

Building Operator Certification and Training

$150,000

Nonresidential New Construction Programs

Savings by Design

$3,912,000

14,980,303

2,891

196,083

Statewide Crosscutting Programs

Education and Training

$1,369,000

Codes & Standards Advocacy

$100,000

Upstream Residential Lighting

$1,920,000

28,149,611

3,981

-

Emerging Technologies

$125,500

SDG&E Statewide Programs Total

$27,229,500

129,099,044

25,711

2,006,025

Local Programs

Residential

In Home Audits

$187,000

Hard to Reach Lighting Turn In

$539,000

2,850,295

448

-

Nonresidential

Small Business Energy Assessments

$519,000

Nonresidential EZ Turnkey

$1,120,000

3,296,099

624

-

Crosscutting

Energy Code Training Program

$160,000

SDG&E Local Programs Total

$2,525,000

6,146,394

1,072

-

SDG&E Programs Total

$31,201,000

133,742,902

26,675

2,006,025

Table 2d. Energy Savings Targets and Budgets for SoCalGas Programs

Program

2003

2003

Proposed

Proposed Program Targets

Program Budget

kWh

KW

Therms

Statewide Programs

Residential Retrofit Programs

Residential Appliance Recycling

Single Family Energy Efficiency Rebates

$2,880,965

2,675,121

758

952,328

Muti Family Energy Efficiency Rebates ⁽¹⁾

$1,657,310

1,695,044

1,863

755,503

Home Energy Efficiency Surveys ⁽¹⁾

$145,803

Residential New Construction Programs

CA Energy Star New Homes Program

$1,615,311

1,036,682

1,112

145,845

Nonresidential Retrofit Programs

Standard Performance Contract

Express Efficiency

$3,182,410

17,086

-

2,162,482

Nonresidential Energy Audit

$2,665,150

Building Operator Certification and Training

$142,099

Nonresidential New Construction Programs

Savings by Design

$2,156,966

8,554,703

1,651

111,976

Statewide Crosscutting Programs

Education and Training

$1,884,310

Codes & Standards Advocacy

$137,061

Upstream Residential Lighting

Emerging Technologies

$769,124

SoCalGas Statewide ProgramsTotal

$17,236,509

13,978,635

5,383

4,128,133

Local Programs

Residential

Nonresidential

Nonresidential Financial Incentives

$1,053,740

-

-

1,453,639

Crosscutting

Local - Diverse Markets Outreach

$1,148,680

SoCalGas Local ProgramsTotal

$2,202,420

-

-

1,453,639

SoCalGas Programs Total

$19,438,929

13,978,635

5,383

5,581,772

(END OF ATTACHMENT 1)

ATTACHMENT 2

PROGRAM DESCRIPTIONS

(END OF ATTACHMENT 2)

(in a separate document)

ATTACHMENT 3

STATEWIDE MARKETING/OUTREACH

PROGRAM PROPOSALS REJECTED

PROPOSER

TITLE

REASON FOR REJECTION

1

ADM Associates, Inc.

Statewide Nonresidential Hard-to-Reach Mobile Energy Workshops

This is training and education program for businesses through informal workshops in strip mall shopping centers. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate business owners fit the local program category. The campaign targets only a specific customer group and does not use mass advertising.

2

ASW Engineering

SOS: Small Business Outreach Seminars

This is an education program for small businesses and contractors through seminars. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate businesses and contractors fit the local program category. The campaign targets only a specific customer group and does not use mass advertising.

3

Cohen Ventures, Inc., dba Energy Solutions

Install the Savings: Statewide Mass Market Campaign

This is training and education program for salespersons and contractors through direct mail campaign. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate business owners fit the local program category. The campaign targets limited customer groups and does not use mass advertising.

4

Electric & Gas Industries Association

A Proposal to Develop & Administer A Cooperative Advertising Program For Manufactures, Distributors, Retailers and Installers of Energy Efficient Appliances and Home Improvement Products

This is an incentive program to encourage appliance manufacturers, distributors and retailers and home improvement contractors to promote products that meet Energy Star standard. The proposal is unclear and incomplete. Electric & Gas Industries plans to provide its program features and benefits, program guidelines and participating requirements when its proposal is selected for funding The program proposal targets limited customer groups and does not propose any mass advertising.

5

EnSave Energy Performance, Inc.

California Agriculture Energy Information Program

This is an education program for farmers through direct mail campaign. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate fit the local program category. The campaign targets a specific customer group and does not use mass advertising.

6

FMG Marketing and InSync

Vertical Market Advertising Strategy for Specific Hard-to-reach Small Businesses

This is an education program for owners of hotels/motels, restaurants and grocery stores through magazines specific to industries, seminars and endorsement letters from industry leaders. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate business owners fit the local program category. The campaign targets limited customer group and does not use mass advertising.

7

FMG Marketing and InSync Inc

Vertical Market Advertising Strategy for Targeted Hard-to-reach Small Vendors

This is training and education program for vendors of lighting, HVAC, refrigeration, motors, food service and windows through magazines specific to business supplemented by direct mail and seminars. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate business owners fit the local program category. The campaign targets upstream providers instead of end user customers and does not use mass advertising.

8

Geothermal Heat Pump Consortium

California Geoexchange Mass-Marketing and Consumer Outreach Program

This is training and education program for building owners, architects and engineers through already developed brochures, research reports supplemented by newspaper, radio, workshops and training. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate businesses and to promote a specific technology fit the local program category. Besides being a duplicate of currently ongoing local program, this proposal targets a very specific customer group and promotes the use of a specific technology - geothermal heat pumps.

9

Global Energy Services, Inc.

Statewide Chinese Language Efficiency Outreach Program, under the "2003 Energy Efficiency Program Selection

This is a program is designed to target Chinese consumers through radio, TV, newspapers and workshops. This program is a duplicate of a currently ongoing local program funded through PGC funds for years 2002-2003.

10

Greenlining Institute and Latino Issues Forum

Marketing and Outreach Efforts for Statewide Energy Efficiency Programs

Greenlining does not describe any program proposal and does not indicate any budget in its submittal.

11

IW Group, Inc.

Energy Efficiency for Asian Pacific Americans in California

This is training and education program for Asian Pacific American businesses through open letter endorsements by elected officials and seminars by Asian Chamber of Commerce. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate business owners fit the local program category. The campaign targets only a specific customer group and does not use mass advertising.

12

Local Government Commission

Statewide Redevelopment Agency Outreach

This is training and education program for developers, building managers and small commercial business owners through printed brochures and technical seminars. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate business owners fit the local program category. The campaign targets very specific customer group and does not use mass advertising.

13

Local Government Commission

Statewide Local Government Outreach to Residents and Businesses

This is training and education program for redevelopment agencies of cities and counties. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate fit the local program category. The campaign targets very specific customer group and does not use mass advertising.

14

National Center for Appropriate Technology

California Farm Energy Clearinghouse

This is training and education program for Latino small farmers and growers through radio, newspaper, internet and meetings. The campaign is concentrated in the counties of Fresno, Merced, Kern, Tulare and Monterey areas. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate fit the local program category. The campaign targets a specific customer group and limited geographic areas.

15

Organizational Support Services (OSS)

Statewide Energy Efficiency Mobile Education Unit

This proposal is designed to target residential customers in four IOU territories through the use a traveling motor home with built-in Energy Star appliances and lighting. OSS plans to interact with customers on a one-to-one basis. This proposal does not meet mass marketing criteria (use of a medium or vehicle reaching mass audience at a time); this proposal fits the local program category.

16

Partnership for Environmental Progress (PEP)

Energy Efficiency Education Program

This proposal is designed to target the Hispanic community through radio ads and to distribute CFLs during community events. PEP plans to launch its campaign in Southern California only. This proposal is regional focused instead of statewide.

17

RRW Consulting

Targeting Hard-to-Reach Customers Through a Strategic Direct Marketing

This proposal is designed to target residential and nonresidential customers through direct mail campaign. Direct mail campaign is not mass marketing; this program fits the local program category.

18

Strategic Energy Innovations

The CA Multifamily Consortium - A Networked Approach to Outreach and Marketing

This is training and education program for housing managers/owners/developers, service firms, and tenant/housing associations by engaging 10 associations to conduct marketing/outreach. It is unclear how the associations will conduct marketing/outreach. It plans to distribute fact sheets, articles and conduct presentations and meetings. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate fit the local program category; the distribution of fact sheets and conducting presentations do not constitute mass advertising. The campaign targets a very specific customer group.

19

Target Directions, Inc.

California Energy Efficiency Center

Target Directions plans to provide toll-free phone line (24 hrs/day) with live energy efficiency advisors during regular business hours. Advisors would provide information on materials, tools, events and activities relating to energy efficiency. It assumes that IOUs will do marketing and outreach. It does not propose any marketing and outreach activities.

20

United Illuminating

eesmarts: An Energy Efficiency Education Outreach Program, Grades K to 3

This proposal is designed to distribute Dinobooks to K-3 students to increase students' awareness on energy efficiency. It is unclear how the books will educate or inform students. There is no timeline, a requirement for submitting proposals. It assumes that IOUs will do marketing activities for United. We are already funding local programs targeted at students and school districts.

21

Young Communications Group, Inc.

"SHARE THE POWER" -- Reaching the African American Residential Market

This proposal is designed to target African-Americans through development of media relations. For example, it would photograph participants and submit photo to media. It also plans to do poster/billboard campaigns wherein K-6 students may submit posters and the winning posters would travel from school to school. Providing posters and billboards to schools do not meet mass advertising; could be duplicative of local school programs already funded for 2003.

(END OF ATTACHMENT 3)

Malcolm Comment Dec. Attachment 2 - Program Descriptions

	SDG&E	SoCalGas	SCE	PG&E	Total
Statewide Programs
*Residential Retrofit Programs*
Appliance Recycling	$1,000,000	$0	$6,000,000	$2,090,000	$9,090,000
Single Family Energy Efficiency Rebates	$3,979,000	$2,880,965	$6,000,000	$14,500,000	$27,359,965
Multi Family Energy Efficiency Rebates	$1,867,000	$1,657,310	$2,000,000	$3,200,000	$8,724,310
Home Energy Efficiency Surveys	$250,000	$145,803	$1,295,654	$1,508,000	$3,199,457
Residential Retrofit Sub-Total	$7,096,000	$4,684,078	$15,295,654	$21,298,000	$48,373,732

Residential New Construction Programs
CA Energy Star New Homes Program - SF, MF	$2,562,000	$1,615,311	$5,000,000	$10,259,000	$19,436,311

*Nonresidential Retrofit Programs*
Standard Performance Contract	$5,760,000	$0	$13,700,000	$22,957,000	$42,417,000
Express Efficiency	$3,364,000	$3,182,410	$7,000,000	$12,345,000	$25,891,410
Nonresidential Energy Audit	$871,000	$2,665,150	$2,200,000	$4,550,000	$10,286,150
Building Operator Certification and Training	$150,000	$142,099	$500,000	$301,000	$1,093,099
Nonresidential Retrofit Sub-Total	$10,145,000	$5,989,659	$23,400,000	$40,153,000	$79,687,659

*Nonresidential New Construction Programs*
Savings by Design	$3,912,000	$2,156,966	$8,900,000	$14,296,000	$29,264,966

*Statewide Crosscutting Programs*
Education and Training	$1,369,000	$1,884,310	$4,700,000	$1,402,966	$9,356,276
Codes & Standards Advocacy	$100,000	$137,061	$1,150,000	$1,386,000	$2,773,061
Upstream Residential Lighting	$1,920,000	$0	$2,000,000	$9,983,000	$13,903,000
Emerging Technologies	$125,500	$769,124	$850,000	$457,500	$2,202,124
Statewide Crosscutting Sub-Total	$3,514,500	$2,790,495	$8,700,000	$13,229,466	$28,234,461

IOU Statewide Programs Subtotal	$27,229,500	$17,236,509	$61,295,654	$99,235,466	$204,997,129

*Statewide Marketing and Outreach*
Efficiency Partnership/IOUs	$1,637,072	$1,177,690	$3,928,018	$5,189,232	$11,932,012
Runyon Saltzman & Einhorn	$344,023	$247,486	$825,456	$1,090,494	$2,507,459
Univision Television Group	$274,400	$197,400	$658,400	$869,800	$2,000,000
Statewide Marketing Campaigns Subtotal	$2,255,495	$1,622,576	$5,411,874	$7,149,526	$16,439,471

*STATEWIDE PROGRAMS TOTAL*	$29,484,995	$18,859,085	$66,707,528	$106,384,992	$221,436,600

Local IOU Programs
Residential
In Home Audits/Surveys	$187,000		$750,000		$937,000
Hard to Reach Lighting Turn In	$539,000				$539,000
Nonresidential
Nonresidential Financial Incentives		$1,053,740			$1,053,740
Small Business Energy Assessments	$519,000				$519,000
Nonresidential EZ Turnkey	$1,120,000				$1,120,000
Small Nonresidential Hard to Reach			$1,400,000		$1,400,000
Pump Test And Hydraulic Services			$1,350,000		$1,350,000
Crosscutting
Diverse Markets Outreach		$1,148,680			$1,148,680
Demonstration & Information Transfer			$500,000		$500,000
Local Government Initiative			$950,000		$950,000
Local - Codes and Standards	$160,000		$66,700		$226,700
Energenius				$514,000	$514,000
Schools Resource Program				$1,028,000	$1,028,000
PEC				$3,120,000	$3,120,000

*LOCAL IOU PROGRAMS TOTAL*	$2,525,000	$2,202,420	$5,016,700	$4,662,000	$14,406,120

*GRAND TOTAL*	$32,009,995	$21,061,505	$71,724,228	$111,046,992	$235,842,720


Program	2003	2003
	Authorized	Program Targets
	Program Budget	kWh	kW	Therms
Statewide Programs
Residential Retrofit Programs
Residential Appliance Recycling	$2,090,000	12,880,360	2,010	n/a
Single Family Energy Efficiency Rebates	$14,500,000	16,248,597	22,217	3,250,342
Multi Family Energy Efficiency Rebates	$3,200,000	3,092,358	845	281,696
Home Energy Efficiency Surveys	$1,508,000	n/a	n/a	n/a

Residential New Construction Programs
CA Energy Star New Homes Program	$10,259,000	1,811,520	1,958	1,339,200

Nonresidential Retrofit Programs
Standard Performance Contract	$22,957,000	64,160,286	7,694	2,685,333
Express Efficiency	$12,345,000	137,000,000	25,000	1,600,000
Nonresidential Energy Audit	$4,550,000	n/a	n/a	n/a
Building Operator Certification and Training	$301,000	n/a	n/a	n/a

Nonresidential New Construction Programs
Savings by Design	$14,296,000	48,000,000	17,278	380,000

Statewide Crosscutting Programs
Education and Training	$1,402,966	n/a	n/a	n/a
Codes & Standards Advocacy	$1,386,000	n/a	n/a	n/a
Upstream Residential Lighting	$9,983,000	210,306,440	26,078	n/a
Emerging Technologies	$457,500	n/a	n/a	n/a
PG&E Statewide Programs Total	$99,235,466	493,499,561	103,080	9,536,571

Local Programs
Crosscutting
Energenius	$514,000	n/a	n/a	n/a
Schools Resource Program	$1,028,000	n/a	n/a	n/a
PEC	$3,120,000	n/a	n/a	n/a
PG&E Local Programs Total	$4,662,000	n/a	n/a	n/a

PG&E Programs Total	$ 103,897,466	493,499,561	103,080	9,536,571

	PROPOSER	TITLE	REASON FOR REJECTION
1	ADM Associates, Inc.	Statewide Nonresidential Hard-to-Reach Mobile Energy Workshops	This is training and education program for businesses through informal workshops in strip mall shopping centers. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate business owners fit the local program category. The campaign targets only a specific customer group and does not use mass advertising.
2	ASW Engineering	SOS: Small Business Outreach Seminars	This is an education program for small businesses and contractors through seminars. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate businesses and contractors fit the local program category. The campaign targets only a specific customer group and does not use mass advertising.
3	Cohen Ventures, Inc., dba Energy Solutions	Install the Savings: Statewide Mass Market Campaign	This is training and education program for salespersons and contractors through direct mail campaign. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate business owners fit the local program category. The campaign targets limited customer groups and does not use mass advertising.
4	Electric & Gas Industries Association	A Proposal to Develop & Administer A Cooperative Advertising Program For Manufactures, Distributors, Retailers and Installers of Energy Efficient Appliances and Home Improvement Products	This is an incentive program to encourage appliance manufacturers, distributors and retailers and home improvement contractors to promote products that meet Energy Star standard. The proposal is unclear and incomplete. Electric & Gas Industries plans to provide its program features and benefits, program guidelines and participating requirements when its proposal is selected for funding The program proposal targets limited customer groups and does not propose any mass advertising.
5	EnSave Energy Performance, Inc.	California Agriculture Energy Information Program	This is an education program for farmers through direct mail campaign. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate fit the local program category. The campaign targets a specific customer group and does not use mass advertising.
6	FMG Marketing and InSync	Vertical Market Advertising Strategy for Specific Hard-to-reach Small Businesses	This is an education program for owners of hotels/motels, restaurants and grocery stores through magazines specific to industries, seminars and endorsement letters from industry leaders. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate business owners fit the local program category. The campaign targets limited customer group and does not use mass advertising.
7	FMG Marketing and InSync Inc	Vertical Market Advertising Strategy for Targeted Hard-to-reach Small Vendors	This is training and education program for vendors of lighting, HVAC, refrigeration, motors, food service and windows through magazines specific to business supplemented by direct mail and seminars. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate business owners fit the local program category. The campaign targets upstream providers instead of end user customers and does not use mass advertising.
8	Geothermal Heat Pump Consortium	California Geoexchange Mass-Marketing and Consumer Outreach Program	This is training and education program for building owners, architects and engineers through already developed brochures, research reports supplemented by newspaper, radio, workshops and training. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate businesses and to promote a specific technology fit the local program category. Besides being a duplicate of currently ongoing local program, this proposal targets a very specific customer group and promotes the use of a specific technology - geothermal heat pumps.
9	Global Energy Services, Inc.	Statewide Chinese Language Efficiency Outreach Program, under the "2003 Energy Efficiency Program Selection	This is a program is designed to target Chinese consumers through radio, TV, newspapers and workshops. This program is a duplicate of a currently ongoing local program funded through PGC funds for years 2002-2003.
10	Greenlining Institute and Latino Issues Forum	Marketing and Outreach Efforts for Statewide Energy Efficiency Programs	Greenlining does not describe any program proposal and does not indicate any budget in its submittal.
11	IW Group, Inc.	Energy Efficiency for Asian Pacific Americans in California	This is training and education program for Asian Pacific American businesses through open letter endorsements by elected officials and seminars by Asian Chamber of Commerce. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate business owners fit the local program category. The campaign targets only a specific customer group and does not use mass advertising.
12	Local Government Commission	Statewide Redevelopment Agency Outreach	This is training and education program for developers, building managers and small commercial business owners through printed brochures and technical seminars. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate business owners fit the local program category. The campaign targets very specific customer group and does not use mass advertising.
13	Local Government Commission	Statewide Local Government Outreach to Residents and Businesses	This is training and education program for redevelopment agencies of cities and counties. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate fit the local program category. The campaign targets very specific customer group and does not use mass advertising.
14	National Center for Appropriate Technology	California Farm Energy Clearinghouse	This is training and education program for Latino small farmers and growers through radio, newspaper, internet and meetings. The campaign is concentrated in the counties of Fresno, Merced, Kern, Tulare and Monterey areas. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate fit the local program category. The campaign targets a specific customer group and limited geographic areas.
15	Organizational Support Services (OSS)	Statewide Energy Efficiency Mobile Education Unit	This proposal is designed to target residential customers in four IOU territories through the use a traveling motor home with built-in Energy Star appliances and lighting. OSS plans to interact with customers on a one-to-one basis. This proposal does not meet mass marketing criteria (use of a medium or vehicle reaching mass audience at a time); this proposal fits the local program category.
16	Partnership for Environmental Progress (PEP)	Energy Efficiency Education Program	This proposal is designed to target the Hispanic community through radio ads and to distribute CFLs during community events. PEP plans to launch its campaign in Southern California only. This proposal is regional focused instead of statewide.
17	RRW Consulting	Targeting Hard-to-Reach Customers Through a Strategic Direct Marketing	This proposal is designed to target residential and nonresidential customers through direct mail campaign. Direct mail campaign is not mass marketing; this program fits the local program category.
18	Strategic Energy Innovations	The CA Multifamily Consortium - A Networked Approach to Outreach and Marketing	This is training and education program for housing managers/owners/developers, service firms, and tenant/housing associations by engaging 10 associations to conduct marketing/outreach. It is unclear how the associations will conduct marketing/outreach. It plans to distribute fact sheets, articles and conduct presentations and meetings. In Decision 02-03-056, the Commission specifically stated that program proposals designed to train and educate fit the local program category; the distribution of fact sheets and conducting presentations do not constitute mass advertising. The campaign targets a very specific customer group.
19	Target Directions, Inc.	California Energy Efficiency Center	Target Directions plans to provide toll-free phone line (24 hrs/day) with live energy efficiency advisors during regular business hours. Advisors would provide information on materials, tools, events and activities relating to energy efficiency. It assumes that IOUs will do marketing and outreach. It does not propose any marketing and outreach activities.
20	United Illuminating	eesmarts: An Energy Efficiency Education Outreach Program, Grades K to 3	This proposal is designed to distribute Dinobooks to K-3 students to increase students' awareness on energy efficiency. It is unclear how the books will educate or inform students. There is no timeline, a requirement for submitting proposals. It assumes that IOUs will do marketing activities for United. We are already funding local programs targeted at students and school districts.
21	Young Communications Group, Inc.	"SHARE THE POWER" -- Reaching the African American Residential Market	This proposal is designed to target African-Americans through development of media relations. For example, it would photograph participants and submit photo to media. It also plans to do poster/billboard campaigns wherein K-6 students may submit posters and the winning posters would travel from school to school. Providing posters and billboards to schools do not meet mass advertising; could be duplicative of local school programs already funded for 2003.