ALJ/LRB/hkr DRAFT Item 3
1/18/2001
Decision DRAFT DECISION OF ALJ BYTOF (Mailed 1/3/2001)
BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
Application of Pacific Gas and Electric Company for Approval of Year 2001 Energy Efficiency Programs, in Compliance with Ordering Paragraph 93 of Decision 00-07-017 (U 39 M). |
Application 00-11-037 (Filed November 15, 2000) |
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Application of SOUTHERN CALIFORNIA EDISON COMPANY (U 338-E) for Approval of Program Year 2001 Energy Efficiency Program Plans, Budgets, and Performance Award Mechanism. |
Application 00-11-043 (Filed November 15, 2000) |
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Compliance Application of Southern California Gas Company (U 904-G) for Approval of 2001 Energy Efficiency Programs. |
Application 00-11-044 (Filed November 15, 2000) |
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Application of San Diego Gas & Electric Company (U 902-M) for Approval of 2001 Energy Efficiency Programs. |
Application 00-11-045 (Filed November 15, 2000) |
TABLE OF CONTENTS
Title Page
INTERIM OPINION 2
Summary 2
Background 3
Scope of Review 11
Issues Raised by the Applications 12
Program and Budget Approval 13
Program Budgets 16
Market Assessment & Evaluation Studies 26
Shareholder Incentives and Milestones 29
Background 29
Utilities' Proposal 31
Weighting 33
Incentives for Energy Savings 33
Shareholder Incentives and Milestones for Market Effects and Information Programs 38
No Ex Post Measurement of Net Benefits 39
Program Guidance 40
Compliance with Assembly Bill 970 40
Expansion of Weatherization Programs 42
Expansion of HVAC Programs 42
Expansion of New Construction Programs 43
Compliance with D.00-07-017 Directives 44
Targeted Outreach and Information 44
Local Government Initiatives 45
Other Programs to Maximize Energy and Demand Savings 46
Residential remodeling 46
Commercial Cooling 46
Other Issues 47
Edison's Funding Proposal 47
Applicability of Previously Adopted Energy Efficiency Policy Rules 48
Applicability of the RRM to PY 2001 Programs 49
Comments on Draft Decision 51
Findings of Fact 52
Conclusions of Law 59
INTERIM ORDER 60
Appendix A.......................................................................................64
Appendix B........................................................................................65
Appendix C.......................................................................................67
Summary
In this Interim Opinion, we approve the utilities' Program Year (PY) 2001 energy efficiency programs and 80% of the proposed budgets and provide a performance award mechanism for proven energy savings. We provide for mid-year adjustment of programs and budgets if necessary, after further proceedings.
We authorize Southern California Edison Company (Edison), Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric Company (SDG&E), and Southern California Gas Company (SoCalGas) (collectively, the utilities) to implement their proposed PY 2001 energy efficiency programs, at an 80% funding level, effective January 1, 2001, with modifications to the fund-shifting rules, new construction program budgets, third party initiatives (TPI) budgets, and refrigerator rebate programs. We further provide for the prospective modification of those programs, studies, and budgets, as necessary, in the final decision. We authorize the utilities' statewide market assessment and evaluation (MA&E) studies but defer authorization of the California Energy Commission's (CEC) and utility-specific MA&E studies and budgets to the final decision.
We adopt a new performance award mechanism that consists of three milestone categories, with a weighting of 80% for energy and peak demand savings, 10% for market effects, and 10% for information programs using a performance adder mechanism. We preliminarily adopt award levels for the energy and peak demand savings milestone, to provide for minimum and maximum earnings based on achievement of savings calculated using the utilities' adjusted three-year average dollar/kilowatt-hour and dollar/therm. We defer to the final decision a determination regarding the utilities' program-specific milestones and incentives for market effects and performance adders for information programs and approval of CEC managed and utility-specific MA&E studies. We affirm Edison's proposed total budget (subject to the 80% modification we make herein), reject reliance upon the outdated policy rules and set forth the principles that govern these programs in 2001, and decline to direct the use of the Reporting Requirements Manual (RRM) for PY 2001 applications.
