II. Budget Augmentations for SDG&E and SoCalGas

In a compliance filing dated April 14, 2006, SDG&E reports that its current 2006 LIEE program budget of $13.368 million and $2.6 million in unspent funds from 2005 (carryover funds) will allow it to exceed its 2006 LIEE program goals proposed in Application (A.) 05-06-013 without budget augmentation. Similarly, SoCalGas reports that its 2006 budget of $33.325 million and $6.6 million in carryover funds will allow it to exceed its LIEE program goals proposed in A.05-06-012. For these reasons, the utilities are not asking for additional funds. However, they do seek permission to continue one aspect of the winter program.

In D.05-10-044, the Commission authorized SDG&E and SoCalGas to utilize the 2000 census tract data to identify specific areas of its service territory likely to contain high concentrations of low-income customers, and to permit customers in those areas to enroll in the LIEE program with a simple process to certify income level. SDG&E/SoCalGas call this the Targeted Self-Certification Enrollment Process (Self-Certification). Customers in other areas who qualify for the program would still be required to document their income levels. Authorization for this, as well as other aspects of the special winter initiative approved in D.05-10-044, expired on April 30, 2006.

SDG&E reports the Self-Certification resulted in a 21% increase in customers enrolling in the LIEE program during November and December of 2005 compared to the level of enrollment during the same period in 2004. SoCalGas reports that it increased customer enrollment by approximately 12% over the same period. In a motion filed March 30, 2006, SDG&E and SoCalGas seek to continue offering Self-Certification through the end of 2006. By doing so, SDG&E and SoCalGas expect to exceed their respective goals for the number of homes treated by approximately 18% and 20%.

The utilities assert that the use of Self-Certification saved money by reducing contractor fees because contractors no longer need to determine customer eligibility and enrollment. Self-Certification also leaves contractors with time to reach more customers. The utilities also report that Self-Certification has made it easier for eligible LIEE participants to enroll in the program.

No one has objected to this proposal. It offers great appeal, because it promises to cut costs and increase program participation. For these reasons, we will permit SDG&E and SoCalGas to continue allowing for targeted Self-Certification for the rest of 2006. While there is some risk that some non-qualifying customers might receive program benefits, we find the benefits are likely to be offsetting. The utilities should assess this potential risk and propose changes to the Self-Certification process if necessary to overcome this concern.