1. Summary

This decision adopts modifications to the Self Generation Incentive Program (SGIP), which provides incentives to businesses and individuals who invest in distributed generation. We implement the provisions of Assembly Bill (AB) 1685, eliminate the maximum percentage payment limits, and reduce the incentive payments for several technologies, including Level 1 solar projects, which we reduce to $3.50 per watt, effectively immediately. We also eliminate the "maximum percentage payment limits," which have caused considerable administrative complexity. We direct the SGIP program administrators to expand opportunities for public input in three Working Group activities: developing a declining rebate schedule, developing an exit strategy, and adapting a data release format.

Program costs will continue to be included in utility distribution revenue requirements. The utilities will track these costs in the SGIP memorandum accounts created by Decision (D.) 01-03-073 for recovery in their respective general rate cases or other authorized proceedings.