3. Application 08-06-004, R.08-07-011, and the Commission Draft Long-Term Energy Efficiency Strategic Plan

On June 2, 2008, Southern California Edison Company, Pacific Gas and Electric Company, San Diego Gas & Electric Company and Southern California Gas Company (collectively, the Utilities) jointly filed Application (A.) 08-06-004, proposing a California Energy Efficiency Strategic Plan (CEESP). In their joint filing, the Utilities proposed statewide goals, outcomes and strategies that they believe will positively affect the wide-ranging energy market decisions occurring everyday in California and beyond. As directed by D.07-10-032, the CEESP application resulted from a collaborative process among a broad set of stakeholders, a process involving dozens of workshops and hundreds of participants. The Utilities worked closely with the Commission's Energy Division in crafting the CEESP application.

On July 10, 2008, we opened a new rulemaking (R.08-07-011) in continuation of our efforts to ensure efficient use of energy resources in California through development of a Commission-sponsored California Strategic Plan for Energy Efficiency through the year 2020 and beyond (now called the California Long-Term Energy Efficiency Strategic Plan and referred to herein as the Plan). As discussed in R.08-07-011, we appreciate the considerable efforts the Utilities and stakeholders undertook to develop the CEESP application. However, instead of approving, rejecting or modifying the joint Utilities' CEESP application, we incorporate the efforts made by all of the participants into a Commission-approved Plan, on behalf of the state of California. This process allows for development of a record and consideration of ideas above and beyond the specific strategies and implementation plans discussed in the joint Utilities' CEESP application. Procedurally, R.08-07-011 was consolidated with A.08-06-004, including all record documents in the joint utility application and all attachments to the June 2, 2008 filing.

On July 14, 2008, a Ruling was issued seeking comments on a Commission draft Long-Term Energy Efficiency Strategic Plan (draft Plan), as anticipated by R.08-07-011. The draft Plan follows the direction given in D.07-10-032 and embraces four specific goals, known as the "Big Bold Energy Efficiency Strategies," or Programmatic Initiatives, established by the Commission in D.07-10-032 and D.07-12-051:

1. All new residential construction in California will be zero net energy by 2020;

2. All new commercial construction in California will be zero net energy by 2030;

3. Heating, ventilation and air conditioning will be transformed to ensure that its energy performance is optimal for California's climate; and

4. All eligible low-income customers will have a meaningful opportunity to participate in the Low-Income Energy Efficiency program and will be provided all cost-effective energy efficiency measures in their residences by 2020.

A prehearing conference and workshop was held on July 18, 2008. In R.08-07-011 and at the prehearing conference, the issues in the proceeding were identified in the following questions for parties to address:

· What strategies encompassed in the CEESP application should be adopted in a Commission Strategic Plan?

· What strategies delineated in the CEESP application should be modified for adoption in a Commission Strategic Plan, and how?

· What strategies not discussed in the CEESP application should be added and adopted in a Commission Strategic Plan?

· What strategic roles should the Commission take in working with other governmental agencies and other non-jurisdictional stakeholders in support of a Commission Strategic Plan?

· What market transformation strategies, including new or different organizational structures, should a Commission Strategic Plan address or contemplate?

· How should a Commission Strategic Plan coordinate energy efficiency plans with demand response plans and solar programs?

· What specific low-income energy efficiency strategies should be encompassed in a Commission Strategic Plan?

· What process should be used to update the Commission Strategic Plan?