VI. Relationship to PY2001 Planning Process and Programs

D.00-07-017 directs that the Summer Initiative be implemented "alongside and parallel to PY 2000 programs." (Id., at p. 199.) Thus, the Summer Initiative will be treated as a separate, more targeted portfolio of energy efficiency programs, which will be evaluated and tracked separately from ongoing PY 2000 and PY 2001 energy efficiency programs. Programs approved today pursuant to the Summer Initiative will not be included in the utilities' PY 2000 or PY 2001 program portfolios for purposes of either: (1) shareholder incentive mechanisms; or (2) cost-effectiveness inputs and protocols.

The utilities propose to create performance milestones governing implementation of the Summer Initiative programs, and request funding for payment of shareholder incentives for completion of those milestones. The utilities also request that the amount funded for the Summer Initiative be counted toward meeting their "aggressive implementation" targets established as a part of the PY2000 shareholder incentive mechanism. While the utilities' request is understandable, we do not believe that it is appropriate. The bulk of the funding for the Summer Initiative programs comes from rollover funding, that is, from funds that the utilities previously budgeted but did not spend. These funds were previously subject to shareholder incentives; thus, the utilities previously had the opportunity to earn incentives on programs that were funded with this same pool of funds. Further, we note that it is too late to incorporate these programs into the shareholder incentive mechanism for PY2000 and that PY2001 shareholder incentive mechanisms have not yet been defined.

Under the Summer Initiative process adopted in D.00-07-017, the Commission has determined that the Commission will pre-select the programs to be funded with this special fund. Because the Summer Initiative may represent a larger or smaller share of one utility's portfolio relative to another, we find that requiring utilities to treat the Summer Initiative proposals as part of their portfolio for meeting the portfolio cost-effectiveness standard could have unintended consequences. We will not require the utilities to do so. Further, because of the emergency nature of this action, and our desire to explore new, innovative programs that may produce near-term demand and energy usage reductions, we will evaluate the cost-effectiveness of these programs separately from the other utility-administered energy efficiency programs developed and proposed for PY 2000 and PY 2001. This is not to say that we are abandoning the cost-effectiveness criteria; on the contrary, as we explained above, we expect the programs funded under the Summer Initiative to be cost-effective. However, we will not subject them to the same standards and protocols to which the other programs are subjected.

The utilities are directed to track and report on the progress of the Summer Initiative programs in all reports to the Commission, including quarterly progress reports. The programs should be tracked separately from the PY 2000 and PY 2001 energy efficiency programs and should be reported separately.

Further, the utilities should report on the program impacts, including energy and demand savings achieved, as part of their PY2001 Annual Earnings Assessment Proceeding (AEAP), in the applications currently scheduled to be filed in May 2002. While we will not evaluate the programs for the purpose of determining entitlement to shareholder earnings, we will review the accomplishments in this public process to guide future programs. We expect the utilities to present program results in a complete and reasonable fashion and, as discussed above, program implementers should commit to making all relevant data available for this purpose.

IT IS RULED that:

1. Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), San Diego Gas & Electric Company (SDG&E), and Southern California Gas Company (SoCalGas) are directed to fund the Summer Initiative in the following amounts: (1) PG&E: $34.78 million; (2) SCE: $21.28 million; (3) SDG&E: $12.25 million; and (4) SoCalGas: $4.00 million.

2. Funds for the Summer Initiative shall be spent during the period September 1, 2000 through December 31, 2001.

3. The utilities shall file, by October 16, 2000, a report setting forth a complete accounting of current and projected unspent funds as of September 30, 2000, segregated by electric and gas, for: (1) pre-1998 DSM funds; (2) PY1998 unspent funds; (3) PY1999 unspent funds; and (4) projected PY2000 unspent funds.

4. The following programs shall be funded through the Summer Initiative in the amounts stated:

Implementer

Program

PG&E

SCE

SDG&E

SoCalGas

Total

(in thousands of dollars)

New Statewide Programs

Ecos

Torchiere replacement

350

250

150

  

750

Utilities/ARCA

Refrigerator recycling

5,500

1,200

3,000

  

9,700

Utilities/third parties

Third Party targeted solicitation

3,500

1,700

1,000

  

6,200

Utilities

Pool pump efficiency and timers

2,500

3,000

500

  

6,000

UC/CSU

Campus energy efficiency

2,500

3,500

2,000

  

8,000

Utilities/Res-Team

Residential and small commercial standard offer

3,700

2,600

1,500

4,000

11,800

Utilities/cities

LED rebate program

12,500

7,500

4,000

  

24,000

Ongoing Statewide Programs

Utilities

Large and Small SPC program modifications

0

0

0

0

0

Utilities

Express Efficiency program modifications

0

0

0

0

0

Projects in Specific Locations

City of Oakland

Energy efficiency design improvement

300

      

300

City of Oakland

Green LED traffic lights

504

      

504

City of Oakland

Museum chiller replacement

291

      

291

SDG&E

Whole House Fans

    

100

  

100

SDG&E

Torchiere Turn-In

    

50

  

50

Humboldt Creamery

Energy efficiency measures

100

      

100

Presidio Trust

Energy efficiency measures

500

      

500

COPE

Pumping efficiency

2,500

1,500

    

4,000

TOTAL FUNDING

34,745

21,250

12,300

4,000

72,295

6. No programs or activities are approved through the Summer Initiative unless specifically provided herein.

7. The utilities shall enter into contracts similar to the contracts used for their existing TPI programs with the non-utility implementers of the selected programs and complete contract signatures by September 11, 2000.

8. The selected programs shall be implemented by September 11, 2000.

9. All programs shall be cost-effective, defined as achieving a 1.0 minimum ratio using the total resource cost test, at a minimum, on an ex ante basis. We recognize that some of the programs may be designed to verify cost effectiveness on an ex post basis, e.g., certain TPIs, and we encourage that approach as much as possible. The utilities shall ensure that they have all data in hand to demonstrate compliance with these cost-effectiveness requirements.

10. The non-utility program implementers shall submit to the managing utility their estimates of program impact and all necessary data for program auditing and verification at the conclusion of the program, as specified herein.

11. The utilities shall provide estimates of program impact and all necessary data for program auditing and verification for the programs they administer and implement at the conclusion of the program.

12. Programs approved for funding under the Summer Initiative shall not be included in the utilities' PY 2000 or PY 2001 program portfolios for purposes of either shareholder incentive mechanisms or cost-effectiveness inputs and protocols.

13. The utilities shall track and report on the progress of Summer Initiative programs in all reports to the Commission, including quarterly progress reports.

14. The utilities shall track budgets and spending associated with the Summer Initiative programs separately from their other energy efficiency program expenditures.

15. The utilities shall report on the program impacts, including energy and demand savings achieved, as part of their PY2001 Annual Earnings Assessment Proceeding (AEAP), in the applications currently scheduled to be filed in May 2002.

Dated August 21, 2000, at San Francisco, California.

CERTIFICATE OF SERVICE

I certify that I have by mail this day served a true copy of the original attached Ruling of Assigned Commissioners and Administrative Law Judge on Summer 2000 Energy Efficiency Initiative on all parties of record in this proceeding or their attorneys of record.

Dated August 21, 2000, at San Francisco, California.

NOTICE

Parties should notify the Process Office, Public Utilities Commission, 505 Van Ness Avenue, Room 2000, San Francisco, CA 94102, of any change of address to insure that they continue to receive documents. You must indicate the proceeding number on the service list on which your name appears.

* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *

The Commission's policy is to schedule hearings (meetings, workshops, etc.) in locations that are accessible to people with disabilities. To verify that a particular location is accessible, call: Calendar Clerk (415) 703-1203.

If specialized accommodations for the disabled are needed, e.g., sign language interpreters, those making the arrangements must call the Public Advisor at (415) 703-2074 or TDD# (415) 703-2032 five working days in advance of the event.

(For Appendix A, see Acrobat Version online.)

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