KENNEDY RULING ENERGY EFFICIENCY 2/10/04

Collaboration and Partnership among Program Implementers

Objective

The objective of this workshop is to identify significant opportunities for all types of effective program partnerships that will assist in the maximization of energy efficiency savings in California. This workshop will not be limited to a discussion of partnerships with utilities. Rather, we would like to hear how other partnerships could be formed in addition to those the utilities have been conducting. Finally, we are seeking to more properly define and evaluate partnerships in order to more accurately measure their success or failure. The information we gather from this workshop will be used when we consider the future administrative structure of energy efficiency programs in California.

Background

Two workshops have been conducted thus far in Rulemaking ("R.")01-08-028. The first workshop was held on October 8, 2003, and identified Energy Efficiency Potential for California. The second workshop was held on December 15, 2003, and identified Customer Needs and areas of significant opportunity to improve energy efficiency program design and deployment. This third workshop on February 23, 2004, will focus on the opportunity for program partnerships to achieve greater energy efficiency savings.

Since 2002, the Commission has pursued funding of utility and non-utility (such as local governments, non-profit organizations, and private industry) energy efficiency programs. More recently, the Commission has stated its goal to increase energy efficiency savings in the state and has encouraged direct participation of multiple parties in the energy efficiency proceeding in order to do so. Furthermore, the Commission stated in D.03-08-067,

"We affirm our position in the July 3, 2003, Assigned Commissioner's Ruling that we strongly encourage proposals from municipalities and local governments that would seek to partner with the utilities. Local governments and municipalities are potentially a vital source of energy savings and we hold high expectations that the utilities will partner with them in order to foster cost-effective energy efficiency programs along with the other program goals stated herein. It is imperative that these projects be integrated with utility local and statewide programs. We will hold the utilities responsible for ensuring that...programs created by local governments are given high priority when it comes to partnering, within the context of the stated public policy goals and program evaluation criteria."

I seek to ensure that energy efficiency research and programs benefit from collaboration and shared learning. I see partnerships as a necessary condition to attain this goal and to achieve the energy efficiency savings potential for California.

Agenda

In this workshop, I ask parties to identify significant opportunities for maximization of energy efficiency savings through partnerships and to be prepared to discuss the following topics:

Types of Partnerships:

· What customer segments (agricultural, industrial, residential, commercial, industrial) would best be served by partnerships?

· What kind of organizations can be effective partners? Can these include for-profit businesses, or only governmental and non-profit organizations?

· Is there an area of energy efficiency that lends itself more appropriately to partnerships than other areas (i.e., schools and education or local governments)?

· What types of knowledge, capabilities, and resources do non-Public Goods Charge funded partners bring to a partnership that enhances our abilities to achieve cost-effective conservation?

· How can additional funds for energy efficiency investments be tapped by way of partnerships? What are some examples of these partnerships?

Criteria for Partnerships

· What are examples of successful partnerships?

· What is the definition of a successful partnership?

· What steps can the CPUC undertake to encourage successful partnerships to be formed?

· What requirements or circumstances need to be in place for partnerships to be successful?

· What are examples of unsuccessful partnerships?

· Should one of the partners be in a management role for the program or should this position be held by a neutral entity?

· How can additional funds for energy efficiency investments be tapped by way of partnerships?

Criteria for Review of Partnerships

· What criteria should be used to evaluate whether or not a partnership has been successful?

· What is the role of an administrator in determining whether a partnership was or was not successful in ways other than meeting target savings?

· Should partners receive compensation for their contributions, or should this be "pro bono"?

Format:

This workshop will be different than the past workshops in that we seek to have more of an open discussion than to have panelists answer specific questions. We ask parties to be prepared to address the specific questions we have outlined herein. Also, we would like those parties who have had specific experiences in partnerships to be prepared to discuss what has and what has not worked.

Workshop Date, Time and Location:

Date: February 23, 2004

Time: 10:00 am

Location: Hiram Johnson State Building

455 Golden Gate Ave., San Francisco

IT IS RULED THAT,

1. The Commission will conduct a workshop as described herein at the Commission's offices at 455 Golden Gate Ave., San Francisco, on February 23 at 10am in the Hiram Johnson State Building.

2. Responses to the questions for Workshop #2 must be filed with the Commission no later than March 5, 2004 and may be served on parties electronically.

Dated February 9, 2004 at San Francisco, California.

/S/ SUSAN P. KENNEDY

Susan P. Kennedy

Assigned Commissioner

CERTIFICATE OF SERVICE

I certify that I have this day, served electronically the parties to which an electronic mail address has been provided, and served by U.S. mail the parties who do not have e-mail addresses, a true copy of the original attached Assigned Commissioner's Ruling Soliciting Post Workshop Comments on Energy Efficiency Customer Needs Workshop and Scheduling and Soliciting Pre-Workshop Comments for the Workshop on Partnerships on all parties of record in this proceeding or their attorneys of record.

Dated February 9, 2004, at San Francisco, California.

_/s/ REBECCA BACON

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 ensure that they continue to receive documents. You must indicate the proceeding number on the service list on which your name appears.

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