II. Background

In D.01-11-066, we adopted rules for energy efficiency programs to allow non-utilities to compete with utilities for energy efficiency funding. We set aside $100 million of the energy efficiency funding available in 2002-03 for local programs run by non-IOUs, and provided for $25 million in IOU funding for local programs. As noted above, we made clear these amounts were flexible to accommodate changes we might find necessary once we saw all local proposals.

Because they have the advantage of incumbency, we had the IOUs submit their local programs first, on December 14, 2001. Third parties' proposals were due no later than January 15, 2002,3 and we held a workshop on December 19, 2001 to help proposers - many of them new to Commission proceedings - through the process. After that meeting, the Energy Division issued a list of answers to frequently asked questions (Attachment 2 hereto). We allowed comment on the proposals.

We received nearly 300 proposals, from a huge array of providers, representing many sectors of the economy: governments, non-profits, public-private partnerships, government associations, private consultants, think tanks, community based organizations, small businesses, large corporations and the IOUs. Many of the proposers have worked with the IOUs in the past on energy efficiency programs; others have been active at the local or national level in energy efficiency programs.

3 Perhaps because of their unfamiliarity with the Commission process, many parties only filed or served their proposals on the due date. The Administrative Law Judge (ALJ) ruled that any such proposal would be considered timely, and gave the parties on the service list leave to object. No party did so.

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