2. Procedural Background and Scope of Decision

Planning for PY 2001 took place during 2000, along with Phase 1 of our ongoing efforts to standardize installation standards and other policies and procedures for the LIEE program. By D.00-09-036, the Commission directed the continuation of PY 2000 low-income assistance programs through 2001, stating that "further review of the utilities'... program plans and budgets is not warranted." (D.00-09-036, mimeo. p. 53.) The Commission required the utilities to file the following information related to their low-income assistance programs, but no further program review was contemplated:

a. a standardized method for calculating CARE penetration rates ³

b. recommendations regarding stand-alone attic ventilation based on the results of the Attic Ventilation Pilot.

c. a description of how the utilities will track the results of the CARE Outreach Pilot, and

d. a description of current utility procedures for monitoring program quality, cost-efficiency and customer satisfaction, and recommendations for improving these procedures

On November 6, 2000, the utilities filed compliance applications, which initiated this proceeding. The applications included the information required by D.00-09-036, as well as a proposal to update the PY 2000 LIEE shareholder incentive mechanism for PY 2001. PG&E submitted a proposal to adopt balancing account treatment for its CARE administrative costs. The Office of Ratepayer Advocates (ORA) and Residential Service Companies' United Effort (RESCUE) filed comments on the utilities' applications.

The assigned Administrative Law Judge (ALJ) held a joint prehearing conference (PHC) in this proceeding and Rulemaking (R.) 98-07-037 on February 15, 2001. At the PHC, and by subsequent Assigned Commissioner's ruling, the focus of this proceeding was shifted to the development of a rapid deployment strategy for low-income assistance programs during 2001.⁴ The impetus for this change was the current energy crisis and the need to reach as many eligible customers as possible with these programs, and as quickly as possible. The utilities and interested parties were directed to consider modifications to outreach and marketing efforts or program enhancements with respect to the services provided, as appropriate. They were also directed to consider the use of carryover funds or additional sources of funding provided by the Governor or Legislature for this purpose. Energy Division coordinated workshops to address the rapid deployment of programs and services on March 7 and 14, and a separate workshop on March 22, 2001 to address the issues surrounding the utilities' compliance applications, including the shareholder incentive mechanism for PY 2001. By D.01-05-033, the Commission addressed the issues related to rapid deployment of programs.

By today's decision, we address issues related to: 1) the shareholder incentive mechanism for PY 2001, 2) cost recovery treatment for CARE administrative expenses, and 3) the utilities' compliance submittals in response to D.00-09-036. These issues were addressed in the March 22, 2001 workshop, which was attended by the utilities, a representative from the Department of Community Services and Development (DCSD), and representatives of community-based organizations. RESCUE submitted a workshop statement but did not attend the meeting. Energy Division issued the draft Workshop report for comment on April 3, 2001. Comments were filed by PG&E, SCE and jointly by SDG&E/SoCal on April 13, 2001. The final workshop report was filed and served on April 27, 2001.