California Public Utilities Commission

The Efficiency Council is engaged at the CPUC as an active party in several key proceedings relevant to energy efficiency and regularly files comments on the central issues affecting its member companies.  Outside of the formal filing process, the Efficiency Council remains engaged with Commissioners, regulatory staff, and other efficiency stakeholders through informal communication and collaboration.  The Efficiency Council brings the California energy efficiency industry voice to the discussions affecting the CPUC’s oversight of energy efficiency programs.

 

Post-2012 Portfolio Policy Planning (R.09-11-014)

The 2010-2012 efficiency program portfolio cycle is currently underway, and the CPUC is considering the policy development for post-2012 efficiency programs.  The CPUC has recognized that it will not be prepared to commence the next program cycle in 2013 and so is examining the schedule, mechanics, and policy guidance for an extension or bridge period between portfolio cycles, as well as the structure for future portfolios.

 

Cost-Effectiveness and Avoided Cost Methodology (R.09-11-014)
 The Commission is considering updates to the cost-effectiveness and avoided cost calculation methodologies for energy efficiency, to be implemented for the next bridge period and/or full portfolio cycle.

 

Risk-Reward Incentive Mechanism (R.09-01-019)
 The Commission is examining revisions to and the future of the risk/reward incentive mechanism (RRIM) for utility shareholders to encourage utility energy efficiency performance.

 

2010-2012 Portfolio Cycle  Implementation (R.09-11-014)
The 2010-2012 portfolios that are currently underway were adopted in October  2009, prior to the Efficiency Council’s active involvement at the CPUC. The Efficiency Council submitted a response on October 3, 2011 to PG&E’s advice letter from September 12, 2011 that outlines the utility’s request to shift funds, in excess of the pre-authorized levels, between energy efficiency programs within its approved 2010-2012 efficiency portfolio.

 

Expiration of the Public Goods Charge (R.09-11-014 and R.11-10-003)
The electric Public Goods Charge (PGC) is a surcharge on sales of electricity, due to sunset at the end of 2011, that currently helps to fund investments in energy efficiency, RD&D, and renewable energy.  The PGC was not reauthorized by the California Legislature in 2011, and Governor Brown directed the CPUC to pursue continuation of funding for these programs before the PGC expires.  About one-quarter of the utility energy efficiency portfolio budgets (implemented by many parties) currently comes through the PGC; the remaining majority of the energy efficiency portfolios is funded through utility procurement funds and is unaffected by the expiration of the PGC. The Efficiency Council is focused at both the CPUC and the Legislature on ensuring continued full funding for energy efficiency and RD&D.

The CPUC proposed, in efficiency proceeding R.09-11-014, the use of utility procurement funds to backfill funding for energy efficiency programs that would otherwise have come from the expiring electric PGC. The CPUC adopted this proposal before the sunset of the PGC, providing the necessary funding to complete the 2010-2012 cycle for energy efficiency programs without interruption.

 

The CPUC’s proceeding R.11-10-003 was established to address funding and programmatic issues regarding the continuation of RD&D and renewables programs funded under the expiring electric PGC. The CPUC proposed and adopted a surcharge, known as the Electric Program Investment Charge (EPIC), on an interim basis to fund renewables and RD&D. The CPUC proposal was adopted before the sunset of the PGC, ensuring continued funding of RD&D programs without hiatus.

 

Backfilling Budget Transfer of Natural Gas Energy Efficiency Funds (R.09-11-014)
State budget bill SB 87 (2011) allows the transfer of up to $155 million from the Gas Consumption Surcharge in gas Public Purpose Program (PPP) funds, used to fund natural gas energy efficiency programs, to the state’s General Fund. The CPUC considered the implementation of this transfer and backfill of the swept funds to support continued natural gas efficiency programs if the transfer to the general funds occurs. The Efficiency Council is focused on ensuring full funding for natural gas energy efficiency programs and protecting those funds from future budget reappropriation.

 

Cap-and-Trade Auction Revenue Allocation (R.11-03-012)
 The Commission is considering the use of auction revenues from the implementation of California’s cap-and-trade program established by the Air Resources Board.