ENERGY SAVINGS ASSISTANCE PROGRAM SUBCOMMITTEE MEETING

Los Angeles, CA

JULY 20, 2011

LIOB ESAP SUBCOMMITTEE RECOMMENDATIONS

Budget

  1. The subcommittee supports the IOU recommended process for mid-cycle changes using the Commission’s Advice Letter system.
  2. The subcommittee supports a process for mid-cycle changes that allows parties to initiate the requested change without relying on the IOU. The concern is if the IOUs have a Commission directive to reduce costs, they are less apt to propose budget increases. The subcommittee was unable to make a specific recommendation, as no one understood the Commission “tools” which would be available for this.

Unit Goals

  1. The Subcommittee believes it is important to protect the workforce which is currently in place and recommends the programs remain at a level sustainable to maintain the existing workforce, without significant fluctuations, even if that means reaching the Commission goal early.

CAR Position recommended by SCG

Costs: SCG has requested the overhead and benefits for the union workers be paid out of the ESAP budget. This is not the way the system currently works as contractors are paid a fixed fee.

Checks and Balances: The issue here is SCG would be auditing their own work. A process usually frowned upon by the Commission. SCG notes the Commission has the authority (and often exercises that authority) to audit.

Replacement of workers: The position removes one set of workers and replaces them with another.

Integration into the Program: SCG explained their expectation to begin training these workers and rolling out the position in 2012-2013. They indicated it would be a managed process and they would not jeopardize the program by making a full switch until they knew the level of units needed to meet their goal could be maintained.

How it affects joint IOU territories: The IOUs were unable to provide any indication on how this would affect areas if joint IOU territories. Currently, many contractors enroll one customer into both programs so as to limit the visits to a customer (a goal shared by the Commission). It is unclear at this time how SCG union workers would enroll SCE or PG&E customers to keep with the process of reducing the visits to the home and carbon footprint of the program.

  1. The subcommittee recommends the Commission carefully consider the five issues outlined above before approving SCG’s request for the CAR position.

Proposed Joint Studies

  1. The subcommittee believes the IOU proposed studies on Impact Evaluation and Energy Education will be valuable. The subcommittee recommends the Commission ensure the public is involved in the process of developing the scope of the studies.

NGAT Budgets:

The issue here is because the NGAT budget is developed in a separate proceeding (GRC), the IOUs did not report the budgets and subsequent NGAT costs into their applications. Parties understand this is the case however if the IOUs did not budget enough NGAT funds to complete the required number of NGAT’s associated with the unit goal, the IOU ability to reach their goals would be negatively affected.

Therefore, while the NGAT funds are managed in another proceeding, the availability of those funds certainly affects this proceeding.

  1. The subcommittee recommends the Commission require the IOUs to submit their NGAT budgets and costs for review to assure the IOUs have adequate funding to meet the goals of the ESAP program.

ESAP Program Cost Effectiveness

  1. The subcommittee believes it is important to deliver a comprehensive retrofit and recommends the Commission approve measures based on the program cost effectiveness, not the individual cost effectiveness.
  2. The subcommittee recommends the Commission reiterate to the IOUs that increased cost-effectiveness be obtained by increasing statewide marketing, integration and leveraging, not by decreasing services to customers or forcing prices down on labor.

Process Evaluation Findings

The group recognized the IOUs have incorporated several Process Evaluation Recommendations in their applications. One item that stood out which was not consistent among the IOUs was paperless enrollments. SCE and SCG have indicated they budgeted for this and have already been testing a system for full rollout in 2012. PG&E indicated they did not budget for this process. The group agreed paperless systems provided a significant improvement to the program in reducing the carbon footprint of the program and overall administration of the program. Using a paperless system also allows for additional increased efficiencies in scheduling, auditing and cus

  1. The subcommittee believes the all IOUs should be required to use paperless enrollments and recommends the Commission ensure the IOUs have adequate budget to meet this guideline.

New Measures / Retired Measures:

  1. The subcommittee supports the IOU request to include measures that did not pass the .25 cost effectiveness threshold.
  2. The subcommittee supports adding back infiltration measures for multi-family dwellings. This measure was removed during the last application cycle. Adding the measures back will support a comprehensive retrofit and increase the multi-family customer participation.
  3. The subcommittee supports the new measures recommended by the IOUs and further recommends that PG&E be given the budget to add Smart Strips and Variable pool pumps as well.
  4. The subcommittee recommends keeping Duct Test and Seal (DTS), Central and Room A/C. DTS supports a comprehensive retrofit and long-term savings. Central and Room AC are paramount to customer health comfort and safety.

CARE

  1. The subcommittee supports requiring high use customers to participate in ESAP, if possible, and further recommends usage levels never create any question of CARE participation or denial to participate in the CARE program.