Details for: 4053-E (Part 1 of 1).pdf


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Gary A. Stern, Ph.D.
Managing Director, State Regulatory Operations

August 12, 2019
ADVICE 4053-E
(U 338-E)
PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA
ENERGY DIVISION
Southern California Edison Company’s Proposed Energy
Savings Assistance Bridge Funding for January 1 through June
30, 2021

SUBJECT:

PURPOSE
Southern California Edison Company (SCE) hereby submits its 2021 Proposed Energy
Savings Assistance (ESA) Bridge Funding (Proposal) as required by Ordering
Paragraph (OP) 3 of Decision (D.)19-06-022, Issuing Guidance to Investor-Owned
Utilities for California Alternate Rates for Energy (CARE)/Energy Savings Assistance
Program Applications for 2021-2026 and Denying Petition for Modification (the
Decision). This Proposal details SCE's requested ESA bridge funding budget, the
source of the bridge funding, and SCE’s retreatment goal for the January 1, 2021
through June 30, 2021 bridge period.
BACKGROUND
The funding for SCE’s ESA program extends through the end of 2020. However, on
June 28, 2019, the California Public Utilities Commission (CPUC or Commission) issued
the Decision, which authorizes bridge funding for ESA program activity from January 1,
2021 through June 30, 2021, if the Commission has not approved program and budget
applications for 2021 and beyond by November 16, 2020. The Decision also requires
that SCE establish a retreatment goal for the January 1, 2021 through June 30, 2021
bridge period and describes a methodology for calculating SCE’s retreatment goal, to
be used as SCE’s interim progress milestone. In doing so, the Commission intends to
prevent any uncertainty and potential program disruption that may occur at the end of
the 2020 funding cycle and eliminate the need for subsequent bridge funding decisions.
The Decision directs SCE to submit a Tier 1 advice letter within 45 days of the issuance
date of the Decision with calculations of SCE’s ESA bridge funding needs and
household retreatment goals for the January 1, 2021 through June 30, 2021 bridge
period.1

1

D.19-06-022, OP 3, pp. 25-26.

P.O. Box 800

8631 Rush Street

Rosemead, California 91770

(626) 302-9645

Fax (626) 302-6396





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ADVICE 4053-E (U 338-E) -2- August 12, 2019 DISCUSSION SCE’s ESA program provides energy efficiency assistance to SCE’s income-qualified customers. The program improves energy conservation through the installation of energy efficient measures, including efficient refrigerators, air conditioners and home weatherization. SCE’s customers can qualify for ESA based on participation in an eligible public assistance program or based on total household size and total combined household income.2 In accordance with the Decision, this advice letter outlines SCE’s proposed budget and retreatment goal for the potential bridge funding period of January 1, 2021 through June 30, 2021. SCE’s proposed ESA bridge budget is within the 2020 budget level limit of $85,250,503 when prorated for the six-month bridge period.3 SCE’s household retreatment goal was calculated using the methodology described in the Decision. A. JANUARY 1, 2021 - JUNE 30, 2021 BRIDGE FUNDING PROPOSAL The following section provides SCE’s ESA bridge funding proposal for January 1, 2021 through June 30, 2021. SCE’s proposal consists of 1) the proposed budget; 2) the proposed funding source for this budget, and; 3) the ESA retreatment goal for the bridge funding period. 1. Proposed Budget SCE requests a $40,926,750 budget for the ESA bridge funding period of January 1, 2021 through June 30, 2021. The budget includes funding for programmatic and administrative activity associated with the ESA program for the first half of Program Year 2021. The total program budget broken out by ESA measures and administration is presented in Table 1, below.4 SCE calculated the bridge funding budget as follows: i. 2 3 4 SCE will target 43,562 households for retreatment from January 1, 2021 through June 30, 2021. SCE calculated this target by taking the January through June 2019 expenditures of $40,926,750 for both first touches and SCE’s ESA eligibility guidelines can be found at https://www.sce.com/residential/assistance/energy-saving-program. As adopted in Energy Division’s non-standard disposition of SCE Advice 3743-E, 3743-E-A, 3743-E-B, AL 3824-E, 3824-E-A on January 4, 2019. SCE defines ESA “measures” as the energy efficiency equipment provided to customers and the direct activities used to enroll customers in ESA and deliver the measures. ESA “administration” includes marketing, measurement and evaluation, and general administration.
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ADVICE 4053-E (U 338-E) ii. -3- August 12, 2019 retreatments, setting aside 10 percent for administration costs,5 and then dividing by the 2021 cost per retreatment of $846. The proposed budget for these retreatments is $36,834,075. Retreatments will cover Single Family, Multi-Family, and Mobile Homes.6 a. The average retreatment cost per home in 2019 is $824. b. Because SCE will introduce measures7 that will be offered during the 2021 bridge funding period, SCE estimates an increase in the cost per retreatment to $846. SCE’s total proposed ESA budget is $40,926,750 which is the sum of the retreatments ($36,834,075) and the administrative program costs ($4,092,675). 2. Funding Source SCE will fund the 2021 ESA bridge period using unspent funds in SCE’s ESA Program Adjustment Mechanism Balancing Account (ESAPAM). SCE currently has $59,617,999 in unspent funds in its ESAPAM Balancing Account, sufficient to cover SCE’s proposed ESA budget request.8 For this reason, SCE does not request additional funding for 2021 ESA bridge funding at this time. If the Commission issues a Decision on SCE’s Income Qualified Program (IQP) Application by November 16, 2020, making a bridge period unnecessary, SCE will use these unspent funds to offset its funding request for 2021-2026. 3. ESA Treatment Goal As described above, SCE has set a 43,562 ESA retreatment goal for the sixmonth bridge funding period. See section A.1 for a description of how SCE set this goal. The average cost per retreatment and the retreatment goal are presented in Table 2, below. 5 6 7 8 Per the Decision, 10 percent of the total bridge funding budget will be allocated to administrative costs. See p. 12 of the Decision. Per the Decision, pp.12-13, SCE must treat at least half of the bridge retreatment goal for the period of January 1, 2021 through March 31, 2021. New and additional measures, as approved by D.17-12-009 and SCE AL 3824-E, include high efficiency clothes washers, freezers, thermostatic shower valves, energy efficient fan control, and smart thermostats. The balance of $59,617,999 includes accrued interest.
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ADVICE 4053-E (U 338-E) -4- August 12, 2019 Table 19 Energy Savings Assistance Program Proposed Bridge Funding Budget January 1, 2021 - June 30, 2021 Proposed Bridge Funding Budget ESA Program: Electric Gas Total Energy Efficiency Measures Appliances $ 7,751,587 $ 7,751,587 Domestic Hot Water $ 11,569 $ 11,569 Enclosure $ 56,372 $ 56,372 HVAC $ 16,164,865 $ 16,164,865 Maintenance $ $ Lighting $ 4,964,751 $ 4,964,751 Miscellaneous $ 3,124,242 $ 3,124,242 Customer Enrollment $ 3,728,373 $ 3,728,373 In Home Education $ 1,016,870 $ 1,016,870 Pilot $ 15,447 $ 15,447 Energy Efficiency TOTAL $ 36,834,075 $ 36,834,075 ESA Administration Training Center $ 75,040 $ 75,040 Inspections $ 560,428 $ 560,428 Marketing and Outreach $ 1,065,803 $ 1,065,803 Statewide Marketing Education & Outreach $ $ Measurement and Evaluation Studies $ 96,020 $ 96,020 Regulatory Compliance $ 281,955 $ 281,955 General Administration $ 1,932,788 $ 1,932,788 CPUC Energy Division $ 80,641 $ 80,641 Administration TOTAL (@ 10%) $ 4,092,675 $ 4,092,675 TOTAL PROGRAM COSTS $ 40,926,750 $ 40,926,750 Table 2 Energy Savings Assistance Program Bridge Funding Budget Proposal Type Retreatments 9 Unit cost $846 Goal 43,562 Values in this table do not show decimal places and so numbers may not sum due to rounding.
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ADVICE 4053-E (U 338-E) -5- August 12, 2019 B. WORKFORCE EDUCATION AND TRAINING (WE&T) TRANSITION In its upcoming 2021-2026 IQP Application,10 SCE intends to propose transitioning nonstatewide WE&T funding from the Energy Efficiency (EE) portfolio to the IQP portfolio.  Because this bridge funding proposal is being filed before the filing of the 2021-2026 Application, SCE has included in this advice letter this high-level plan and proposed bridge funding budget for WE&T transition activities from January 1, 2021 through June 30, 2021. To support statewide goals and initiatives,11 the WE&T transition will enable SCE to provide a more robust suite of WE&T opportunities, particularly for low-income customers and workers in disadvantaged communities (DACs). For example, these trainings may focus on building a workforce within DACs, recruitment opportunities through community programs, or build students’ soft skills, such as communication, professionalism, and interpersonal skills. In doing so, communities that benefit from SCE’s IQP programs as customers will also benefit from its residents acquiring the skills needed for jobs in the EE installation field. Transitioning from EE to IQP will align program objectives with funding objectives, as IQP seeks to provide service to lowincome customers, whereas EE goals are geared towards resource savings and avoided costs. In addition, this realignment will allow SCE to better assess the needs and delivery of its WE&T programs. To accomplish this transition, SCE will implement the following multipart strategy: 1. Request WE&T funding in the 2021-2026 Low Income Application that will be used to service low-income customers and disadvantaged workers, including those in disadvantaged communities. SCE will conduct a third-party solicitation in which bidders will be asked to propose unique and innovative offerings for WE&T design and delivery. 2. To transition WE&T from EE to IQP, SCE requests the bridge funding budget include non-statewide WE&T activities from January 1, 2021 through June 30, 2021. 3. SCE will continue to fund all WE&T activities through 2020 through its EE budget but will begin the transition to IQP for all non-statewide WE&T activities to ensure a smooth transition at the end of 2020. 10 11 SCE’s IQP programs include ESA, CARE, and Family Electric Rate Assistance (FERA). CA Clean Energy and Jobs Act (Prop. 39), CA Long Term Energy Efficiency Strategic Plan, p.78; D.18-10-008, COL #4, p. 71; and D.18-05-041, p. 53.
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ADVICE 4053-E (U 338-E) -6- August 12, 2019 4. All statewide WE&T activities (Connections and Career & Workforce Readiness) will remain in EE in 2021 and beyond and will continue to be funded through the EE proceeding. SCE requests an additional $2,550,000 budget be approved as part of this bridge funding proposal using uncommitted, unspent funds from prior years. Table 3 details the total budget request for the WE&T program during the January 1, 2021 through June 30, 2021 bridge period. Table 3 Combined ESA and WE&T Bridge Funding Budget Proposal Program Budget ESA Bridge Funding Budget $ 40,926,750 Integrated Energy Workforce Education & Training $ 2,550,000 Total $ 43,476,750 TIER DESIGNATION Pursuant to the Decision, OP 3, this advice letter is being submitted with a Tier 1 designation. EFFECTIVE DATE This advice letter will become effective August 12, 2019, the same day as submitted. No cost information is required for this advice letter. This advice letter will not increase any rate or charge, cause the withdrawal of service, or conflict with any other schedule or rule. NOTICE Anyone wishing to protest this advice letter may do so by letter via U.S. Mail, facsimile, or electronically, any of which must be received no later than 20 days after the date of this advice letter. Protests should be submitted to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California 94102 E-mail: EDTariffUnit@cpuc.ca.gov Copies should also be mailed to the attention of the Director, Energy Division, Room 4004 (same address above).
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ADVICE 4053-E (U 338-E) -7- August 12, 2019 In addition, protests and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of: Gary A. Stern, Ph.D. Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California 91770 Telephone: (626) 302-9645 Facsimile: (626) 302-6396 E-mail: AdviceTariffManager@sce.com Laura Genao Managing Director, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California 94102 Facsimile: (415) 929-5544 E-mail: Karyn.Gansecki@sce.com There are no restrictions on who may submit a protest, but the protest shall set forth specifically the grounds upon which it is based and must be received by the deadline shown above. In accordance with General Rule 4 of GO 96-B, SCE is serving copies of this advice letter to the interested parties shown on the attached GO 96-B and A.14-11-007 et. al., service lists. Address change requests to the GO 96-B service list should be directed by electronic mail to AdviceTariffManager@sce.com or at (626) 302-3719. For changes to all other service lists, please contact the Commission’s Process Office at (415) 703-2021 or by electronic mail at Process_Office@cpuc.ca.gov. Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by submitting and keeping the advice letter at SCE’s corporate headquarters. To view other SCE advice letters submitted with the Commission, log on to SCE’s web site at https://www.sce.com/wps/portal/home/regulatory/advice-letters.
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ADVICE 4053-E (U 338-E) -8- August 12, 2019 For questions, please contact Godofredo de Vera at (626) 302-1127 or by electronic mail at godofredo.devera@sce.com. Southern California Edison Company /s/ Gary A. Stern Gary A. Stern, Ph.D. GAS:gd:cm Enclosures
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ADVICE LETTER SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/CPUC Utility No.: Southern California Edison Company (U 338-E) Utility type: ELC GAS PLC HEAT ELC = Electric PLC = Pipeline WATER Contact Person: Darrah Morgan Phone #: (626) 302-2086 E-mail: AdviceTariffManager@sce.com E-mail Disposition Notice to: AdviceTariffManager@sce.com EXPLANATION OF UTILITY TYPE GAS = Gas WATER = Water HEAT = Heat (Date Submitted / Received Stamp by CPUC) Tier Designation: 1 Advice Letter (AL) #: 4053-E Subject of AL: Southern California Edison Company’s Proposed Energy Savings Assistance Bridge Funding for January 1 through June 30, 2021 Keywords (choose from CPUC listing): Compliance AL Type: Monthly Quarterly Annual One-Time Other: If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #: Decision 19-06-022 Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: Summarize differences between the AL and the prior withdrawn or rejected AL: Confidential treatment requested? Yes No If yes, specification of confidential information: Confidential information will be made available to appropriate parties who execute a nondisclosure agreement. Name and contact information to request nondisclosure agreement/ access to confidential information: Resolution required? Yes No Requested effective date: 8/12/19 No. of tariff sheets: -0- Estimated system annual revenue effect (%): Estimated system average rate effect (%): When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting). Tariff schedules affected: None Service affected and changes proposed1: Pending advice letters that revise the same tariff sheets: None 1 Discuss in AL if more space is needed. Clear Form
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Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this submittal, unless otherwise authorized by the Commission, and shall be sent to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, CA 94102 Email: EDTariffUnit@cpuc.ca.gov Name: Gary A. Stern, Ph.D. Title: Managing Director, State Regulatory Operations Utility Name: Southern California Edison Company Address: 8631 Rush Street City: Rosemead Zip: 91770 State: California Telephone (xxx) xxx-xxxx: (626) 302-9645 Facsimile (xxx) xxx-xxxx: (626) 302-6396 Email: advicetariffmanager@sce.com Name: Laura Genao c/o Karyn Gansecki Title: Managing Director, State Regulatory Affairs Utility Name: Southern California Edison Company Address: 601 Van Ness Avenue, Suite 2030 City: San Francisco State: California Zip: 94102 Telephone (xxx) xxx-xxxx: Facsimile (xxx) xxx-xxxx: (415) 929-5544 Email: karyn.gansecki@sce.com Clear Form
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ENERGY Advice Letter Keywords Affiliate Direct Access Preliminary Statement Agreements Disconnect Service Procurement Agriculture ECAC / Energy Cost Adjustment Qualifying Facility Avoided Cost EOR / Enhanced Oil Recovery Rebates Balancing Account Energy Charge Refunds Baseline Energy Efficiency Reliability Bilingual Establish Service Re-MAT/Bio-MAT Billings Expand Service Area Revenue Allocation Bioenergy Forms Rule 21 Brokerage Fees Franchise Fee / User Tax Rules CARE G.O. 131-D Section 851 CPUC Reimbursement Fee GRC / General Rate Case Self Generation Capacity Hazardous Waste Service Area Map Cogeneration Increase Rates Service Outage Compliance Interruptible Service Solar Conditions of Service Interutility Transportation Standby Service Connection LIEE / Low-Income Energy Efficiency Storage Conservation LIRA / Low-Income Ratepayer Assistance Street Lights Consolidate Tariffs Late Payment Charge Surcharges Contracts Line Extensions Tariffs Core Memorandum Account Taxes Credit Metered Energy Efficiency Text Changes Curtailable Service Metering Transformer Customer Charge Customer Owned Generation Mobile Home Parks Name Change Transition Cost Transmission Lines Decrease Rates Non-Core Transportation Electrification Demand Charge Non-firm Service Contracts Transportation Rates Demand Side Fund Nuclear Undergrounding Demand Side Management Oil Pipelines Voltage Discount Demand Side Response PBR / Performance Based Ratemaking Wind Power Deposits Portfolio Withdrawal of Service Depreciation Power Lines Clear Form
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Appendix A
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Appendix A January – June 2019 Actual ESA Expenditures First Touches and Retreatments 2019 Actual Expenditures1 Category First Touches Re-treated Homes Total 2019 Homes Treated 2019 Cost Per Treatment $ 33,623,975 34,710 $ 968.71 $ 7,302,775 8,862 $ 824.05 $ 40,926,750 43,572 2021 Bridge Funding Budget and Retreatment Goal 2021 Retreatment Budget Excluding Administration $ 1 36,834,075 Avg Cost per Home Retreated in 2021, Including New Measures $ As reported in SCE’s June RDR. 845.55 Retreatment Goal Jan - June 2021 Interim Retreatment Goal Jan - March 2021 43,562 21,781
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