Details for: AL5501.pdf


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Ronald van der Leeden
Director
Regulatory Affairs
555 W. Fifth Street, GT14D6
Los Angeles, CA 90013-1011
Tel: 213.244.2009
Fax: 213.244.4957
RvanderLeeden@socalgas.com

August 12, 2019

Advice No. 5501
(Southern California Gas Company U 904 G)
Public Utilities Commission of the State of California
Subject: Energy Savings Assistance (ESA) Program Bridge Funding and
Retreatment Goal
Southern California Gas Company (SoCalGas) hereby submits this Tier 1 Advice Letter
(AL) as directed by the California Public Utilities Commission (Commission or CPUC) in
Decision (D.) 19-06-022.
Purpose
Pursuant to Ordering Paragraph (OP) 3 of D.19-06-022, this AL provides SoCalGas’
calculations for the ESA Program bridge funding amount, source for bridge funds, and
retreatment goal for the January 1, 2021-June 30, 2021 bridge period.
Background
On June 28, 2019, the Commission issued D.19-06-022 directing the investor-owned
utilities (IOUs) to file their ESA and California Alternate Rates for Energy (CARE)
Program Applications by November 4, 2019. In D.19-06-022 the Commission noted the
current CARE/ESA Program funding extends through the end of 2020. The
Commission also noted its intent to avoid uncertainty and potential program disruption
and eliminate the need for subsequent bridge funding decisions.
For the CARE Program, the Commission approved bridge funding, at the 2020 CARE
budget level in the mid-cycle advice letter,1 to cover CARE Program activity for January
1, 2021-June 30, 2021. For the ESA Program, the Commission authorized bridge
funding to cover ESA Program activity for January 1, 2021-June 30, 2021 if the
Commission has not voted to approve 2021 and beyond for programs and budget
1

Advice No. 5325 was approved December 19, 2018.





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Advice No. 5501 -2- August 12, 2019 applications by November 16, 2020 (45 days prior to end of current approved budget cycle).2 The Commission authorized a funding amount up to 2020 budget levels, as approved in mid-cycle advice letter dispositions.3 OP 3 of D.19-06-022 directed each large IOU to submit a Tier 1 AL 45 days after issuance of this decision with calculations of ESA Program bridge funding amount and retreatment goal for the January 1, 2021-June 30, 2021 bridge period per the above direction. The AL should include what portion of the total bridge budget can be accommodated from unspent funds, if any, differentiating between Unspent Funds from program year (PYs) 2009-2016 and PY 2017-2020, and what portion of bridge budget will require new revenue collection. ESA Program Bridge Funding and Retreatment Goal SoCalGas requests approval of a bridge goal of 60,000 retreated homes and a total of $84,311,111 for the ESA Program bridge funding period of January 1, 2021-June 30, 2021, as shown in Table 1 and Table 2 respectively. Pursuant to D.19-06-022, SoCalGas’ bridge funding request does not exceed the 2020 budget level approved in SoCalGas mid-cycle advice letter.4 For illustrative purposes, SoCalGas provides its proposed ESA Program funding for the bridge period broken out by program costs in Attachment A. SoCalGas’ proposed budget does not include unspent funds from the 2017-2020 period. SoCalGas is expected to exhaust all authorized funding for the 20172020 period. Consistent with the direction in D.19-06-022, SoCalGas’ retreatment goal has been calculated using the actual average expenditures per treatment from the first half of program year 2019. This includes setting aside 10% or $8,431,111 of the total ESA Program bridge budget for administrative program costs. SoCalGas’ remaining total ESA Program budget is $75,880,000. Based on 2019 actual expenditures, the total cost of enrollment, energy education, and installation of measures for retreatments has averaged $1,223 per treated home over the first half of 2019. D. 19-06-022 at OP 2. D. 19-06-022 at OP 2. 4 SoCalGas’ 2020 funding level, per Advice No. 5325 issued December 19, 2018 midcycle AL disposition, is $231,913,662. 2 3
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Advice No. 5501 -3- August 12, 2019 Table 1 – Proposed ESA Program Bridge Funding Total PY 2018 - 2020 (For Historical Purposes Only) 2018 Total 2019 $ 198,805,587 $ 223,151,718 Bridge Funding Period January 2021 - June 2021 2020 $ 231,913,662 Energy Efficiency Administrative Unspent Funds Q 1 2021 Q 2 - 2021 Admin % of Total $37,940,000 $37,940,000 $4,215,556 $4,215,556 10% N/A N/A $ 42,155,556 $42,155,556 84,311,111 Total Bridge Funding Amount $ 1. Authorized budget for program years 2018-2020 shown as apSoCalGas' Advice Letter 5325, effective December 19, 2018. 2. Energy Efficiency category includes all subcategories shown on Table 1 an 1a of SoCalGas' Low Income Annual Report filed on May 1, 2019. 3. Total Administrative categories include the "below the line" information shown on Table 1 and 1a of SoCalGas' ESA Annual Report. Table 2 – Proposed ESA Program Homes Retreatment Goal First-Time Treatment Retreatment Total Home Treatment Authorized 2018 116,592 53,318 169,910 Program Years 2018 - 2020 (For Historical Purposes Only) Actual Authorized Projection Authorized Projection 2019 2020 40,998 153,659 61,335 159,780 327,698 58,459 28,606 40,136 31,406 14,735 99,457 182,265 101,471 191,186 342,433 Total 430,031 113,330 543,361 Bridge Period January 2021 - June 2021 Projection Projection Total Homes Q 1 - 2021 Q 2 - 2021 N/A N/A 18,600 41,400 18,600 41,400 60,000 1. Authorized information under Program Years 2018-2020 reflect authorized homes treated as approved by Energy Division Disposition Approving SoCalG 2. Actuals under Program Years 2018-2020 reflect annual home treatments reported in SoCalGas' Low Income Annual Report filed on May 1, 2019. 3. Projections under Program Years 2018-2020 reflect actual home treatments through June 2019 as reported in Monthly Report dated July 21, 2019 and projections from July through December 2019. Interim Progress Milestone OP 4 of D.19-06-022 sets an interim progress milestone at “half the bridge retreatment goal” and directs the IOUs to submit an AL on April 15, 2021 to document retreatments and budgets associated with the interim progress milestone. Energy Division will reject the AL if the IOU fails to demonstrate it 1) has met the interim progress milestone with ESA bridge funds; or 2) the fraction of remaining bridge budget for retreatments is less than the fraction of remaining retreatments necessary to meet the bridge retreatment goal. SoCalGas requests Energy Division approve an interim progress milestone of 18,600 homes treated through March 31, 2021. Historically over the last five years, on average, 31% of homes treated during the first six-month period are reported through March 31.5 SoCalGas reports treated homes units based on invoiced and approved transactions, as a result, treated homes are reflected about a month after completion of work. To meet the compliance requirements of the April 15, 2021 AL, SoCalGas’ interim program milestone should account for this reporting methodology. In reviewing SoCalGas’ Monthly reports over the past five years, on average, SoCalGas has treated 31% of the January through June total units in the first quarter of a given year. 5
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Advice No. 5501 -4- August 12, 2019 Protest Anyone may protest this AL to the Commission. The protest must state the grounds upon which it is based, including such items as financial and service impact, and should be submitted expeditiously. The protest must be made in writing and must be received within 20 days of the date of this AL, which is September 1, 2019. The address for mailing or delivering a protest to the Commission is: CPUC Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, CA 94102 A copy of the protest should also be sent via e-mail to the attention of the Energy Division Tariff Unit (EDTariffUnit@cpuc.ca.gov). A copy of the protest should also be sent via both e-mail and facsimile to the address shown below on the same date it is mailed or delivered to the Commission. Attn: Ray B. Ortiz Tariff Manager – GT14D6 555 West Fifth Street Los Angeles, CA 90013-1011 Facsimile No.: (213) 244-4957 E-mail: Rortiz@socalgas.com Effective Date SoCalGas believes this AL is subject to Energy Division disposition and should be classified as Tier 1 (effective pending disposition) pursuant to General Order (GO) 96-B. It is in compliance with D.19-06-022. Therefore, SoCalGas respectfully requests that it be made effective on August 12, 2019, which is the date submitted. Notice A copy of this AL is being sent to SoCalGas’ GO 96-B service list and the Commission’s service list in A.14-11-007. Address change requests to the GO 96-B should be directed via e-mail to tariffs@socalgas.com or call 213-244-2837. For changes to all other service lists, please contact the Commission’s Process Office at 415-703-2021 or via e-mail at process_office@cpuc.ca.gov.
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Advice No. 5501 -5- _____________________________ Ronald van der Leeden Director - Regulatory Affairs Attachments August 12, 2019
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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 Gas Company (U 904G) Utility type: ELC PLC ELC = Electric PLC = Pipeline ✔ GAS WATER HEAT Contact Person: Ray B. Ortiz Phone #: (213) 244-3837 E-mail: ROrtiz@socalgas.com E-mail Disposition Notice to: Tariffs@socalgas.com EXPLANATION OF UTILITY TYPE GAS = Gas WATER = Water HEAT = Heat (Date Submitted / Received Stamp by CPUC) Tier Designation: 1 Advice Letter (AL) #: 5501 Subject of AL: Energy Savings Assistance (ESA) Program Bridge Funding and Retreatment Goal Keywords (choose from CPUC listing): Compliance; Energy Efficiency AL Type: Monthly Quarterly Annual ✔ One-Time Other: If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #: D.19-06-022 Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: N/A Summarize differences between the AL and the prior withdrawn or rejected AL: N/A Yes Yes ✔ No ✔ No 8/12/19 No. of tariff sheets: 0 Estimated system annual revenue effect (%): N/A Estimated system average rate effect (%): N/A 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: N/A Service affected and changes proposed1: N/A Pending advice letters that revise the same tariff sheets: N/A 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: Ray B. Ortiz Title: Regulatory Tariff Manager Utility Name: Southern California Gas Company Address: 555 West Fifth Street, GT14D6 City: Los Angeles State: California Telephone (xxx) xxx-xxxx: (213) 244-3837 Facsimile (xxx) xxx-xxxx: (213) 244-4957 Email: ROrtiz@socalgas.com Name: SoCalGas Tariffs Title: Utility Name: Southern California Gas Company Address: 555 West Fifth Street, GT14D6 City: Los Angeles State: California Telephone (xxx) xxx-xxxx: (213) 244-2837 Facsimile (xxx) xxx-xxxx: (213) 244-4957 Email: Tariffs@socalgas.com Clear Form
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Attachment A Advice No. 5501 SoCalGas ESA Program Proposed Bridge Funding January 1, 2021 – June 30, 2021
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