ADVICE LETTER (AL) SUSPENSION NOTICE ENERGY DIVISION

Transcription

1 ADVICE LETTER (AL) SUSPENSION NOTICE ENERGY DIVISION Utility Name: Southern California Edison Utility No./Type: U 338-E Advice Letter No.: 3743-E Date Utility Notified: March 9, 2018 via: [X] to: Darrah.Morgan@sce.com Date AL filed: February 12, 2018 Utility Contact Person: Darrah Morgan Utility Phone No.: (626) Fax No.: N/A ED Staff Contact: Syreeta Gibbs For Internal Purposes Only:) Date Calendar Clerk Notified / / Date Commissioners/Advisors Notified / / [X] INITIAL SUSPENSION (up to 120 DAYS from the expiration of the initial review period) This is to notify that the above-indicated AL is suspended for up to 120 days beginning March 9, 2018 for the following reason(s) below. If the AL requires a Commission resolution and the Commission s deliberation on the resolution prepared by Energy Division extends beyond the expiration of the initial suspension period, the advice letter will be automatically suspended for up to 180 days beyond the initial suspension period. [ ] A Commission Resolution is Required to Dispose of the Advice Letter [ ] Advice Letter Requests a Commission Order [X] Advice Letter Requires Staff Review The expected duration of initial suspension period is 120 days [ ] FURTHER SUSPENSION (up to 180 DAYS beyond initial suspension period) The AL requires a Commission resolution and the Commission s deliberation on the resolution prepared by Energy Division has extended beyond the expiration of the initial suspension period. The advice letter is suspended for up to 180 days beyond the initial suspension period. If you have any questions regarding this matter, please contact Syreeta Gibbs at syg@cpuc.ca.gov. cc: EDTariffUnit@cpuc.ca.gov, alison.labonte@cpuc.ca.gov

2

3 Gary Stern Managing Director, State Regulatory Operations February 12, 2018 ADVICE 3743-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Southern California Edison Company s Revised Energy Savings Assistance Homes Treated Goals and Savings Target Plan Pursuant to Resolution E-4885 I. PURPOSE The purpose of this Advice Letter (AL) is to provide Southern California Edison Company s (SCE s) plan addressing the revised homes treated goals and savings targets for the Energy Savings Assistance (ESA) Program in Resolution E-4885 Approving SCE Authorized California Alternate Rates for Energy (CARE) and ESA Programs Conforming AL 3585-E and Supplemental AL 3585-E-A in compliance with Decision (D.) and D II. BACKGROUND On November 18, 2014, SCE filed its application for the ESA and CARE Programs Plans and Budgets, Application (A.) et al. Hearings on SCE s Application were held on June 17-18, 2015; and, workshops to discuss SCE s applications were held on June 19, 2015 and August 19, On August 16, 2016, Administrative Law Judge Colbert issued a Proposed Decision (PD) and Commissioner Sandoval issued an Alternate Proposed Decision (APD). On August 31, 2016, Commissioner Sandoval hosted an All Party meeting to discuss specific issues outlined in the APD. SCE filed comments on the PD and APD on September 6, 2016, and filed reply comments on September 12, Prior to issuance of the final decision, there were two versions of the PD and four versions of the APD issued. On November 10, 2016, the California Public Utilities Commission (Commission or CPUC) issued D which approved SCE s ESA and CARE Programs Plans and P.O. Box Rush Street Rosemead, California (626) Fax (626)

4 ADVICE 3743-E (U 338-E) February 12, 2018 Budgets for Program Years D was modified by D SCE cites to the redline of D , as modified by D , in Attachment 1 to D (hereinafter Decision ). In D , the Commission directed SCE to submit a conforming advice letter to reflect program energy savings goals, budgets, costs for approved measures, penetration goals, cost effectiveness values, and any other update factors. 2 Additionally, SCE is directed to recalculate the number of ESA Program customers eligible and willing with the new willingness and feasible to participate (WFTP) factor, ESA and CARE programs budget projections for reflecting the adjustments, and the new program elements adopted in the Decision, as well as information related to Assembly Bill (AB) 327, as directed in the Decision. Moreover, based on recent direction for ESA and CARE Program audits, SCE incorporated costs for the ESA and CARE Program audits, as well as proposed audit budgets for On April 3, 2017, SCE filed Advice 3585-E, its Conforming AL in compliance with D On June 1, 2017, the Commission s Energy Division Staff provided SCE with questions and recommendations for updating Advice 3585-E, which are addressed in SCE s Supplemental AL 3585-E-A filed on June 20, On December 14, 2017, Resolution E-4885 was issued approving SCE s Authorized CARE and ESA Programs Conforming AL 3585-E and Supplemental AL 3585-E-A filed in compliance with D Further, Resolution E-4885 required SCE to submit a Tier 2 AL setting forth a plan and supplemental budget proposal to treat the remaining untreated population and propose new retreatment estimates as warranted. 3 III. SUMMARY OF MODIFICATIONS TO PLAN FOR INCREASED HOMES TREATED GOALS AND SAVINGS TARGETS As directed by Resolution E-4885, SCE provides its plan to address the increased homes treated goals and savings targets with the following: A. ESA Program Household Treatment Goals; B. Approach to ESA Program Household Treatment Goals C. Allocation of Unspent Funds; D. New Budget Tables; E. Program Savings Goals 1 D , p D , pp Resolution E-4885, p. 25.

5 ADVICE 3743-E (U 338-E) February 12, 2018 IV. SPECIFIC MODIFICATIONS A. ESA Program Household Treatment Goals SCE s ESA Program was designed to make further progress towards the Strategic Plan s first goal of offering ESA Program services to all income-eligible customers by treating an estimated 234,940 homes by Per the Decision, SCE was directed to re-calculate and estimate the new remaining eligible population using the 60 percent WFTP. In response, SCE projected 322,123 remaining eligible and willing households through 2020 as filed in SCE s Conforming Advice Letter 3585-E. 4 As shown in Table A-1 below, SCE s total homes treated includes the projected quantities of first time treatments and retreatments for , as directed in Resolution E SCE based these projections on the increase to 60% WFTP, the new restriction of not counting retreatments toward the 2020 Homes Treated goal, and historical data showing that allowing retreatments adds approximately 23% of first time treatments to the total number of homes treated. TABLE A-1 Household Treatment Goal Total First Time Treatments 64,520 83,918 85,835 87, ,123 Retreatments 15,813 18,643 19,218 19,822 73,495 Total Homes Treated 80, , , , ,618 B. Approach to ESA Program Household Treatment Goals SCE s Marketing, Education, and Outreach (ME&O) plan for the ESA Program cycle provides situational analysis of SCE s low income audience, including customer insights and barriers to participation, as well as a marketing plan outlining objectives, strategies, tactics, and metrics to meet the total homes treated goal. However, based on the significant increase in the number of households targeted for treatment, the activities, along with budget, are expected to increase. 4 SCE Conforming Advice Letter 3585-E Attachment C Table VIII.

6 ADVICE 3743-E (U 338-E) February 12, 2018 Other low income marketing activities include working with our existing network of community-based organizations and contractors, integrating with SoCalGas to deliver joint services to customers in overlapping service territories, increased coordination with CSD s Low Income Weatherization program, and implementing the ESA Program multifamily common area measure initiative. Lastly, SCE will seek additional opportunities to leverage the ESA program, as appropriate, with other programs focusing on disadvantaged communities. Integration with SoCalGas Continue to collaborate and identify opportunities to continuously improve ESA Program delivery for households served jointly by both utilities. Areas of opportunities include, but not limited to, joint branding/marketing efforts, and system enhancements to improve outreach, assessment, enrollment, and installation processes for joint customers. Coordination with CSD s LIWP SCE and CSD continue to make progress on establishing a data sharing process that provides customer usage data and information for CSD treated households. Multifamily Common Area Measure Initiative SCE will be filing an implementation plan via Tier 2 Advice Letter by no later than March 1, The plan includes an engagement strategy that focuses on, and has the ability to react to, the distinct needs of multifamily properties. C. Allocation of Unspent Funds The Decision authorized SCE to utilize unspent funds for various new measures and initiatives. Table C-1 demonstrates SCE s Approved Allocation of Unspent Funds via Resolution E-4885 for new measures, such as High Efficiency (HE) Clothes Washers, Central AC and other AC related measures in Climate Zone 13, and Tier II Power Strips, as authorized in the Decision. Because these amounts are no longer represented by the new estimated total household treatment goal, SCE is proposing a revision to the allocation of unspent amounts. For example while projected installation quantities for central AC in climate zone 13 and Powerstrip Tier II have increased, quantities for HE Clothes Washer were decreased based on eligibility criteria for the measure.

7 ADVICE 3743-E (U 338-E) February 12, 2018 TABLE C-1 SCE s Allocation of Unspent Funds Category Approved Proposed Variance Additional Regulatory Compliance Costs $487,500 $487,500 $0 Leveraging - CEC, CSD & DWR $4,000,000 $4,000,000 $0 Climate Zone 13 - Central AC and other AC related measures $22,846,073 $28,090,256 $ 5,244,183 HE Clothes Washer $11,399,256 $4,066,221 ($ 7,333,035) Multifamily Common Area Measures $18,000,000 $18,000,000 $0 Powerstrip Tier II $7,851,586 $8,146,104 $294,518 Total $64,584,415 $62,790,081 ($1,794,334) D. New Budget Tables As shown in Attachment 1 and based on the revised household treatment goal and projection of potential eligible measures feasible for installation, SCE proposes an increase to previously approved budget by approximately $84.8M, of which $62.8M would be offset by the ESA unspent balance. Because additional budget will be needed to meet the revised household treatment goal and projection of potential eligible measures, SCE will request additional funds in its mid-cycle advice letter to be filed in July A comparison between the approved budget and the new requested amount is also provided in Attachment 1 Revised ESAP Budget PY The proposed budget does not include adjustments to the program that may be proposed via other filings. For example, the Advice Letter for the PCT Pilot plan and budget may request additional funding. 5 D allows budget adjustments as part of the mid-cycle advice letter process. See See Attachment 1 of D p

8 ADVICE 3743-E (U 338-E) February 12, 2018 E. Program Savings Goals SCE provides its revised energy savings goals in Table E-1 below. SCE s estimated savings are based on the projected quantities installed for each year. SCE provides additional detail as to how the savings were projected by measure group category (see Attachment 2 ESAP Savings PY ). SCE notes the estimated savings do not include the potential savings from efforts such as, CSD Leveraging and Coordination and Multifamily Common Area Measures. There is presently no accurate way of calculating savings for these efforts. TABLE E-1 ESA Savings Goal Per Resolution E SCE s revised Portfolio-Wide Electric Savings Target (GWh) Old 2017 (Per 30.8 D ) New New New New TIER DESIGNATION Pursuant to Resolution E-4885, page 17, this advice filing is submitted with a Tier 2 designation. EFFECTIVE DATE SCE respectfully request that this Advice Letter be approved March 14, 2018, which is 30 calendar days after the date filed. PROTESTS Anyone wishing to protest this advice filing 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 filing. Protests should be submitted to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California EDTariffUnit@cpuc.ca.gov

9 ADVICE 3743-E (U 338-E) February 12, 2018 Copies should also be mailed to the attention of the Director, Energy Division, Room 4004 (same address above). 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 Stern Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California Facsimile: (626) 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 Facsimile: (415) Karyn.Gansecki@sce.com There are no restrictions on who may file 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. NOTICE In accordance with General Rule 4 of GO 96-B, SCE is serving copies of this advice filing to the interested parties shown on the attached GO 96-B, A et al. and A 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) For changes to all other service lists, please contact the Commission s Process Office at (415) 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 filing and keeping the advice filing at SCE s corporate headquarters. To view other SCE advice letters filed with the Commission, log on to SCE s web site at

10 ADVICE 3743-E (U 338-E) February 12, 2018 For questions, please contact Sheila Lee at (626) or by electronic mail at Sheila.Lee@sce.com. Southern California Edison Company GS:sl:cm Enclosures /s/ Gary Stern Gary Stern

11 CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER FILING 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: Contact Person: Darrah Morgan ELC GAS Phone #: (626) PLC HEAT WATER Disposition Notice to: EXPLANATION OF UTILITY TYPE ELC = Electric GAS = Gas PLC = Pipeline HEAT = Heat WATER = Water (Date Filed/ Received Stamp by CPUC) Advice Letter (AL) #: 3743-E Tier Designation: 2 Subject of AL: Southern California Edison Company s Revised Energy Savings Assistance Homes Treated Goals and Savings Target Plan Pursuant to Resolution E-4885 Keywords (choose from CPUC listing): Compliance, CARE AL filing type: Monthly Quarterly Annual One-Time Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: Resolution E-4885 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: 3/14/18 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 proposed 1 : Pending advice letters that revise the same tariff sheets: None 1 Discuss in AL if more space is needed.

12 Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this filing, unless otherwise authorized by the Commission, and shall be sent to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California Gary Stern Managing Director, State Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, California Facsimile: (626) Laura Genao Managing Director, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, California Facsimile: (415)

13 Attachment 1 Revised ESAP Budget PY

14 Attachment 1 Revised ESAP Budget PY SCE's Approved ESA Program Budgets, via Resolution E 4885 SCE's requested Budgets Based On Direction from Res E 4885 ESA Program Budget Appliances $ 19,877,351 $ 20,600,293 $ 21,628,600 $ 22,713,446 $ 84,819,690 $ 17,363,201 $ 30,671,603 $ 31,386,048 $ 32,136,699 $ 111,557,551 Domestic Hot Water $ 27,143 $ 29,612 $ 31,348 $ 32,633 $ 120,736 $ 11,384 $ 46,783 $ 47,873 $ 49,018 $ 155,057 Enclosure $ 188,160 $ 206,446 $ 218,022 $ 228,441 $ 841,069 $ 188,821 $ 323,540 $ 331,076 $ 338,995 $ 1,182,432 HVAC $ 21,373,954 $ 23,701,595 $ 24,897,305 $ 26,134,620 $ 96,107,474 $ 23,545,843 $ 37,104,838 $ 37,969,134 $ 38,876,967 $ 137,496,782 Maintenance $ 91,665 $ 96,417 $ 100,220 $ 105,347 $ 393,649 $ 91,665 $ 95,448 $ 155,760 $ 159,388 $ 502,261 Lighting $ 2,647,334 $ 1,929,586 $ 1,013,054 $ 531,767 $ 6,121,741 $ 3,523,725 $ 2,936,594 $ 1,502,499 $ 769,217 $ 8,732,035 Misc $ 2,842,731 $ 2,508,593 $ 2,631,912 $ 1,755,172 $ 9,738,408 $ 2,670,367 $ 2,672,353 $ 2,734,601 $ 2,800,004 $ 10,877,325 In Home Education $ 1,322,070 $ 1,388,162 $ 1,457,578 $ 1,530,461 $ 5,698,271 $ 1,019,757 $ 1,301,922 $ 1,333,556 $ 1,366,789 $ 5,022,024 Customer Enrollment $ 4,071,924 $ 4,275,486 $ 4,489,283 $ 4,713,762 $ 17,550,455 $ 6,507,669 $ 8,308,329 $ 8,510,203 $ 8,722,283 $ 32,048,484 Energy Efficiency Subtotal $ 52,442,332 $ 54,736,190 $ 56,467,322 $ 57,745,649 $ 221,391,493 $ 54,922,431 $ 83,461,410 $ 83,970,751 $ 85,219,359 $ 307,573,951 Training Center $ 493,828 $ 516,064 $ 539,344 $ 563,710 $ 2,112,946 $ 493,828 $ 516,064 $ 539,344 $ 563,710 $ 2,112,946 Inspections $ 1,051,652 $ 1,100,363 $ 1,151,406 $ 1,204,880 $ 4,508,301 $ 1,051,652 $ 1,100,363 $ 1,151,406 $ 1,204,880 $ 4,508,301 Marketing and Outreach $ 950,000 $ 950,000 $ 950,000 $ 950,000 $ 3,800,000 $ 950,000 $ 1,100,000 $ 1,100,000 $ 1,100,000 $ 4,250,000 Measurement and Evaluation Studies $ 226,250 $ 91,250 $ 91,250 $ 91,250 $ 500,000 $ 226,250 $ 91,250 $ 91,250 $ 91,250 $ 500,000 Regulatory Compliance $ 450,856 $ 464,382 $ 478,313 $ 492,663 $ 1,886,214 $ 450,856 $ 464,382 $ 478,313 $ 492,663 $ 1,886,214 General Administration $ 3,926,101 $ 4,001,434 $ 3,879,027 $ 3,958,948 $ 15,765,510 $ 3,926,101 $ 4,001,434 $ 3,879,027 $ 3,958,948 $ 15,765,510 CPUC Energy Division $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 240,000 $ 60,000 $ 60,000 $ 60,000 $ 60,000 $ 240,000 Compliance Costs $ 393,750 $ $ 93,750 $ $ 487,500 $ 393,750 $ $ 93,750 $ $ 487,500 Multi Family $ 4,500,000 $ 4,500,000 $ 4,500,000 $ 4,500,000 $ 18,000,000 $ $ 6,000,000 $ 6,000,000 $ 6,000,000 $ 18,000,000 Leveraging $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 1,000,000 $ 4,000,000 $ $ 1,333,333 $ 1,333,333 $ 1,333,333 $ 4,000,000 Climate Zone 13 Central AC and AC Related $ 2,824,460 $ 6,348,570 $ 6,666,260 $ 7,006,783 $ 22,846,073 $ $ 9,098,585 $ 9,383,698 $ 9,607,973 $ 28,090,256 HE Clothes Washers $ 1,434,053 $ 3,160,850 $ 3,318,844 $ 3,485,509 $ 11,399,256 $ $ 1,324,045 $ 1,354,886 $ 1,387,290 $ 4,066,221 Powerstrip Tier II $ 987,546 $ 2,177,352 $ 2,286,161 $ 2,400,527 $ 7,851,586 $ 738,995 $ 2,411,906 $ 2,468,087 $ 2,527,116 $ 8,146,104 Subtotal $ 18,298,496 $ 24,370,265 $ 25,014,355 $ 25,714,270 $ 93,397,386 $ 8,291,432 $ 27,501,362 $ 27,933,095 $ 28,327,164 $ 92,053,052 TOTAL PROGRAM COSTS $ 70,740,828 $ 79,106,455 $ 81,481,677 $ 83,459,919 $ 314,788,879 $ 63,213,863 $ 110,962,772 $ 111,903,845 $ 113,546,523 $ 399,627,003

15 Attachment 2 ESAP Savings PY

16 Attachment 2 ESAP Savings PY Measure Group Sum of 2017 kwh Sum of 2018 kwh Sum of 2019 kwh Sum of 2020 kwh Appliances 13,712,529 23,069,329 23,606,691 24,171,285 Domestic Hot Water 54, , , ,894 Enclosure 31,573 51,523 52,723 53,984 HECW 0 134, , ,959 HVAC 5,123,175 8,766,056 8,970,247 9,184,546 HVAC , , ,464 Lighting 5,837,970 10,373,735 5,307,687 2,717,315 Maintenance 87,432 86, , ,957 Maintenance ,851 71,478 Misc 3,524,677 5,169,575 5,289,992 5,416,511 SPS Tier 2 1,746,714 5,429,398 5,555,867 5,688,745 Grand Total 30,118,545 53,593,895 49,657,271 48,127,138 kwh to GWh