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California Public Utilities Commission


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									                                                California Public Utilities Commission
                                            LOW INCOME GOVERNING BOARD
Henry Knawls, Chairman                               Geoffrey W. Meloche                                Roberto Haro, Vice Chairman
County of Los Angeles                                Consumer Services Division, CPUC                   Latino Issues Forum, Greenlining Institute and NRDC
Department of Community & Senior Services

Diana Brooks                                         Maggie M. Cuadros                                  Karen Lindh, Secretary
Office of Ratepayer Advocates, CPUC                  North Peninsula Neighborhood Services Center Inc   Lindh and Associates

Susan E. Brown                                       Nancy Brockway                                     Katherine McKenney, Treasurer
Latino Issues Forum                                  National Consumer Law Center, Inc                  Public Member

  September 1, 1998

  President P. Gregory Conlon                                                       John Nall, Manager of Mass Market Energy
  Commissioner Jessie J. Knight, Jr.                                                Efficiency Programs
  Commissioner Henry M. Duque                                                       Southern California Edison Company
  Commissioner Josiah L. Neeper                                                     300 N. Lone Hill Avenue
  Commissioner Richard A. Bilas                                                     San Dimas, CA 91773
  California Public Utilities Commission
  505 Van Ness Avenue                                                               Yvette Vazquez, Senior Product Manager of
  San Francisco, CA 94102                                                           Public Policy Programs
                                                                                    San Diego Gas & Electric
  Dennis Guido, Senior (LIEE) Program Manager                                       P.O. Box 1831, Mail Code SD 1385
  (Mail Code H28L)                                                                  San Diego, CA 92112-4150
  Jeff Beresini, Senior (CARE) Program Manager
  (Mail Code H28G)                                                                  Anne Keegan, Market Consultant Products and
  Pacific Gas & Electric Company                                                    Services
  P.O. Box 770000                                                                   Southern California Gas Company
  San Francisco, CA 94177                                                           555 West Fifth Street, Mail Code 25D1
                                                                                    Los Angeles, CA 90013-1011

  Dear Commissioners and Utility Program Managers:

          The California PUC Low Income Governing Board (LIGB or Board) today forwards to you the
  enclosed recommendations for California Alternate Rates for Energy (CARE) and Low Income Energy
  Efficiency (LIEE)1 programs for 1999.

          The Low Income Governing Board was established by the Commission in Decision (D.) 97-02-
  014 to assist the Commission with the oversight of the CARE program and the LIEE program. A core
  charge to the Board is to assist the Commission in directing the transition of CARE and LIEE from
  separate utility administration to independent administration.

         The Commission has directed that the transition of CARE and LIEE to Independent Program
  Administration take place by January 1, 2000. On May 7, 1998, in Decision (D.) 98-05-018, the
  Commission determined that the utilities, will continue as interim program administrators in 1999. In

                    Formerly Direct Assistance Program (DAP).
this decision, the Commission directed the utility interim program administrators to develop their 1999
CARE and LIEE programs and budgets in consultation with the LIGB. The Commission further directed
the utilities to file their plans and budgets for the 1999 program year as Advice Letters, by October 1,

        In fulfilling the Commission’s directive that the utility interim program administrators consult
with the LIGB, the Board has undertaken a deliberative process leading to the attached recommendations.
The Board process was designed to develop a set of recommendations by the end of August, so that there
would be time for the utility interim administrators to include the LIGB recommendations in their
October 1 Advice Letters on these programs.3

         To develop its recommendations, the LIGB has solicited the advice and input of its Advisory
Committee, comprised of representatives of the utility interim administrators, community-based
organizations, service delivery entities, and other interested persons. After such consultations, the LIGB
took up the attached CARE and LIEE recommendations in four days of open meetings in late August,
with extensive comment and suggestion from the utilities and others. While not representing a consensus
of all present at these open meetings, each of the attached recommendations was passed by a majority of
the Board at these open meetings, and most were adopted unanimously.

         The Board in adopting the attached recommendations for Commission consideration is mindful
that 1999 is a transition year. The Board is proposing changes in program design with a dual purpose:
improve the delivery of bill assistance and energy efficiency to low-income customers in 1999, and
facilitate the ultimate transition to independent and competitive program administration in 2000 and
beyond. We are not proposing all the changes that might be considered to improve program functioning,
because these recommendations would be administered by the utilities as interim program administrators
for only one year. But we believe it is important to implement those changes that make sense in 1999 in
order to achieve a successful transition to independent administration by January 1, 2000.

        The Board is grateful to the interim utility program administrators, and the members of the
Advisory Committee and public who commented and provided suggestions and options for Board
consideration in its development of recommendations for CARE and LIEE programs for 1999. The
Board looks forward to working with the interim program administrators and the public to put these
Recommendations into place. The Board is also planning to participate in the rulemaking recently opened
by the Commission, Docket No. 98-07-037,in support of the Commission’s efforts to provide the best and
most efficient services to California’s low-income energy customers.

Henry Knawls

            Interim Opinion: Extension of Interim Administrators’ Term for Energy Efficiency and Low-Income Programs,
Decision (D.) 98-05-018, at 9.

             The Board has identified a number of areas where pilots would be beneficial to try out program alternatives and
develop information for future design choices. The Board will continue to work with the utility interim program administrators
and the Advisory Committee to flesh out these pilot proposals and will forward specific recommendations to the Commission on
these pilots at a later date.


c:    Administrative Law Judge Meg Gottstein
      Fred Harris, CPUC Legal Division
      Phyllis White , CPUC Energy Division
      LIGB Members
      LIGB Advisory Committee


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