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Gov. Jerry Brown urged the California Public Utilities Commission to tap into unspent utility funds to keep millions of dollars flowing into renewable and energy efficiency programs. “We cannot afford to let any of these job-creating programs lapse,” Brown stated in a letter to the CPUC released Sept. 26. The state chief pleaded after legislators earlier this month failed to reauthorize the ratepayer-funded “public goods” program created in the deregulation era to bolster alternative energy projects. “I request that you take action under the Commission’s authority to ensure that programs like those supported by the Public Goods Charge are instituted—and hopefully at their current levels,” Brown wrote. CPUC president Mike Peevey in a Sept. 28 letter assured the governor that regulators would strive to continue the public good funding “without a pause.” Peevey added that he initiated a rulemaking to continue program funding that was set for an Oct. 6 vote. Program reforms are to be part of the discussion. Lawmakers and consumer advocates have complained about the program’s lack of cost effectiveness. Two proposed CPUC rulemakings were released earlier this month that seek to do just that. One, by administrative law judge Darwin Farrar, authorizes unspent investor-owned utility gas efficiency program funds to be diverted. He also includes untapped money in the accompanying evaluation, measurement and verification accounting programs. Finally, he would sweep a little electricity efficiency money into the gas program. Commissioner Mark Ferron’s alternate decision seeks to do much the same, except it would divert a larger sum of unspent utility electricity efficiency program funds into the gas program for another year. Specifically, Ferron also accesses electric efficiency monies that are not limited to those that also provide gas efficiency benefits. Life was made more difficult for agency clean energy pursuits not only after lawmakers fell short of the votes needed to reauthorize the public goods program, but also after they derailed money from ratepayers set aside to fund investor-owned utility efficiency programs. Lawmakers are using the funds to offset the state deficit. SB 87, passed last May, diverts $155 million of the $176 million of utility gas efficiency funds to be collected this year to the state’s general fund. The diversion would leave only $21.6 million for the gas savings program. Both Farrar and Ferron seek to backfill the money—that is, augment the $21.6 million—at least for the year. Both their proposals would tap into the millions of unspent Pacific Gas & Electric, SoCal Gas, and San Diego Gas & Electric gas and electricity efficiency money. Farrar’s estimate of available unspent gas funds is slightly greater, at $98.5 million, than Ferron’s, at $95 million. Both rulings also seek $17 million of unspent evaluation, measurement and verification accounting funds. On top of that, Ferron seeks a greater one-time diversion of unspent PG&E and SDG&E electricity efficiency program funds. The judge wants to divert $12.6 million of electricity efficiency money, while Ferron wants to transfer $47.9 million. “The unique circumstances” justify diverting electric efficiency funds to “prevent hardship,” wrote Ferron. He also states the decision is not precedent setting. Neither Ferron’s plan, nor the judge’s, would provide as much as originally anticipated for the gas savings program. Ferron’s would provide $160 million compared to the $176 million anticipated before SB 87 was enacted and the judge’s plan $150 million. Utility, consumer, environmental advocates, and other stakeholders agree on keeping the public goods programs funded, but disagree about where to get the money to fill the funding gap. The public purpose program entails a 1.5 percent surcharge on electricity bills, which funded state programs to advance energy efficiency, renewable energy, and energy research. At the California Energy Commission, the surcharge underwrote the public interest energy research program, as well as efficiency and renewable power programs. The fee, which was expected to raise about $400 million in the coming year, adds about $1.50/month to the average household utility bill. The Legislature’s failure to extend the surcharge means it is due to expire Jan. 1, 2012.

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