July 26, 2019

Advice No. 5495 (Southern California Gas Company – U 904 G)

Advice No. 4045-E (Southern California Edison Company – U 338 E)

Advice No. 4124-G/5596-E (Pacific Gas and Electric Company – ID U 39 M)

Advice No. 3404-G/2786-E (San Diego Gas & Electric Company – U 902 M)

Public Utilities Commission of the State of California

Subject: Southern California Edison Company, Pacific Gas and Electric Company, San Diego Gas & Electric Company, and Southern California Gas Company's 2018 Energy Efficiency Incentive Award Earnings Rates and Award Caps

Purpose

Southern California Gas Company (SoCalGas), on behalf of itself, Southern California Edison Company (SCE), Pacific Gas and Electric Company (PG&E), and San Diego Gas and Electric Company (SDG&E), (collectively, the IOUs) jointly submit this Tier 1 Advice Letter (AL) calculating the 2018 program year (PY) Efficiency Savings and Performance Incentive (ESPI) Mechanism earnings rates and award caps, as shown in Attachment A.

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@semprautilities.com

Advice No. 5495, et al. - 2 - July 26, 2019

Background

Ordering Paragraph (OP) 8 of Resolution E-5007 directs the IOUs to submit a Tier 1 AL by August 1, 2019 calculating the earnings rates and award caps for PY 2018.1Additionally, OP 9 directs the IOUs to clearly explain in their ESPI advice letter filings when there are discrepancies between their reported budgets and expenditures in their ESPI advice letter filings and their official California Energy Data and Reporting System (CEDARS) filings for the relevant years.

2018 PY ESPI Statewide Earnings Rates

The 2018 PY ESPI Statewide Earnings Rates are provided in Table 1, as calculated in the template presented in Attachment A. The budgets are allocated by savings type according to estimated relative contribution to portfolio net benefits within each IOU’s budget, then summed to calculate the total allocated statewide budget. PG&E’s and SDG&E’s budget allocations are 56.7%, 28.3%, and 15% for electricity, peak, and gas savings, respectively. SCE’s budget allocation is 67% for electricity savings and 33% for peak savings. SoCalGas’ budget is allocated 100% to gas savings.

Table 1 – 2018 PY statewide earnings rates

AllocatedBudget

÷ Lifecycle Savings =

StatewideEarnings

CoefficientElectric Savings (GWh/year) $30,574,599 11,196 $2,731Peak Demand Savings (MW) $15,185,806 2,184 $6,953Gas Savings (MMTh/year) $11,744,090 581 $20,2312

2018 PY ESPI Incentive Earnings Caps

The 2018 ESPI Award caps are provided in Table 2, as calculated in the template presented in Attachment A.

1 This AL submittal is provided prior to the issuance of Final Resolution E-5007, to be voted on the August 1, 2019 California Public Utilities Commission (Commission) meeting. The latest revision of Draft Resolution E-5007 was issued on July 11, 2019. 2 The gas coefficient of $20,231 is higher than what the table calculates due to rounding.

Advice No. 5495, et al. - 3 - July 26, 2019

Table 2 – 2018 ESPI award cap by component

EnergyEfficiencySavings

Ex Ante Review

Codes & Standards

Non-Resource Total

9% of resourceprogrambudget

3% of resourceprogrambudget

12% of Codes &

StandardsBudget

3% of Non-Resource

Budget

PG&E $25,313,097 $8,437,699 $1,868,921 $772,894 $36,392,611SCE $16,903,807 $5,634,602 $634,559 $451,202 $23,624,1713

SDG&E $8,635,841 $2,878,614 $121,538 $217,708 $11,853,7004

SoCalGas $6,651,749 $2,217,250 $91,293 $324,183 $9,284,475

Attachment A contains the template used to calculate the ESPI award rate and earnings caps and presents the 2018 ESPI Program Expenditure data. The calculations for the ESPI award rate and earnings caps is included in the worksheet labeled “2018 Earnings Rates & Caps.” The Program Authorized Budget data for PG&E, SCE, SDG&E, and SoCalGas, respectively, is presented in the worksheets labeled “2018 PY ESPI Program Budget.”

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 August 15, 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 addresses shown below on the same date it is mailed or delivered to the Commission.

For SoCalGas: Attn: Ray B. OrtizTariff Manager - GT14D6 555 West Fifth Street Los Angeles, CA 90013-1011 Facsimile No.: (213) 244-4957 E-mail: ROrtiz@SempraUtilities.com

3 The total is based on the values calculated in Attachment A. 4 The total is based on the values calculated in Attachment A.

Advice No. 5495, et al. - 4 - July 26, 2019

For SCE: Attn: Gary A. Stern, Ph.D.

Managing Director – Statewide Regulatory Operations Southern California Edison Company 8631 Rush Street Rosemead, CA 91770 Telephone No.: (626) 302-9645 Facsimile No.: (626) 302-6396 E-mail: AdviceTariffManager@sce.com

And

Attn: Laura Genao Managing Director, State Regulatory Affairs c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2030 San Francisco, CA 94102 Facsimile No.: (415) 929-5544 E-mail: Karyn.Gansecki@sce.com

For PG&E: Attn: Erik Jacobson Director - Regulatory Relations c/o Megan Lawson Pacific Gas and Electric Company 77 Beale Street, Mail Code B13U P.O. Box 770000 San Francisco, CA 94177 Facsimile No.: (415) 973-3582 E-mail: PGETarrifs@pge.com

For SDG&E: Attn: Megan CaulsonTariff Manager - CP31F 8330 Century Park Court San Diego, CA 92123-1530 E-mail: MCaulson@semprautilities.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 Resolution E-5007. Therefore, the IOUs respectfully request that it be made effective on July 26, 2019, which is the date submitted.

Advice No. 5495, et al. - 5 - July 26, 2019

Notice

A copy of this AL is being sent to SoCalGas’ GO 96-B service list and the Commission’s service list in R.13-11-005. Address change requests to the GO 96-B service list 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.

_________________________________Ronald van der Leeden

Director - Regulatory Affairs

Attachments

ADVICE LETTER S U M M A R YENERGY UTILITY

Company name/CPUC Utility No.:

Utility type:Phone #:

EXPLANATION OF UTILITY TYPE

ELC GAS

PLC HEAT

MUST BE COMPLETED BY UTILITY (Attach additional pages as needed)

Advice Letter (AL) #:

WATERE-mail:E-mail Disposition Notice to:

Contact Person:

ELC = ElectricPLC = Pipeline

GAS = GasHEAT = Heat WATER = Water

(Date Submitted / Received Stamp by CPUC)

Subject of AL:

Tier Designation:

Keywords (choose from CPUC listing):AL Type: Monthly Quarterly Annual One-Time Other:If AL submitted in compliance with a Commission order, indicate relevant Decision/Resolution #:

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:

Yes No

Yes No

No. of tariff sheets:

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:

Service affected and changes proposed1:

Pending advice letters that revise the same tariff sheets:

1Discuss in AL if more space is needed.

Southern California Gas Company (U 904G)

(213) 244-3837✔ ✔ROrtiz@semprautilities.com

Tariffs@socalgas.com

Ray B. Ortiz

5495, et al. 1

Southern California Edison Company, Pacific Gas and Electric Company, San Diego Gas & Electric Company, and Southern California Gas Company's 2018 Energy Efficiency Incentive Award Earnings Rates and Award Caps

Energy Efficiency✔

Resolution E-5007

No

✔

N/A

✔

7/26/19 0

N/A

N/A

N/A

N/A

N/A

Clear Form

CPUC, Energy DivisionAttention: Tariff Unit505 Van Ness AvenueSan Francisco, CA 94102 Email: EDTariffUnit@cpuc.ca.gov

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:

Name:Title:Utility Name:Address:City:State:Telephone (xxx) xxx-xxxx:Facsimile (xxx) xxx-xxxx:Email:

Name:Title:Utility Name:Address:City:State:Telephone (xxx) xxx-xxxx: Facsimile (xxx) xxx-xxxx:Email:

Zip:

Zip:

Regulatory Tariff ManagerSouthern California Gas Company

555 West Fifth Street, GT14D6Los Angeles

Ray B. Ortiz

California 90013-1011(213) 244-3837

(213)244-4957ROrtiz@semprautilities.com

California

SoCalGas Tariffs

Southern California Gas Company555 West Fifth Street, GT14D6

Los Angeles90013-1011

(213) 244-2837(213) 244-4957

Tariffs@socalgas.com

Clear Form

PG&E Gas and Electric Advice Submittal List General Order 96-B, Section IV

Pioneer Community Energy Praxair

Redwood Coast Energy AuthorityRegulatory & Cogeneration Service, Inc. SCD Energy Solutions

SCE SDG&E and SoCalGas

SPURR San Francisco Water Power and Sewer Seattle City Light Sempra Utilities Southern California Edison Company Southern California Gas Company Spark Energy Sun Light & Power Sunshine Design Tecogen, Inc. TerraVerde Renewable Partners Tiger Natural Gas, Inc.

TransCanada Troutman Sanders LLP Utility Cost Management Utility Power Solutions Utility Specialists

Verizon Water and Energy Consulting Wellhead Electric Company Western Manufactured Housing Communities Association (WMA) Yep Energy

AT&T Albion Power Company Alcantar & Kahl LLP

Alta Power Group, LLCAnderson & Poole

Atlas ReFuel BART

Barkovich & Yap, Inc. P.C. CalCom SolarCalifornia Cotton Ginners & Growers AssnCalifornia Energy CommissionCalifornia Public Utilities CommissionCalifornia State Association of CountiesCalpine

Cameron-Daniel, P.C.Casner, SteveCenergy PowerCenter for Biological DiversityCity of Palo Alto

City of San Jose Clean Power Research Coast Economic Consulting Commercial Energy County of Tehama - Department of Public Works Crossborder Energy Crown Road Energy, LLC Davis Wright Tremaine LLP Day Carter Murphy

Dept of General Services Don Pickett & Associates, Inc.Douglass & Liddell

Downey & Brand East Bay Community EnergyEllison Schneider & Harris LLP Energy Management Service

Engineers and Scientists of CaliforniaEvaluation + Strategy for Social Innovation GenOn Energy, Inc. Goodin, MacBride, Squeri, Schlotz & Ritchie Green Charge Networks Green Power Institute Hanna & Morton ICF

International Power Technology Intestate Gas Services, Inc. Kelly Group Ken Bohn Consulting Keyes & Fox LLP Leviton Manufacturing Co., Inc. Linde Los Angeles County Integrated Waste Management Task Force Los Angeles Dept of Water & Power MRW & Associates Manatt Phelps Phillips Marin Energy Authority McKenzie & Associates

Modesto Irrigation District Morgan Stanley NLine Energy, Inc. NRG Solar

Office of Ratepayer Advocates OnGrid SolarPacific Gas and Electric Company Peninsula Clean Energy