October 19, 2011

Jim Hodges, TELACUAlex Jackson, NRDC

1

OverviewHistorical perspective

Equity program “Big Six” Measures

(1) attic insulation, (2) caulking, (3) weatherstripping, (4) low flow showerheads , (5) waterheater blankets, and (6) door and building envelope repairs that reduce air infiltration

Strategic Plan Shift in emphasis from equity to resource program Focus on cost-effectiveness

ESAP Objectives 2

Legislative ObjectivesSB 845 (1990); PUC code § 2790(a)

Consider both the cost-effectiveness of services and policy of reducing hardships facing low income households

Codified Big Six measuresAB 1393 (1999); PUC code §§ 327, 381.5

Leverage funds collected to fund the program with funds available from state and federal sources

Work with state and local agencies, community-based organizations, and other entities to ensure efficient and effective delivery of programs

Encourage local employment and job skill development Maximize the participation of eligible participants Work to reduce consumers’ electric and gas consumption, and

bills Protect and strengthen the current network of community

service providersESAP Objectives 3

Legislative ObjectivesSB 695 (2009); PUC code § 382

Ensure all eligible low income electricity and gas customers are given the opportunity to participate in low income energy efficiency programs by 2020

Provide long-term reductions in energy consumption at the dwelling unit based on an audit or assessment of the dwelling unit

ESAP Objectives 4

Strategic PlanGoal 1:  By 2020, all eligible customers will be

given the opportunity to participate in the LIEE (ESAP) program

Goal 1 results Marketing, Education and Outreach programs will be

highly successful The number of eligible households in California

receiving LIEE services will increase LIEE customers will be educated on the benefits of

energy efficiency and conservation behaviors  A trained LIEE workforce will accommodate future

job demand and educate their communities

ESAP Objectives 5

Strategic PlanGoal 2:  The LIEE (ESAP) programs will be an

energy resource by delivering increasingly cost-effective and longer-term savings

Goal 2 results  Other state, federal and local programs will be leveraged

to streamline and improve customer identification and program delivery

LIEE programs will be integrated with core energy efficiency programs to achieve economies of scale

Participants will receive comprehensive energy efficiency services that produce long-term energy savings for the state, while reducing low-income customers’ bills and improving their quality of life

ESAP Objectives 6

Commission ObjectivesComplimentary objectives

Provide an energy resource while providing low-income customers with ways to reduce their bills and improve their quality of life (D.07-12-051, p.3)

Programmatic initiative Provide all willing and eligible customers the

opportunity to participate by 2020 and receive all c0st-effective measures (D.07-12-051, p.4)

ESAP Objectives 7

Commission ObjectivesEmphasize opportunities to save energyTake advantage of all cost-effective EE

opportunitiesInclude measures that promote the quality of

life of participating customersEmphasize effective ways to inform customers

of the benefits of improved efficiencyLeverage and integrate other EE programs

(D.07-12-051, p.3-4)

ESAP Objectives 8

ConsiderationsIOU 2012-2014 ESAP applications propose to serve

fewer eligible households compared to 2009-2011 cycle Energy savings, energy education impacts Workforce impacts

ESAP participation has outpaced energy savings Number of homes treated under ESAP doubled from 2007-

2010 but reported energy savings have lagged behindAs currently assessed, ESAP increasingly less cost-

effective overall Three of four IOUs project lower overall TRC values for

2012-2014 programs than 2009-2011 cycle

ESAP Objectives 9

ConsiderationsIOUs propose to retire more ESAP measures

than they will add for the 2012-2014 cycleMeasures to be added:

PG&E: thermostatic low flow showerheads, SmartAC fan delay relays, and microwaves (piloted in the last cycle)

SCE: power saving surge protectors SCE is also replacing two-speed pool pumps with

variable-speed pool pumps SDG&E: smart strips SCG: thermostatic shower valves

ESAP Objectives 10

ConsiderationsMeasures to be retired:

PG&E: duct test and seal, central AC, and room AC SCE evaporative cooler and central AC maintenance SDG&E: central AC, duct test and seal, and

evaporative cooler covers SCG: tankless water heaters and duct test and seal

ESAP Objectives 11

DiscussionAre the Legislative and Commission objectives

for the ESAP currently in alignment?If not, what programmatic changes can be made

to help the ESAP achieve Legislative and Commission goals?

ESAP Objectives 12