Next Steps

2 Timelines and Action Items Immediate action items For parties: submit post workshop comments on all issues discussed in workshop In particular, CPUC is interested in feed-back on SWHPP white paper, scope of SWHPP evaluation, and cost-effectiveness methodology. For CPUC staff: Complete workshop report Topics that might be covered include overview of topics discussed at workshop, summary of post workshop comments and proposed timeline for CPUC action with regards to AB 1470 and CSI non- PV eligibility

3 Timelines and Action Items cont. Near/mid term action items Sept/Oct -- Itron and CCSE will complete interim evaluation of SWHPP and submit draft to CPUC Oct/Nov – Interim evaluation of SWHPP will be circulated publicly Nov/Dec – CPUC will begin the process of considering the results of the SWHPP interim evaluation, and scoping process for a staff proposal regarding AB 1470 and CSI non-PV eligibility for SWH.

4 Timelines and Action Items cont. Mid term/long term action items Based upon results of interim evaluation of SWHPP, CPUC may issue a staff proposal with recommendations for action regarding AB 1470 and CSI non-PV program. Though if results are deemed insufficient to inform a staff proposal, then CPUC will await results of final evaluation of SWHPP. CPUC staff proposal will be followed by an opportunity for public comment and public workshop to discuss staff recommendations for action

5 How will CPUC determine whether results of SWHPP are sufficient? The primary questions that the CPUC are seeking to answer through the evaluation of the SWHPP relate to the cost-effectiveness of incentives. They include: Are ratepayer funded incentives to SWH needed, or is SWH already a cost-effective to reduce natural and/or electric load? Is the provision of incentives for gas-displacing SWH a cost-effective way to reduce natural gas prices and greenhouse gas emissions? Are there market interventions other than offering financial incentives that will jump start the SWH market in CA? If SWH that displaces electricity is deemed not cost- effective in the absence of incentives, should the CSI Program extend non-PV eligibility to include SWH? At what level should these incentives be set?

6 Key Thoughts and Goals Understand state of SWH market in Ca. What barriers to deployment of SWH in Ca? How can regulatory intervention best address barriers and increase deployment of SWH? What drives value proposition of SWH? Does the public know what SWH is? What marketing and outreach measures can be undertaken to increase interest and public confidence in SWH?

7 Key Thoughts and Goals cont. Understand best practices for SWH What types of incentive programs have been effective in the past? What business models are most likely to result to increased deployment of SWH in Ca.? Should minimum equipment standards be adopted? What are they? What types of training programs are needed for installers, sales people?

8 Goals of SWH Evaluation Goal is to develop public policy based upon quantitative research and understanding of market drivers Cost Effectiveness Analysis In-depth research into a wide variety of cost-effectiveness metrics State wide market assessment of SWH industry Including breakdown of system costs, business structures of current market actors, comparison between SWHPP and other SWH incentive programs Measurement of actual SWH performance CCSE and Itron are measuring actual performance of a variety of different SWH technologies to validate SRCC performance estimates and understand actual reductions in natural gas and electricity usage associated with SWH Surveying participants and non-participants in SWH programs Itron and CCSE have been surveying both participants and non-participants of SWH incentive programs to understand why they chose to participate and what actions might be taken to facilitate their participation in the future.

9 Energy Division requests that parties submit informal comments to the entire service list for this workshop Energy will post and send request for post workshop comments no later than Aug. 29, Request will include specific instructions for submitted workshop comments and topics that Energy Division would like to see covered in post-workshop comments Post-workshop comments

10 Questions? Please contact Nick Chaset or Damon Franz at the CPUC Nick Chaset: Damon Franz: