Energy Efficiency Shareholder Incentive Mechanism

The Efficiency Savings and Performance Incentive (ESPI) mechanism was adopted on September 5, 2013 in D.13-09-023  The ESPI awards the Investor Owned Utilities (IOUs) for performance in both non-resource and resource activities, as follows:

  1. Energy Efficiency Resource Savings:  A performance award for ex-ante locked down and ex-post verified net lifecycle resource programs (energy efficiency programs that are intended to achieve and report quantified energy savings) energy savings measured in MW, GWh and MMTh.
  2. Ex-Ante Review (EAR) Process Performance:  A performance award for IOUs ex-ante review conformance. Access EAR Performance scoring memos here (using login information under “Login Form”).
  3. Codes and Standards (C&S):  A management fee award for the IOUs advocacy of codes and standards.
  4. Non-Resource Programs:  A management fee award for implementing non-resource programs (an energy efficiency program that has no directly attributed energy saving but the programs supports the energy efficiency portfolio through activities such as marketing or improved access to training and education.)

2020 References

2019 ESPI Earning Coefficients and Caps

Guidelines for the 2020 AL Submission

1.a. 2018 Evaluated Savings Award

1.b. 2019 Expected Savings Award

2. Ex Ante Review Performance

3 & 4. 2019 Codes & Standards and Non-Resource Management Fee

      2019 References

      2019 ESPI (2017 ex-post, 2018 ex-ante) Resolution

      Guidelines for the 2019 AL submission

      2018 ESPI Earning Coefficients and Caps

      Final 2018 Uncertain Measure List  

        1.a. 2017 Evaluated Savings Award

        1.b. 2018 Expected Savings Award

          2. 2018 Ex Ante Review Performance

          3 & 4. 2018 Codes & Standards and Non-Resource Management Fee

            2018 References

            2018 ESPI (2016 ex-post, 2017 ex-ante) Resolution  

            Guidelines for the 2018 AL Submission

            2017 ESPI Earning Coefficients and Caps

            Final 2017 Uncertain Measure List

            1. All reports and workbooks for 2018 ESPI awards

            1.a. 2016 Ex-Post Savings Award

             1.b. 2017  Ex-Ante Savings Award

             2. 2017 Ex-Ante Review Performance

            3 & 4. 2017 Codes & Standards and Non-Resource Management Fee

              2017 References (2015 Ex-Post and 2016 Ex-Ante):

              2017 ESPI (2015 ex-post, 2016 ex-ante) Resolution

              Guidelines for the 2017 AL Submission

              2016 ESPI Earning Coefficients and Caps

              Final 2016 Uncertain Measure List

              Final 2015 Uncertain Measure List

              1.a. 2015 Ex-Post Savings Award

              1.b. 2016 Ex-Ante Savings Award

              2. 2016 Ex-Ante Review Performance

              3 & 4. 2016 Codes & Standards and Non-Resource Management Fee

              2016 References (2014 Ex-Post and 2015 Ex-Ante):

              2016 (2014 ex-post, 2015 ex-ante) ESPI Resolution

              1.a. 2014 Ex-Post Savings Award

              1.b. 2015 Ex-Ante ESPI Savings Award

              2. 2015 Ex-Ante Review Performance

              3 & 4. 2015 Codes & Standards and Non-Resource Management Fee

                Guidelines for the 2016 AL Submission

                  2015 ESPI Earning Coefficients and Caps

                  Final 2015 Uncertain Measure List

                  Draft Documents:

                  2015 References

                  Legislative History

                  Rulemaking (R.)06-04-010 - Risk/ Reward Incentive Mechanism (RRIM)

                  • In Decision (D.)07-09-043, the Commission authorized a RRIM based on evaluated energy savings for the 2006-2008 and subsequent program cycles.

                  R.09-01-019 - Examining RRIM

                  • See R.09-01-019 for all Commission decision regarding incentive payments for the 2006-2008 program cycle and modifications to D.07-09-043.
                  • Energy Division RRIM White Paper - 2009 Staff proposal for reworking the RRIM.
                  • In D.10-12-049, the Commission authorized the utilities to apply for incentive awards for 2009 program activity using the formulas and framework generally used for the 2006-2008 RRIM true-up.
                  • In D.16-09-019, D.16-10-008, and D.17-03-003, the Commission adopted settlement agreements for the utilities to partially refund RRIM payments to customers.

                  Application (A.)11-06-027 et al. - 2009 "Bridge Year" Incentive Mechanism

                  • In D.11-12-036, the Commission adopted 2009 incentive earnings awards.

                  R.12-01-005 - Reforming RRIM; 2010-2012 Incentive Mechanism; Efficiency Savings & Performance Incentive (ESPI) Mechanism

                  • Continued implementation of reforms to the incentive mechanism as a successor docket to R.09-01-019.
                  • In D.12-12-032, the Commission approved a 2010-2012 incentive mechanism to award the utilities with a management fee on energy efficiency portfolio expenditures plus a performance bonus for conformance with ex ante review requirements.
                  • In D.13-09-023, the Commission approved the Efficiency Savings & Performance Incentive (ESPI) Mechanism to reward utilities based on expected and evaluated energy savings and expenditures for the 2013-2015 and subsequent program cycles.

                  R.13-11-005 - Modifications to ESPI Mechanism

                  • In D.15-10-028, the Commission modified the ESPI mechanism annual timeline.
                  • An Administrative Law Judge's ruling publishing a staff white paper recommending changes to the calculation of ex ante review process performance scores.
                  • In D.16-08-019, the Commission modified the calculation of ex ante review process performance scores.
                  • An Assigned Commissioner's ruling modified the 2018 ESPI process due to contracting delays.
                  • An Administrative Law Judge's ruling granted the motion of the Public Advocate's Office of the CPUC to direct Sourthern California Gas Company (SoCalGas) to show cause why SoCalGas should not be sanctioned for failing to comply with D.18-05-041, the CPUC code, and/or the CPUC Rules of Practice and Procedure.

                  A.17-01-013 et al. - Utility Business Plans

                  • In D.18-05-041, the Commission addressed relevant issues such as 2018-2025 budgets, statewide programs, and SoCalGas codes and standards programs.

                   

                  Legislative History last updated 11/25/19

                  Energy Efficiency Shareholder Incentive Mechanism