Executive Order

EXECUTIVE DEPARTMENT

STATE OF CALIFORNIA


Governor's Seal

EXECUTIVE ORDER D-56-02
by the
Governor of the State of California

WHEREAS, on January 17, 2001, I proclaimed a State of Emergency to exist due to the energy shortage in the State of California; and

WHEREAS, California continues to suffer the effects of the 2001 energy emergency caused by artificial shortages and market manipulation; and

WHEREAS, there remains a significant probability that these disruptions pose a threat of rolling blackouts throughout California affecting millions; and

WHEREAS, the associated high electricity prices have a serious impact upon the finances of the State and result in billions of dollars charged to California's consumers, businesses, utilities and taxpayers; and

WHEREAS, the unprecedented conservation efforts of the People of California during the summer of 2001 mitigated the effects of the energy emergency in the past and continued efforts are needed during the critical summer peak; and

WHEREAS, consumers have proven that they will reduce their energy consumption if provided financial incentives and additional tools to promote energy efficiency in their homes; and

WHEREAS, the customers of the San Diego Gas and Electric Company electric corporation reduced their electricity use by about seven percent in the summer of 2000; and

WHEREAS, it is estimated that the 20/20 rate reward program offered in the summer of 2001 was a key component of achieving 2,600 MW of peak demand savings during the June to September 2001 critical summer peak consumption months; and

NOW, THEREFORE, I, Gray Davis, Governor of the State of California, by virtue of the power and authority vested in me by the Constitution and statues of the State of California, including the California Emergency Services Act, do hereby issue this order to become effective immediately:

IT IS ORDERED that the Department of Water Resources shall implement a limited-term rate reward program for conservation efforts by residential customers of the electric corporations. Consistent with the 20/20 rate reward program offered in 2001, under this program, electric corporations shall provide rate reductions to consumers with credits of up to twenty percent of the customer's Summer 2002 bills for reducing electricity consumption by the minimum threshold set for their service area during July to October 2002. The minimum reduction threshold for the Pacific Gas and Electric and the Southern California Edison service areas should be twenty percent reduction over the corresponding July to October 2000 usage. The minimum reduction threshold for the San Diego Gas and Electric service areas should be fifteen percent reduction over the corresponding July to October 2000 usage. The program will be financed through a reduction in the electric corporations' payments to the Department of Water Resources in subsequent months.

IT IS FURTHER ORDERED that the Public Utilities Commission is requested to direct electric corporations to submit programs to carry out this Executive Order and promote consistency in its implementation.

IT IS FURTHER ORDERED that this order shall expire on December 31, 2002, unless extended or terminated earlier by a subsequent Executive Order.

I FURTHER DIRECT that as soon as hereafter possible, this order be filed in the Office of the Secretary of State and that widespread publicity and notice be given to this order.

California Seal IN WITNESS WHEREOF  I have hereunto set my hand and caused the Great Seal of the State of California to be affixed this the twenty-third day of May 2002.

/s/ Gray Davis

Governor of California

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