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duty to ensure that administrative costs are reasonable and limited to those <br />overhead and labor costs that are truly required to implement quality programs, <br />so that ratepayer funds are used to the greatest degree possible for the programs <br />themselves. <br />MA list of allowable administrative costs is attached to the December 2008 Assigned <br />Commissioner's Ruling, at attachment 5 -A. <br />31 February, 2006 ALJ Ruling in R.01 -08 -028 on reporting requirements for the utility <br />energy efficiency programs. <br />[Ordering Paragraph #13a] <br />a. Administrative costs for utility energy efficiency programs (excluding third party <br />and/or local government partnership budgets) are limited to 10% of total energy <br />efficiency budgets. Administrative costs shall be closely identified by and consistent <br />across utilities. Administrative costs shall not be shifted into any other costs category. <br />Utilities shall not reduce the non - utility portions of local government partnership and <br />third party implementer administrative costs, as compared to levels contained in budgets <br />approved herein, unless those levels exceeded 10% in the July 2009 utility <br />supplemental applications in this proceeding; <br />Citation 2: Administrative Costs- third parties and partnerships (p.63) <br />(p. 63] <br />An administrative cost cap of 10% on third party programs and local government <br />programs is also an important component of containing total portfolio administrative <br />costs. However, imposing a 10% administrative cost cap for each program within these <br />categories would be excessively burdensome for utilities, third party contractors and <br />government partners. Therefore, we direct the utilities to seek to achieve a 10 <br />administrative cost target for third party and local government partnership direct costs <br />(i.e., separate from utility costs to administer these programs). As combined total <br />program categories, third party and local government program administrative costs <br />should strive toward the 10% total administrative cost target. In addition, we agree with <br />comments by LGSEC and CCSF on the Proposed Decision that utilities should not be <br />permitted to unduly shift administrative cost cuts onto local government partnership and <br />third party implementers. Therefore, we direct the utilities to not reduce the non - utility <br />portions of local government partnership and third party implementer administrative <br />costs, as compared to levels contained in the budgets proposed by the utilities in their July <br />2009 applications and approved herein, except where these costs as filed exceed the 10 <br />01 -01 -2013 Proprietary & Confidential Page E -8 <br />